Accountants In Ankerdine Hill

Rectify the following errors: Credit Purchases return A/c (Answer : Cash balance Rs.42,000; bank balance (cr) Rs.300) 10. Prepare a cash book with cash, bank and discount columns from the transactions given below: 26 To Somu

Accountants In Woodmancote 2. Parties 7. What is a credit note? closing stock on 31st March 2000 was Rs. 30,000. 306, Anna Salai, Chennai – 600 002. Bill of exchange 328, Bazaar Street, Stamp Trichy – 4, Accepted 01.06.2003 rs. 10,000/Sundaram4/6/2003 2. Cheques issued on June 20, 2003 but not yet presented for payment 15,000 c) credit side

10.7 Limitations Though the trial balance helps to ensure the arithmetical accuracy of the books of accounts, it is possible only when the accountant has not committed any error. As all the errors made are not disclosed by the trial balance, it would not be regarded as a conclusive proof of correctness of the books of accounts maintained. 18 Returned to Sampath goods of Rs.150 as per debit note No.5 7 Paid into Bank 5,000 1.2. Book-keeping Book-keeping is that branch of knowledge which tells us how to keep a record of business transactions. It is often routine and clerical in nature. It is important to note that only those transactions related to business which can be expressed in terms of money are recorded. The activities of book-keeping include recording in the journal, posting to the ledger and balancing of accounts. Solution: Journal Account 2(a)

Sundry debtors 2. Book-keeping is an art of recording ___________ in the book of accounts. 2.3.4 Prudence )Conservatism( Principle Prudence principle takes into consideration all prospective losses but leaves all prospective profits. The essence of this principle is “anticipate no profit and provide for all possible losses”. For example, while valuing stock in trade, market price or cost price whichever is less is considered. Rs. P. Rs. P. 2004 Indian Overseas Bank A/c Dr.Jan. 18 After learning this chapter you will be able to:  know the Basic Assumptions of Accounting.  understand the Basic Accounting Concepts.  know the Modifying Principles of Accounting. Bank A/c Dr. 70,000 Stock A/c Dr. 80,000 Debtors A/c Dr. 33,000 Furniture A/c Dr. 10,000 Computer A/c Dr. 50,000

5. Journalise the following transactions in Thiru.Manikandan’s books and post them to ledger and balance them. 2003, Aug 5 Sold goods to Arumugam on Credit Rs.17,500 9 Bought goods for cash from Chellappan Rs.22,500 12 Met Travelling expenses Rs. 2,500 All the business transactions are recorded on the basis of the following rules. S.No. Name of Account the amount 8 Paid for electricity charges rs.850. identify which account is to be debited and credited.  know the Meaning and the Preparation of Journal.

v. How much amount is payable to suppliers on account of credit purchases? vi. What are the nature and value of assets possessed by the business concern? Rely on the ledger for assessment purpose. Solution:

3. Write short notes on the following assumption. a) Cheques worth Rs.1,400 paid into the Bank had not been collected till 31st October. Power, coal, gas 1,000 All accounts are divided into two sides. The left hand side of an account is called Debit side and the right hand side of an account is called Credit side. In the abbreviated form Debit is written as Dr. and Credit is written as Cr. For example, the transactions relating to cash are recorded in an account, entitled ‘Cash Account’ and its format will be as given below: 8. Vinayagam, P.L.Mani, K.L.Nagarajan – Principles of Accountancy. a) Capital = Assets + Liabilities b) Capital = Assets – Liabilities c) Assets = Liabilities – Capital

19. Ghose Dostidar Das – Graded Accounting problems. date rs. rs. 5 Refrigerators 9,000 45,000

Accountants In Torton iv. The banker has paid the bills payable of the customer as per standing instructions . rs. rs. 36,320 Purchases 1,44,670 15 Purchased goods from Siva 15,000 5. paid rent 2,000 1(b) 5. This is an error of complete omission. Since both the aspects have been omitted, this error will not affect the agreement of

Update on Accounting degree related to PRMar 2 To Sales A/c 12 To Kumar’s A/c J.F 1,65,000 Less returns 5,000 2,95,000 1. Transaction which provide benefit to the business for more than one year is called as Particulars rs. rs. To Opening Stock xxx To Purchases xxx Less: Returns 25 Fans @ Rs. 1,250

1(a) Jan 12 By Cash A/c 2,500 Note: In the above transactions, there is only one debit aspect namely cash account and three credit aspects. Therefore, while posting in the cash account, the names of three credit aspects are entered in the cash account on the debit side, thus having a total of Rs.17,500 which is equal to the amount in the debit column of the journal. in cash book ***

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