Accountants In Clifton Upon Teme Accountants In Woodcote Green Furniture xxx A credit note is prepared by the seller and it contains the date on
Date 12.2.1 Need At the end of each year, it is necessary to ascertain the net profit or net loss. For this purpose, it is first necessary to know the gross profit or gross loss. The trading account is prepared to ascertain this. The difference between the selling price and the cost price of the goods is the gross earning of the business concern. Such gross earning is called as gross profit. However, when the selling price is less than the cost of goods purchased, the result is gross loss. 22 Paid for repairs of typewriter 65 BASiC ACCOUNTiNg PrOCedUreS – ii JOUrNAL iii. to keep records of assets and liabilities in such a way that the financial position of the business may be ascertained.
Accountants In Sutton Farm 5 Returned to Gopal 10 bags of wheat which were purchased on 1.11.03. 4. Goods returned by customers are recorded
50,000 Apr 1 By Cash 50,000 50,000 50,000 3. What are the advantages of a Trial Balance? 2(b) 1. Prepare Trial Balance as on 31.12.2000 from the following balances of Mr.Balan. Rs. Rs. Capital 3,40,000 Purchases 94,000 Creditors 13,000 Sales Returns 3,400 Drawings 4,000 Purchases Return 2,400 Salaries 38,200 Carriage inwards 1,400 Bill Receivable 5,800 Printing & Stationery 5,000 bills payable 7,000 Stock 29,900 Debtors 16,000 Machinery 50,000 Sales 1,44,000 Wages 5,000 Insurance 2,200 Rent 1,600 Land 2,50,000 Interest received 1,700 Commission received 800 Electricity charges 2,400 [Answer : Rs. 5,08,900] 2. The following balances are extracted from the books of Mr.Senthil. Prepare Trial Balance as on 30.6.2004. 2. The purchases book is overcast by Rs. 1,500. Transaction 6: Rent paid Rs.3,000.
20 Furniture A/c. Dr. 7,000 __To Cash A/c 7,000 expenses A/c for purchase of The assets which have no physical existence and cannot be seen or felt. They help to generate revenue in future, e.g. goodwill, patents, trademarks etc. c( Fictitious Assets These assets are nothing but the unwritten off losses or non-recoupable expenses. They are really not assets but are worthless items. For example, Preliminary expenses. 4. Revenues or Incomes Accounts Purchases 1,58,000
enters in the credit side x. Fixing the Selling Price : In fixing the selling price, the businessmen have to consider many aspects of accounting information such as cost of production, cost of purchases and other expenses. Accounting information is essential in determining selling prices. iii. Discount earned.
Sends SellerTo 5. A transaction which increases the capital is called _________. i. the total amount spent on each expenses for a particular period can be easily ascertained by adding up the respective column. 2003
Accountants In Astley Cross Sales as per 19,500 Invoice No…… dated 1,97,000 5,57,000 5,57,000 Note: i. Purchases book overcast by Rs.1,300 ii. Sales book
2. Money Measurement 4. Assets are always equal to liabilities plus _________. ii. Transactions relating to properties, goods or cash May 1 To cash A/c 1,500 May 6 By Sundries: Postage and 1. Discount allowed column appears in _______ side of the cash book. 15 shiva returned 5 bags of rice.
2. 8,900 Total (B) *** Balance Sheet Debit CreditDate Particulars L.F.Rs.Rs. Basic Principles for Rectification of Errors
20 Bought furniture for cash rs. 7,000 Solution : 9. What are the rules for making entries in the double column cash book with cash and bank column? iv. Rs.5,000 spent towards expenses connected with rain water harvesting as per Government orders 20 By Furniture A/c 7,000
15,000 Discount received 1,000 6.6.1 Bills receivable Book Bills receivable )B/r( book is used for the purpose of recording the details of bills receivable. The individual accounts of parties from whom bills are received will be credited with the amount in the bills receivable book. The periodic total is posted to the debit of bills receivable account in the ledger by writing “To sundries as per Bills Receivable Book”. 10,000 Sales return 5,000 Wrong credit by banker ***Collections by banker as per customer***standing instructions