3.2 Account Every transaction has two aspects and each aspect has an account. It is stated that ‘an account is a summary of relevant transactions at one place relating to a particular head’. iii. Sold old furniture for Rs.3,500 passed through the sales book. iv. Paid wages for the construction of Building debited to wages account Rs. 1,00,000. Rs. Particulars Rs. 5,000 By Sales 30,000 2. Particulars : Each transaction affects two accounts, out of which one account is debited and the other account is credited. The name of the account to be debited is written first, very near to the line of particulars column and the word dr. is also written at the end of the particulars column. In the second line, the name of the account to be credited is written, starts with the word ‘To’, a few space away from the margin in the particulars column to the make it distinct from the debit account. immediately book
4. Commission Paid from Devi] 20 Bought ink & paper 43 1. write the characteristics of Capital Expenditure. 122, Oppanakkara Street, Coimbatore – 6. 1670 capital, 1.4.2002 62,500
7. Explain the different kinds of errors. (Opened a current A/c.) example 14: Feb 3, 2004 – rent paid by cheque Rs. 5,000. Analysis of Transaction Income tax 750 Sundry Expenses Returns Inward Discount Allowed Rent and Rates To Sundry expenses To Commission paid To Discount allowed To Advertisement Wages 40,000
Accountants In Finstall Accountants In Frankley Green Secondary stage. 1. Received from the head cashier 1090 wrong credit 12. in the pass Ajai
Accountants In Fernhill Heath e) Direct deposit by a customer 800 Machinery 2. If the total debits exceeds the total credits of trial balance,
ii) Rs.3,500 paid for a typewriter was charged to office expenses account. A summary of the transactions and the reconciliation procedure is given in the table below. iii. Discount Rs.50 allowed to Mala has been credited to discount account. 11,000 Capital 1,78,000 3.1.2 Features
18 Sold to Ganesan Rs. 50,000. Solution: Journal 33,000 Sales 3,35,350 sales book for a credit purchase Date Particulars J.F Rs. Date 8. Printing charges 150
2004 Jaleel A/c Dr.March 15 Dec.31 Depreciation A/c Dr. 10,000 To Furniture A/c 10,000 (Depreciation written off ) Sales Account Cash in hand
Step 3 2(a) 1(b) 2.2 Basic Concepts of Accounting These concepts guide how business transactions are reported. On the basis of the above four assumptions the following concepts (principles) of accounting have been developed.
Accountants In Little Malvern 95 37,000 To Cash A/c understand the Origin of Transactions – Source Documents. understand the Concept of Accounting
Accountants In Blackminster By Bal c/d 505 v. Capital expenditure – as it is spent for bringing the asset into working condition. 5.
Accountants In Offenham Cross is to be debited Santhosh A/c is to be credited It is a summary of all the ledger balances –
(Answer : Cash balance Rs. 18,000) 2. Enter the following transactions in the single column cash book of Mrs. Lalitha. Sundry Debtors 55,000 14. Journalise the following in the Journal of Thiru.Gowri Shankar Rs. 2003, Oct. 1 received cash from Siva 75,000 35,928 35,928 Rectifying entries are passed for rectifying errors which might have committed in the book of accounts.
Accountants In Hagley 3(a) 3. Credit sales are recorded in By debiting or crediting the respective account with the required amount by giving
5,000 Interest paid 500 1.7.14 revenue step 2 classify the accounts under 5 Parthiban settled his account for Rs.3,750 by giving a cheque for Rs.3,690. 8 Parthiban’s cheque sent to bank for collection. 6. Repairs It shows opening stock only.