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 the trial balance. 6. This is an error of partial omission. Since the principles of double entry is not completed, this error will affect the agreement of the trial balance. vi. Full details for control: This system permits accounts to be kept in a very detailed form, and thereby provides sufficient informations for the purpose of control. 2.2.2 revenue realisation Concept According to this concept, revenue is considered as the income earned on the date when it is realised. Unearned or unrealised revenue should not be taken into account. The realisation concept is vital for determining income pertaining to an accounting period. It avoids the possibility of inflating incomes and profits.
5. The bank has paid the annual subscription of Rs.100 to club according to instructions. 22. Paid for office cleaning Rs. 50 bank x x x Cash A/c. Dr. 5,00,000 Closing Stock on 31.3.2002 rs. 65,000.
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
30,000 consumed 2. Purpose Relates to the acquisition of fixed assets. 25 Paid to Siva 14,750 Illustration 5 Cash A/c
After studying this Chapter, you will be able to: Rs. Rs. 15,000 Carriage outwards 4,000 v. Dishonour of a cheque deposited and discounted bills receivable. In all the above cases, the entry will be first entered in the pass book of the customer. And the customer will know only after he verifies the entries in the pass book or statement of account . So there may be a time gap of some days before the customer includes the entries made in the pass book. 5 purchased building for Rs.3,00,000 2,65,000 2,65,000 Closing stock was valued at Rs.70,000.
converted into cash. items appearing in the debit side 1. Opening stock: Stock on hand at the beginning of the year is termed as opening stock. The closing stock of the previous accounting year is brought forward as opening stock of the current accounting year. In the case of new business, there will not be any opening stock. Rs. P. Rs. P. 2004 Cash A/c Dr.April 14