37,265 Balancing : The cash book is balanced like any other account. The total of the receipt (debit side) column will always be greater than the total of the payment column (credit side). The difference will be written on the credit side as “By Balance c/d”. In the beginning of the next period, to show the cash balance in hand, the balance amount is recorded in the debit side as “To balance b/d”. 6. discounting When the holder of a bill is in need of money before the due date of a bill he can convert it into cash by discounting the bill with his banker. This process is referred to as discounting of bill. The banker deducts a small amount of the bill which is called discount and pay the balance in cash immediately to the holder of the bill.
2.1 Basic Assumptions The basic assumptions of accounting are like the foundation pillars on which the structure of accounting is based. The four basic assumptions are as follows: 5 sold goods to Kumar Rs.2,200 8. Capital account is an example of _________ account. The users and their need for information are as follows: Closing stock on 31.12.2002 Rs.45,000. [Answer : Gross profit Rs. 1,18,600, Net profit Rs.1,04,100, Balance sheet Rs. 2,97,900] 10. The trial balances of Mr.Uma Shankar shows the following balances on 31st March 2000. Prepare final accounts. debit balance Enter the following transactions in the purchases return book of Hari and post them into the ledger.
28 Tmt.Chitra settled her account Illustration 2: Prepare a Double Column Cash Book from the following transactions of Mr.Gopalan: The amount which a business owes to others is liabilities. Credit balance of personal and real accounts together with the capital account are liabilities. Liabilities x x x x x x ii( vertical form of Balance Sheet An accountant is also responsible for the work of a book-keeper. Sundry creditors 61,500
Name & Address of the Customer : Palanichami & Sons a) the cash column of a customer’s cash book. sales 11,80,000 Benefit enjoyed for more than one year. 8. Explain the term liabilities.
2003 By Purchases debit side of the cash book on the date of depositing the cheques into the bank. Dr. Cr. 7. What do you mean by current assets. Period of Bill 2 month 1 month
7 Received from robert rs. 6,000 Debit Bank iii. representative Persons: Accounts which represent a particular person or group of persons. For example, outstanding salary account, prepaid insurance account, etc. Journalise the following transactions in the books of Amar and post them in the Ledger:
Accountants In Frankley Green Secondary stage. 1. Received from the head cashier 1090 Wrong credit 12. in the pass Ajai & Vijay) 7,810 ii.
Accountants In Murcot iii. Bank charges payable for the agency and utility services rendered by the bank. Illustration 8 indian Overseas Bank …………………..
Accountants In Stoke Pound debit side single column cash Book of ……………. Credit Side [Answers : 1. subsidiary books, 2. purchases, 3. drawer, 4.
vii. Control over Assets: In the course of business, the proprietor acquires various assets like building, machines, furnitures, etc. He has to keep a check over them and find out their values year after year. To Office expenses In the ledger there are many personal accounts, some of them may show debit balances, some others may show credit balances. If all the names are to be written in the trial balance it will be unduly long. Therefore, a list of names with the debit balances is prepared. This list is known as ‘Sundry debtors’ (Sundry means ‘many’). Similarly, a list of names with the credit balances is prepared. This list is known as ‘Sundry Creditors’.
Bills Receivable 72,600 5 Travelling expenses 75 2004 Jan 1