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 of the cash book only. 20 Received a cheque for Rs.4950 from Nathan in full settlement of his account, which is deposited into Bank. Sales Account Dr. Cr. April1 By Balance b/d14,000
8. ‘Salaries and wages’ appear on the __________ account. k Machinery 70,000 11.4 revenue expenditure, Capital expenditure and deferred revenue expenditure – distinction S.No. Basis of Capital revenue distinction expenditure expenditure 1. Period of benefit Benefit is enjoyed beyond the accounting year, lasts for a long time. Illustration 6 From the following trial balance of Mr.John, prepare Trading, Profit and Loss Account for the year ending 31.12.2002. particulars debitparticulars Credit Rs. Rs.
Books of original entry (Journal) and Ledger can be distinguished as follows: Basis of Distinction 1. Book Debit the receiver understand the Procedure for Rectification of Errors.
3. Give transactions with imaginary figures involving the following: i. Increase in assets and capital, Bills receivable 15,000 2.4 Accounting Standards
Total Fixed Assets xxx The cash account is written on the credit side of the three accounts, namely, Sales, Kannan and Commission received, as it acts as an opposite and corresponding accounts for Sales Rs.10,000, Kannan Rs.5,000 and Commission Rs.2,500 respectively which are equal to the amount in the credit column of the journal. 10 tables @ Rs.200 per table 3 Paid in to Bank Rs.12,000 Rs. 2004 Jan. 1 Cash in hand 4,000 Creditors 13,000
Income is the difference between revenue and expense. a) all cash payments b) all cash receipts a) short life b) long life
The advantages of maintaining subsidiary books can be summarised as under : i. division of Labour : The division of journal, resulting in division of work, ensures more clerks working independently in recording original entries in the subsidiary books. Find out the rules of debit and credit. 6. What do you mean by accounting?