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Solve the following problems.

problem 1) Describe the concepts of accounting with exs.

problem 2) Prove that accounting equation is satisfied in all the following transactions of Mr.X

1) Commenced business with cash – Rs.80,000 (10 marks)

2) Purchased goods for cash – Rs.40,000 and on credit Rs.30,000

3) Sold goods for cash – Rs.40,000 costing Rs.25,000

4) Paid salary – Rs.2,000 and salary outstanding Rs.1,000

5) Bought scooter for personal use for cash at Rs.20,000

problem 3) Show rectification entries for the following:

a) Sales account is undercast by Rs.15,000

b) Goods returned by the customer Mr.X of Rs.5650 has been posted in the Return Inward Account as Rs.5560 and in Mr.X a/c as Rs.6,550.

c) Salary paid Rs.6,000 has been posted to Rent account

d) Cash received from Ram posted to Shyam account Rs.7,000

e) Cash received from Jadu Rs.8,640 has been posted to the debit of Madhu’s a/c

problem 4) The following balances are extracted from the books of Kiran Trading Co on 31st March2000. You are needed to prepare trading and profit and loss account and a balance sheet as on that date:

Opening Stock        5,000               Commission received    2,000
B/R                       22,500             Return Outward       2,500
Purchases              1,95,000          Trade Expenses        1,000

Wages                  14,000             Office furniture         5,000
Insurance               5,500             Cash in hand            2,500
Sundry Debtors     1,50,000         Cash at bank              23,750
Carriage Inwards     4,000            Rent and Taxes           5,500
Commission Paid      4,000           Carriage Outward        7,250
Interest on Capital   3,500            Sales                        2,50,000
Stationery              2,250            Bills Payable               15,000
Return Inwards       6,500            Creditors                   98,250
                                                 Capital                       89,500

The closing stock was valued at Rs.1,25,000

problem 5)  prepare brief notes on :

a) Outstanding Expenses

b) Prepaid Expenses

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M94867

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