Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

problem 1: After having extracted the balances appearing in the books of GIGGS Plc. as at 30th November 2012, the Trial Balance failed to agree. In order not to holdup the preparation of the Financial Statements, a ‘Suspense Account’ was opened and the difference was entered in that Account and carried forward to the Draft Balance Sheet.

Thereafter on investigations, the given errors were discovered:

a) The Purchase Book had been undercast by Rs 1,000.

b) Goods bought on credit from A. Johnson for Rs.60 was posted in his account as Rs 600.

c) A New Computer costing Rs 12,000 had been posted to the debit of ‘Repairs and Maintenance Account’.

d) R. Rolo, a customer, returned goods valued at Rs.105.Although this was entered in the Returns Inwards Day Book, it was posted to the debit of the customer’s account.

e) Some pieces of furniture with a book value of Rs 4,000 were sold on credit. These were recorded in Sales Day Book.

f) Mr. Steeve, a customer owed Rs.750. This had been omitted from the Schedule of Trade Receivables.

g) A Cash Discount of Rs 250 was allowed to Miss Mary, a customer. This was properly entered in the Cash Book however no entry was made in her personal account.

h) Advertising Expenses amounting to Rs 1,500 paid in advance in the previous Accounting period had not been brought down to this year’s Advertising Expenses Account. Rather, it was again treated as a Prepayment in the Balance Sheet.

i) M. Paul, a Debtor, paid Rs.800 in settlement of his account however though entered in the Cash Book correctly; the account of M. Paula was credited rather.

When the errors were corrected, the balance on the ‘Suspense Account’ was decreased to zero.

Required:

a) prepare up the ‘Suspense Account’ comprising the initial entry made by Mr. GIGGS and give the Journal Entries essential to correct such errors.

b) Make a Statement of the corrected Net Profit for the year ended 30th November 2012 following corrections of the illustrated accounting errors.

Suppose that the computed Net Profit figure was Rs 45,200.

problem 2: Qualitative Characteristics are the attributes which make information given in Financial Statements helpful to others.

What are those Qualitative Characteristics?

problem 3: What do you mean by the term Conceptual Framework in Accounting?  

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M97016

Have any Question? 


Related Questions in Accounting Basics

Assignmentapplication implementation of the balanced

Assignment Application: Implementation of the Balanced Scorecard APA Format Implementation of the Balanced Scorecard The term "balanced scorecard" became part of the professional accounting vernacular in the early 1990s. ...

Exercise 1north company has completed all of its operating

Exercise 1 North Company has completed all of its operating budgets. The sales budget for the year shows 50,120 units and total sales of $2,128,200. The total unit cost of making one unit of sales is $22. Selling and adm ...

1 a title page replace this page with your title page

1. A title page (replace this page with your title page), proper grammar and a reference list. 2. A 2-3 page summary of the article - here's a suggested method for writing the summary: a. Read the article and make sure y ...

Questionsq1 discuss how the sec has influence if any over

Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Q2: Discuss the essential activities involved in the initial planning of an audit. How do these all specifically to the ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference "fairness of the federal estate tax and income and principal in fiduciary accounting" please respo ...

Assignment accounting qualitybased on the requirements of

Assignment: Accounting Quality Based on the requirements of the Sarbanes-Oxley Act and SEC reporting requirements for publically traded companies, Write a five page paper in which you: 1. Assess the roles of the Board of ...

Assessment one - business research report proposal initial

Assessment One - Business Research Report Proposal: Initial Research Proposal The initial research proposal will consist of the following SIX (6) items: 1. Identify a business research topic 2. Define the research questi ...

1 a b and c are the members of all llc a limited liability

1. A, B and C are the members of All, LLC, a limited liability company that is treated as a partnership for federal income tax purposes. All, LLC is contemplating taking a loan of $90,000 from a local Maryland bank to fi ...

Review the short list of account balances from data below

Review the short list of account balances from data below. From the account balances, generate an income statement, a statement of owner's equity and a balance sheet for a hypothetical small business. The adjusted trial ...

Westerville company reported the following results from

Westerville Company reported the following results from last year % 2013 operations: Sales $ 1,000,000 Variable expenses 300,000 -------------------------------------- Contribution margin 700,000 Fixed expenses 500,000 - ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen