Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Attempt all the problems

problem1)

(a) describe Accounting. Briefly describe accounting concepts that guide accountant at the recording stage.

(b) “Ledger is said to be principal book entry and transactions could even be directly entered into ledger account.” Elaborate and describe why journal is essential.

problem2)
Book of Deven Verma can’t be tallied. Accountant transferred difference of Rs. 1,270 in the suspense account on debit side. The following mistakes were found later on.
Rectify these errors by passing Journal entries and prepare Suspense Account.

(a) Purchase of Rs. 400 from Saran was entered into sales book but Saran’s personal account was rightly credited.

(b) Sales of Rs. 430 to Ramdas were credited in his account Rs. 340.

(c) Sales of old furniture of Rs. 540 was credited to sales account as Rs. 450.

(d) Goods worth Rs. 100 were taken by the proprietor which was not recorded.

(e) Sales of Rs. 296 to Kishan were entered in sales book as Rs. 269.

(f) Balance of Sales Return Book Rs. 210 was not included in accounts.

problem3) A of city X consigns goods to B of city Y to be sold at or above invoice price. B is entitled to get the commission of 8% on sales at invoice price plus 25% of any surplus price realized. B accepted the bill of exchange drawn by A amounting to 50% of invoice price. In year 2010 goods consigned by A were invoiced at Rs. 2, 50,000. These goods cost to A Rs. 2, 00,000 (including freight). Sales made by B during year amounted to Rs. 2, 35,000. At the end of the year, goods unsold with B represented an invoice value of Rs. 60,000. During the year, A had received from B Rs. 40,000 by bank drafts, certain remittances being in transit on 31st Dec., 2010. Create essential ledger accounts in books of both the parties.

Also demonstrate how the consignment stock would appear in the Balance Sheet.

problem4) A merchant keeps incomplete records. During 2010 analysis of his cash book was as under:

                                                 Rs.                                                                        Rs.
Receipts from Debtors             4,000                      Bank overdraft (1-1-2010)        600
Additional Capital Introduced                                    Payments to Creditors            2,700
on 1-9-2010                            300                                General Expenses               900
Loan from C on 1-7 – 2010                                           Salaries                               300
@ 6% interest p.a.                    1,500                              Drawings                           400
                                                                                    Bank Balance (31-12-2010)  900
                                                  5,800                                                                      5,800

On 1st January, 2010 the following balances were recorded: Building Rs. 2,500; Stock Rs. 1,800; Debtors Rs 5,300 and Creditors Rs. 1,500.
The Balances on 31st Dec. 2010 were: Debtors Rs. 6,000; Building Rs. 2,500; Creditors Rs 1,900 and Stock Rs. 2,600.

Allow 5% depreciation on Building. Provide interest on C’s loan for six months. Create trading, Profit and Loss Account and Balance Sheet on 31-12-2010.

problem5)(a) What do you understand by Income & Expenditure Account? How does it vary from Receipts & Payments Account?

(b) describe the methods of recording depreciation in books of accounts. How is the balance of the provisions for depreciation account shown in the Balance sheet?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92963

Have any Question? 


Related Questions in Accounting Basics

Problemin an annual audit on december 31 2016 novelty

Problem In an annual audit on December 31, 2016, Novelty company provided the following transactions: 1. Merchandise was received on January 8, 2017, and related purchase invoice recorded on January 5, 2017. The invoice ...

Question 1how would outstanding checks be handled when

Question 1 How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance? A. They would be added to the balance of the bank statement. B. The ...

Accounting assignmentaccounting is the study of how

Accounting Assignment Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording busi ...

Agrichem industries manufactures fertilizer concentrate and

AgriChem Industries manufactures fertilizer concentrate and uses cost standards. The fertilizer is produced in 500-pound batches; the normal level of production is 250 batches of fertilizer per month. The standard costs ...

Company name is chevronapply ifrs 1 adopting ifrs and rev

Company name is Chevron Apply IFRS 1, "Adopting IFRS" and "Rev Rec" to your U.S. company used in the "Comparison Project" for the final effort in class which is to develop a plan for the transition to both IFRS and Rev R ...

The purpose of this comprehensive project is to use a

The purpose of this comprehensive project is to use a variety of resources to research a corporation. You will also prepare a written paper describing your corporation and summarizing the findings you have developed in t ...

Activity your accounting firm pennypacker amp vandelay llc

Activity: Your accounting firm, Pennypacker & Vandelay, LLC, has been asked by the Chairman of Harris Memorial Hospital and Harris Community Foundation to attend the annual board meeting to present the report of the Inde ...

International accounting1 tax jurisdiction and double

INTERNATIONAL ACCOUNTING 1. Tax Jurisdiction and Double Taxation Basis for taxation come from three common bases for taxation...they are source, citizenship, and residence. (Fill in the blanks below) a. The citizenship b ...

On october 1 little bobby corporations stockholders equity

On October 1, Little Bobby Corporation's stockholders' equity is as follows. Common stock, $5 par value                                       $400,000 Paid-in capital in excess of par- common stock             25,000 Ret ...

1 ahn nguyen a vietnamese joint stock company has net

1. Ahn Nguyen, a Vietnamese Joint Stock Company has net income of 52,000 Vietnamese Dong, () and the following items: Depreciation Expense   16,000 Accounts Receivable Increase                    12,000 Inventory Decreas ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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