Ask Question, Ask an Expert


Ask Accounting Basics Expert

Attempt all the problems


(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.

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

Question 1you own an automobile parts company and have been

Question #1 You own an automobile parts company and have been approached by a leading car manufacturer to supply parts to the company. How would you determine that the car manufacturer has a good record of servicing sale ...

Practice questionsthink of a business that you would like

Practice questions: Think of a business that you would like to start. Draw up a list of all the expenses the business would incur and indicate the source of the information you would need to calculate the figures for the ...

I need help with a t-chart account with the following1

I need help with a T-Chart Account with the following: 1. Received $10,000 contribution from Bill London, owner, in exchange for capital. 2. Paid utilities expense of $400. 3. Paid the liability from July 5 (Purchased eq ...

Assignment 1- q1 abc co has an account payable of 7700 due

ASSIGNMENT 1- Q1. ABC, Co. has an account payable of $7,700 due XYZ, Inc. , one of its suppliers.  The amount was due to be paid on October 15, 2013.  ABC, Co. only had enough cash on hand then to pay $1,700 of the amoun ...

Practice questionsexplain the importance of the assumptions

Practice questions: Explain the importance of the assumptions used by accountants. and describe any four.

Treatment of intangible assets and impairmentsdetermine

Treatment of Intangible Assets and Impairments Determine accounting alternatives for intangibles. There are a number of differences between IFRS and U.S. GAAP for the treatment of intangible assets and impairments. The i ...

Individual case study assignmentcash flow forecasts and

Individual Case Study Assignment Cash flow forecasts and projected financial statements For the following Individual Case Study, you assume the role of someone who has been asked to provide a Business Report for a group ...

Instructions1 this assignment is to be submitted in

Instructions 1. This assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook. 2. It is the responsibility of all students who have their name on the submitted ...

Practice questionsa large company has a distribution

Practice questions: A large company has a distribution department with its own garages and vehicles. Suggest six headings under which the costs of the department might be collected.

Research problem you are interviewing a client before

Research Problem : You are interviewing a client before preparing his tax return. He indicates that he did not list as income $96,000 received as a recovery for false imprisonment. What should you do with respect to this ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate