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

Accounting assignmentgrant film products wishes to expand

Accounting Assignment Grant Film Products wishes to expand and has borrowed $100,000. As a condition for making this loan, the bank requires that the business maintain a current ratio of at least 1.50. Business has been ...

Questionson may 5 2006 disney company completed an all

Questions On May 5, 2006, Disney Company completed an all stock acquisition of Pixar, a digital animation studio. Disney believes that the creation of high quality feature animation is a key driver of success across many ...

Intermediate accounting assignment1 the nail company paid

Intermediate Accounting Assignment 1) The Nail Company paid $1,200,000 to purchase 35% of the outstanding stock of the Toe Corporation. Toe Corporation reports $450,000 of net income and paid a cash dividend of $150,000. ...

Question 1 owners of business firms are the only people who

Question 1 Owners of business firms are the only people who need accounting information. Question 2  Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote oper ...

Infrastructure and gasb statement1 answer the following

Infrastructure and GASB Statement 1. Answer the following questions with regard to infrastructure: A) What is infrastructure? B) What are two methods that might be used to record infrastructure expense from year to year? ...

Assignmentattn ashok -find the interest rate on a loan

Assignment Attn: Ashok -Find the interest rate on a loan charging $912 simple interest on a principal of $4750 after 6 years. Find the principal of a loan at 6.2% if the simple interest after 5 years 6 months is $2387. H ...

Task -question 1 - saasu task 1you are working as an

Task - Question 1 - Saasu Task 1 You are working as an accountant in a regional accounting firm and have been approached by the owner of a start-up retail business. They have chosen Saasu as their accounting system and h ...

Write a paper about internal controlsassignmentcontent

Write a paper about internal controls Assignment Content Page - Introduction - Definition of internal controls(Books) - Components of internal control system(Books) - Examples of internal controls(Books or research paper ...

Accounting questionin germany and china separate

Accounting Question: In Germany and China separate institutions established by law carry out the roles of public accounting and auditing. What is the impact of this professional practice on the usefulness of internationa ...

Aountingfalcons incorporatedassetsnbsp20132012cash and

Accounting FALCONS INCORPORATED Assets   2013 2012 Cash and Marketable Securities 10 80 Mc.. Receivable 375 315 Inventories 615 415 Total Current Ass. 1,000 810 Net plant and equipment 1,000 870 TOTAL ASSETS 2,000 1,680 ...

  • 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