InterviewSolution
Saved Bookmarks
| 1. |
(i) What are the different causes that make a Trial Balance incorrect? (ii) Pass the rectifying Journal entries: (a) A credit sale of goods for ₹ 2,500 to Krishna has been wrongly passed through the Purchases Book. (b) ₹ 5,000 paid for freight on machinery purchased was debited to the Freight Account as ₹ 500. (c) The Returns Inward Book has been wrongly overcast by ₹ 100. (d) An amount of ₹ 500 due from Ramesh which had been written off as bad debt in previous year was recovered and had been posted to the Personal Account of Ramesh. (e) A sum of ₹ 460 owed by Hari had not been included in the list of debtors. |
|
Answer» A balance sheet is a financial statement that REPORTS a company's assets, liabilities and SHAREHOLDERS' equity at a SPECIFIC point in time, and provides a basis for computing rates of RETURN and EVALUATING its capital structure. |
|