Related InterviewSolutions

• State the usual adjustments that have to be made when final accounts are prepared.
• What is meant by Prepaid Expenses ? How are they adjusted in the final accounts ?
• What are the methods of recording Depreciation ?
• What is meant by Unearned Income ?
• Following Trial Balance has been extracted form the books of Prasad on 31st March, 2019: Additional Information : (i) Outstanding salaries were Rs 45,000. (ii) Depreciate Machinery at 10%. (iii) Rent Prepaid Rs 10,000. (v) Provide for interest on capital @ 5% per annum. (vi) Stock on 31st March, 2019 Rs 8,00,000. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date.
• Following balances are taken from the books of Niranjan. Prepare Trading and Profit and Loss Account and Balance Sheet for the year ended 31st March 2019. Adjustments: (i) Closing Stock Rs 7,50,000. Depreciate Machinary by `10%` and Furniture by `20%`. (iii) Wages Rs 50,000 and salaries Rs 20,000 are outstanding . (iv) Write off Rs 50,000 as further Bad debts and create `5%` Provision for Doubtful Debts. Also create a reserve for discount on Debtors `@ 2%`. (v) Investments were made on 1st July 2018 and no interest has been received so far.
• Why is it necessary to pass adjusting entries when final accounts are prepared ?
• Is CGST and SGST or IGST paid on puchase input GST or output GST? Why?
• What is meant by Provision for Discount on Debtors ?
• Lalit of Delhi purchased goods of `Rs 20,000` from Mehar of Kanpur. Whether IGST or CGST and SGST will be charged by Mehar ? Why?