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Calculate the amount which will be posted to income and expenditure account for the year ending 31st March, 2012.

$\begin{array}{cc}& \text{(Rs)}\\ \text{Opening stock of medicines on 1.4.2011}& 62,000\\ \text{Opening creditors of medicines on 1.4.2011}& 25,000\\ \text{Amount of advance payment for medicines on 1.4.2011}& 11,500\\ \text{Cash purchase of medicines during the year}& 3,70,000\\ \text{Closing stock of medicines on 31.3.2012}& 54,000\\ \text{Closing creditors of medicines on 31.3.2012}& 17,000\\ \text{Amount of advance payment for medicines on 31.3.2012}& 18,200\end{array}$

What
is a suspense account? Is it necessary that suspense account will
balance off after rectification of the errors detected by the
accountant? If not, then what happens to the balance still remaining
in suspense account?

Lara draws an accommodation bill on Sachin. The proceeds are to be borne between Sachin and Lara in the ratio of 3:1. The amount of bill Rs. 6,000, discounting charges Rs. 120. Discount borne by Sachin will be:

What are the objectives of Accounting Standards?

Why does John Ipe consider retirement to be a dishonour?

Which of the following can be done using a Bill of exchange?

Explain
basic factors affecting the amount of depreciation.

Under which depreciation method the amount of depreciation expense remains same throughout the useful life of a fixed asset?

Mahesh found a bicycle in a sale for Rs 2500 but it required a new brake cable and brake oil to make it work perfectly. He bought brake cable for Rs.82 and brake oil for Rs.20, fixed it up and then sold it to his neighbour for Rs. 3500. How much profit did he make on that deal? [4 MARKS]

A cheque of Rs 9,000 was deposited into the bank on 20th December but was credited into the pass book on 2nd January next year. What will be the adjustment on 31st December in cash book?

Rectify the following errors,

(a) Depreciation provided on machinery Rs. 4,000 was posted as Rs. 400.

(b) Bad debts are written off Rs. 5,000 were posted as Rs. 6,000.

(c) Discount allowed to a debtor Rs. 100 on receiving cash from him was posted as Rs. 60.

(d) Goods are withdrawn by the proprietor for personal use Rs. 800 were posted as Rs. 300.

(e) Bill receivable for Rs. 2,000 received from a debtor was posted as Rs. 3,000.

Which of the following are the various types of Trial Balance?

How
does reasoning help in solving problems?

If salary paid to employee is entered in the personal account of employee, will this error be revealed by the Trial Balance?

Mr. Ramu has the following transactions in the month of July.
July 1st : Ramu started business with a capital of 75,000
2nd : Purchased goods from Manu on credit 25,000
3rd : Sold goods to Sonu 20,000 for cash
4th : Purchased goods from Meenu 15,000 for cash
5th : Sold goods to Tanu for cash 16,000
6th : Goods retuned to Manu 2,000
7th : Bought furniture for 15,000
8th : Bought goods from Zenu 12,000 on credit
9th : Cash paid to Manu 10,000
10th : Sold goods to Jane 13,500 on credit

What shall be the cash balance after considering the above transactions?

What
kinds of errors would cause difference in the trial balance? Also
list examples that would not be revealed by a trial balance?

For rectification of which of the following errors, suspense account is used?

Interest earned on money deposited in bank should be ___.

Give
the journal entries for the following adjustments:

(a)
Outstanding salary at Rs 3,500.

(b)
Rent unpaid for one month at Rs 6,000 per annum.

(c)
Insurance prepaid for a quarter at Rs 16,000 per annum.

(d)
Purchase of furniture costing Rs 7,000 entered in the purchases book.

The representational data model through which ER design is transformed into inter-related data tables is called as ________.

Under single entry system, is it possible to check the arithmetical accuracy of books of accounts ?

Under the factoring arrangement, the factor

(a) Produces and distributes the goods or services

(b) Makes the payment on behalf of the client

(c) Collects the client's debt or account receivables

(d) Transfer the goods from one place to another

Prepare the trading and profit and loss account and a balance sheet of M/s Shine Ltd. from the following particulars.

$\begin{array}{cccc}\text{Account Title}& \text{Amt.(Rs)}& \text{Account title}& \text{Amt.(Rs)}\\ \text{Sundry Debtors}& 1,00,000& \text{Bills Payable}& 85,550\\ \text{Bad Debts}& 3,000& \text{Sundry Creditors}& 25,000\\ \text{Trade Expenses}& 2,500& \text{Provision for Bad Debts}& 1,500\\ \text{Printing and Stationery}& 5,000& \text{Return Outwards}& 4,500\\ \text{Rent, Rates and Taxes}& 3,450& \text{Capital}& 2,50,000\\ \text{Freight}& 2,250& \text{Discount Received}& 3,500\\ \text{Sales Return}& 6,000& \text{Interest Received}& 11,260\\ \text{Motor Car}& 25,000& \text{Sales}& 1,00,000\\ \text{Opening Stock}& 75,550& & \\ \text{Furniture and Fixture}& 15,500& & \\ \text{Purchase}& 75,000& & \\ \text{Drawings}& 13,560& & \\ \text{Investments}& 65,500& & \\ \text{Cash in Hand}& 36,000& & \\ \text{Cash at Bank}& 53,000& & \\ & \overline{\underset{–}{\underset{–}{4,81,310}}}& & \overline{\underset{–}{\underset{–}{4,81,310}}}\end{array}$

Adjustments

1. Closing stock was valued Rs. 35,000.

2. Depreciation charged on furniture and fixture 5%.

3. Further bad debts Rs. 1,000. Make a provision for bad debts 5% on sundry debtors.

4. Depreciation charged on motor car 10%.

5. Interest on drawings 6%.

6. Rent, rates and taxes was outstanding Rs. 200.

7. Discount on debtors 2%.

Pawan is a cycle shop owner. At the beginning of a month, he bought a TV which has a life of 3 years for Rs. 12000. He sold cycles worth Rs. 8000. So he told his accountant that he has made a loss of Rs. 4000 (Rs. 8000 - Rs. 12000). His accountant corrects him stating that he cannot deduct the total amount of TV from the revenue. But he will just reduce on one year worth of TV value (1/3 * 12000) which is Rs. 4000. Hence he will have a profit of Rs. 4000 (Rs. 8000 - Rs. 4000).

Now, Pawan counters his accountant that if his business doesn't last and shuts down in a year, would it be correct to deduct only one year worth of TV value. His accountant responds by asking Pawan to be optimistic that his business would go on for a long time.

What are the concepts covered in this passage?

In case of Errors of Principle, there is no effect on the Trial Balance as the amounts are placed on the correct side of the Trial Balance though in wrong accounts. Is the above statement correct?

Explain
the process of preparing bank reconciliation statement with amended
cash balance.

Which software are designed to meet the specific requirements of the users and form an important part of the organisational MIS?

The difference between the final amount and the original principal is called _______ .

Solve the following problems.

Kareem sold an old two wheeler for Rs. 15,000 at the rate of 1% commission. If he takes his commission and gives the remaining amount to the owner, how much amount does he get?

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