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Trial balance of John did not agree. He put the difference to suspense account and discovered the following errors.

(a) In the sales book for the month of January total of page 2 was carried forward to page 3 as Rs. 1,000 instead of Rs. 1200 and total of page 6 was carried forward to page 7 as Rs. 5,600 instead of Rs. 5,000.

(b) Wages paid for the installation of machinery Rs. 500 was posted to wages account as Rs. 50.

(c) Machinery purchased from R and Co for Rs. 10,000 on credit was entered in purchase book as Rs. 6,000 and posted there from to R and Co as Rs. 1,000.

(d) Credit sates to Mohan Rs. 5,000 were recorded in purchase book.

(e) Goods returned to Ram Rs. 1,000 were recorded in the sales book.

(f) Credit purchase from S and Co for Rs. 6,000 were recorded in the sales book. However, S and Co were correctly credited.

(g) Credit purchase from M and Co Rs. 6,000 were recorded in sales book as Rs. 2,000 and posted therefrom to the credit of M and Co as Rs. 1,000.

(h) Credit sales to Raman Rs. 4,000 posted to the credit of Raghvan as Rs. 1,000.

(i) Bill receivable for Rs. 1,600 from Noor was dishonoured and posted to the debit of allowances account.

(j) Cash paid to Mani Rs. 5,000 against our acceptance was debited to Manu.

(k) Old furniture sold for Rs. 3,000 was posted to sales account as Rs. 1,000.

(l) Depreciation provided on furniture Rs. 800 was not posted.

(m) Material Rs. 10.000 and wages Rs. 3,000 were used for the construction of a building. No adjustment was made in the books.

Rectify the errors and prepare suspense to ascertain the difference in trial balance.

State what is the end product of financial accounting.

Cash received from debtors is recorded in which of the following specialised book?

Explain the qualitative characteristics of accounting information.

To decrease the balance in the Creditor`s accounts, which of the following is correct?

Discuss with a set of inter-related data tables, the basics of creating queries in MS Access?

Credit sales to Mohan Rs. 10,000 were recorded as Rs. 12,000. This shall be rectified by a corresponding ___ in Mohan`s account.

Which accounting concept uses the rules " Every transaction effects two or more ledger accounts"?

The Air conditioner of a company was not working properly. An electrician was called to check the same. He was paid a sum of Rs 500 for his visit. The transaction was identified by the accountant & the same was communicated to the Finance Head that there has been an expenditure of Rs 500 on repairs & maintenance. The accountant feels that he has completed his job properly. Is he correct? If no, which step of the process of accounting has he missed out?

Rectify the following errors assuming that suspense account was opened. Ascertain the difference in trial balance.

(i) Depreciation provided on machinery Rs. 4,000 was not posted to depreciation account.

(ii) Bad debts written-off Rs. 5,000 were not posted to debtor's account.

(iii) Discount allowed to a debtor Rs. 100 on receiving cash from him was not posted to discount allowed account.

(iv) Goods withdrawn by proprietor for personal use Rs. 800 were not posted to drawings account.

(v) Bills receivable for Rs. 2,000 received from a debtor was not posted to bills receivable account.

M/s Saniya Sports Equipment does not keep proper records. From the following information, find out profit or loss and also prepare balance sheet for the year ended 31st December, 2016.

$\begin{array}{ccc}\text{Items}& \text{31st December,}& \text{31st December,}\\ & \text{2015 (Rs.)}& \text{2016 (Rs.)}\\ \text{Cash in Hand}& 6,000& 24,000\\ \text{Bank Overdraft}& 30,000& -\\ \text{Stock}& 50,000& 80,000\\ \text{Sundry Creditors}& 26,000& 40,000\\ \text{Sundry Debtors}& 60,000& 1,40,000\\ \text{Bills Payable}& 6,000& 12,000\\ \text{Furniture}& 40,000& 60,000\\ \text{Bills Receivable}& 8,000& 28,000\\ \text{Machinery}& 50,000& 1,00,000\\ \text{Investment}& 30,000& 80,000\end{array}$

Drawings Rs. 10,000 per month for personal use, fresh capital introduced during the year Rs. 2,00,000. A bad debts Rs. 2,000 and a provision of $5\%$ it to be made on debtors. Outstanding salary Rs. 2,400, prepaid insurance Rs. 700, depreciation charged on furniture $10\%$ per annum.

Which of the following errors shall be revealed by the Trial Balance?

What do you understand by accounting data? Discuss the stages through which it is finally transformed for being presented as information in financial statements.

The total of the debit side of Ram`s account, a creditor of the company is Rs 10,000, while the total of the credit side is Rs 20,000. Which of the following is true in this regards?

The owner withdraws cash from the business for personal use. Which of the following is true?

Which of the following is incorrect as regards to the Purchases Book.

The Balance Sheet of X, Y and Z who were sharing profits in the ratio of 5 : 3 : 2 as at March 31, 2007 :

$\begin{array}{ccccc}\text{Capital and Liabilities}& & \text{Rs}& \text{Assets}& \text{Rs}\\ \text{Creditors}& & 50,000& \text{Cash at Bank}& 40,000\\ \text{Employee's Provident Fund}& & 10,000& \text{Sundry Debtors}& 1,00,000\\ \text{Profit}\&\text{Loss A/c}& & 85,000& \text{Stock}& 80,000\\ \text{Capital A/cs}:& & & \text{Fixed Assets}& 60,000\\ \text{X}& 40,000& & & \\ \text{Y}& 62,000& & & \\ \text{Z}& \underset{–}{33,000}& \underset{–}{1,35,000}& & \\ & & \underset{–}{\underset{–}{2,80,000}}& & \underset{–}{\underset{–}{2,80,000}}\end{array}$

X retired on March 31, 2007 and Y and Z decided to share profits in future in the ratio of 3 : 2 respectively.

The other terms on retirement were as follows :

(i) Goodwill of the firm is to be valued at Rs 80,000.

(ii) Fixed Assets are to be depreciated to Rs 57,500.

(iii) Make a provision for doubtful debts at 5% on debtors.

(iv) A liability for claim, included in creditors for Rs 10,000, is settled and paid at Rs 8,000.

Prepare Revaluation Account and Partner's Capital Accounts.

Which principle directs a company to record an expense in the same period as the related revenues?

At the year-end, the total interest on capital is ______ to the profit & loss account?

Distinguish between special journal and general journal.

Explain verifiable objective concept or objectivity principle.

The purpose of adjustments is ___

Which of the following equation is related with Dual Aspect Concept?

Refctify the following errors and ascertain the amount of difference in trial balance by preparing suspense account.
(i) Credit sales to Mohan Rs. 7.000 were not posted.
(ii) Credit purchase from Rohan Rs. 9,000 were not posted.
(iii) Goods returned to Rakesh Rs. 4,000 were not posted.
(iv) Goods returned from Mahesh Rs. 1,000 were not posted.
(v) Cash paid to Ganesh Rs. 3,000 was not posted
(vi) Cash sales Rs. 2,000 were not posted.

Who are considered as the interested users of Financial Statements of any organisation?

Vinod Ltd., purchased a Plant on 1st April, 2005 for Rs.15,000. It purchased another plant on 1st October, 2005 costing Rs.20,000 and on 1st July, 2006 costing Rs.30,000. On 1st January, 2007 the Plant purchased on 1st April, 2005 became useless and was sold for Rs.2,000. Show Plant Account charging 10 % p.a. depreciation by fixed instalment method for four years. The plant purchased on 1st October, 2005 was sold for Rs.8,000 on 1st January, 2008. Accounts of the company are closed on 31st December each year.

Which of the following errors cannot be rectified?

What are the merits of random sampling?

State anyone feature of incomplete records ?

Arun sold goods to Bala for Rs. 16,000 and drew a bill on Bala for three months who duly accepted the same. Arun endorsed the bill to Charan. Charan endorsed it to his creditor Dharam. Dharam discounted the bill at 15% per annum. On the date of maturity, the bill was dishonoured and bank paid noting charges amounting Rs. 100.

Show the necessary journal entries in the books of Dharam.

Vishal sold goods for Rs. 7,000 to Manju on January 5, 2011 and drew upon her a bill of exchange payable after 2 months. Manju accepted Vishal's draft and handed over the same to Vishal after acceptance. Vishal immediately discounted the bill with his bank at the rate of 12% per annum. On the due date, Manju met her acceptance.

Journalise the above transactions in the books of Vishal and Manju.

If the Depreciation is not accounted, the net profit for the period will be ______

Which among the following is the external user of accounting information ?

Opening balance of cash account Rs 2,00,000, Expenditure Incurred Rs. 50,000, Cash sales amounting to Rs. 1,00,000. What is the closing cash balance.

Paid to Radha Rs 9500 in full settlement of Rs 10,000. Posting shall be made in Radha`s account ___ .

State the causes of difference occurred due to the time lag.

Bank added interest in the bank account will result in bank balance being ___ when compared to cash book balance.

A firm holds a stock which is heavily in demand. Consequently, the market value of this stock may be increasing. Normal accounting procedure would ignore this. Which concept covers this?

Note: Stock is always measured at lower of cost at which goods were purchased and the current price of those goods. (We'll study this later)

Which among the following is not a reason for depreciation ?

Which of the following are depreciable assets

Fresh capital introduction will increase ___.

The business transactions are recorded date wise to create proper record for all transactions. This is part of which of the following

X draws a bill on Y for Rs. 3,000. X endorsed this bill to Z. Y will pay the bill amount to :

Select the correct determiners for the blanks.

______ students were sent back home because they didn’t have ______ money to pay______ fees.

Discuss the need for preparing a balance sheet.

What do you understand by the term 'mode of business'?

The following balances appear in the books of Crystal Ltd on January 1, 2005

$\begin{array}{cc}\text{Items}& \left(Rs\right)\\ \text{Machinery account on}& 15,00,000\\ \text{Provision for depreciation account}& 5,50,000\end{array}$

On April 1, 2005, a machinery which was purchased on January 1, 2002 for Rs 2,00,000 was sold for Rs 75,000. A new machine was purchased on July 1, 2005 for Rs 6,00,000. Depreciation is provided on machinery at $20\%$ per annum on straight line method and books are closed on December 31st every year. Prepare the Machinery account and Provision for depreciation account for the year ending December 31, 2005.

A shopkeeper sells an article at the listed price of Rs.1500 & the rate of VAT is 12% at each stage of sale.

If the shopkeeper pays a vat of Rs.36 to the government, what was the price inclusive of tax at which the shopkeeper purchased the article from the wholesaler?

Give the advantages of a journal.