Question
Briefly explain any five utilities of a budget.

Answer

SELF

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The following is the trial balance of Miss H. Seattle as on 31st December, 2022.
Debit (₹)Credit (₹)
Salaries5,500
Wages33,000
Returns Accounted10,0008,000
Carriage Inwards12,000
Carriage Outwards10,000
Rent3,300
Insurance7,000
Stock on (1/1/2022)15,000
Rates and Taxes2,700
Power and Fuel8,000
Plant and Machinery1,00,000
Furniture and Fixtures10,000
Purchases1,20,000
Sales2,05,000
Investments (long-term basis)80,000
Income from Investments10,000
Commission Receipts12,000
Discount to Customers and from Creditors4,0006,000
Bad Debts Written off2,000
Cash in Bank25,000
Cash in Hand500
Capital2,20,000
Debtors' and Creditors' Personal Accounts52,00039,000
5,00,0005,00,000
Compile the final accounts for the owner, after attending to the adjustment given below.
(i) Closing stock is evaluated at the lower market price 42,000 ignoring the cost price, which is higher by ₹4,000.
From the following trial balance and other additional information obtained from the books of Mr. Sunil Gavaskar, prepare his trading account and the profit and loss account for the half-year ended 30th September, 2023 and his balance sheet as on that date:
Debit (₹)Credit (₹)
Capital Account1,55,000
Drawings Account9,000
Trade Expenses12,000
Cash in Hand750
Cash at Bank22,700
Freehold Premises1,30,000
Stock as on (1/4/2023)35,000
Purchases and Sales75,0002,50,000
Returns2,8002,000
Carriage Inward1,500
Carriage Outward3,500
Sundry Debtors and Sundry Creditors48,00025,000
Bills Receivable and Bills Payable22,00010,500
Furniture and Fixtures15,400
Bad Debts1,500
Wages25,000
Salaries19,850
Advertisement15,000
Rent, Rates and Taxes3,500
4,42,5004,42,500
(1) Stock was valued at ₹40,000 on 30.9.2023.
Explain the major factors that you would take into consideration in allocation expenditure between capital and revenue.
Give a classification of assets and liabilities.
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