Question
Briefly explain your understanding of IFRS.

Answer

IFRS are the accounting standards issued by the IASB, recommended to be used by the enterprises globally to produce financial statements following a single set of accounting standards. IFRS are principle based accounting standards in compar son to rule based Indian Accounting Standards. Also they are based on fair value concept.

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Explain the following briefly with appropriate example:
Revenue Recognition (Realisation) Concept.
State any two advantages between a bill of exchange and a draft.
How will be the following errors rectified?
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  2. Sales Return Book is short casted by ₹ 500.
  3. Balance of Sales Book is carried forward short by ₹ 1,000.
  4. Balance of Sales Return Book is carried forward short by ₹ 100.
Pass journal entries for the following:
2019
 
Jan. 6
Purchased goods from Henry for ₹ 50,000 on 10% trade discount and 4% cash discount and paid 60% amount by cheque.
Jan. 15
Bought goods from Amit for ₹ 2,00,000 at terms 5% cash discount and 20% trade discount. Paid $\frac{3}{4}\text{th}$ of the amount in cash at the time of purchase.
Jan. 18 Sold goods to Sherpa at the list price of ₹ 50,000 less 20% trade discount and 4% cash discount if the payment is made within 7 days. 75% payment is received by cheque on Jan. 23rd.
Jan. 25 Sold goods to Garima for ₹ 1,00,000, allowed her 20% trade discount and 5% cash discount if the payment is made within 15 days. She paid $\frac{1}{4}\text{th}$ of the amount by cheque on Feb. 5th and 60% of the remainder on Feb. 15th in cash.
A Company purchased a second-hand machine on 1st April, 2016, for ₹ 30,000 and immediately spent ₹ 4,000 on its repair and ₹ 1,000 on its installation. On Oct. 1, 2018, the machine was sold for ₹ 25,000. Prepare Machine Account after charging depreciation @ 10% p.a. by diminishing balance method, assuming that the books are closed on 31st March every year. IGST was charged @12% on purchase and sale of machine.
On 31st December, 2014 my Cash Book showed a credit balance of ₹ 8,800. I had paid into Bank three cheques amounting to ₹ 6,000 on 24th December of which I found ₹ 3,200 have been credited in the Pass Book under date 5th January 2015. I had issued cheques amounting to ₹ 8,000 before 31st December of which I found ₹ 2,500 have been debited in the Pass Book after 1st January 2015. I find a debit of ₹ 50 in respect of bank charges in the Pass Book which I have adjusted in the Cash Book on 31st Dec. There is a credit of ₹ 360 for interest on securities in the Pass Book which remains to be adjusted. A cheque of ₹ 1,200 deposited into bank has been dishonoured.
Prepare Bank Reconciliation Statement as on 31st Dec. 2014.
On 10th March, 2019, A draws on B a bill at 3 months for ₹ 20,000 which B accepts immediately and returns to A. The bill is honoured due date.
​Pass necessary Journal entries in the books of both the parties.
The following facts were extracted as at 31st December 2014 from the books of Rajesh Dogra who keeps a double column Cash Book:
 
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32,000
Balance as per bank statement (in favour)
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A cheque for ₹ 11,000 paid to Shashi Bhushan wrongly entered in the cash column.
Debit side of Cash Book (bank column) undercast by ₹ 1,000. Cheques received from customers ₹ 10,400 deposited on 31-12-2014 but credited by the bank on 2-1-2015.
Cheques issued to suppliers ₹ 76,600 during 2014 not yet presented for encashment.
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