Question
Give two examples of entries which appear in a 'Journal Proper'.
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Answer
Opening Entry: Opening entry is recorded in the beginning of a financial year to open the books by debiting assets and crediting liabilities and the capital appearing in the Balance Sheet of the previous Year.
Closing Entries: Closing entries are passed at the end of the year to close the accounts relating to expenses and revenues (or Nominal Accounts) by transferring them to the Trading Account and Profit and Loss Account. For example, the Salary Account is closed by transferring its balance to the Profit and Loss Account, the Purchases Account is closed by transferring its balance to the Trading Account and so on.The entries passed are:
Closing Entries: Closing entries are passed at the end of the year to close the accounts relating to expenses and revenues (or Nominal Accounts) by transferring them to the Trading Account and Profit and Loss Account. For example, the Salary Account is closed by transferring its balance to the Profit and Loss Account, the Purchases Account is closed by transferring its balance to the Trading Account and so on.The entries passed are:
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What is meant by Accounting Information System? List four features of a good Accounting Information System.
On 31st March, 2019, Cash Book of a merchant showed bank overdraft of ₹ 1,72,985. On comparing the Cash Book with Bank Statement, following discrepancies were noted:
- Cheques issued for ₹ 60,000 were not presented in the bank till 7th April, 2019.
- Cheques amounting to ₹ 75,000 were deposited in the bank but were not collected.
- A Cheque of ₹ 15,000 received from Mahesh Chand and deposited in the bank was dishonoured but the non-payment advice was not received from the bank till 1st April, 2019.
- ₹ 1,50,000 being the proceeds of a bill receivable collected appeared in the Pass Book but not in the Cash Book.
- Bank charges ₹ 1,500 and interest on overdraft ₹ 8,500 appeared in the Pass Book but not in the Cash Book.
- Overdraft balance as per Cash Book of ₹ 500 on 28th February, 2019 was wrongly carried forward as debit balance. The error was noted at the time of preparing the Bank Reconciliation Statement as on 31st March, 2019.
From the following information, prepare Bank Reconciliation Statement as on 31st March, 2019:
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₹
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(i)
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Bank overdraft as per Pass Book.
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36,000
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(ii)
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Cheques issued but not presented for payment.
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19,700
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(iii)
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Cheques deposited with bank but not collected.
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25,000
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(iv)
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Cheques entered in Cash Book but not banked.
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9,000
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(v)
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Directly deposited to bank by a customer.
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11,000
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Aditya a retailer, has not maintained proper books of account but it has been possible to obtain the following details:
Calculate the net profit for this year and draft the Statement of Affairs at the end of the year after noting that:
Calculate the net profit for this year and draft the Statement of Affairs at the end of the year after noting that:
- Shop Fittings are to be depreciated by ₹ 780.
- Aditya has drawn ₹ 100 per week for his own use.
- Included in the Trade Debtors is an irrecoverable balance of ₹ 270.
- Interest at 5% p.a. is due on the loan from Naresh but has not been paid for the year.
On 1st May, 2019 Merchant & Co. sold goods to AB & Co. valued at ₹ 500 and drew upon them a bill at 3 months for the amount. AB & Co. accepted the draft on presentation. When the bill was about to mature. AB & Co. expressed their inability to meet it, and offered to pay Merchant & Co. ₹ 200 in cash and to accept a fresh bill for the balance plus interest at 6% p.a. for 3 months. Merchant & Co. agreed to the proposal and bill was renewed. On maturity, the bill was duly met.
Make the entries in the books of both the parties to record the above transactions.
Make the entries in the books of both the parties to record the above transactions.
The following are the balances extracted from the books of Mr. A. Mukhopadhyay. Prepare a Trial Balance as on 31st March, 2019:
“A Computer system is capable of performing many things." Explain some of the capabilities of a Computer system. Capabilities of a Computer system.
What do you mean by programmed or casual reports?
Gopal keeps incomplete records. On $1^{st}$ April, $2016, $ his position was as follows:
His position on $31^{st}$ March, $2017$ was as follows: Cash in hand $₹\ 3,000;$ Cash at Bank $₹\ 5,000;$ Stock $ ₹\ 44,000;$ Debtors $₹\ 21,000$; Fixed Assets $₹\ 80,000$; Creditors $₹\ 22,000$. You are informed that Gopal has taken stocks worth $₹\ 4,500$ for his private use and that he has been regularly transferring $₹\ 2,000$ per month from his business banking account by way of drawings. Out of his drawings he spent $₹\ 15,000$ for purchasing a Scooter for the business on $1$st October, $2016.$
You are requested to find out his profit or loss and to prepare the Statement of Affairs after considering the following:
→His position on $31^{st}$ March, $2017$ was as follows: Cash in hand $₹\ 3,000;$ Cash at Bank $₹\ 5,000;$ Stock $ ₹\ 44,000;$ Debtors $₹\ 21,000$; Fixed Assets $₹\ 80,000$; Creditors $₹\ 22,000$. You are informed that Gopal has taken stocks worth $₹\ 4,500$ for his private use and that he has been regularly transferring $₹\ 2,000$ per month from his business banking account by way of drawings. Out of his drawings he spent $₹\ 15,000$ for purchasing a Scooter for the business on $1$st October, $2016.$
You are requested to find out his profit or loss and to prepare the Statement of Affairs after considering the following:
- Depreciate Fixed Assets and Scooter by $10\%$ p.a.
- Write off Bad-Debts $₹\ 1,000$ and provide $5\%$ for doubtful debts on Sundry Debtors.
- Commission earned but not received by him was $₹\ 2,500.$
Prepare Trading and Profit and Loss Account and Balance Sheet from the following Trial Balance and information as on 31st March, 2019:
Adjustments:
Adjustments:
- Closing Stock was valued at ₹ 1,12,500.
- Commission include ₹ 1,200 being commission received in advance.
- Salaries and wages is outstanding for the month of Feb. & March, 2019.
- Depreciate Plant & Machinery by 15% and Motor Vehicle by 20%.
- Write off ₹ 500 as further Bad Debts and maintain provision for doubtful debts at 1% on debtors.