Question
What are special purpose books?
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Answer
Business transactions are large in number and difficult to record; so, journal is sub-divided for quick, efficient and accurate recording of the business transactions. Special purpose books like, sales book and purchases book are maintained for those transactions that are routine and repetitive in nature. Recording through these books is economical and enables division of work among accountants.
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Mukesh found that the Trial Balance did not agree. He found the following errors:
- In the Sales Book for the month of January, total of Page No. 3 was carried forward to Page No. 4 as ₹ 1,000 instead of ₹ 1,200 and total of Page No. 7 was carried forward to Page No. 8 as ₹ 5,600 instead of ₹ 5,000.
- Goods returned to Anshuka ₹ 10,000 were recorded in the Sales Book.
- Bill Receivable for ₹ 800 from Riya was dishonoured and posted to the debit of Allowances Account.
Pass the Opening Entry from the following Balance Sheet as at 31st March, 2019 of Vikas:
What is an Account?
What will be the effect of the following on the Accounting Equation?
- Harish started business with cash ₹ 1,80,000.
- Purchased goods for cash ₹ 60,000 and on credit ₹ 30,000.
- Sold goods for cash ₹ 40,000; costing ₹ 24,000.
- Rent paid ₹ 5,000; and rent outstanding ₹ 2,000.
- Sold goods on credit ₹ 50,000 (costing ₹ 38,000).
- Salary paid in advance ₹ 3,000.
Give one example of Compensating error.
Write a short note on 'balancing an account'. Explain by balancing a Cash Account.
Rectify the following errors:
- Sales to Vinod of ₹ 143 posted to his account as ₹ 134.
- Sales to Vinod of ₹ 143 debited to his account as ₹ 134.
- Sales to Vinod of ₹ 143 credited to his account as ₹ 134.
What is a bank overdraft?
What are Errors of Principle?
Depreciation cannot be provided in case of loss in a financial year. Comment.