Question
What are the objectives of IFRS? (Any two)
✓
Answer
Objectives of IFRS:
- To develop, in the public interest, a single set of high quality, understandable and enforceable global accounting standards that require high quality, transparent and comparable information in financial statements and other financial reporting to help participants in the worlds capital markets and other users make economic decisions.
- To promote the use and rigorous application of those standards.
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Similar questions
Why expenditure is classified into capital and revenue.
Rectify the following entries assuming that the narration in each case is correct:
Calculate the due dates of the bills in the following cases:
|
|
Date of the Bills
|
Period
|
|
I.
|
1st February, 2017
|
2 months
|
|
II.
|
31st January, 2017
|
3 months
|
|
III.
|
30th September, 2017
|
2 months
|
|
IV.
|
30th September, 2017
|
3 months
|
|
V.
|
29th December, 2017
|
2 months
|
|
VI.
|
31st December, 2017
|
2 months
|
|
VII.
|
15th July, 2017
|
30 days
|
|
VIII.
|
27th January, 2016
|
1 month
|
What is a Ledger?
Do you think that the Convention of conservatism results in creation of secret reserves?
Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns?
Deposit of cheques (received from others) into Bank.
Deposit of cheques (received from others) into Bank.
Journalise the following transaction in the Books of the M/s. Bhanu Traders and Post them into the Ledger.
|
December, 2017
|
|
₹
|
|
1
|
Started business with cash
|
92,000
|
|
2
|
Deposited into bank
|
60,000
|
|
4
|
Bought goods on credit from Himani
|
40,000
|
|
6
|
Purchased goods from cash
|
20,000
|
|
8
|
Returned goods to Himani
|
4,000
|
|
10
|
Sold goods for cash
|
20,000
|
|
14
|
Cheque given to Himani
|
36,000
|
|
17
|
Goods sold to M/s. Goyal Traders
|
3,50,000
|
|
19
|
Drew cash from bank for personal use
|
2,000
|
|
21
|
Goyal traders returned goods
|
3,500
|
|
22
|
Cash deposited into bank
|
20,000
|
|
26
|
Cheque received from Goyal Traders
|
31,500
|
|
28
|
Goods given as charity
|
2,000
|
|
29
|
Rent paid
|
3,000
|
|
30
|
Salary paid
|
7,000
|
|
31
|
Office machine purchased for cash
|
3,000
|
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.
Show the accounting equation on the basis of following transactions:
- Ram started business with ₹ 25,000.
- Purchased goods from Shyam ₹ 10,000.
- Sold goods to Sohan costing ₹ 1,500 for ₹ 1,800.
An infrastructure company building highways has a contract to construct road of 25kms. The project is likely to be completed in 4 years. It has approached a bank seeking; finance. The bank has requested them to prepare projected yearly accounts whereas the company has argued that since the project shall be completed in 4 years, projected accounts: should be prepared for the end of the project. Is the company correct in its view? Give reasons.