Question
What is meant by Outstanding Expenses? Give its adjusting entry.
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Answer
Outstanding Expenses: These are the expenses which have been incurred during the year but have been left unpaid on the date of preparation of final accounts. In other words, the benefit of such expenses has been derived during the year but the payment of which has not yet been made.
Adjustment:
Adjustment:
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Enter the following transactions in the Sales Return Book of Raj Computers, Delhi:
Write up the Ledger Accounts.
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2018
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July 1
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Sohan & Sons returned 2 Laptops HP sold @ ₹ 40,000 each plus CGST and SGST @ 6% each
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July 2
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Ramesh 2 'Ricoh' printers sold @ ₹ 10,000 each plus IGST @ 12%
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July 25
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Dinesh, Chandigarh returned 10 HP Desktops sold @ ₹ 20,000 each plus IGST @ 12% for delayed supply
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July 26
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Computer Mouse returned by Ravi, Delhi sold to him for cash ₹ 2,000 plus CGST and SGST @ 6% each
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Why is only one account posted to the Ledger Account from the Cash Book?
List the following assets in order of liquidity:
Sundry Debtors, Stock, Land and Building, Plant and Machinery, Furniture, Investments, Cash in Hand and Cash at Bank.
Sundry Debtors, Stock, Land and Building, Plant and Machinery, Furniture, Investments, Cash in Hand and Cash at Bank.
Operating profit earned by M/s Arora & Sachdeva in 2016-17 was ₹ $17,00,000$. Its non-operating incomes were $₹ 1,50,000$ and non-operating expenses were ₹ $3,75,000$. Calculate the amount of net profit earned by the firm.
→What is meant by Adjusting Entries?
What is Accounting Information System?
From the following information, prepare the Trading Account for the year ended 31st March, 2017:
Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000; Freight and Packing ₹ 15,000; Packing Expenses on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹ 1,20,000.
Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000; Freight and Packing ₹ 15,000; Packing Expenses on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹ 1,20,000.
Ajay started business with capital of ₹ $5,00,000$ on $1^{\text {St }}$ April, 2022. He introduced additional capital of ₹ $3,00,000$ on $1^{\text {st }}$ October, 2022. He charged interest on capital @ $10 \%$ p.a. Calculate the amount of interest on capital and show it in the final accounts.
→Prepare a Trading Account from the following particulars for the year ended 31st March 2017:
Rectify the following errors:
- Purchases Book has been undercast by ₹ 1,000.
- Credit sale to Anu Prakash ₹ 7,000 was recorded in Purchases Book.
- Credit sale to Rahul ₹ 7,000 was recorded as ₹ 700.