Question
Write Short Notes on:
Applications of Computers in Accounting.
Applications of Computers in Accounting.
✓
Answer
Applications of Computers in Accounting.
- Recording of all business transactions: All the relevant business transactions are recorded accurately and regularly or making available up to-date accounting information to the management.
- Preparation of various ledger accounts: It prepares various ledger accounts such as Cash, Bank, Sales, Purchases, Debtors and various nominal and real accounts.
- Processing the payroll information: It processes the payroll inforrnation relating to wages and salaries paid or payable during the accounting period.
- Preparation of Trial Balance: It prepares the trial balance to ensure the arithmetical accuracy of accounting transactions so recorded, arranged and classified systematically.
- Preparation of Final Account: It is helpful in preparing the final accounts such as Manufacturing Account, Trading Account, Profit and Loss Account, Profit & Loss Appropriation Account and the Balance Sheet at the end of the accounting period. It also provides for the automatic reconciliation of accounts.
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Write short note on the following:
Readymade Accounting Software.
Readymade Accounting Software.
In the following Machinery Account, determine the missing values, if depreciation is to be charged @ 10% p.a. as per Straight Line Method:
Give the journal entries for the following adjustments:
-
Outstanding salary ₹ 3,500.
-
Rent unpaid for one month at ₹ 6,000 per annum.
-
Insurance prepaid for a quarter at ₹ 16,000 per annum.
-
Purchase of furniture costing ₹ 7,000 entered in the purchases book.
Distinguish between Bills of Exchange and Promissory Note on the basis of:
- Drawer.
- Acceptance.
- Payee.
- Number of parties.
From the following information, prepare Trading Account for the year ended $31^{st}$ March, $2019$:
Adjusted Purchases ₹ $6,60,000$; Sales ₹ $7,44,000$; Closing Stock ₹ $50,400$; Freight and Carriage Inwards ₹ $3,600$; Wages ₹ $6,000$; Freight and Cartage Outwards ₹ $2,000$.
→Adjusted Purchases ₹ $6,60,000$; Sales ₹ $7,44,000$; Closing Stock ₹ $50,400$; Freight and Carriage Inwards ₹ $3,600$; Wages ₹ $6,000$; Freight and Cartage Outwards ₹ $2,000$.
From the following figures, calculate Operating Profit:
Give rectifying Journal entries for the following errors:
- Goods returned by Mohan of ₹ 1,500 not recorded in books.
- Goods distributed as free samples for ₹ 5,000 not recorded.
- Depreciation of machinery of ₹ 10,000 not charged.
- Goods costing ₹ 780, selling price ₹ 1,000 given as charity not recorded.
Record the following transactions in the Purchases Return Book of Kamla Stores, Delhi for April, 2019:
| 2019 | |
| April 6 | Returned goods to Ramesh Brothers, Delhi purchased for ₹ 5,000 plus CGST and SGST @ 6% each |
| April 8 | Returned goods to Sohan Brothers, Meerut purchased for ₹ 10,000 plus IGST @ 12% |
| April 17 | Returned goods to Mahesh Brothers of ₹ 2,000 plus CGST and SGST @ 6% each |
How will be the following errors rectified?
- Sales Book is short casted by ₹ 5,000.
- Sales Return Book is short casted by ₹ 500.
- Balance of Sales Book is carried forward short by ₹ 1,000.
- Balance of Sales Return Book is carried forward short by ₹ 100.
What is meant by provision for doubtful debts? How are the relevant accounts prepared and what journal entries are recorded in final accounts? How is the amount for provision for doubtful debts calculated?