CLEAR
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Differentiate between expense and expenditure.
How do you find the missing figure on a balance sheet?
(i) Sales Book has been totalled ₹ 1, 000 short.
(ii) Goods worth ₹ 1, 500 returned by Green & Co. have not been recorded anywhere.
(iii) Goods purchased worth ₹ 2, 500 have been posted to the debit of the supplier, Gupta & Co.
(iv) Furniture purchased from Gulab & Co. worth ₹ 10, 000 has been entered in Purchases Book.
(v) Cash received from A ₹ 2, 500 has not been posted in his account.
The Correct Form of Accounting Equation Is
(i) Excise duty paid on purchase of new machine.
(ii) Wages paid to install a machine.
(iii) Repairs carried out on existing car.
(iv) Office block of building repainted for ₹ 50, 000.
(v) Paid telephone bill ₹ 2, 500.
(i) A credit item of ₹ 349 has been debited to a Personal Account as ₹ 439.
(ii) A sum of ₹ 625 written off from fixtures as depreciation has not been posted to the Depreciation Account.
(iii) ₹ 9, 000 paid for furniture bought have been charged to the Purchases Account.
(iv) A discount allowed to a customer has been credited to him as ₹ 145 in place of ₹ 154.
(v) A sale of ₹ 594 was posted as ₹ 495 in the Sales Account.
(vi) The total of Returns Inward Book has been added ₹ 10 short.
Pass the Journal entries to correct these errors and prepare the Suspense Account.
What are internal liabilities?
Are debtors fixed assets?
Give the opposite of: Earning money.
Net Loss occurs when:
expenses are greater than income
expenses=income
liabilities are greater than income
expenses are less than income
- Increase in cash and a decrease in capital
- Increase in cash and an increase in capital
- Decrease in cash and an increase in capital
- Increase in fees earned and an increase in capital
State True or False: The costs incurred in the process of earning revenue are called assets.
True
False
Amount invested by the owner in the firm is known as capital. It can be in form of:
Both A & B
Cash Only
Assets Only
None of the above
If a proprietor buys stock of Rs 10, 000 on credit, which of the following items of accounting equation shall be affected?
Liabilities only
Liabilities & Capital both
Assets & Liabilities both
Assets only
Particulars
|
1st April, 2017 (₹) |
31st March, 2018
(₹) |
|
Machinery | ................................................................................ |
8, 000
|
8, 000 |
Furniture | ................................................................................ |
2, 000
|
2, 000
|
Stock | ................................................................................ |
7, 000
|
5, 000
|
Sundry Debtors | ................................................................................ |
4, 000
|
4, 500
|
Bank Balance | ................................................................................ |
200 (Cr.)
|
1, 800 (Dr.)
|
Sundry Creditors | ................................................................................ |
5, 000
|
3, 500
|
Mr. X withdrew ₹ 4, 100 during the year to meet his household expenses. He introduced ₹ 300 as fresh capital on 15th January, 2018. Machinery and Furniture are to be depreciated at 10% and 5% p.a. respectively.
Is outstanding expenses a debt?
The gross decrease in economic benefits for business are called?
Expenses
Obligations
Incomes or gains
Creditors
State True or False: The resources owned by a business entity which give future benefits are called assets.
False
True
- Ledger
- Journal
- Primary entry book
- None of above
How will you define revenues and expenses?
Describe the informational needs of external users.
N.P. Jewelers received an order to supply gold ornaments worth Rs 5, 00, 000. They supplied ornaments worth Rs 2, 00, 000 up to the year ending 31st March 2018 and rest of the ornaments were supplied in April 2018. What shall be the revenue of N.P. Jewelers for the year ending 31st March 2018?
Rs 5, 00, 000
Rs 7, 00, 000
Rs 4, 00, 000
Rs 2, 00, 000
Debtors 80, 000
Bad debts 2, 000
Provision for bad debts 4, 000
It is desired to maintain a provision for bad debt of 1, 000. State the amount to be debited/credited in profit and loss account.
- 3, 000 (Debit)
- 5, 000 (Debit)
- 1, 000 (Credit)
- None of these
What is the impairment of fixed assets?
Ram, a fruit seller, sold oranges and received Rs 100. He borrowed Rs 100 from his friend Shyam. Classify them as revenue and liability.
Revenue - Money received from selling oranges
Liability - Money received from friendRevenue - Money received from selling oranges
Revenue - Money received from friendRevenue - Money received from friend
Liability - Money received from selling orangesLiability - Money received from selling oranges
Liability - Money received from friend
Paul is a book seller. He pays for electricity, buys a TV, and pays salary to the salesman. Identify assets or expenses in these transactions.
TV - Asset
Salary - Asset
Electricity - AssetTV - Asset
Salary - Expense
Electricity - ExpenseTV - Expense
Salary - Expense
Electricity - ExpenseTV - Asset
Salary - Expense
Electricity - Asset
Mr. Sahoo started business investing Rs 10, 00, 000. He purchased goods for Rs 4, 00, 000, Furniture for Rs 2, 00, 000 and plant and machinery of Rs3 , 00, 000 & Rs 1, 00, 000 remains in hand. What shall be the amount of assets of the business in total?
Rs 4, 00, 000
Rs 6, 00, 000
Rs 10, 00, 000
Rs 9, 00, 000
- All the three
- Creditors a/c
- Bank overdraft a/c
- Loan a/c
Liability is the amount received by a business entity from selling goods. Is this True or False?
True
False