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Ruchica’s father is the sole proprietor of ‘Friends Gifts’ , a firm engaged in the sale of gift items. In the process of preparing financial statements, the accountant of the firm Mr Goyal fell ill and had to proceed on leave. Ruchica’s father was in urgent need of the statements as these had to be submitted to the bank, in pursuance of a loan of Rs 5 Lakh applied for the expansion of the business of the firm. Ruchica who is studying accounting in her school, volunteered to complete the work. On scrutinizing the accounts the banker found that the value of the building bought a few years back for Rs 7 lakhs has been shown in the books at Rs 20 lakhs, which is the present market value. Similarly as compared to the last year the method of valuation of stock was changed, resulting in value of goods to be about 15 per cent higher. Also, the whole amount of Rs 70,000/- spent on purchase of personal computer (expected life 5 years ) during the year had been charged to the profits of the current year. The banker did not rely on the financial data provide by Ruchica. Advise Ruchica on the mistakes committed by her in the preparation of financial statements in the context of the basic concepts in accounting.
three golden rule in commerce.
basic rules of accounts
Business units lasts indefinitely Mention and explain the concepts on which the statement is based?
what is accrual basis of accounting?
sold goods for cash costing Rs 40,000 at a profit of 20% nd on credit costing Rs 72000 at a profit of 25%
what are the advantages and disavantages of cash basis and accrual basis of accounting?
what is accounting principle?
accounting concepts and accounting standards are generally referred
to as the essence of financial accounting’. Comment.
prepare accounting equation:- 1)cash paid to rohit in full settlement. 2)cash received from manish. 3)cash withdrew for personal use.
MR.prem commenced business of trading in electonic goods with an initial capital of 15,00,000 . Out of the said Rs. 15,00,000 he paid Rs. 10,00,000 towards purchase of Electronic goods, he further spent Rs. 2,00,000 on furnishing the shop andRs. 35,000 for purchase of computer printer,Rs.10,000 is yet to be paid to the supplier of computer.
He sold goods costing Rs. 5,00,000 for Rs . 7,00,000 in cash. and goods costing Rs. 2,50,000 for Rs. 3,10,000 on credit. Goods sold on credit for Rs. 25000 were returned being defective. These goods (costing Rs.20,000) were returned to the supplier.
looking into the response he decided to trade in Home appliances also and further invested Rs.5,00,000
He purchased Electronic goods and Home appliances for Rs. 8,00,000 out of which purchases of Rs.2,00,000 were on credit.
Due to Earthquake two LCD TV. costing Rs. 50,000 were compleately distroyed. Mr. Prem received an Insurance claim of Rs. 30,000
A customer purcahsed goods costing Rs. 2,25,000 for Rs. 3,00,000 and was allowed discount of Rs. 15,000 he was further allowed discount of Rs. 5,000 for payment within agreed time.
He paid salary to Mr. Shyam, Rs. 55,000 , Rs. 5000 yet to be paid .
He insured the goods and paid insurance premium of Rs. 10,000 out of this Rs. 5,000 are for the next year.
Prem withdrew Rs. 30,000 during the year for personal use.
kindly give me the workings to find out the following.
What is the value of closing stock,
what is the value of cost of goods sold
What is the value of the total Expenses incured by Mr. prem during the year.
matching concept? Why should a business concern follow this concept?
accounting standard --------the statue:a.can over- ride b.cannot over-ride c.may over-ride d.none
what is accrual concept
the money measurement concept? Which one factor can make it difficult
to compare the monetary values of one year with the monetary values
of another year?
what are the objectives of accounting standards??
difference between realisation and accrual concept
what is the difference between matching principle and money measurement concept
what is memorandum of association ?
Distinguish b/w revenue receipts and capital receipts ?
DEBIT AND CREDIT?
why capital is considered as a liability?? why it is said that business and businessman are two separate entities...plss explain in detail
difference between debtors and creditors?
what is the difference between demand draft and banker's cheque
Is there any Scope that You people will include IP (Informative Practice) for class XI ??
What is the difference between conservatism concept and matching concept? Doesn't it be contradictory?
what is imprest amount?
the basic accounting equation?
which accounting principle requires that the personal expense of proprietor or partner should be debited to drawings account?
Why is it necessary for the accountant to assume that the business entity will remain a going concern?
Does the principle of Money Measurement only state that all transactions should be monetory (quantitative) and should be recorded in the same currency of money?
what is meaning of GOING CONCERN CONCEPT?
PLEASE TELL IN SIMPLE LANGUAGE!
Explain the Going Concern Concept with the help of examples.
What is Debit and Credit?
Explain the implications of Accounting Period Principle. With an example if possible.
accounting standard kaha use hota hai and ind as kaha use hota hai dono me difference kya hai please explain in easy sentence or language
If bank overdraft is a personal a/c-then it is artificial , representative personal,or natural personal a/c?
What is the difference between Provision and Reserve ?
what is the difference between assets, liabilities and capital
what do you mean by accounting period concept ???
During the financial year 2009-10,Mohan had cash sales of Rs 90,000 and credit sales of Rs 60,000. His expenses for the year were Rs 70,000 out of which Rs 30,000 is still to be paid. Find out Mohan's income for 2009-10 following the cash basis of accounting
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