Select Board & Class

Login
Jinansh Mehta asked a question
Subject: Accountancy, asked on on 19/12/13
E.sai Phanidhar & 1 other asked a question
Subject: Accountancy, asked on on 18/11/15

. Mr.Prem commenced business in electronic goods with a initial capital of Rs.1500000. Out of the said Rs.1500000 he paid Rs.1000000 towards purchase of goods. He further spent Rs.200000 on furnishing the shop and Rs.35000 for purchase of computer and printer. Rs.10000 in yet to paid to the supplier of computer.

He sold goods costing Rs.500000 for Rs.700000 in cash and goods costing Rs.250000 for Rs.310000 on credit. Goods sold on credit for Rs.25000 were returned being defective. These goods costing Rs.20000 were returned to the supplier. Looking into the response he decided to trade in home appliances for Rs.800000 out of which purchases of Rs.200000 were on credit.

Due to earthquake 2 LCD Television costing Rs.50000 were completely destroyed.

Mr.Prem received an insurance claim of Rs.30000.

A Customer purchased goods costing Rs.225000 for Rs.300000 and was allowed a discount of Rs.15000. He was further allowed discount of Rs.5000 for payment within agreed time.

He paid salary to shyam of Rs.55000, Rs.5000 yet to be paid. He insured the goods and paid insurance premium of Rs.10000 out of this Rs.5000 are for the next year.Mr Prem withdrew Rs.30000 for his personal use.

You are required to answer the following questions.

01. What is the amount of the capital?

02. What is the amount of the fixed assets?

03. What is the amount of purchases?

04. What is the amount of long term liabilities?

05. What is the amount current liabilities?

06. How much expenses incur during the year?

07. What is the amount of prepaid expenses?

08. What is the amount of outstanding expenses?

09. What is the income earned?

10. What is the amount due from debtors?

11. What is the amount due to creditors?

12. What is the value closing stock?

13. What is the amount of trade discount?

14. What is the amount of cash discount?

15. What is the amount of drawings?

16. What is the amount of sales return?

17. What is the amount of purchase return?

Sakshi Khokher asked a question
Subject: Accountancy, asked on on 11/6/14
Harkiran Kaur asked a question
Subject: Accountancy, asked on on 10/7/12
Jasmeen asked a question
Subject: Accountancy, asked on on 18/8/15
Denzil Rodrigues asked a question
Subject: Accountancy, asked on on 1/6/12
Vishnu J asked a question
Subject: Accountancy, asked on on 3/5/20
Megha asked a question
Subject: Accountancy, asked on on 30/6/13
Gurjashan Bhangu asked a question
Subject: Accountancy, asked on on 8/1/14
Abdul asked a question
Subject: Accountancy, asked on on 19/3/19
Udiksha Singh asked a question
Subject: Accountancy, asked on on 24/7/12
Sham Sharma asked a question
Subject: Accountancy, asked on on 22/2/19
rajkashyap.kashyap46... asked a question
Subject: Accountancy, asked on on 9/11/11
Garg asked a question
Subject: Accountancy, asked on on 8/7/17
Arushi Gupta asked a question
Subject: Accountancy, asked on on 22/5/15
Sonali Soni asked a question
Subject: Accountancy, asked on on 15/8/13
Suhail asked a question
Subject: Accountancy, asked on on 9/12/15
Rishita Nvk asked a question
Subject: Accountancy, asked on on 23/8/17
​Comprehensive project starting with journal entries regarding the following transactions (sole proprietorship business), posting them to the ledger and preparation of Trial balance. 

​​The following are the transactions of M/s Poonam Traders. 


Date                  Particulars
2017
April 1              Poonam started his business with cash Rs. 3,00,000
​April 3              Poonam opened an account in a bank with cash Rs. 90,000
April 5              Purchased goods from Mohan Singh on credit Rs. 1,20,000 and also paid carriage of Rs. 6,000
April 7              Sold goods to Rajeev Rs. 60,000
April 8              Due to some quality defect Mohan Singh returned goods of Rs. 30,000
April 10            Sold goods to Ayesha for Rs. 2,10,000
April 11            Paid rent of Rs. 30,000
April 12            Purchased furniture for cash of Rs. 24,000
April 15            Paid through a cheque of Rs. 15,000 for advertisement 
​April 17            Withdrawn Rs. 18,000 from banf for personal use 
April 19            Recovered Rs. 1,95,000 from Ayesha in full settlement of his account
April 25            Goods costing Rs. 3,000 donated to NGO
April 27            Salaries paid to employees Rs. 45,000
April 29            Interest received from bank Rs. 6,000
April 30            Bought goods of the list price of Rs. 2,000 from Dalpat less 10% trade discount and 5% cash discount and paid 40% price immediately by cheque immediately

 
Aditya Mishra & 1 other asked a question
Subject: Accountancy, asked on on 7/4/14
Shivani Sharma asked a question
Subject: Accountancy, asked on on 1/8/17
Kritika Rao asked a question
Subject: Accountancy, asked on on 23/5/14
Ayush Vaidheeswaran asked a question
Subject: Accountancy, asked on on 19/6/10
Swapnil & 1 other asked a question
Subject: Accountancy, asked on on 2/7/13
Sibin Gangadharan & 1 other asked a question
Subject: Accountancy, asked on on 16/7/13
Ashwin Dingu asked a question
Subject: Accountancy, asked on on 13/6/16
Apoorva Mohta asked a question
Subject: Accountancy, asked on on 4/4/14
Rini R asked a question
Subject: Accountancy, asked on on 31/7/12
Sham Sharma asked a question
Subject: Accountancy, asked on on 15/2/19
Navneet Kaur asked a question
Subject: Accountancy, asked on on 30/8/13
Parvathy & 2 others asked a question
Subject: Accountancy, asked on on 7/7/15
Athuljenson asked a question
Subject: Accountancy, asked on on 31/8/13
Devadathan G Nair & 1 other asked a question
Subject: Accountancy, asked on on 12/2/14

Balancing T-AccountsThe last element of the account that we need to cover is itsbalance.

An accountsbalanceis the amount of that item at a particular point in time.

In a T-account we show the balance of the item at the start of the period (month or year) and at the end of the period.

Lets say that for our examples regardingGeorge's Catering, this was not the first period (year) covered. Lets sayGeorges Cateringhad actually been operating for 3 years before this year, and that the bank account had anopening balance(the balance at the beginning of a period) of $4,300.

This would be shown as follows:

The "b/f" stands for "brought forward". Sometimes this is written as "b/d", which stands for "brought down".

At the end of the period (month or year) a brief calculation is done to work out theclosing balance(the balance at the end of a period) of the account.

This is done as follows:

1. Quickly look over the account to find the side of the account that has the bigger total.

It should be fairly apparent that the debit side is the bigger side.

2. Now add up the total of all the individual entries on this side and put it as a total below all the other amounts on this side.3. Put the same total on the other side below all the entries.4. Add up all the individual amounts on the smaller side.

This comes to $20,700 in this example.

5. Work out the difference between this amount and the total inserted at the bottom.

$39,800 $20,700 = $19,100

6. Put this amount in just above the total and describe it as "Balance c/f" or "Balance c/d", together with the date.

This will ensure that the smaller side also adds up to the total.

7. Take this same amount ($19,100) and insert it on the opposite side below the total, and describe this as "Balance b/f" or "Balance b/d".The "Balance b/f" is the actualclosing balanceof the bank account (a debit balance). "Balance c/f" is just an entry used in calculating that the closing balance is $19,100 on the debit side. The "Balance b/f" indicates that the debit side is greater than the credit side by $19,100, and that we have $19,100 in our bank account at the end of May (the closing balance of the account).

Indeed, one could merely have taken the total of the debit side ($39,800) and subtracted the total of the credit side ($20,700) from this. We would arrive at the same answer: the bank account has a balance of $19,100 on the debit side.

However, the steps taken above represent the system that is used in accounting to work out the closing balances, and thus should be learned and practiced so that one knows what is going on with ones accounts when one examines them.

So, we have our opening balance (debit) of $4,300 and our closing balance (debit) of $19,100. Once again, this can be determined by a quick examination of the account.Lets try another account the account "loan". There were two journals involving the loan:

What would the T-account look like?

From this account we can determine that $5,000 was loaned on the 7th of April (a credit to the loan, meaning more of a liability), then $4,000 was repaid on the 13th of May (a debit, meaning less of the liability), leaving us with an outstanding balance (credit) of $1,000.

One can easily cross-reference between two accounts because of the contra account being used as the description of the transaction. In the "loan" account, "bank" is used as the description for the credit on the 7th of April. If you look in the "bank" account above, "loan" is inserted on the debit side of the T-account on the same date. We thus have an easy cross-reference.

With an account with one entry on one side, we do the following to show the closing balance:

We do not make any further entries to work out the closing balance the $4,000 balance is self-evident from the single entry.

Remember, each account has its own code or number (called a folio number), and this would normally be inserted next to the account name. So the final prepared T-account would look like this:

"Sal-1" is the individual code for the account "salaries" and would also be referred to in the journal entries relating to salaries. "J-1" is the code for "journal page 1". The folio number or code thus helps with tracing information from the journal entry to the individual T-accounts, or from the ledger (T-accounts) back to the journal entries.
Tanya asked a question
Subject: Accountancy, asked on on 10/6/12
What are you looking for?

Syllabus