Question
Briefly explain the elements of Statement of Financial Position.
✓
Answer
Assets: Assets are the resources controlled by the enterprise as a result of past events and operations from which the future economic benefits shall flow to the enterprise. Thus, assets shall include tangible and intangible assets, which an enterprise owns.
Liabilities: Liabilities are the obligations of the enterprise from the past events and operations, which shall result in outflow of resources, i.e., assets.
Equity: Equity is the difference between the assets and liabilities.
Liabilities: Liabilities are the obligations of the enterprise from the past events and operations, which shall result in outflow of resources, i.e., assets.
Equity: Equity is the difference between the assets and liabilities.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
What is a Personal Account? Is Capital Account a Personal Account? If yes, why?
Define Accounting Standards. Explain its any two objectives.
Write a short note on 'balancing an account'. Explain by balancing a Cash Account.
Record the following transactions in the books of Sahdev & Sons assuming all transactions have been entered within the state of Bihar, Charging CGST and SGST @ 9% each.
|
1.
|
Bought goods from Nanak Bros. for ₹ 4,00,000 at 10% trade discount and 3% cash discount on purchase price. 25% of the amount paid at the time of purchase.
|
|
2.
|
Sold goods to Kumar & Sons. for ₹ 2,00,000 at 20% trade discount and 5% cash discount on sale price. 60% of the amount received by Cheque.
|
|
3.
|
Received from Gopi Chand ₹ 38,000 by Cheque after deducting 5% cash discount.
|
|
4.
|
Paid ₹ 20,000 for rent by Cheque.
|
|
5.
|
Paid ₹ 50,000 for salaries by Cheque.
|
|
6.
|
Goods worth ₹ 10,000 distributed as free samples.
|
|
7.
|
₹ 5,000 due from Chanderkant are bad-debts.
|
|
8.
|
Sold household furniture for ₹ 15,000 and the proceeds were invested into business.
|
Elucidate the following statement:
Cash Book is both Journal and Ledger'.
Cash Book is both Journal and Ledger'.
What is meant by the cash basis of accounting? Why is the cash basis of accounting not popular as a system of accounting?
Why Cash Book is called a book of original entry?
What is meant by Rectification of Errors? State its objectives.
Enter the following transactions in the Journal of M/s. Karim Bros., Prop. Shri Karim Khan, Kolkata, post to the Ledger:
Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
Inter-state transactions are subject to levy of IGST @ 12% and Intra-state transactions are subject to levy of CGST and SGST @ 6% each. GST is not levied on transactions marked with (*).
What is a Personal Account? Is Capital Account a Personal Account? If yes, why?