Question
Briefly explain the term ‘favourable balance as per cash book’
✓
Answer
Favourable balance (Debit Balance), as per the Cash Book, is an asset to an account holder. It is also known as debit balance as per the Cash Book. Favourable balance is the excess of total of debit side over total of credit side of a bank column of a Cash Book. In other words, favourable balance means excess of deposits over withdrawals.
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Enter the following transactions in the Journal of Ganesh Bros.:
|
2017
|
|
₹
|
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March 3
|
Sold goods to Dev
|
1,00,000
|
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March 5
|
Received from Dev in full settlement of his account
|
98,000
|
|
March 6
|
Sold goods to Manmohan
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80,000
|
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March 8
|
Manmohan returned goods
|
1,000
|
|
March 15
|
Received from Manmohan in full settlement of his account
|
78,200
|
| March 16 | Received cash from Ram and | 19,500 |
| Discount allowed | 500 | |
| March 20 | Paid cash to Pawan and | 4,700 |
| Discount received from him | 300 | |
|
March 25
|
Sold goods to Varun of the list price of ₹ 25,000 at 20% trade discount
|
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What is the reason for agreement of a Trial Balance?
“In case of a long term asset, repair and maintenance expenses are expected to rise in later years than in earlier year”. Which method is suitable for charging depreciation if the management does not want to increase burden on profits and loss account on account of depreciation and repair
Complete the following Accounting Equation by filling the missing amounts:
Open 'T' shape account of our Creditor 'X' and write the following transactions on the proper side:
| (₹) | ||
| 1. | Purchased goods from X on Credit | 40,000 |
| 2. | Paid to X | 30,000 |
| 3. | Returned goods to X | 6,000 |
| 4. | Purchased goods from X for Cash | 20,000 |
| 5. | Purchased goods from X on Credit | 50,000 |
| 6. | Paid to X | 45,000 |
“The role of accounting has changed over the period of time". Explain.
Cash Basis of Accounting is not a better basis for depicting the correct financial position of an enterprise. Do you agree? Give reasons in support of your answer.
Open 'T' shape account of our Debtor 'Ram' and write the following transactions on proper side:
| (₹) | ||
| i. | Sold goods to Ram on Credit | 20,000 |
| ii. | Received from Ram | 15,000 |
| iii. | Ram returned goods to us | 3,000 |
| iv. | Again sold goods to Ram on Credit | 10,000 |
| v. | Ram returned goods to us | 1,000 |
Enter the following transactions in the Journal of Arun Govil & Co.
|
2018
|
|
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June 1
|
Arun Govil & Co. paid into bank as capital ₹ 6,00,000.
|
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Jane 3
|
Purchased goods from Mukesh of the list price of ₹ 2,00,000 at 10% trade discount.
|
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June 4
|
One-fourth of the above goods returned to Mukesh for not being upto specifications.
|
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June 6
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Issued a cheque to Mukesh for the amount due to him after deducting 2% as cash discount.
|
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June 7
|
Withdrew from bank ₹ 2,50,000 for office use and ₹ 10,000 for personal use.
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June 10
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Purchased a machinery for ₹ 1,00,000 and spent ₹ 5,000 on its installation. Payment for machinery was made by cheque and installation expenses were paid in cash.
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June 12
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Sold goods for ₹ 1,00,000 to Amar.
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June 13
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Amar clears his account by giving a cheque of ₹ 98,500. Cheque is immediately sent to bank.
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June 15
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Purchased stationery for personal use ₹ 3,000 and for office use ₹ 5,000.
|
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June 20
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Purchased land for ₹ 2,00,000 and paid 1% as brokerage and ₹ 15,000 as registration charges on it. Entire payment is made by Cheque.
|
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June 30
|
Wages due to labourers ₹ 20,000 and salary due to the clerk ₹ 30,000.
|
Rectify the following errors:
- Sales to Vinod of ₹ 143 posted to his account as ₹ 134.
- Sales to Vinod of ₹ 143 debited to his account as ₹ 134.
- Sales to Vinod of ₹ 143 credited to his account as ₹ 134.