Question
Define Depreciation.
✓
Answer
Depreciation is a fall in value of an asset because of its usage or with efflux of time or due to obsolescence or accident. “Depreciation is the permanent and continuing diminution in the quality, quantity or value of an asset".
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Purchases Book is a record prepared from the invoices received from suppliers. Is it correct? Give reasons.
Identify the values involved in the assumption of going concern.
$X$ started a business on $1^{\text {st }}$ April, $2013$ with a Capital of $₹ 1,00,000$ and a loan of $₹ 50,000$ from the bank. On $31^{\text {st }}$ March, $2014$, his assets were ₹ $1,75,000$. Find out his Capital as on $31^{\text {st }}$ March, $2014$ and profit earned during the year $2013-14.$
→Prepare an Accounting Equation from the following:
- Started business with cash ₹ 1,00,000.
- Purchased goods for cash ₹ 20,000 and on credit ₹ 30,000.
- Sold goods for cash costing ₹ 10,000 and on credit costing ₹ 15,000 both at a profit of 20%
Find out the due dates of the bills in the following cases:
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Date of the Bills
|
Period
|
|
I.
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29th May, 2017 | 4 months |
|
II.
|
31st March, 2017 | 1 month |
|
III.
|
21st July, 2017 | 60 days |
|
IV.
|
14th May, 2017 | 90 days |
|
V.
|
28th January, 2016 | 1 month |
|
VI.
|
31st January, 2016 | 1 month |
|
Emergency holiday 22nd September
|
Identify the stakeholder group who would be most interested in the following:
- The ethical or environmental activities of the firm.
- Whether the firm has a long-term future.
- The ability of the firm to carry on providing quality products.
Land and Buildings are shown at ₹ 10 Lac in the Balance Sheet of the business owned by Mr. Yuvraj. However, as per the certificate of Govt. approved valuer the realisable value of Land and Building is ₹ 200 Lac. Mr. Yuvraj wants to show the Land and Building at this value in his books. Can he do so?
What are special purpose books?
You are to open the books of Rajesh Prabhu, Gurugram (Haryana) a trader, through the Journal to record the assets and liabilities and then post the transactions to the Ledger for the month of April, 2019.
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 (*).
Open a 'T' shape account of creditor, 'Rakesh', and write the following transactions on the proper side:
|
S.No
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₹
|
|
i
|
Goods purchased from Rakesh on credit
|
50,000
|
|
ii
|
Goods returned to Rakesh for
|
5,000
|
|
iii
|
Paid to Rakesh
|
20,000
|
|
iv
|
Purchase goods from Rakesh on credit
|
10,000
|