Question
Explain the following terms: $(A)$ Capital And $(B)$ Drawings:
✓
Answer
$(A)$ Capital : An investment made by the owner to commence the business is known as capital. Item provided by the owner, each of them should have monetary value and can be usedfor business.Capital is one kind of liability for the business towards owner, and it has generally creditbalance. For ownership firms, owner provides capital, for partnership firms, partners providescapital and for company, shareholders provides capital.
$(B)$ Drawings: When owner of the business withdraws cash or goods (or benefit of anybusiness services) for personal purpose then it is known as drawings.
$(B)$ Drawings: When owner of the business withdraws cash or goods (or benefit of anybusiness services) for personal purpose then it is known as drawings.
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Disclose following information in Income-Expenditure account for the year ending $31-3-2015.$
Note: $(i)$ Salary outstanding $2013-14: Rs. 3,000, 2014-15: Rs. 6,300.$ $(ii)$ Opening stock of stationery $Rs. 670$ and closing stock $Rs.250.$
→| $Dr.$ | Receipt - Payment Account for the Year ending $31-3-2015$ | $Cr.$ | ||||
| Income | Amt. (Rs.) |
Expense | Amt. (Rs.) |
|||
| To Subscription: | By Taxes and Insurance | $6,500$ | ||||
| $2013-14$ | $1,200$ | By Salary | $32,800$ | |||
| $2014-15$ | $75,000$ | By stationery Expense | $2,500$ | |||
| $2015-16$ | $1,650$ | $77,850$ | ||||
From the following transactions, prepare columnar sales book in the books of Shri Durgesh Electronics stores :
$2018$
Dec.
$1$ Sold to Laukik Electronics Stores $10$
$AC$ at $₹ 30,000$ per piece, $6$ cooler at $₹ 6000$ per piece and $100$ fans at $₹ 1400$. Trade discount at $10 \%$, credit period $2$ months. Invoice no. $151.$
$12$ Sold to Aanand Electronics $8$
$AC$ at $₹ 28,000$ per piece and $15$ fans at $₹ 1300$ per piece. Trade discount at the rate of $10 \%$, credit period $1$ month. Invoice no. $152.$
$15$
$10$ cooler sold to Sangharsh Electronics at $₹ 6500$ per piece on cash. Cash memo no. $153$.
$18 $Sold to Krishna Enterprise to $10$ cooler at $₹ 6200$ per piece and $15$ fans at $₹ 1400$ per piece, at $5 \%$ trade discount. Credit period for $1$ month. Invoice no. $154.$
$20$ Sold old furniture of shop at $₹ 8000$ to Khyati.
→$2018$
Dec.
$1$ Sold to Laukik Electronics Stores $10$
$AC$ at $₹ 30,000$ per piece, $6$ cooler at $₹ 6000$ per piece and $100$ fans at $₹ 1400$. Trade discount at $10 \%$, credit period $2$ months. Invoice no. $151.$
$12$ Sold to Aanand Electronics $8$
$AC$ at $₹ 28,000$ per piece and $15$ fans at $₹ 1300$ per piece. Trade discount at the rate of $10 \%$, credit period $1$ month. Invoice no. $152.$
$15$
$10$ cooler sold to Sangharsh Electronics at $₹ 6500$ per piece on cash. Cash memo no. $153$.
$18 $Sold to Krishna Enterprise to $10$ cooler at $₹ 6200$ per piece and $15$ fans at $₹ 1400$ per piece, at $5 \%$ trade discount. Credit period for $1$ month. Invoice no. $154.$
$20$ Sold old furniture of shop at $₹ 8000$ to Khyati.
Write Journal Entry for Krishna for the following transaction :
→| 1 | $Rs.20,000$ deposited with bank and opened account. |
| 2 | A cheque of $Rs.5,000$ received from Hari, which immediately deposited with bank. |
| 3 | A cheque of $Rs.2,000$ received from Ramanlal for dues. |
State the objective and utility of accounting standards.
Classify the following accounts: $1.$ Salary outstanding account
$2.$ Rent payable account $3.$ Wages outstanding account $4.$ Income tax account $5.$ Purchase returns account $6$. Sales returns account
→$2.$ Rent payable account $3.$ Wages outstanding account $4.$ Income tax account $5.$ Purchase returns account $6$. Sales returns account
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Journalise the following transactions and post them in the ledger: $2019$
July $1$ Purchased goods of $Rs.45,000$ on cash $3$ Brought additional capital of $Rs. 60,000$ in the business.
→July $1$ Purchased goods of $Rs.45,000$ on cash $3$ Brought additional capital of $Rs. 60,000$ in the business.
Write journal entries for the following transactions and explain accounting treatments basedon equation :
$(1)$ Rent paid in cash $₹ 4000$ and $₹ 1500$ are outstanding.
$(2)$ Goods donated $₹ 2000.$
$(3)$ Furniture of $₹ 15,000$ purchased from Prexa Furniture Mart.
→$(1)$ Rent paid in cash $₹ 4000$ and $₹ 1500$ are outstanding.
$(2)$ Goods donated $₹ 2000.$
$(3)$ Furniture of $₹ 15,000$ purchased from Prexa Furniture Mart.
Explain the concept of money measurement with example.
Prepare trading account for the year ended on $31-03-2015$ from the following balances of Bhavesh :
Cost price of closing stock of goods as on $31-03-2015$ was $₹ 44,000,$ whereas its market value is $₹ 50,000.$
→Cost price of closing stock of goods as on $31-03-2015$ was $₹ 44,000,$ whereas its market value is $₹ 50,000.$