Question
Explain the main methods of performance appraisal.

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Mr. Patil, the owner of Jai Hind Engineers, submits the following trial balance to you for the year ended 31st March 2023:
Dr. (₹)Cr. (₹)
Purchase and Sales16,18075,200
Opening Stock6,500
Drawings4,000
Motor Cycle12,500
Cycles and Carts Delivery2,500
Bad Debts200
Debtors and Creditors4,0002,000
Vehicle Expenses1,100
Capital8,600
Bills Receivable and Payable8001,000
Bank and Cash Balances1,800
Petty Cash100
Insurance Premium500
Salaries900
Petty Expenses300
Wages1,500
Rent3,000
Godown Rent1,800
General Expenditure700
Bank Loan2,000
Carriage Inwards500
Worker's Equipment30,000
Returns200280
89,08089,080

Prepare the final accounts for him. Closing stock is valued at ₹5,400.
Discuss the importance of debentures and public deposits as sources of medium and short-term finance.
From the following balances of Mr. Kumar, prepare final accounts for the year 2023:
Debit Balance(₹)Credit Balance(₹)
Salaries400Sales7,819
Advertising42Carriage inwards9
Postage and Telegrams27Capital3,600
Bad Debts28Creditors1,124
Interest130Loan1,200
Discount (Dr.)100Debtors388
Wages430Fixtures and Fittings1,616
Opening Stock995Buildings2,378
Purchases6,200Machinery1,000
Closing Stock1,430
"Insurance is a method of spreading risks." In the light of this statement, explain how does insurance help in minimising business risks.
A company has to meet its short-term financial needs. It is considering whether it should raise loans from commercial banks or invite public deposits. Discuss the merits and demerits of each form.
Prepare Trading, Profit and Loss A/c and Balance Sheet of M/s Banerjee Enterprises for the Year ended 31st March, 2023 from the following Trial Balance.
Trial Balance as on 31.03.2010
Heads of AccountsDr. (₹)Cr. (₹)
Opening Stock25,000
Purchases and Sales75,0002,00,00
Discounts3,6006,000
Debtors and Creditors32,00015,000
Bad debts400
Cash-in-Hand3,000
Machinery50,000
Salaries8,000
Carriage Inwards2,000
Wages6,000
Investments20,000
Land and Building90,300
Bank Overdraft20,000
Commissions1,3503,510
Interest on Investments2,000
Electricity2,000
Rent2,500
Insurance1,800
Capital76,440
3,22,9503,22,950

Closing stock was ₹10,360.
What are the advantages and disadvantages of the borrowings from commercial banks?
Trial Balance as on 31.3.2023 of Ms. Counsel.
Debit (₹)Credit (₹)
Purchases and Sales2,40,0004,15,000
Wages & Factory Supervisor's Remuneration35,000
Building1,80,000
Machinery & Equipment4,75,000
Commission2,8001,600
Freehold Land1,00,000
Watch Dogs Squad30,100
Debit Notes & Credit Notes (issued in connection with goods)10,00015,000
Creditors & Debtors60,00045,000
Salaries & Staff Welfare38,000
Bill (drawn to guarantee payment)10,0007,000
Building Repairs15,000
Cash & Bank50,000
Bonus2,500
Discounts3,20014,600
Watch Dogs Upkeep Costs6,600
Accounts of the owner35,0005,95,000
Interest-free Loan1,00,000
General Reserve1,30,000
Opening Stock30,000
13,23,20013,23,200

Compile Final Accounts:
(i) Closing Stock at the cost price is ₹8,000 more than the opening stock - but the ruling market price is ₹35,000 only, on 31.3.2023.
What is meant by sales promotion? Explain its importance.
Why is it necessary to differentiate between capital and revenue items in accounting? Give five examples each of capital expenditure and revenue expenditure.