Question
“Only financial transactions are recorded in accounting." Explain the statement.
✓
Answer
According to Money Measurement Principle only those transactions are recorded in the books of account which can be measured in terms of money. In other words, non-financial transactions or facts, like the efficiency of the management will never be recorded in the books of account.
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Fill in the missing figures assuming CGST @ 9% and SGST @ 9%:
Open 'T' shape account of our creditor 'Raghubir' and write the following transactions on the proper side:
- Purchased goods from Raghubir on credit for ₹ 50,000.
- Returned goods to Raghubir for ₹ 5,000.
- Paid to Raghubir ₹ 30,000.
- Purchased goods from Raghubir on credit for ₹ 16,000.
- Paid to Raghubir ₹ 20,000.
Pass entries in the books of Devdhar & Bros. Odisha, assuming all transactions have been entered within the state, charging CGST and SGST @ 9% each:
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2018
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March 4
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Purchased goods for ₹ 5,00,000 from Sunil Bros.
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March 7
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Goods returned to Sunil Bros. for ₹ 20,000
|
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March 10
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Sold goods to Mehta & Co. for ₹ 8,00,000
|
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March 12
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Goods returned by Mehta & Co. for ₹ 30,000
|
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March 20
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Goods withdrawn by Proprietor for personal use ₹ 10,000
|
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March 25
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Goods distributed as free samples ₹ 5,000
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March 26
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Paid advertisement expenses by cheque ₹ 20,000
|
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March 31
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Payment made of balance amount of GST.
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Journalise the following transactions in the books of Afzal, Kolkata and post them to the Ledger:
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2019
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|
₹
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Jan 1
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Started business with cash
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1,00,000
|
|
Jan 3
|
Bought goods on credit from Gupta & Co., Delhi |
20,000
|
|
Jan 5
|
Cash sales |
5,000
|
|
Jan 8
|
Cash purchases |
8,000
|
|
Jan 10
|
Sold goods to Ahmed & Co., Lucknow |
10,000
|
|
Jan 11
|
Deposited cash in bank |
50,000
|
|
Jan 13
|
Purchased a computer for office |
20,000
|
|
Jan 15
|
Took a loan from Mehboob |
70,000
|
|
Jan 16
|
Goods returned by Ahmed & Co. |
2,000
|
|
Jan 17
|
Purchased furniture from Mehfil Mart, Kolkata |
10,000
|
|
Jan 18
|
Paid interest to Mehboob |
2,000
|
| Jan 19 | Received claim from Ahmed & Co. for defects in goods supplied to them. Claim was accepted and rebate was allowed | 1,000 |
| Jan 22 | Paid rent by cheque | 2,000 |
| Jan 24 | Withdrew from bank | 20,000 |
| Jan 25 | Sales of goods at counter after allowing trade discount of 10% | 10,000 |
| Jan 26 | Goods purchased from Gupta & Co., Delhi were destroyed by accident | 10,000 |
| Jan 27 | Advertisement expenses paid through bank | 5,000 |
| Jan 28 | Ahmed & Co. settled their account by cheque | 7,000 |
| Jan 29 | Paid the due amount to Gupta & Co. by cheque after availing discount of ₹ 800 | |
| Jan 31 | Sold old newspapers | 500 |
'A' commenced his cloth business on 1st April, 2011 with a capital of ₹ 3,00,000. On 31st March, 2012 his assets were worth ₹ 5,00,000 and liabilities ₹ 1,00,000. Find out his closing capital and profits earned during the year.
Explain the following:
Matching Concept.
Matching Concept.
Explain the following term:
Fictitious Assets.
Fictitious Assets.
What is Cash Discount?
Identify the values involved in the assumption of going concern.
Prepare the Accounting Vouchers for the following transactions:?
Transactions marked with * are subject to levy of CGST and SGST @ 6% each.
|
2019
|
Particular
|
₹
|
|
Jan-1
|
Started business with cash
|
2,00,000
|
|
Jan-1
|
Purchased furniture vide Cash Memo No. 210*
|
10,000
|
|
Jan-5
|
Opened a Bank Account in Canara Bank
|
60,000
|
|
Jan-10
|
Purchased garments on credit from M/s Madras Store vide Bill No. 291*
|
20,000
|
|
Jan-12
|
Sold shirts to Ram Parkash on credit vide Bill No. 1*
|
5,000
|
|
Jan-15
|
Sold shirts for cash vide Cash Memo No. 1*
|
7,000
|
|
Jan-20
|
Withdrew from bank for office use by cheque No. 23301
|
20,000
|
|
Jan-27
|
Withdrew for personal use by cheque No. 51003
|
5,000
|