Question
Rectify the following errors:
  1. Purchases Book has been undercast by ₹ 1,000.
  2. Credit sale to Anu Prakash ₹ 7,000 was recorded in Purchases Book.
  3. Credit sale to Rahul ₹ 7,000 was recorded as ₹ 700.

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On 1st April, 2017, Shiv had a Provision for Doubtful Debts of ₹ 650. On 31st March, 2018, total debtors amounted to ₹ 18,400 out of which ₹ 400 were bad and had to be written off. It was decided to maintain a Provision for Doubtful Debts at 5% of the debtors.
On 31st March, 2019, debtors were ₹ 10,320 out of which ₹ 320 had to be written off as bad debts. Provision for Doubtful Debts is to be maintained at 5% of the Debtors.
Show the Bad Debts Account and Provision for Doubtful Debts Account for the years ended on 31st March, 2018 and 2019.
What is meant by Provision for Discount on Debtors?
What does the Balance of Suspense Account indicate? How is the balance of Suspense Account treated?
Calculate Closing Stock and Cost of Goods Sold:
Opening Stock ₹ 5,000; Sales ₹ 16,000; Carriage Inwards ₹ 1,000; Sales Returns ₹ 1,000; Gross Profit ₹ 6,000; Purchase ₹ 10,000; Purchase Returns ₹ 900.
State with reasons whether the following are Capital or Revenue Expenses:
  1. Excise duty paid on purchase of new machine.
  2. Wages paid to install a machine.
  3. Repairs carried out on existing car.
  4. Office block of building repainted for ₹ 50,000.
  5. Paid telephone bill ₹ 2,500.
Calculate operating profit from the following:
 
Net Profit
5,00,000
Dividend Received
6,000
Loss on sale of Furniture
12,000
Loss by Fire
50,000
Salaries
1,20,000
Interest on Loan from Bank
10,000
Rent Received
24,000
Donation
5,100
From the following information, Calculate Capital at the beginning:
 
Capital at the end of the year. 4,00,000
Drawings made during the year. 60,000
Fresh Capital introduce during the year. 1,00,000
Profit of the current year. 80,000
What is a Purchases Book?
What is meant by NULL value? What are the reasons that lead to their occurrence in database relations?
What is a Bank Reconciliation Statement? Explain the purpose of preparing such a statement.