Question
What is accounting period concept?
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Answer
Entire life of an enterprise is divided into time intervals which are known as accounting periods at the end of which a profit and loss account is prepared to ascertain the profit and a balance sheet is prepared to ascertain the financial position.
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Similar questions
Explain the concept of ‘secret reserve’.
Describe how accounts are used to record information about the effects of transactions?
Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns?
Deposit of cheques (received from others) into Bank.
Deposit of cheques (received from others) into Bank.
Ramesh purchased on credit goods for ₹ $5,00,000$ Less $20 \%$ Trade Discount. As per the terms, he can deduct $4\%$ Cash Discount if he pays the full amount within 15 days. What amount he will have to pay to avail the Cash Discount?
→Open 'T' shape account for Machinery and write the following on the proper side:
| (₹) | ||
| i. | Machinery purchased for | 5,00,000 |
| ii. | Machinery sold | 1,20,000 |
| iii. | Machinery discarded | 50,000 |
| iv. | New Machinery purchased | 2,00,000 |
| v. | Machinery destroyed | 40,000 |
Journalise the following transactions:
|
2017
|
|
₹
|
|
Dec. 01
|
Hema started business with cash
|
1,00,000
|
|
Dec. 02
|
Open a bank account with SBI
|
30,000
|
|
Dec. 04
|
Purchased goods from Ashu
|
20,000
|
|
Dec.06
|
Sold goods to Rahul for cash
|
15,000
|
|
Dec.10
|
Bought goods from Tara for cash
|
40,000
|
|
Dec.13
|
Sold goods to Suman
|
20,000
|
|
Dec.16
|
Received cheque from Suman
|
19,500
|
|
|
Discount allowed
|
500
|
|
Dec.20
|
Cheque given to Ashu on account
|
10,000
|
|
Dec.22
|
Rent paid by cheque
|
2,000
|
|
Dec.23
|
Deposited into bank
|
16,000
|
|
Dec.25
|
Machine purchased from Parigya
|
10,000
|
|
Dec.26
|
Trade expenses
|
2,000
|
|
Dec.28
|
Cheque issued to Parigya
|
10,000
|
|
Dec.29
|
Paid telephone expenses by cheque
|
1,200
|
|
Dec.31
|
Paid salary
|
4,500
|
Pass entries in the books of Krishnan of Bengaluru (Karnataka) in the following cases:
|
1.
|
Purchased goods from Karunakaran of Chennai for ₹ 1,00,000.
(IGST @18%) |
|
2.
|
Sold goods to Ganeshan of Bengaluru for ₹ 1,50,000.
(CGST @ 6% and SGST @ 6%) |
|
3.
|
Sold goods to S. Nair of Kerala for ₹ 2,60,000.
(IGST @18%) |
|
4.
|
Purchased a Machinery for ₹ 80,000 from Surya Ltd. against cheque.
(CGST @ 9% and SGST @ 9%) |
|
5.
|
Paid rent ₹ 30,000 by cheque.
(CGST @ 6% and SGST @ 6%) |
|
6.
|
Purchased goods from Ram Mohan Rai of Bengaluru for ₹ 2,00,000.
(CGST @ 6% and SGST @ 6%) |
|
7.
|
Paid insurance premium ₹ 10,000 by cheque.
(CGST @ 9% and SGST @ 9%) |
|
8.
|
Received commission ₹ 20,000 by cheque which is deposited into bank.
(CGST @ 9% and SGST @ 9%) |
|
9.
|
Payment made of balance amount of GST.
|
From the following transactions prepare the Proprietor's Account in 'T' shape:
| 2013 | (₹) | |
| April 1 | Commenced business with Cash | 5,00,000 |
| August 1 | Introduced additional Capital | 1,00,000 |
| Dec. 31 | Drawings | 40,000 |
| 2014 | ||
| Feb. 28 | Drawings | 20,000 |
| March 31 | Net Profit shown by Profit & Loss A/c | 1,25,000 |
What is the purpose of posting J.F. numbers at the time entries are posted to the accounts.
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 (*).