Question
What is meant by Outstanding Expenses? Give its adjusting entry.
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Answer
Outstanding Expenses: These are the expenses which have been incurred during the year but have been left unpaid on the date of preparation of final accounts. In other words, the benefit of such expenses has been derived during the year but the payment of which has not yet been made.
Adjustment:
Adjustment:
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What is a Purchases Return Book? Give its specimen.
Show the treatment of the following in final accounts when given inside the Trial Balance:
- Provision for discount on debtors.
- Closing stock.
- Commission Received in Advance.
What is meant by Adjustment Entry?
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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.
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| ₹ | ₹ | ||
| Opening Stock | 40,000 | Wages & Salaries | 10,000 |
| Net Purchases | 50,000 | Rent Paid | 15,000 |
| Net Sales | 1,90,000 | Closing Stock | 15,000 |
Explain the Current Assets and Non-Current Assets.
Prepare Bank Reconciliation Statement from the following:
|
|
₹
|
|
|
(i)
|
Debit balance as per the Cash Book.
|
15,000
|
|
(ii)
|
Cheques deposited but not cleared.
|
1,000
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|
(iii)
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Cheques issued but not presented.
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|
|
(iv)
|
Bank interest.
|
200
|
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| ₹ | |
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| Opening balance of Bills payable, | 70,000 |
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