CA Foundation Principles of Accounting: Questions 84 - 90 of 351

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Question number: 84

» Accounting Process » Books of Accounts - Preparation of Trial Balance

Short Answer Question▾

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Prepare the Accounting Equation on the basis of the following information:

  • Rakesh started business with Rs. 100000 in cash.

  • Purchased goods in cash Rs. 20000

  • Furniture purchased for cash Rs. 10000

  • Commission received in advance Rs. 2000

  • Sold goods costing Rs. 5000 to Sachin for cash Rs. 7000

Question number: 85

» Accounting Process » Books of Accounts - Fundamental Errors

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What is the purpose of rectification of errors?

Question number: 86

» Theoretical Framework » Accounting Policies

Essay Question▾

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State a few examples where different accounting policies may be used by different firms while accounting their business transactions.

Explanation

Every firm follows different accounting policies as their business may require. Some of the instances where different accounting policies are followed by different firms are as given below:

  • Depreciation, depletion and amortization methods

  • Construction expenditure

  • Foreign currency conversion

  • Stock valuation

  • Goodwill treatment

  • Investment valuation

  • Retirement benefits

  • Treatment of contingent liabilities… (31 more words) …

Question number: 87

» Accounting Process » Books of Accounts - Preparation of Trial Balance

Short Answer Question▾

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Prepare the stationery account of Zed pen mart for the year ended 31st Dec 2015, from the following details:

Jan 1 stock in hand Rs. 4800

Apr 5 purchase of stationery by cheque Rs. 8000

Nov15 Purchase of stationery from bluemart on credit Rs. 12800

Dec20 Petty cash purchase of stationery Rs. 800

Dec 31 Stock in hand 2400

Question number: 88

» Accounting Process » Books of Accounts - Preparation of Trial Balance

Short Answer Question▾

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What are the main objectives of preparing a trial balance?

Question number: 89

» Theoretical Framework » Accounting Policies

Short Answer Question▾

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Does a wrong selection of accounting policy mislead the users of the financial report? State reasons for your answer.

Question number: 90

» Accounting Process » Books of Accounts - Capital and Revenue Receipts

Short Answer Question▾

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What is the meaning of the term revenue receipt? Give example

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