CA Foundation Principles of Accounting: Questions 70 - 73 of 300

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Question number: 70

» Accounting Process » Books of Accounts - Fundamental Errors

Short Answer Question▾

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Identify the errors and show the rectification affect made

  1. Purchase book overcast by 500
  2. Purchase return book overcast by Rs. 50

  3. Sales book under cast by Rs. 250

  4. Sales return book under cast by Rs. 100

Question number: 71

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

Essay Question▾

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Calculate total equity and owner’s equity of Monish Ltd. , at the end of year if

  • Owner’s equity in the beginning is Rs. 50000,

  • Equity of the creditors at the end of year is Rs. 20000

  • Revenue during the year is Rs. 30000

  • Expenses during the same year is Rs. 25000

Explanation

Owner’s equity:

Owner’s equity = Opening of owner’s equity + Revenue – Expenses

Formula for Owner’s equity

Formula for Owner’S Equity

Formula for calculating the owner’s equity for the given period

Given:

Opening Owner’s equity = Rs. 50000

Revenue = Rs. 30000

Expense = Rs. 25000

= 50000 + 30000 – 25000

= Rs.… (46 more words) …

Question number: 72

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

Short Answer Question▾

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Classify the following transactions as Capital, revenue or deferred revenue expenditures. And justify your answer:

  1. Carriage of Rs. 750 spent on a Xerox machine purchased and installed.

  2. Advertising expenses of Rs. 200000 spent on launching a new brand of the company’s product.

  3. Car servicing charges of Rs. 2500

  4. Construction of a parking lot at the factory premises for Rs. 31, 00, 000

Question number: 73

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

Short Answer Question▾

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During the financial year 2015 - 16, Santosh had cash sales of Rs. 200000 and credit sale of Rs. 100000. His expenses for the year were Rs. 50000 out of which Rs. 25000 is still to be paid. Find the Santosh income for 2015 - 16 under Cash Basis of Accounting as well as in Accrual Basis of Accounting.

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