Accounting Process (CA Foundation Principles of Accounting): Questions 21 - 27 of 68

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Question number: 21

» Accounting Process » Books of Accounts - Contingent Assets and Liabilities

Short Answer Question▾

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What is meant by the term provision?

Question number: 22

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

Short Answer Question▾

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How is replacement of fixed assets treated?

Question number: 23

» Accounting Process » Books of Accounts - Fundamental Errors

Short Answer Question▾

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State the three questions which decide the criteria for rectification of errors?

Question number: 24

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

Short Answer Question▾

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In what cases can an expenditure of revenue nature be treated as of capital nature?

Question number: 25

» Accounting Process » Books of Accounts - Contingent Assets and Liabilities

Short Answer Question▾

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Write a short note on contingent assets?

Question number: 26

» Accounting Process » Books of Accounts - Fundamental Errors

Essay Question▾

Describe in Detail

Mr. Tendulkar’s trial balance showed a suspense A/C of Rs. 32600 on the debit side. On rechecking the books, the following errors were discovered:

  • An amount of Rs. 10000 received from Mr. Ganguly was posted to the debit side of Mr. Ashwin as Rs. 12000.

  • Salary paid to driver Rs. 4000 was debited to his personal A/C as Rs. 2400

  • Drawings of Rs. 2000 was credited to sales A/C as Rs. 3200

  • An amount of Rs. 6000 accounting for depreciation on car was posted as Rs. 600

  • Sale of an old bat Rs. 20000 was credited to sales A/C as Rs. 12000. Pass the journal entries to rectify the errors

Explanation

The journal entries in the books of Mr. Tendulkar would be as follows:

Rectification of errors

Journal entries in the books of Mr. Tendulkar

Date

Particulars

L. F

Debit Amount

Credit Amount

(i)

Suspense A/C Dr

2000

Ganguly A/C Dr

10000

To Ashwin A/C

12000

(Being the excess amount received… (67 more words) …

Question number: 27

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

Short Answer Question▾

Write in Short

Classify the following accounts in terms of real, personal, nominal, and valuation accounts in the books of Mehta and Co:

  1. Machinery

  2. Trademark

  3. Mohan lal

  4. investment

  5. Provision for bad debts

  6. Rent

  7. Return outward

  8. Capital

  9. Provision for depreciation

  10. import duty

  11. Tata iron & Steel co Ltd

  12. Commission

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