Accounting Process-Books of Accounts - Preparation of Trial Balance (CA Foundation Principles of Accounting): Questions 11 - 14 of 31

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Question number: 11

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

Short Answer Question▾

Write in Short

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: 12

» 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: 13

» 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: 14

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

Essay Question▾

Describe in Detail

Miss. Rosy started a small business as a sole proprietor in the year 2013 and had the following transaction during the year:

  • Commenced business with cash Rs. 200000

  • Purchases made for cash Rs. 80000 and credit Rs. 120000

  • Made Sales of Rs. 160000 in cash of goods costing Rs. 120000

  • Rent paid Rs. 2000 and outstanding rent for the year was Rs. 400

  • Bought car on credit Rs. 20000

  • Purchased a mobile phone for personal use Rs. 20000

  • Purchased a land for cash Rs. 80000

How will Miss Rosy account for the above transactions in her books of accounts using the traditional approach of accounting?

Explanation

The traditional approach of accounting refers to the accounting equation method of calculation. The accounting equation is as follows

Assets = Liabilities + owner’s equity

The result of Miss. Rosy’s transactions would be as follows

Assets = Liabilities + Capital

Rs. 358000 = Rs. 140400 + Rs. 217600

Rs. 358000… (264 more words) …

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