Solve the following questions.
Question 1) Describe the concepts of accounting with examples.
Question 2) Prove that accounting equation is satisfied in all the following transactions of Mr.X
1) Commenced business with cash – Rs.80,000 (10 marks)
2) Purchased goods for cash – Rs.40,000 and on credit Rs.30,000
3) Sold goods for cash – Rs.40,000 costing Rs.25,000
4) Paid salary – Rs.2,000 and salary outstanding Rs.1,000
5) Bought scooter for personal use for cash at Rs.20,000
Question 3) Show rectification entries for the following:
a) Sales account is undercast by Rs.15,000
b) Goods returned by the customer Mr.X of Rs.5650 has been posted in the Return Inward Account as Rs.5560 and in Mr.X a/c as Rs.6,550.
c) Salary paid Rs.6,000 has been posted to Rent account
d) Cash received from Ram posted to Shyam account Rs.7,000
e) Cash received from Jadu Rs.8,640 has been posted to the debit of Madhu’s a/c
Question 4) The following balances are extracted from the books of Kiran Trading Co on 31st March2000. You are needed to prepare trading and profit and loss account and a balance sheet as on that date:
Opening Stock 5,000 Commission received 2,000
B/R 22,500 Return Outward 2,500
Purchases 1,95,000 Trade Expenses 1,000
Wages 14,000 Office furniture 5,000
Insurance 5,500 Cash in hand 2,500
Sundry Debtors 1,50,000 Cash at bank 23,750
Carriage Inwards 4,000 Rent and Taxes 5,500
Commission Paid 4,000 Carriage Outward 7,250
Interest on Capital 3,500 Sales 2,50,000
Stationery 2,250 Bills Payable 15,000
Return Inwards 6,500 Creditors 98,250
Capital 89,500
The closing stock was valued at Rs.1,25,000
Question 5) Write brief notes on :
a) Outstanding Expenses
b) Prepaid Expenses