Differentiating profit and loss account and balance sheet


Question 1) Answer all the questions:

(i) Describe the ledger account and its format?

(ii) Write down the difference between Profit and Loss Account and Balance Sheet.

(iii) What do you understand by incomplete records?

(iv) What do you understand by forfeited of share? Explain with example.

(v) Describe any one method of redemption of debenture.

Question 2) What do you understand by accounting? Who are the users of accounting? Explain its scope.

Question 3) Define debenture. Differentiate between share and debenture? Describe the various types of debentures.

Question 4) Journalise the following transactions in the books of M/s Manohar & Sons:

2008                                                                                                            Rs.
Jan., 01    Goods purchase for cash                                                              1,200
Jan., 02    Purchase good from Ram                                                              1,500
Jan., 04    Goods sold to Laxman                                                                  1,000
Jan., 05    Furniture purchase for cash                                                              800
Jan., 07    Charge interest on capital                                                              2,500
Jan., 11    Goods return from Laxman                                                               200
Jan., 12    Goods return to Ram                                                                       500
Jan., 14    Withdrew from bank for private use                                                6,000
Jan., 16    Give in charity: Cash                                                                         100
                                    Goods                                                                        200
Jan., 19    Salaries paid by cheque                                                                   4,000
Jan., 21    Goods sold to Sachin on 10% trade discount and 8% Cash discount    1,000
Jan., 23    Laxman become insolvent and could pay only 75 paise in a rupee   
Jan., 26    Proprietor took goods for his personal use                                         2,000
Jan., 29    Postage Rs. 200 and Rent Rs. 1000 Paid   
Jan., 31    Received Rs. 4,000 from insurance company

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Accounting Basics: Differentiating profit and loss account and balance sheet
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