Attempt All Questions [8 x 5 marks = 40 marks]<\/span><\/b><\/span><\/p>\n

Q: 12 A.<\/span><\/b> State accounting process in brief.<\/span><\/span><\/p>\n

A complete sequence of accounting procedures is an accounting process. <\/em><\/span><\/p>\n

It is also popularly known by accounting cycle.<\/span><\/p>\n

It includes recording, classifying, summarizing and interpreting.<\/span><\/p>\n

An accounting cycle begins with the recording of transactions and ending with the preparation and interpretation of the final account.<\/span><\/p>\n

Accounting process is of cyclic and sequential order.<\/span><\/p>\n

It is given in the following:<\/span><\/p>\n

> Documenting the financial transactions<\/span><\/p>\n

> Classifying and recording the financial transactions into the journals<\/span><\/p>\n

> Posting the transactions into the respective ledger accounts<\/span><\/p>\n

> Balancing the ledger accounts<\/span><\/p>\n

> Preparing a trial balance<\/span><\/p>\n

> Preparing the financial statements like Trading account, Profit and loss account and Balance sheet<\/span><\/p>\n

\u00a0<\/span><\/p>\n

 <\/p>\n

Q: 12 B.<\/span><\/b> Prepare accounting equation from following details:<\/span><\/span><\/p>\n

a. Started business with cash $ 200,000 and furniture $500,000<\/span><\/p>\n

b. Purchase goods worth $80,000 on cash and 70,000 on credit.<\/span><\/p>\n

c. Paid rent $90,000<\/span><\/p>\n

d. Sold goods costing $20,000 in cash for $25,000.<\/span><\/p>\n

[Answer: A = $685,000; C = $615,000; L = $70,000]<\/span><\/i><\/span><\/p>\n

SOLUTION <\/span><\/b><\/span><\/p>\n

Accounting Equation<\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n

\n Particulars<\/span><\/p>\n<\/td>\n	\n Assets<\/span><\/p>\n<\/td>\n	\n =<\/span><\/p>\n<\/td>\n	\n Capital<\/span><\/p>\n<\/td>\n	\n +<\/span><\/p>\n<\/td>\n	\n Liabilities<\/span><\/p>\n<\/td>\n<\/tr>\n
\n a<\/span><\/p>\n<\/td>\n	\n Business started with cash and furniture \u00a0<\/span><\/p>\n<\/td>\n	\n 200,000<\/span><\/p>\n<\/td>\n	\n cash \u00a0\u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n	\n =<\/span><\/p>\n<\/td>\n	\n 700,000<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n +<\/span><\/p>\n<\/td>\n	\n 0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n
\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n 500,000<\/span><\/p>\n<\/td>\n	\n furn.<\/span><\/i><\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n
\n \u00a0<\/span><\/p>\n<\/td>\n	\n First equation <\/span><\/p>\n<\/td>\n	\n 700,000<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n	\n =<\/span><\/p>\n<\/td>\n	\n 700,000<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n +<\/span><\/p>\n<\/td>\n	\n 0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n
\n b<\/span><\/p>\n<\/td>\n	\n Goods purchased in cash and credit<\/span><\/p>\n<\/td>\n	\n 150,000<\/span><\/p>\n<\/td>\n	\n stock<\/span><\/i><\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n 0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n 70,000<\/span><\/p>\n<\/td>\n	\n A\/P<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n
\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n (80,000)<\/span><\/p>\n<\/td>\n	\n cash\u00a0 <\/span><\/i><\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n
\n \u00a0<\/span><\/p>\n<\/td>\n	\n New equation\u00a0 <\/span><\/p>\n<\/td>\n	\n 770,000<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n	\n =<\/span><\/p>\n<\/td>\n	\n 700,000<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n	\n +<\/span><\/p>\n<\/td>\n	\n 70,000<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n
\n c<\/span><\/p>\n<\/td>\n	\n Rent paid <\/span><\/p>\n<\/td>\n	\n (90,000)<\/span><\/p>\n<\/td>\n	\n cash<\/span><\/i><\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n (90,000)<\/span><\/p>\n<\/td>\n	\n exp<\/span><\/i><\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n 0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n
\n \u00a0<\/span><\/p>\n<\/td>\n	\n New equation <\/span><\/p>\n<\/td>\n	\n 680,000<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n	\n =<\/span><\/p>\n<\/td>\n	\n 610,000<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n	\n +<\/span><\/p>\n<\/td>\n	\n 70,000<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n
\n d<\/span><\/p>\n<\/td>\n	\n Sold goods costing $20,000 in cash for<\/span><\/p>\n<\/td>\n	\n 25,000<\/span><\/p>\n<\/td>\n	\n cash<\/span><\/i><\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n 5,000<\/span><\/p>\n<\/td>\n	\n profit<\/span><\/i><\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n 0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n
\n \u00a0<\/span><\/p>\n<\/td>\n	\n $25,000.<\/span><\/p>\n<\/td>\n	\n (20,000)<\/span><\/p>\n<\/td>\n	\n stock<\/span><\/i><\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n
\n \u00a0<\/span><\/p>\n<\/td>\n	\n Final equation \u00a0<\/span><\/p>\n<\/td>\n	\n 685,000<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n	\n =<\/span><\/p>\n<\/td>\n	\n 615,000<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n	\n +<\/span><\/p>\n<\/td>\n	\n 70,000<\/span><\/p>\n<\/td>\n	\n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 13 A.<\/span><\/b> Cash and banking transactions are given below by ABC Traders: <\/span><\/span><\/p>\n Sep 1: Opening balance of cash and bank are $60,000 and $200,000 respectively.<\/span><\/p>\n Sep 13: Cash deposited at the bank of $30,000.<\/span><\/p>\n Sep 22: Paid $32,000 to Ram through cheque for settling the account of $35,000.<\/span><\/p>\n Sep 27: Received a cheque from Aviral cheque of $19,000 and cash of $3,000 for selling the machine.<\/span><\/p>\n Required: Triple column cash book for the month<\/span><\/p>\n [Answer: Balance b\/d: Cash = $33,000; Bank = $217,000]<\/span><\/i><\/span><\/p>\n (Assume Poush = September)<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Triple Column Cash Book<\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Cash<\/span><\/p>\n<\/td>\n \n Bank<\/span><\/p>\n<\/td>\n \n Dis<\/span><\/p>\n<\/td>\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Cash<\/span><\/p>\n<\/td>\n \n Bank<\/span><\/p>\n<\/td>\n \n Dis<\/span><\/p>\n<\/td>\n<\/tr>\n \n Sep 1<\/span><\/p>\n<\/td>\n \n To Balance b\/d<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Sep 13<\/span><\/p>\n<\/td>\n \n By Bank<\/span><\/p>\n<\/td>\n \n C<\/span><\/p>\n<\/td>\n \n 30,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Sep 13<\/span><\/p>\n<\/td>\n \n To Cash<\/span><\/p>\n<\/td>\n \n C<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 30,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Sep 22<\/span><\/p>\n<\/td>\n \n By Ram<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 32,000<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Sep 27<\/span><\/p>\n<\/td>\n \n To Machine<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n \n 19,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Sep 30<\/span><\/p>\n<\/td>\n \n By Balance c\/d<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 33,000<\/span><\/p>\n<\/td>\n \n 217,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n 63,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 249,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n Nil <\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n 63,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 249,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Oct 1<\/span><\/p>\n<\/td>\n \n To Balance b\/d<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 33,000<\/span><\/p>\n<\/td>\n \n 217,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/b><\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 13 B.<\/span><\/b> Transactions related to ABC Furniture House for the purchase of furniture are given below:<\/span><\/span><\/p>\n Dec 5: Purchase from Karuna Suppliers:<\/span><\/p>\n 10 coffee tables for $100,000<\/span><\/p>\n 20 small chairs @ $4,000 each<\/span><\/p>\n Trade discount @ 10%<\/span><\/p>\n \u00a0<\/span><\/p>\n Dec 19: Purchased from Anjali Traders:<\/span><\/p>\n 5 beds @ 15,000 each<\/span><\/p>\n 8 pieces of sofa @ $25,000 per sofa<\/span><\/p>\n Required: Purchase book<\/span><\/p>\n [Answer: Total creditors ($162,000 + $275,000) = $437,000]<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Purchase Book<\/span><\/b><\/span><\/p>\n In the book of ABC Furniture House<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Invoice <\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n<\/tr>\n \n Dec 5<\/span><\/p>\n<\/td>\n \n Purchase from Karuna Suppliers:<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10 coffee tables @ $10,000 each<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 100,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 20 small chairs @ $4,000 each<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 180,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Less: Trade discount (180,000 x 10%)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (18,000)<\/span><\/p>\n<\/td>\n \n 162,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Dec 19<\/span><\/p>\n<\/td>\n \n Purchased from Anjali Traders:<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 5 beds @ $15,000 each<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 75,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 8 pieces sofa @ $25,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n \n 275,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n Total creditors or suppliers <\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n 437,000<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 14.<\/span><\/b> Following information are given by XYZ Traders:<\/span><\/span><\/p>\n (a) Cashbook showed a balance of $80,000.<\/span><\/p>\n (b) Bank credited $20,000 only out of various cheques of $75,000 deposited in the bank.<\/span><\/p>\n (c) Cheques were issued of $90,000 but a cheque of $10,000 was not presented for payment till the date.<\/span><\/p>\n (d) A customer deposited a cheque of $44,000 directly in the bank but has not been recorded in the cash book.<\/span><\/p>\n (e) Bank debited $500 as bank charge in the passbook.<\/span><\/p>\n (f) Cheque of $12,000 received and entered into the cash book but failed to deposit in the bank.<\/span><\/p>\n Required: Bank Reconciliation Statement [5]<\/span><\/p>\n [Answer: Balance as per passbook = $66,500]<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Bank Reconciliation Statement<\/span><\/b><\/span><\/p>\n For the month of \u00a0\u2026.<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n<\/tr>\n \n Debit\u00a0 balance as per cashbook <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Add:<\/span><\/p>\n<\/td>\n \n Cheque issued but not presented for payment <\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Customer directly deposited at the bank but not recorded in the cashbook<\/span><\/p>\n<\/td>\n \n 44,000<\/span><\/p>\n<\/td>\n \n 54,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Less:<\/span><\/p>\n<\/td>\n \n Cheque deposited into bank but not yet cleared (75,000 \u2013 20,000)<\/span><\/p>\n<\/td>\n \n 55,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Bank charge debited in the passbook <\/span><\/p>\n<\/td>\n \n 500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Cheque entered into cashbook but failed to deposit at the bank<\/span><\/p>\n<\/td>\n \n 12,000<\/span><\/p>\n<\/td>\n \n (67,500)<\/span><\/p>\n<\/td>\n<\/tr>\n \n Balance as per passbook<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 66,500<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 15 A.<\/span><\/b> Rectify the following errors before preparing of trial balance. [3]<\/span><\/span><\/p>\n (a) Cash sales to Sharma $45,000 debited to his account<\/span><\/p>\n (b) \u00a0Sales of machinery @ $19,000 were wrongly credited in the sales account.<\/span><\/p>\n (c) \u00a0Purchase goods from Pema $20,000 recorded in the sales book.<\/span><\/p>\n [Answer: (a) Sharma credited $45,000; <\/span><\/i><\/span><\/p>\n (b) Machine credited $19,000;<\/span><\/i><\/span><\/p>\n (c) Pema credited $40,000]<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Rectified Journal Entry<\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount Dr <\/span><\/p>\n<\/td>\n \n Amount Cr\u00a0\u00a0 <\/span><\/p>\n<\/td>\n<\/tr>\n \n a.<\/span><\/p>\n<\/td>\n \n Cash account <\/span><\/p>\n<\/td>\n \n Dr<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Sharma <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being- wrong entry, now rectified)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n b.<\/span><\/p>\n<\/td>\n \n Sales account <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 19,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Machine account <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 19,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being- wrong entry, now rectified)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n c.<\/span><\/p>\n<\/td>\n \n Purchase account <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Sales account <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Pema<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being- wrong entry, now rectified)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n Given and working note: <\/span><\/i><\/span><\/p>\n a. Cash sales to Sharma $45,000 debited to his account<\/span><\/p>\n\n\n\n\n\n\n \n Step 1,<\/span><\/i><\/b><\/span><\/p>\n<\/td>\n \n \u00f7 <\/span><\/p>\n<\/td>\n \n Step 2,<\/span><\/i><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Correct entry<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Wrong entry<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n Cash\u00a0 <\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr <\/span><\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Sharma<\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr <\/span><\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Sales<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Sales <\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Again, correct entry just copy and paste but wrong debit entry credited and wrong credit entry debited<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n \n Step 3,<\/span><\/i><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Step 4,<\/span><\/i><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Correct entry<\/span><\/i><\/span><\/p>\n<\/td>\n \n x <\/span><\/i><\/span><\/p>\n<\/td>\n \n Wrong entry<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n Cash\u00a0 <\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr <\/span><\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Sales\u00a0 <\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr<\/span><\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Sales<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Sharma <\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/i><\/b><\/span><\/p>\n Step 5,<\/span><\/i><\/b><\/span><\/p>\n\n\n\n\n\n \n Sales Dr<\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n Final entry <\/span><\/i><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n Sales Cr<\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n Cash <\/i><\/span><\/p>\n<\/td>\n \n Dr <\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n Nil <\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Sharma <\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/b><\/span><\/p>\n \u00a0<\/span><\/i><\/span><\/p>\n b. Sales of machinery @ $19,000 were wrongly credited in the sales account.<\/span><\/p>\n\n\n\n\n\n\n \n Step 1,<\/span><\/i><\/b><\/span><\/p>\n<\/td>\n \n \u00f7 <\/span><\/p>\n<\/td>\n \n Step 2,<\/span><\/i><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Correct entry<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Wrong entry<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n Cash\u00a0 <\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr <\/span><\/i><\/span><\/p>\n<\/td>\n \n 19,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Cash <\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr <\/span><\/i><\/span><\/p>\n<\/td>\n \n 19,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Machine<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 19,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Sales <\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 19,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Again, correct entry just copy and paste but wrong debit entry credited and wrong credit entry debited<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n \n Step 3,<\/span><\/i><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Step 4,<\/span><\/i><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Correct entry<\/span><\/i><\/span><\/p>\n<\/td>\n \n x <\/span><\/p>\n<\/td>\n \n Wrong entry<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n Cash\u00a0 <\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr <\/span><\/i><\/span><\/p>\n<\/td>\n \n 19,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Sales\u00a0 <\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr<\/span><\/i><\/span><\/p>\n<\/td>\n \n 19,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Machine <\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 19,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Cash<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/i><\/b><\/span><\/p>\n Step 5,<\/span><\/i><\/b><\/span><\/p>\n\n\n\n\n\n \n Cash Dr<\/i><\/span><\/p>\n<\/td>\n \n 19,000<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n Final entry <\/span><\/i><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n Cash Cr<\/i><\/span><\/p>\n<\/td>\n \n 19,000<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n Sales<\/i><\/span><\/p>\n<\/td>\n \n Dr <\/i><\/span><\/p>\n<\/td>\n \n 19,000<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n Nil <\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Machine <\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n 19,000<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/b><\/span><\/p>\n \u00a0<\/span><\/b><\/span><\/p>\n c. Purchase goods from Pema $20,000 recorded in the sales book.<\/span><\/p>\n\n\n\n\n\n\n \n Step 1,<\/span><\/i><\/b><\/span><\/p>\n<\/td>\n \n \u00f7 <\/span><\/p>\n<\/td>\n \n Step 2,<\/span><\/i><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Correct entry<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Wrong entry<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n Purchase <\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr <\/span><\/i><\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Pema<\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr <\/span><\/i><\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Pema<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Sales <\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Again, correct entry just copy and paste but wrong debit entry credited and wrong credit entry debited<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n \n Step 3,<\/span><\/i><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Step 4,<\/span><\/i><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Correct entry<\/span><\/i><\/span><\/p>\n<\/td>\n \n x <\/span><\/p>\n<\/td>\n \n Wrong entry<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n Purchase <\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr <\/span><\/i><\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Sales\u00a0 <\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr<\/span><\/i><\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Pema<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Pema<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/i><\/b><\/span><\/p>\n Step 5,<\/span><\/i><\/b><\/span><\/p>\n\n\n\n\n\n\n \n Pema Cr<\/i><\/span><\/p>\n<\/td>\n \n 20000<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n Final entry <\/span><\/i><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n Pema Cr<\/i><\/span><\/p>\n<\/td>\n \n 20,000<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n Purchase <\/i><\/span><\/p>\n<\/td>\n \n Dr <\/i><\/span><\/p>\n<\/td>\n \n 20,000<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n 40,000 <\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n Sales\u00a0 <\/i><\/span><\/p>\n<\/td>\n \n Dr <\/i><\/span><\/p>\n<\/td>\n \n 20,000<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Pema <\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/i><\/span><\/p>\n<\/td>\n \n 40,000<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/b><\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 15 B.<\/span><\/b> Following information are extracted from the trial balance:<\/span><\/span><\/p>\n\n\n\n\n\n\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount Dr <\/span><\/p>\n<\/td>\n \n Amount Cr <\/span><\/p>\n<\/td>\n<\/tr>\n \n Sundry debtors <\/span><\/p>\n<\/td>\n \n 52,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Provision for bad debts<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 7,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Bad debts<\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Additional information:<\/span><\/p>\n a. Bad debt $2,000<\/span><\/p>\n b. provision for bad debt @ 5%<\/span><\/p>\n Required: Provision for bad debt account [2]<\/span><\/p>\n [Answer: To P&L (b\/f) = $1,500]<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Provision for Bad Debt Account<\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Bad debts (old)<\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n \n By Balance b\/d<\/span><\/p>\n<\/td>\n \n 7,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Bad debts (new)<\/span><\/p>\n<\/td>\n \n 2,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n To P&L account (b\/f) <\/span><\/span><\/p>\n<\/td>\n \n 1,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Balance c\/d<\/span><\/p>\n<\/td>\n \n 2,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n ($52,000 \u2013 $2,000) x 5%<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 7,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n 7,000<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n Or<\/span><\/b><\/span><\/p>\n An unadjusted trial balance of ABC Trading Concern is given below:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount Dr <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount Cr <\/span><\/p>\n<\/td>\n<\/tr>\n \n Land and building <\/span><\/p>\n<\/td>\n \n 4,00,000<\/span><\/p>\n<\/td>\n \n Capital <\/span><\/p>\n<\/td>\n \n 4,25,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Debtors <\/span><\/p>\n<\/td>\n \n 2,25,000<\/span><\/p>\n<\/td>\n \n Creditors <\/span><\/p>\n<\/td>\n \n 1,20,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Bank balance <\/span><\/p>\n<\/td>\n \n 1,45,000<\/span><\/p>\n<\/td>\n \n Sales <\/span><\/p>\n<\/td>\n \n 5,15,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Salary <\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n \n Loan <\/span><\/p>\n<\/td>\n \n 2,50,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Office expenses <\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Purchase <\/span><\/p>\n<\/td>\n \n 3,80,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Cash <\/span><\/p>\n<\/td>\n \n 25,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Prepaid insurance <\/span><\/p>\n<\/td>\n \n 15,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 13,10,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 13,10,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Additional information:<\/span><\/p>\n Office expenses prepaid $3,000<\/span><\/p>\n Land appreciated by 10%<\/span><\/p>\n Salary outstanding $1,500<\/span><\/p>\n Bad debts written off $2,500<\/span><\/p>\n Prepaid insurance expire $10,000<\/span><\/p>\n Required: Adjusted Trial balance [5]<\/span><\/p>\n [Answer: Adjustment = $57,000; Adjusted TB = $13,51,000]<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Journal Entry<\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount Dr <\/span><\/p>\n<\/td>\n \n Amount Cr\u00a0\u00a0 <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Prepaid office expenses\u00a0 <\/span><\/p>\n<\/td>\n \n Dr<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Office expenses <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being: office expenses paid in advance)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Land and building <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Appreciation on land<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being: appreciation on land viz 400,000 x 10%)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Salary account <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Salary payable <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,500<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being: salary payable)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Bad debts account <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To debtors account <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2,500<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being: bad debts written off)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Prepaid insurance expired account <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Prepaid insurance <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being: prepaid insurance expired)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/b><\/span><\/p>\n Adjusted Trial Balance<\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Trial Balance<\/span><\/p>\n<\/td>\n \n Adjustment<\/span><\/p>\n<\/td>\n \n Adjusted Trial Balance<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n Cr <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n Cr <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n Cr <\/span><\/p>\n<\/td>\n<\/tr>\n \n Land and building <\/span><\/p>\n<\/td>\n \n 4,00,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 4,40,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Debtors <\/span><\/p>\n<\/td>\n \n 2,25,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2,500<\/span><\/p>\n<\/td>\n \n 2,22,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Bank balance <\/span><\/p>\n<\/td>\n \n 1,45,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,45,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Salary <\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 81,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Office expenses <\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n \n 37,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Purchase <\/span><\/p>\n<\/td>\n \n 3,80,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 3,80,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Cash <\/span><\/p>\n<\/td>\n \n 25,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 25,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Prepaid insurance <\/span><\/p>\n<\/td>\n \n 15,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n 5,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Capital <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 4,25,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 4,25,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Creditors <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,20,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Sales <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 5,15,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 5,15,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Loan <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2,50,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2,50,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 13,10,000<\/span><\/p>\n<\/td>\n \n 13,10,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Prepaid office expenses <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Appreciation on land <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Salary payable <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,500<\/span><\/p>\n<\/td>\n<\/tr>\n \n Bad debts <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Prepaid insurance expired<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Total <\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n 57,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 57,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 13,51,500<\/span><\/b><\/span><\/p>\n<\/td>\n \n 13,51,500<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 16.<\/span><\/b> On 1st<\/sup> January 2018 ABC Company purchased a motor van for $6,00,000. On 1st<\/sup> July 2019, the company purchased another van worth $8,00,000. On 1st<\/sup> July 2020, the first motor van was sold bearing the loss of $50,000 and on the same date, the company purchased another van for $10,00,000. Depreciation was charged @10% p.a. under the fixed installment method. The accounts of the company were closed on 31st<\/sup> December each year.<\/span><\/span><\/p>\n Required: Motor van account for the first three years [1+2+2 = 5]<\/span><\/p>\n [Answer: Depreciation in 2018 = $60,000; <\/span><\/i><\/span><\/p>\n Depn in 2019 ($60,000 + $40,000) = $100,000;<\/span><\/i><\/span><\/p>\n Depn in 2020 ($30,000 sold + $80,000 + $50,000);<\/span><\/i><\/span><\/p>\n Balance on 31 Dec 2020 = $16,30,000; <\/span><\/i><\/span><\/p>\n Loss (given); CSV (450,000 \u2013 50,000 loss) = $400,000 <\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Given and working note: <\/span><\/i><\/span><\/p>\n Depreciation @ 10% p.a. on FIM<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n \n Particulars <\/span><\/p>\n<\/td>\n \n Date<\/span><\/p>\n<\/td>\n \n Assets<\/span><\/p>\n<\/td>\n \n Total <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Old<\/span><\/p>\n<\/td>\n \n New<\/span><\/p>\n<\/td>\n \n Year<\/span><\/p>\n<\/td>\n \n V1 = 6,00,000<\/span><\/p>\n<\/td>\n \n V = 8,00,000<\/span><\/p>\n<\/td>\n \n V = 10,00,000<\/span><\/p>\n<\/td>\n \n Depn<\/span><\/p>\n<\/td>\n<\/tr>\n \n Purchase <\/span><\/p>\n<\/td>\n \n 1 Jan<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2018<\/span><\/p>\n<\/td>\n \n 600,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Depreciation <\/span><\/p>\n<\/td>\n \n 31 Dec <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2018<\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Book value\/Purchase <\/span><\/p>\n<\/td>\n \n 1 Jan<\/span><\/p>\n<\/td>\n \n 1 July<\/span><\/p>\n<\/td>\n \n 2019<\/span><\/p>\n<\/td>\n \n 540,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 800,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Depreciation <\/span><\/p>\n<\/td>\n \n 31 Dec <\/span><\/p>\n<\/td>\n \n 31 Dec <\/span><\/p>\n<\/td>\n \n 2019<\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n \n (6m)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 100,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Book value\/Purchase <\/span><\/p>\n<\/td>\n \n 1 Jan<\/span><\/p>\n<\/td>\n \n 1 July<\/span><\/p>\n<\/td>\n \n 2020<\/span><\/p>\n<\/td>\n \n 480,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 760,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,00,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 30,000 + <\/span><\/p>\n<\/td>\n<\/tr>\n \n Depreciation<\/span><\/p>\n<\/td>\n \n 31 Dec <\/span><\/p>\n<\/td>\n \n 31 Dec<\/span><\/p>\n<\/td>\n \n 2020<\/span><\/p>\n<\/td>\n \n 30,000<\/span><\/p>\n<\/td>\n \n (6m)<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/p>\n<\/td>\n \n (6m)<\/span><\/p>\n<\/td>\n \n 130,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Balance <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 450,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 680,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 950,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n CSV = $450,000 BSV \u2013 $50,000 loss = $400,000<\/span><\/p>\n \u00a0<\/span><\/b><\/span><\/p>\n Motor Van Account<\/span><\/b><\/span><\/p>\n For the year ended 31st<\/sup> December <\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n 2018<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2018<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 1 Jan<\/span><\/p>\n<\/td>\n \n To Bank account (V1)<\/span><\/p>\n<\/td>\n \n 6,00,000<\/span><\/p>\n<\/td>\n \n Dec 31<\/span><\/p>\n<\/td>\n \n By Depreciation <\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Dec 31<\/span><\/p>\n<\/td>\n \n By Balance c\/d <\/span><\/p>\n<\/td>\n \n 5,40,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 6,00,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 6,00,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n 2019<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2019<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Jan 1<\/span><\/p>\n<\/td>\n \n To Balance b\/d <\/span><\/p>\n<\/td>\n \n 5,40,000<\/span><\/p>\n<\/td>\n \n Dec 31<\/span><\/p>\n<\/td>\n \n By Depn (V1 + V2)<\/span><\/p>\n<\/td>\n \n 1,00,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Jul 1<\/span><\/p>\n<\/td>\n \n To Bank account (V2)<\/span><\/p>\n<\/td>\n \n 8,00,000<\/span><\/p>\n<\/td>\n \n Dec 31<\/span><\/p>\n<\/td>\n \n By Balance c\/d <\/span><\/p>\n<\/td>\n \n 12,40,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 13,40,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 13,40,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n 2020<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2020<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Jan 1<\/span><\/p>\n<\/td>\n \n To Balance b\/d <\/span><\/p>\n<\/td>\n \n 12,40,000<\/span><\/p>\n<\/td>\n \n Jul 1<\/span><\/p>\n<\/td>\n \n By Bank account (sold)<\/span><\/p>\n<\/td>\n \n 4,00,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Jul 1<\/span><\/p>\n<\/td>\n \n To Bank account (V3)<\/span><\/p>\n<\/td>\n \n 10,00,000<\/span><\/p>\n<\/td>\n \n Jul 1<\/span><\/p>\n<\/td>\n \n By Depn (on sold)<\/span><\/p>\n<\/td>\n \n 30,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Jul 1<\/span><\/p>\n<\/td>\n \n By P&L account (loss) <\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Dec 31<\/span><\/p>\n<\/td>\n \n By Depn (V2 + V3)<\/span><\/p>\n<\/td>\n \n 1,30,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Dec 31<\/span><\/p>\n<\/td>\n \n By Balance c\/d <\/span><\/p>\n<\/td>\n \n 16,30,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 22,40,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 22,40,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 17.<\/span><\/b> Trial balance of Nabin Trader on 31st<\/sup> December 2021 is given below:<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount Dr <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount Cr <\/span><\/p>\n<\/td>\n<\/tr>\n \n Selling expenses <\/span><\/p>\n<\/td>\n \n 5,000<\/span><\/p>\n<\/td>\n \n Gross profit b\/d<\/span><\/p>\n<\/td>\n \n 87,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Interest <\/span><\/p>\n<\/td>\n \n 5,000<\/span><\/p>\n<\/td>\n \n Creditors <\/span><\/p>\n<\/td>\n \n 8,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Debtors <\/span><\/p>\n<\/td>\n \n 25,000<\/span><\/p>\n<\/td>\n \n Bank loan<\/span><\/p>\n<\/td>\n \n 19,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Bad debts <\/span><\/p>\n<\/td>\n \n 2,000<\/span><\/p>\n<\/td>\n \n Provision for bad debts<\/span><\/p>\n<\/td>\n \n 2,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Insurance <\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n \n Capital <\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Salaries <\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Investment <\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Cash <\/span><\/p>\n<\/td>\n \n 14,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Machinery <\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Rent <\/span><\/p>\n<\/td>\n \n 4,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 166,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 166,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Additional information: <\/span><\/p>\n a. Depreciation on machinery 10% p.a.<\/span><\/p>\n b. Salary payable $4,000<\/span><\/p>\n c. New bad debt $1,000<\/span><\/p>\n Required: (i) Profit and loss account; (ii) Balance sheet [3+2]<\/span><\/p>\n [Answer: Net profit = $42,000; BS = $123,000]<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Profit and Loss Account<\/span><\/b><\/span><\/p>\n Nabin Trader<\/span><\/p>\n As on 31st<\/sup> December 2021<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Particulars <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Salaries<\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n By Gross profit <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 87,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0 Add: Salary payable <\/span><\/p>\n<\/td>\n \n + 4,000<\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/p>\n<\/td>\n \n By provision for bad debts <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 2,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Bad debts<\/span><\/p>\n<\/td>\n \n 2,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0 Add: New bad debts <\/span><\/p>\n<\/td>\n \n + 1,000<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Depn on machinery <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 5,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Selling expenses <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 5,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Interest expenses <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 5,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Insurance expenses <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Rent expenses <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 4,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Net profit <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 42,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 89,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 89,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n Balance Sheet <\/span><\/b><\/span><\/p>\n Nabin Trader<\/span><\/p>\n As on 31st<\/sup> December 2021<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Liabilities <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n \n Assets <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n<\/tr>\n \n Capital <\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Cash <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 14,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0 Add: Net profit <\/span><\/p>\n<\/td>\n \n + 42,000<\/span><\/p>\n<\/td>\n \n 92,000<\/span><\/p>\n<\/td>\n \n Debtors <\/span><\/p>\n<\/td>\n \n 25,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0 Less: Bad debts <\/span><\/p>\n<\/td>\n \n (1,000)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Creditors <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 8,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Bank loan<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 19,000<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0 Less: PBD<\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Salary payable <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 4,000<\/span><\/p>\n<\/td>\n \n Investment <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Machinery <\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0 Less: Depreciation <\/span><\/p>\n<\/td>\n \n (5,000)<\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 123,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 123,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 18.<\/span><\/b> RC Club provides the following information:<\/span><\/span><\/p>\n Balance Sheet as on 1-1- 2020<\/span><\/p>\n\n\n\n\n\n\n\n \n Liabilities<\/span><\/p>\n<\/td>\n \n Amount Dr <\/span><\/p>\n<\/td>\n \n Assets <\/span><\/p>\n<\/td>\n \n Amount Cr <\/span><\/p>\n<\/td>\n<\/tr>\n \n Capital fund <\/span><\/p>\n<\/td>\n \n 400,000<\/span><\/p>\n<\/td>\n \n Fixed assets<\/span><\/p>\n<\/td>\n \n 300,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Loan<\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n \n Investment <\/span><\/p>\n<\/td>\n \n 100,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Closing cash balance <\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 460,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 460,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n Receipts and payments of on 31st<\/sup> Dec 2020:<\/span><\/p>\n\n\n\n\n\n\n\n\n \n Receipts:<\/span><\/p>\n<\/td>\n \n Payment:<\/span><\/p>\n<\/td>\n<\/tr>\n \n Subscriptions $50,000<\/span><\/p>\n<\/td>\n \n Tournament expenses $10,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Entrance fees $30,000<\/span><\/p>\n<\/td>\n \n Wages expenses $20,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Interest on investment $5,000<\/span><\/p>\n<\/td>\n \n Printing expenses $7,500<\/span><\/p>\n<\/td>\n<\/tr>\n \n Sale of old furniture $5,000<\/span><\/p>\n<\/td>\n \n General expenses $12,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Newspaper expenses $1,800<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Other information and outstanding are given below:<\/span><\/p>\n Printing outstanding $500 and wages outstanding $3,000<\/span><\/p>\n 40% of the entrance fee is to be capitalized<\/span><\/p>\n Fixed assets depreciate by 10%<\/span><\/p>\n Subscription due for the year $22,000<\/span><\/p>\n Required: (i) Receipts and payment account; (ii) Income and Expenditure account [2+3 = 5]<\/span><\/p>\n [Answer: (i) Cash balance = $98,700; (ii) Surplus = $15,200;<\/span><\/i><\/span><\/p>\n *Net Subscription = $72,000; Balance sheet = $490,700;<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Receipt and Payment Account <\/span><\/b><\/span><\/p>\n RC Club<\/span><\/p>\n As on 31st<\/sup> December 2021<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n \n Receipt <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Payment <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n To Balance b\/d (cash balance)<\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n \n By Tournament expenses <\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Subscription <\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/p>\n<\/td>\n \n By Wages expenses <\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Entrance fees<\/span><\/p>\n<\/td>\n \n 30,000<\/span><\/p>\n<\/td>\n \n By Printing expenses <\/span><\/p>\n<\/td>\n \n 7,500<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Interest on investment <\/span><\/p>\n<\/td>\n \n 5,000<\/span><\/p>\n<\/td>\n \n By General expenses <\/span><\/p>\n<\/td>\n \n 12,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Sales of old furniture<\/span><\/p>\n<\/td>\n \n 5,000<\/span><\/p>\n<\/td>\n \n By Newspaper expenses<\/span><\/p>\n<\/td>\n \n 1,800<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n By Balance c\/d <\/span><\/p>\n<\/td>\n \n 98,700<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 150,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 150,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/b><\/span><\/p>\n Income and Expenditures Account <\/span><\/b><\/span><\/p>\n RC Club<\/span><\/p>\n As on 31st<\/sup> December 2021<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Expenditures <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n \n Incomes <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Tournament expenses <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n By Subscription<\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Wages<\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0 Less: O\/s last year<\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0 Add: O\/s current year<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n \n 23,000<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0 Add: O\/s current year<\/span><\/p>\n<\/td>\n \n 22,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Printing expenses <\/span><\/p>\n<\/td>\n \n 7,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0 Add: Advance last year<\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0 Add: O\/s current year<\/span><\/p>\n<\/td>\n \n 500<\/span><\/p>\n<\/td>\n \n 8,000<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0 Less: Advance next year<\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n \n 72,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n To General expenses <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 12,000<\/span><\/p>\n<\/td>\n \n By Entrance fees (30,000 x 60%)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Newspaper expenses <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,800<\/span><\/p>\n<\/td>\n \n By Interest on investment <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 5,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Depreciation <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 30,000<\/span><\/p>\n<\/td>\n \n By Sales of furniture <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 5,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n To Surplus <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 15,200<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 100,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 100,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n Balance Sheet<\/span><\/b><\/span><\/p>\n RC Club<\/span><\/p>\n As on 31st<\/sup> December 2021<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n \n Liabilities <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n \n Assets <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n<\/tr>\n \n Capital fund<\/span><\/p>\n<\/td>\n \n 400,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Fixed assets<\/span><\/p>\n<\/td>\n \n 300,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0 Add: Entrance fees<\/span><\/p>\n<\/td>\n \n 12,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0 Less: Depreciation <\/span><\/p>\n<\/td>\n \n (30,000)<\/span><\/p>\n<\/td>\n \n 270,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0 Surplus <\/span><\/p>\n<\/td>\n \n 15,200<\/span><\/p>\n<\/td>\n \n 427,200<\/span><\/p>\n<\/td>\n \n Investment <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 100,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Loan <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Outstanding subscription<\/span><\/p>\n<\/td>\n \n (OSCY)<\/span><\/p>\n<\/td>\n \n 22,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Outstanding wages (OSCY)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n \n Cash balance <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 98,700<\/span><\/p>\n<\/td>\n<\/tr>\n \n Outstanding printing exp<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 490,700<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 490,700<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 19 A.<\/span><\/b> Shweta keeps her account under the single entry system. She started a business with $200,000 on 1st<\/sup> Jan 2020. She withdraws $2,000 per month for household work. The position of her business at the end of the year was as follows:<\/span><\/span><\/p>\n\n\n\n\n\n \n Fixed assets <\/span><\/p>\n<\/td>\n \n 190,000<\/span><\/p>\n<\/td>\n \n Creditors <\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Inventory <\/span><\/p>\n<\/td>\n \n 85,000<\/span><\/p>\n<\/td>\n \n Debtors <\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Due expenses <\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n Bank balance <\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: (i) Closing statement of affairs; (ii) Statement of profit and loss [1+1 = 2]<\/span><\/p>\n [Answer: Closing capital = $315,000; Profit = $139,000]<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Statement of Affairs<\/span><\/b><\/span><\/p>\n As on 31 December 2020<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n \n Liabilities <\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n \n Assets <\/span><\/p>\n<\/td>\n \n Amount<\/span><\/p>\n<\/td>\n<\/tr>\n \n Due expenses <\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n Fixed assets <\/span><\/p>\n<\/td>\n \n 190,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Creditors <\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/p>\n<\/td>\n \n Inventory <\/span><\/p>\n<\/td>\n \n 85,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Closing capital (b\/f) <\/span><\/span><\/p>\n<\/td>\n \n 315,000<\/span><\/p>\n<\/td>\n \n Debtors <\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Bank balance <\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 375,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 375,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n Profit and Loss Statement<\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n Closing capital <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 315,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Add: Drawings ($2,000 x 12)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 339,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Less: Opening capital <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (200,000)<\/span><\/p>\n<\/td>\n<\/tr>\n \n Net profit for the year<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 139,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 19 B. <\/span><\/b>Following transactions of District Level Office are given:<\/span><\/span><\/p>\n\n\n\n\n\n \n (a)<\/span><\/p>\n<\/td>\n \n Dec 1<\/span><\/p>\n<\/td>\n \n House rent @ $8,000 per month for three months paid to house owner Sailesh <\/span><\/p>\n<\/td>\n<\/tr>\n \n (b)<\/span><\/p>\n<\/td>\n \n Dec 15<\/span><\/p>\n<\/td>\n \n Furniture advance of $5,000 was cleared as per bill of $6,000 and bank voucher of $1,000 submitted by Na. Su. Ramchandra<\/span><\/p>\n<\/td>\n<\/tr>\n \n (c)<\/span><\/p>\n<\/td>\n \n Dec 30<\/span><\/p>\n<\/td>\n \n Staff remuneration of Kartik $30,000 (without provident fund) was distributed after deducting PF $6,000, social security $300 and income tax $1,500.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: Journal vouchers <\/span><\/p>\n [Answer: (a) Advance rent = $24,000;<\/span><\/i><\/span><\/p>\n (c) Total salary = $33,000; DTCO = $25,200]<\/span><\/i><\/span><\/p>\n *Month has been changed, December = Chaitra<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n AGF No. 203<\/span><\/b><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Central\/Province\/Local Level<\/span><\/b><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Government of Nepal<\/span><\/b><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n District Level Office<\/span><\/p>\n<\/td>\n \n Date:<\/span> Dec 1 <\/span><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Office Code No. <\/span>125<\/span><\/span><\/p>\n<\/td>\n \n JV No. <\/span>1<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Journal Voucher<\/span><\/b><\/span><\/p>\n<\/td>\n \n Electronics Transaction No.<\/span><\/p>\n<\/td>\n<\/tr>\n \n Types of Journal Voucher<\/span>: Expenses <\/span><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Budget Sub-head No<\/span>. <\/span><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n SN<\/span><\/p>\n<\/td>\n \n Code<\/span><\/p>\n<\/td>\n \n Activities<\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Sources <\/span><\/p>\n<\/td>\n \n Debit <\/span><\/p>\n<\/td>\n \n Credit <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Sub-head<\/span><\/p>\n<\/td>\n \n Program<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Level <\/span><\/p>\n<\/td>\n \n Bearer\u00a0 <\/span><\/p>\n<\/td>\n \n Type<\/span><\/p>\n<\/td>\n \n Payment <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n No.<\/span><\/p>\n<\/td>\n \n Code No.<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Orgn<\/sup><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n mode <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n a<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Dr House owner Sailesh<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (advance for rent)<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Cr DTCO single account <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Total <\/span><\/b><\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Amount in words<\/span>: twenty-four thousand<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n \n Brief narration of transaction<\/span>: <\/span>advance house rent paid $8,000 per month for 3 months.<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n \n Attach documents<\/span>:<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n <\/p>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n <\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/b><\/span><\/p>\n Journal Voucher<\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n \n SN<\/span><\/p>\n<\/td>\n \n Code<\/span><\/p>\n<\/td>\n \n Activities<\/span><\/p>\n<\/td>\n \n Particulars<\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Sources <\/span><\/p>\n<\/td>\n \n Debit <\/span><\/p>\n<\/td>\n \n Credit <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Sub-head<\/span><\/p>\n<\/td>\n \n Program<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Level <\/span><\/p>\n<\/td>\n \n Bearer\u00a0 <\/span><\/p>\n<\/td>\n \n Type<\/span><\/p>\n<\/td>\n \n Payment <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n No.<\/span><\/p>\n<\/td>\n \n Code No.<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Orgn<\/sup><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n mode <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n b<\/span><\/p>\n<\/td>\n \n 29311<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Dr BE Furniture \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 6,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Cr DTCO single account\u00a0 <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Cr NaSu Ram Chandra<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 5,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (advance cleared)<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Total <\/span><\/b><\/span><\/p>\n<\/td>\n \n 6,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 6,000<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Amount in words<\/span>: six thousand.<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n \n Brief narration of transaction<\/span>: advance cleared by Ram Chandra<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/i><\/b><\/span><\/p>\n \u00a0<\/span><\/i><\/b><\/span><\/p>\n Journal Voucher<\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n SN<\/span><\/p>\n<\/td>\n \n Code<\/span><\/p>\n<\/td>\n \n Activities<\/span><\/p>\n<\/td>\n \n Particulars<\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Sources <\/span><\/p>\n<\/td>\n \n Debit <\/span><\/p>\n<\/td>\n \n Credit <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Sub-head<\/span><\/p>\n<\/td>\n \n Program<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Level <\/span><\/p>\n<\/td>\n \n Bearer\u00a0 <\/span><\/p>\n<\/td>\n \n Type<\/span><\/p>\n<\/td>\n \n Payment <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n No.<\/span><\/p>\n<\/td>\n \n Code No.<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Orgn<\/sup><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n mode <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n c<\/span><\/p>\n<\/td>\n \n 21111<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Dr BE Salary \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 33,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Cr Provident fund \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 6,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Cr Social security <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 300<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Cr Income tax<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,500<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Cr DTCO single account (b\/f) <\/span><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 25,200<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Total <\/span><\/b><\/span><\/p>\n<\/td>\n \n 33,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 33,000<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Amount in words<\/span>: thirty thousand<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n \n Brief narration of transaction<\/span>: salary paid after deducting provident fund, social security and income tax<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n Or<\/span><\/p>\n Following information are given by the Local Level Office:<\/span><\/p>\n\n\n\n\n\n\n\n\n \n Budget sub-head<\/span><\/p>\n<\/td>\n \n Annual budget<\/span><\/p>\n<\/td>\n \n Expenses upto November (Falgunj)<\/span><\/p>\n<\/td>\n<\/tr>\n \n Employee remuneration<\/span><\/p>\n<\/td>\n \n 800,000<\/span><\/p>\n<\/td>\n \n 400,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Office materials<\/span><\/p>\n<\/td>\n \n 120,000<\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n House rent<\/span><\/p>\n<\/td>\n \n 140,000<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Furniture and fitting<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Vehicles<\/span><\/p>\n<\/td>\n \n 500,000<\/span><\/p>\n<\/td>\n \n 350,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Expenditure for the month of December (Chaitra):<\/span><\/p>\n Dec 1: Purchase furniture $10,000<\/span><\/p>\n Dec 5: Purchase vehicles for $100,000<\/span><\/p>\n Dec 10: Advance rent paid for $10,000<\/span><\/p>\n Dec 28 Distributed $35,000 for employee\u2019s remuneration after deducting income tax $1,000 and PF $8,000.<\/span><\/p>\n Required: Budget sheet [5]<\/span><\/p>\n [Answer: Balance of budget: $551,000]<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n \u00a0<\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Central\/Province\/Local Level<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n AGF No. 208<\/span><\/b><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Stamp of<\/span><\/p>\n<\/td>\n \n Government of Nepal<\/span><\/b><\/span><\/p>\n<\/td>\n \n Stamp of<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Nepal Govt<\/span><\/b><\/span><\/p>\n<\/td>\n \n Office Code No. 235<\/span><\/p>\n<\/td>\n \n State Govt<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Budget Sheet<\/span><\/b><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n For December 2020<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Budget Sub-head No.<\/span><\/p>\n<\/td>\n \n Name of office: <\/span>Local Level Office<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n \n Part I: Budget<\/span><\/p>\n<\/td>\n \n Budget sub-head<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 21111<\/span><\/p>\n<\/td>\n \n 21112<\/span><\/p>\n<\/td>\n \n 22311<\/span><\/p>\n<\/td>\n \n 29311<\/span><\/p>\n<\/td>\n \n 29511<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Salary<\/span><\/p>\n<\/td>\n \n Office<\/span><\/p>\n<\/td>\n \n Rent<\/span><\/p>\n<\/td>\n \n Furniture<\/span><\/p>\n<\/td>\n \n Vehicle<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Total<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Materials<\/span><\/p>\n<\/td>\n \n Expenses<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Appropriation of approved annual budget for the fiscal year<\/span><\/p>\n<\/td>\n \n 16,40,000<\/span><\/p>\n<\/td>\n \n 800,000<\/span><\/p>\n<\/td>\n \n 120,000<\/span><\/p>\n<\/td>\n \n 140,000<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n \n 500,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Additional appropriation of the budget approved for FY<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Add or subtract the amount of budget transfer <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Add or subtract the amount of fund<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n The accumulated budget<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Part II: Receipt<\/span><\/p>\n<\/td>\n \n Date <\/span><\/p>\n<\/td>\n \n VN<\/span><\/p>\n<\/td>\n \n Ref.<\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Budget release upto <\/span>LM<\/span><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Budget release for <\/span>CM<\/span> \u00a0<\/span><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Budget release upto<\/span> <\/b>CM<\/span><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Part III: Expenses<\/span><\/p>\n<\/td>\n \n Dec<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Expenditure upto <\/span>LM<\/span><\/span><\/p>\n<\/td>\n \n 9,25,000<\/span><\/p>\n<\/td>\n \n 400,000<\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n \n 350,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n 1<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Furniture purchased<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 5<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Vehicle purchased<\/span><\/p>\n<\/td>\n \n 1,00,000<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n 100,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n 10<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Advance rent paid<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n<\/tr>\n \n 28<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Salary paid <\/span><\/p>\n<\/td>\n \n 44,000<\/span><\/p>\n<\/td>\n \n 44,000<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Total expenditures<\/span><\/p>\n<\/td>\n \n 10,89,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 444,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 90,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 450,000<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Balance of budget<\/span><\/p>\n<\/td>\n \n 551,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 356,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/b><\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n <\/p>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n <\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Given and working note: <\/span><\/i><\/span><\/p>\n Dr BE Salary (b\/f) 44,000<\/span><\/i><\/span><\/p>\n Cr IT 1,000<\/span><\/i><\/span><\/p>\n Cr PF 8,000<\/span><\/i><\/span><\/p>\n Cr DTCO 35,000<\/span><\/i><\/span><\/p>\n \u00a0<\/span><\/p>\n ###########<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Click on the link for YouTube<\/span> videos: <\/span><\/p>\n<\/td>\n<\/tr>\n \n Accounting Equation<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/c89jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Basic Journal Entries in Nepali<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/uaakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Basic Journal Entries<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/8aakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Journal Entry and Ledger<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/caakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Ledger<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/haakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Subsidiary Book<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/399jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Cash Book<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/889jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Trial Balance & Adjusted Trial Balance<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/c59jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Bank Reconciliation Statement (BRS)<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/q59jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Depreciation<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/ugakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Final Accounts: Class 11<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/y89jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Adjustment in Final Accounts<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/keakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Capital and Revenue<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/peakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Single Entry System<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/n19jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Non-Trading Concern<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/j09jkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Government Accounting<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/hcakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n \n Goswara Voucher (Journal Voucher)<\/span><\/p>\n<\/td>\n \n http:\/\/tiny.cc\/hcakkz<\/span><\/b><\/a><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n ###########<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Click on the photo for FREE <\/span><\/b>e<\/span><\/b>Books<\/span><\/b><\/span><\/p>\n <\/a><\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Section C: Long Answer Questions<\/span><\/b><\/span><\/p>\n Attempt All Questions [3 x 8 marks = 24 marks]<\/span><\/b><\/span><\/p>\n Q: 20.<\/span><\/b> Information of Samriyan Enterprises is given below:<\/span><\/span><\/p>\n (a) Started a business with $200,000<\/span><\/p>\n (b) Purchase goods of $15,000 from Ram<\/span><\/p>\n (c) Goods sold in cash $18,000<\/span><\/p>\n (d) Cash paid to Ram $10,000<\/span><\/p>\n (e) Again goods purchase from Ram of $20,000<\/span><\/p>\n (f) Paid to Ram $24,000 in full settlement of his account.<\/span><\/p>\n Required: (i) Journal Entries; (ii) Necessary Ledger; (iii) (Trail Balance [3+4+1]<\/span><\/p>\n [Answer: Trial balance = $219,000]<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Journal Entries <\/span><\/b><\/span><\/p>\n In the book of <\/b><\/i>Samriyan Enterprises<\/span><\/i><\/i><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount Dr <\/span><\/p>\n<\/td>\n \n Amount Cr\u00a0\u00a0 <\/span><\/p>\n<\/td>\n<\/tr>\n \n a.<\/span><\/p>\n<\/td>\n \n Cash account <\/span><\/p>\n<\/td>\n \n Dr<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Capital account <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being: business started with cash)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n b.<\/span><\/p>\n<\/td>\n \n Purchase account <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 15,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Ram\u2019s account <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 15,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being: goods or inventories purchase on credit)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n c.<\/span><\/p>\n<\/td>\n \n Cash account <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Sales account <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being: goods or inventories sold in cash)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n d.<\/span><\/p>\n<\/td>\n \n Ram\u2019s account <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Cash account <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being: cash paid to him partially) <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n e.<\/span><\/p>\n<\/td>\n \n Purchase account <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Ram\u2019s account <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being: goods or inventories purchase on credit)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n f.<\/span><\/p>\n<\/td>\n \n Ram\u2019s account <\/span><\/p>\n<\/td>\n \n Dr <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 25,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Cash account <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To Discount received account <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (Being: cash paid and discount received )<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Cash Account <\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n a.<\/span><\/p>\n<\/td>\n \n To Capital <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n \n d.<\/span><\/p>\n<\/td>\n \n By Bam<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n c.<\/span><\/p>\n<\/td>\n \n To Sales<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n \n f.<\/span><\/p>\n<\/td>\n \n By Ram<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n By Balance c\/d <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 184,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 218,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 218,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n To Balance c\/d <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 184,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Capital Account <\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n To Balance c\/d <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n \n a.<\/span><\/p>\n<\/td>\n \n By Cash<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n By Balance b\/d <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Purchase Account <\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n b.<\/span><\/p>\n<\/td>\n \n To Ram<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 15,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n By Balance c\/d <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n e.<\/span><\/p>\n<\/td>\n \n To Ram<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n To Balance b\/d <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Ram\u2019s Account <\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n d.<\/span><\/p>\n<\/td>\n \n To Cash <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n b.<\/span><\/p>\n<\/td>\n \n By Purchase <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 15,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n f.<\/span><\/p>\n<\/td>\n \n To Cash<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/p>\n<\/td>\n \n e.<\/span><\/p>\n<\/td>\n \n By Purchase <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n f.<\/span><\/p>\n<\/td>\n \n To Discount received <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Sales Account <\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n To Balance c\/d <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n \n c.<\/span><\/p>\n<\/td>\n \n By Cash<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n By Balance b\/d <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n Discount Received Account <\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Date <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n LF<\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n To Balance c\/d <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n \n f.<\/span><\/p>\n<\/td>\n \n By Ram<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n By Balance b\/d <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Trial Balance<\/span><\/b><\/span><\/p>\n Of <\/b><\/i>Samriyan Enterprises<\/span><\/i><\/i><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n \n Ledger balance\/ Particulars <\/span><\/p>\n<\/td>\n \n Amount Dr<\/span><\/p>\n<\/td>\n \n Amount Cr<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Cash <\/span><\/p>\n<\/td>\n \n 184,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Purchase <\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Capital <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Sales <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Discount received <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 1,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 219,000<\/span><\/p>\n<\/td>\n \n 219,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 21.<\/span><\/b> The trial balance of Deepak Store as on 31st<\/sup> December 2020 is given below:<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n \n Particulars <\/span><\/p>\n<\/td>\n \n Amount <\/span><\/p>\n<\/td>\n<\/tr>\n \n Plant and machinery <\/span><\/p>\n<\/td>\n \n 3,60,000<\/span><\/p>\n<\/td>\n \n Gain on furniture <\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Salary expenses <\/span><\/p>\n<\/td>\n \n 71,000<\/span><\/p>\n<\/td>\n \n Creditors <\/span><\/p>\n<\/td>\n \n 96,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Cost of goods sold<\/span><\/p>\n<\/td>\n \n 7,55,000<\/span><\/p>\n<\/td>\n \n Sales <\/span><\/p>\n<\/td>\n \n 10,53,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Debtors <\/span><\/p>\n<\/td>\n \n 34,500<\/span><\/p>\n<\/td>\n \n Accumulated depreciation-plant<\/span><\/p>\n<\/td>\n \n 45,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Stock at the end<\/span><\/p>\n<\/td>\n \n 110,000<\/span><\/p>\n<\/td>\n \n 15% Bank loan<\/span><\/p>\n<\/td>\n \n 56,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Drawings <\/span><\/p>\n<\/td>\n \n 15,000<\/span><\/p>\n<\/td>\n \n Capital <\/span><\/p>\n<\/td>\n \n 3,50,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n 10% Investment <\/span><\/p>\n<\/td>\n \n 1,20,000<\/span><\/p>\n<\/td>\n \n Interest on investment <\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Goodwill <\/span><\/p>\n<\/td>\n \n 48,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Gas and oil expenses <\/span><\/p>\n<\/td>\n \n 8,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Cash <\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Repair expenses <\/span><\/p>\n<\/td>\n \n 34,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Prepaid insurance <\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 16,20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 16,20,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Additional information:<\/span><\/p>\n (a) Salaries are 80% of selling and 20% administrative expenditure.<\/span><\/p>\n (b) Insurance expires of $18,000<\/span><\/p>\n (c) Depreciation on plant and machinery is 15%<\/span><\/p>\n (d) Gas and oil expenses are selling expenses.<\/span><\/p>\n Required: (i) Income statement based on NFRS); (ii) Balance sheet based on NFRS [4+4 = 8]<\/span><\/p>\n [Answer: NPAT = $126,600; B\/S = $622,000]<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Given and working note: <\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n 1.<\/span><\/i><\/span><\/p>\n<\/td>\n \n Salaries-office (71,000 x 20%)<\/span><\/i><\/span><\/p>\n<\/td>\n \n 14,200<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 4.<\/span><\/i><\/span><\/p>\n<\/td>\n \n Interest payable on the loan<\/span><\/i><\/span><\/p>\n<\/td>\n \n 8,400<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Salaries-office (71,000 x 80%)<\/span><\/i><\/span><\/p>\n<\/td>\n \n 56,800<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n ($56,000 x 15%)<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n 2.<\/span><\/i><\/span><\/p>\n<\/td>\n \n Depn on plant<\/span><\/i><\/span><\/p>\n<\/td>\n \n 54,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 5.<\/span><\/i><\/span><\/p>\n<\/td>\n \n Interest on investment<\/span><\/i><\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n ($360,000 x 15%)<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Add: Interest receivable <\/span><\/i><\/span><\/p>\n<\/td>\n \n 2,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 12,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Accumulated depreciation <\/span><\/i><\/span><\/p>\n<\/td>\n \n 99,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n ($45,000 + 54,000)<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 6.<\/span><\/i><\/span><\/p>\n<\/td>\n \n Capital <\/span><\/i><\/span><\/p>\n<\/td>\n \n 350,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Less: Drawings <\/span><\/i><\/span><\/p>\n<\/td>\n \n (15,000)<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n 3.<\/span><\/i><\/span><\/p>\n<\/td>\n \n Prepaid insurance <\/span><\/i><\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 335,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Less: Expired <\/span><\/i><\/span><\/p>\n<\/td>\n \n (18,000)<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 6,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Profit or Loss Statement under NFRS<\/span><\/b><\/span><\/p>\n Deepak Store<\/span><\/p>\n As on 31st<\/sup> December 2020<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Particulars<\/span><\/p>\n<\/td>\n \n Notes<\/span><\/p>\n<\/td>\n \n Amount $<\/span><\/p>\n<\/td>\n \n Amount $<\/span><\/p>\n<\/td>\n<\/tr>\n \n Net service revenue <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,53,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Less:<\/span><\/b><\/span><\/p>\n<\/td>\n \n Cost of goods sold<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (7,55,000)<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Gross profit<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n 298,000<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Add:<\/span><\/b><\/b><\/span><\/p>\n<\/td>\n \n Other income <\/span><\/b><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n Gain on furniture<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n Interest on investment \u00a0<\/span><\/p>\n<\/td>\n \n 5<\/span><\/p>\n<\/td>\n \n 12,000<\/span><\/p>\n<\/td>\n \n 22,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Less:<\/span><\/b><\/span><\/p>\n<\/td>\n \n Operating expenses:<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Salaries expenses-office <\/span><\/p>\n<\/td>\n \n 1<\/span><\/p>\n<\/td>\n \n 14,200<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Repair expenses-office<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 34,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Insurance expenses-office<\/span><\/p>\n<\/td>\n \n 3<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Depreciation expenses-office<\/span><\/p>\n<\/td>\n \n 2<\/span><\/p>\n<\/td>\n \n 54,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Salaries-selling<\/span><\/p>\n<\/td>\n \n 1<\/span><\/p>\n<\/td>\n \n 56,800<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Gas and oil (diesel and lube)-selling<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 8,000<\/span><\/p>\n<\/td>\n \n (185,000)<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Profit from operation <\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n 135,000<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Less:<\/span><\/b><\/span><\/p>\n<\/td>\n \n Financial expenses: <\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Interest expenses\u00a0 <\/span><\/p>\n<\/td>\n \n 4<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (8,400)<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Profit before tax<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n 126,600<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Less:<\/span><\/b><\/span><\/p>\n<\/td>\n \n Income tax expenses <\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n Profit from continuing operations <\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n 126,600<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Less:<\/span><\/b><\/span><\/p>\n<\/td>\n \n Loss from discontinued operation after tax<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Net profit after tax\u00a0 <\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n 126,600<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/i><\/span><\/p>\n Retained earnings\u2019 data is not given, so, no need to prepare<\/span><\/i><\/span><\/p>\n \u00a0<\/span><\/b><\/span><\/p>\n Statement of Financial Position as per NFRS<\/span><\/b><\/span><\/p>\n Deepak Store<\/span><\/p>\n As on 31st<\/sup> December 2020<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Particulars <\/span><\/p>\n<\/td>\n \n Notes<\/span><\/p>\n<\/td>\n \n Year 2021<\/span><\/p>\n<\/td>\n<\/tr>\n \n ASSETS\u00a0 <\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Non-Current Assets:<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Plant and machinery <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 360,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Less: Accumulated depreciation <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (99,000)<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 10% Investment<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 120,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Goodwill <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 48,500<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Total non-current assets (A)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 429,500<\/span><\/p>\n<\/td>\n<\/tr>\n \n Current Assets: <\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Cash <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Debtors\u00a0 <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 34,500<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Stock at the end <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 110,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Prepaid insurance <\/span><\/p>\n<\/td>\n \n 3<\/span><\/p>\n<\/td>\n \n 6,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Interest receivable <\/span><\/p>\n<\/td>\n \n 5<\/span><\/p>\n<\/td>\n \n 2,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Other current assets <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Total current assets (B) <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 192,500<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n TOTAL ASSETS (A+B)<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 622,000<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n EQUITY<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Capital\u00a0\u00a0 <\/span><\/p>\n<\/td>\n \n 6<\/span><\/p>\n<\/td>\n \n 335,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Additional paid in capital\u00a0 (share premium)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Retained earnings (NIAT)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 126,600<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Total Equity<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 461,600<\/span><\/p>\n<\/td>\n<\/tr>\n \n LIABILITIES <\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Non-Current Liabilities:<\/i><\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n 15% Bank loan\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 56,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Other non-current liabilities <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Total non-current liabilities (a)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 56,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Current Liabilities:<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Creditors\u00a0 <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 96,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Interest payable <\/span><\/p>\n<\/td>\n \n 4<\/span><\/p>\n<\/td>\n \n 8,400<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Other current liabilities<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Total current liabilities (b) <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 104,400<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Total Liabilities (a+b)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 160,400<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n TOTAL EQUITY AND LIABILITIES <\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 622,000<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Or<\/span><\/p>\n What is government accounting? Explain the features of the new government accounting system<\/span>. [3+5 = 8]<\/span><\/span><\/p>\n Government accounting<\/span><\/b><\/b><\/span><\/p>\n Every state or country has its own government. <\/span><\/p>\n It records the financial transactions of the government offices. <\/span><\/p>\n The government accounting system is used in government offices to record and report their\u00a0<\/span>financial transactions. <\/span><\/p>\n Systematic and scientific recording of government revenues and expenditures are recorded in it. <\/span><\/p>\n In this account, revenues collecting, recording, classifying, summarizing, interpreting and expenditures are recorded. <\/span><\/p>\n It reveals how public funds have been generated and utilized for the welfare of the general public.<\/span><\/p>\n \u00a0<\/span><\/p>\n Features of new government accounting system<\/span><\/b><\/span><\/p>\n The main features of the new accounting system are explained below:<\/span><\/p>\n Based on the double-entry system<\/span><\/b><\/span><\/p>\n The new accounting system is based on the principle of a double entry system of bookkeeping. <\/span><\/p>\n In a double entry system, each financial transaction has two aspects i.e. debit and credit. <\/span><\/p>\n Each financial transaction affects one debit side and another credit side.<\/span><\/p>\n \u00a0<\/span><\/b><\/span><\/p>\n Uniformity and simplicity<\/span><\/b><\/span><\/p>\n New accounting systems are used in the entire government offices in Nepal. <\/span><\/p>\n This system is simple to understand and easy to operate; because it is based on the principle of a double entry system. <\/span><\/p>\n \u00a0<\/span><\/b><\/span><\/p>\n Banking transaction<\/span><\/b><\/span><\/p>\n Cash is the probability of misuse and manipulation of object. <\/span><\/p>\n New accounting systems emphasize banking\u00a0transactions. <\/span><\/p>\n Every government officer should\u00a0deposit all revenues into the bank and payments are made through DTCO. <\/span><\/p>\n \u00a0<\/span><\/b><\/span><\/p>\n Classification of offices<\/span><\/b><\/span><\/p>\n Government organizations are classified into central level offices and local level offices. <\/span><\/p>\n Central level offices are ministry. <\/span><\/p>\n Operating level offices are operated in a metropolitan city, a sub-metropolitan city, municipality and rural<\/span> municipality. <\/span><\/span><\/p>\n \u00a0<\/span><\/b><\/span><\/p>\n Based on budget heads<\/span><\/b><\/span><\/p>\n The new accounting systems are based on different budget heads for making expenditures. <\/span><\/p>\n Government officers should not make expenditures more than allocated to a budget head.<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 22A.<\/span><\/b> Following extracted data are given by a Local Level Office:<\/span><\/span><\/p>\n\n\n\n\n\n\n\n \n Aug 1:<\/span><\/p>\n<\/td>\n \n Balance at bank $75,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Aug 3:<\/span><\/p>\n<\/td>\n \n Received bank transfer order $3,25,000 as a budget release<\/span><\/p>\n<\/td>\n<\/tr>\n \n Aug 9:<\/span><\/p>\n<\/td>\n \n Issued a cheque of $20,000 for purchasing furniture<\/span><\/p>\n<\/td>\n<\/tr>\n \n Aug 22:<\/span><\/p>\n<\/td>\n \n Cleared advance of Subodh against the submission of bill of the book purchase amount of $10,000 and cash $3,000.<\/span><\/p>\n<\/td>\n<\/tr>\n \n Aug 30:<\/span><\/p>\n<\/td>\n \n The distributed total salary of $88,000 after deduction of Provident fund $16,000 and income tax of $4,000.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: Bank cash book<\/span><\/p>\n [Answer: Bank balance = $315,000<\/span><\/i><\/span><\/p>\n *Month\u2019s name have been changed, here August = Marg<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n Given and working note: <\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n \n Dr DTCO 325,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr BE Furniture 20,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr BE Books 10,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr BE Salary 88,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n Cr Budget release 325,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n Cr DTCO 20,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n Dr DTCO 3,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n Cr PF 16,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n Cr Subodh 13,000<\/span><\/i><\/span><\/p>\n<\/td>\n \n Cr IT 4,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n (advance cleared)<\/span><\/i><\/span><\/p>\n<\/td>\n \n Cr DTCO 68,000<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/i><\/span><\/p>\n \u00a0<\/span><\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Central\/Province\/Local Level<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n AGF No. 209<\/span><\/b><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Stamp of<\/span><\/p>\n<\/td>\n \n Government of Nepal<\/span><\/b><\/span><\/p>\n<\/td>\n \n Stamp of<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n Nepal Govt<\/span><\/b><\/span><\/p>\n<\/td>\n \n Local Level Office <\/span><\/p>\n<\/td>\n \n State Govt<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Office Code No. 182<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/b><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Bank Cash Book<\/span><\/b><\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n For August 2020<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Budget Sub-head No.<\/span><\/p>\n<\/td>\n<\/tr>\n \n Date<\/span><\/p>\n<\/td>\n \n VN<\/span><\/p>\n<\/td>\n \n Particulars<\/span><\/p>\n<\/td>\n \n Cash<\/span><\/p>\n<\/td>\n \n DTCO single account<\/span><\/p>\n<\/td>\n \n Budgeted<\/span><\/p>\n<\/td>\n \n Advance<\/span><\/p>\n<\/td>\n \n Advance<\/span><\/p>\n<\/td>\n \n Miscellaneous<\/span><\/p>\n<\/td>\n \n Rem.<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Dr<\/span><\/p>\n<\/td>\n \n Cr<\/span><\/p>\n<\/td>\n \n Dr<\/span><\/p>\n<\/td>\n \n Cr<\/span><\/p>\n<\/td>\n \n Ch<\/span><\/p>\n<\/td>\n \n Bal.<\/span><\/p>\n<\/td>\n \n BH No.<\/span><\/p>\n<\/td>\n \n $\/Rs<\/span><\/p>\n<\/td>\n \n Given<\/span><\/p>\n<\/td>\n \n Cleared<\/span><\/p>\n<\/td>\n \n Given<\/span><\/p>\n<\/td>\n \n Cleared<\/span><\/p>\n<\/td>\n \n Dr<\/span><\/p>\n<\/td>\n \n Cr<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 1<\/span><\/i><\/span><\/p>\n<\/td>\n \n 2<\/span><\/i><\/span><\/p>\n<\/td>\n \n 3<\/span><\/i><\/span><\/p>\n<\/td>\n \n 4<\/span><\/i><\/span><\/p>\n<\/td>\n \n 5<\/span><\/i><\/span><\/p>\n<\/td>\n \n 6<\/span><\/i><\/span><\/p>\n<\/td>\n \n 7<\/span><\/i><\/span><\/p>\n<\/td>\n \n 8<\/span><\/i><\/span><\/p>\n<\/td>\n \n 9<\/span><\/i><\/span><\/p>\n<\/td>\n \n 10<\/span><\/i><\/span><\/p>\n<\/td>\n \n 11<\/span><\/i><\/span><\/p>\n<\/td>\n \n 12<\/span><\/i><\/span><\/p>\n<\/td>\n \n 13<\/span><\/i><\/span><\/p>\n<\/td>\n \n 14<\/span><\/i><\/span><\/p>\n<\/td>\n \n 15<\/span><\/i><\/span><\/p>\n<\/td>\n \n 16<\/span><\/i><\/span><\/p>\n<\/td>\n \n 17<\/span><\/i><\/span><\/p>\n<\/td>\n \n 18<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n 1<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Balance b\/d<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 75,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 3<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Budget received <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 325,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 400,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 325,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 9<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 380,000<\/span><\/p>\n<\/td>\n \n 29311<\/span><\/p>\n<\/td>\n \n 20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 22<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 383,000<\/span><\/p>\n<\/td>\n \n 22313<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 13,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n (13,000)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 30<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 68,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 315,000<\/span><\/p>\n<\/td>\n \n 21111<\/span><\/p>\n<\/td>\n \n 88,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 16,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 4,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Total of this month<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 328,000<\/span><\/p>\n<\/td>\n \n 88,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 315,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 105,000<\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n \n 13,000<\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n \n Nil <\/span><\/p>\n<\/td>\n \n 345,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Total upto last month<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Total upto this month<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n <\/p>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n <\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Q: 22B.<\/span><\/b> The following information is given by the Local Level Office:<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n \n Budget heads <\/span><\/p>\n<\/td>\n \n Annual budget<\/span><\/p>\n<\/td>\n \n Expenditure upto May<\/span><\/p>\n<\/td>\n \n Expenditure of Jun<\/span><\/p>\n<\/td>\n<\/tr>\n \n Salaries <\/span><\/p>\n<\/td>\n \n 275,000<\/span><\/p>\n<\/td>\n \n 55,000<\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Local allowances<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n 6,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Office expenses <\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n \n 15,000<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n House rent <\/span><\/p>\n<\/td>\n \n 150,000<\/span><\/p>\n<\/td>\n \n 25,000<\/span><\/p>\n<\/td>\n \n 12,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Furniture and fitting <\/span><\/p>\n<\/td>\n \n 75,000<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n<\/tr>\n \n Machinery\u00a0 <\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 840,000<\/span><\/p>\n<\/td>\n \n 140,000<\/span><\/p>\n<\/td>\n \n 125,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Additional information: <\/span><\/p>\n \u00a0The unclear advance of machinery $15,000.<\/span><\/p>\n Required: Statement of expenditure [4]<\/span><\/p>\n [Answer: balance of budget = $575,000]<\/span><\/i><\/span><\/p>\n *Here, Bhadra = May; Ashwin = Jun<\/span><\/i><\/span><\/p>\n SOLUTION <\/span><\/b><\/span><\/p>\n AGF No. 210<\/span><\/b><\/span><\/p>\n Central\/Province\/Local Level<\/span><\/p>\n Local Level Office<\/span><\/p>\n Office Code No. 145<\/span><\/p>\n Statement of Expenditures<\/span><\/b><\/span><\/p>\n For the month of June 2020<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n BH<\/span><\/p>\n<\/td>\n \n Expenditure or<\/span><\/p>\n<\/td>\n \n Annual<\/span><\/p>\n<\/td>\n \n Release<\/span><\/p>\n<\/td>\n \n Expenditure<\/span><\/p>\n<\/td>\n \n Expenditure<\/span><\/p>\n<\/td>\n \n Expenditure<\/span><\/p>\n<\/td>\n \n Advance<\/span><\/p>\n<\/td>\n \n Net of<\/span><\/p>\n<\/td>\n \n Balance of<\/span><\/p>\n<\/td>\n<\/tr>\n \n No.<\/span><\/p>\n<\/td>\n \n Financial code\/name<\/span><\/p>\n<\/td>\n \n Budget<\/span><\/p>\n<\/td>\n \n Upto<\/span><\/p>\n<\/td>\n \n Upto <\/span><\/p>\n<\/td>\n \n of<\/span><\/p>\n<\/td>\n \n upto <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Uncleared<\/span><\/p>\n<\/td>\n \n Budget<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Jun \u00a0(CM)<\/span><\/span><\/p>\n<\/td>\n \n May (LM)<\/span><\/span><\/p>\n<\/td>\n \n Jun \u00a0(CM)<\/span><\/span><\/p>\n<\/td>\n \n Jun \u00a0(CM)<\/span><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Advance<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 1<\/span><\/i><\/span><\/p>\n<\/td>\n \n 2<\/span><\/i><\/span><\/p>\n<\/td>\n \n 3<\/span><\/i><\/span><\/p>\n<\/td>\n \n 4 = 5+6\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/i><\/span><\/p>\n<\/td>\n \n 5<\/span><\/i><\/span><\/p>\n<\/td>\n \n 6<\/span><\/i><\/span><\/p>\n<\/td>\n \n 7 = 5+6<\/span><\/i><\/span><\/p>\n<\/td>\n \n 8<\/span><\/i><\/span><\/p>\n<\/td>\n \n 9 = 7\u20138<\/span><\/i><\/span><\/p>\n<\/td>\n \n 10 = 3\u20137<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n 21111<\/span><\/p>\n<\/td>\n \n Salaries <\/span><\/p>\n<\/td>\n \n 275,000<\/span><\/p>\n<\/td>\n \n 79,000<\/span><\/p>\n<\/td>\n \n 55,000<\/span><\/p>\n<\/td>\n \n 24,000<\/span><\/p>\n<\/td>\n \n 79,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 79,000<\/span><\/p>\n<\/td>\n \n 196,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n 21112<\/span><\/p>\n<\/td>\n \n Local allowances<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n \n 16,000<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n 6,000<\/span><\/p>\n<\/td>\n \n 16,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 16,000<\/span><\/p>\n<\/td>\n \n 64,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n 22311<\/span><\/p>\n<\/td>\n \n Office expenses <\/span><\/p>\n<\/td>\n \n 60,000<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n \n 15,000<\/span><\/p>\n<\/td>\n \n 3,000<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 18,000<\/span><\/p>\n<\/td>\n \n 42,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n 22121<\/span><\/p>\n<\/td>\n \n House rent <\/span><\/p>\n<\/td>\n \n 150,000<\/span><\/p>\n<\/td>\n \n 37,000<\/span><\/p>\n<\/td>\n \n 25,000<\/span><\/p>\n<\/td>\n \n 12,000<\/span><\/p>\n<\/td>\n \n 37,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 37,000<\/span><\/p>\n<\/td>\n \n 113,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n 29311<\/span><\/p>\n<\/td>\n \n Furniture and fitting <\/span><\/p>\n<\/td>\n \n 75,000<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 35,000<\/span><\/p>\n<\/td>\n \n 40,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n 29511<\/span><\/p>\n<\/td>\n \n Machinery\u00a0 <\/span><\/p>\n<\/td>\n \n 200,000<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n \n 80,000<\/span><\/p>\n<\/td>\n \n 15,000<\/span><\/p>\n<\/td>\n \n 65,000<\/span><\/p>\n<\/td>\n \n 120,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Grand total <\/span><\/p>\n<\/td>\n \n 840,000<\/b><\/span><\/p>\n<\/td>\n \n 265,000<\/span><\/p>\n<\/td>\n \n 140,000<\/span><\/p>\n<\/td>\n \n 125,000<\/span><\/p>\n<\/td>\n \n 265,000<\/span><\/p>\n<\/td>\n \n 15,000<\/span><\/p>\n<\/td>\n \n 250,000<\/span><\/p>\n<\/td>\n \n 575,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Comparison with\u00a0 annual budget in %<\/span><\/p>\n<\/td>\n \n 31.55%<\/span><\/p>\n<\/td>\n \n 16.67%<\/span><\/p>\n<\/td>\n \n 14.88%<\/span><\/p>\n<\/td>\n \n 31.55%<\/span><\/p>\n<\/td>\n \n 1.79%<\/span><\/p>\n<\/td>\n \n 29.76%<\/span><\/p>\n<\/td>\n \n 68.45%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/b><\/span><\/p>\n \u00a0<\/span><\/p>\n\n\n\n\n\n\n \n Signature of Preparer:<\/span><\/p>\n<\/td>\n \n ABC<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Signature of Approver:<\/span><\/p>\n<\/td>\n \n XYZ<\/span><\/p>\n<\/td>\n<\/tr>\n \n Name:<\/span><\/p>\n<\/td>\n \n ABC<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Name:<\/span><\/p>\n<\/td>\n \n XYZ<\/span><\/p>\n<\/td>\n<\/tr>\n \n Position:<\/span><\/p>\n<\/td>\n \n Accountant<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Position:<\/span><\/p>\n<\/td>\n \n Office-in-charge<\/span><\/p>\n<\/td>\n<\/tr>\n \n Date:<\/span><\/p>\n<\/td>\n \n 2021-Jun-30<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Date:<\/span><\/p>\n<\/td>\n \n 2021-Jun-30<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Given and working note: <\/span><\/i><\/span><\/p>\n Annual budget in % = (Grand total amount \u00f7 Total annual budget) x 100<\/span><\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n \n 4<\/span><\/i><\/span><\/p>\n<\/td>\n \n 5<\/span><\/i><\/span><\/p>\n<\/td>\n \n 6<\/span><\/i><\/span><\/p>\n<\/td>\n \n 7<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n = (265,000 \u00f7 840,000) x 100 <\/span><\/i><\/span><\/p>\n<\/td>\n \n = (140,000 \u00f7 840,000) x 100<\/span><\/i><\/span><\/p>\n<\/td>\n \n = (125,000 \u00f7 840,000) x 100<\/span><\/i><\/span><\/p>\n<\/td>\n \n = (265,000 \u00f7 840,000) x 100<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n = 31.55%<\/span><\/i><\/span><\/p>\n<\/td>\n \n = 16.67%<\/span><\/i><\/span><\/p>\n<\/td>\n \n = 14.88%<\/span><\/i><\/span><\/p>\n<\/td>\n \n = 31.55%<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n 8<\/span><\/i><\/span><\/p>\n<\/td>\n \n 9<\/span><\/i><\/span><\/p>\n<\/td>\n \n 10<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n = (15,000 \u00f7 840,000) x 100<\/span><\/i><\/span><\/p>\n<\/td>\n \n = (250,000 \u00f7 840,000) x 100<\/span><\/i><\/span><\/p>\n<\/td>\n \n = (575,000 \u00f7 840,000) x 100<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n \n = 1.79%<\/span><\/i><\/span><\/p>\n<\/td>\n \n = 29.76%<\/span><\/i><\/span><\/p>\n<\/td>\n \n = 68.45%<\/span><\/i><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n ***** #EP<\/span>Online<\/span>Study *****<\/span><\/span><\/p>\n Thank you for investing your time.<\/span><\/i><\/span><\/p>\n Please comment on the article.<\/span><\/i><\/span><\/p>\n You can help us by sharing this post on your social media platform.<\/span><\/i><\/span><\/p>\n \u00a0<\/span><\/p>\n Jay G<\/span>o<\/span>o<\/span>g<\/span>l<\/span>e<\/span>, Jay YouTube<\/span>, Jay Social Media<\/span><\/span><\/p>\n \u091c\u092f<\/span> \u0917\u0942<\/span>\u0917<\/span>\u0932<\/span>.<\/span> \u091c\u092f<\/span> \u092f\u0941\u091f\u094d\u092f\u0941\u092c<\/span>,<\/span> \u091c\u092f<\/span> \u0938\u094b\u0936\u0932<\/span> \u092e\u0940\u0921\u093f\u092f\u093e <\/span><\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":" \u00a0 \u00a0 \u00a0 GRADE XI Principles of Accounting I | NEB Model Question Solution Model Questions Time: 3 Hours Full Marks: 75 Candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate. \u00a0 Section A: Very Short Answer Questions Attempt All Questions [11 x […]<\/p>\n","protected":false},"author":19997,"featured_media":4986,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2367,11],"tags":[2370,2371,2369,2368],"writers":[144],"yoast_head":"\n