Ascertainment of Profit/Loss by Statement of Affairs Method Opening Capital Rs.60,000; Drawings Rs.5,000; Capital added during the year Rs.10,000 Closing Capital Rs.90,000 Calculate the Profit or Loss for the year. Solution:- 2. Pankaj maintains his books of account on Single…
Adjustments Q.1 Closing Stock as at 31st March, 2025 of Rs.50,000 appears the Trial Balance. Accounts are closed on 31st March. Pass an Adjusting Entry and show how this will appear in the Final Accounts. Solution:- Note:- Closing stock of…
Classification of Capital and Revenue Expenditures: Q1. State whether the following expenses are capital or revenue in nature: Solution – Trading Account: Q2. From the following information, determine Gross Profit for the year ended 31st March, 2025: Solution – Trading…
One sided Errors Q.1 Rectify the following errors identified in the Solution:- Q.2 Rectify the following errors: Solution:- Q.3 The following errors are identified in the books of Sanjay, pass the necessary entries to rectify them: Solution:- Q.4 Rectify the…
Meaning of Provision A provision is a charge against profit for the purpose of providing for any liability or loss. Provision for Depreciation, Provision for Doubtful Debts, Provision for Repairs and Provision for Tax are few examples of provisions. …
Straight Line Method (SLM) Q1. Tushar purchased a machine for Rs.90,000. Expenses incurred on its cartage and installation are Rs.10,000. The residual value at the end of its expected useful life of 10 years is estimated at Rs.20,000. Calculate the…
Without Goods and Services Tax (GST) Q1. Prepare a Trial Balance with the following information: Solution- Q2. From the following ledger balances, prepare Trial Balance: Capital Rs.20,800; Rent outstanding Rs.1,420; Amount due to Mohan Rs.15,000; Drawings Rs.2,800; Goodwill Rs.12,000; Interest…
Debit (Favourable) Balance as per Cash Book Q1. Ramesh has his account with state bank of India . According to his Cash Book, his bank balance on 31st March, 2025 was 72,950. He sent cheques for 90,075 to his bank…
Q1. Journalise the following transactions in the books of Gurman of Delhi: Solution – Journal Entries Working Note:- Less Trade Discount (10%) = 2,000 = 18,000 Less Cash Discount (5%) = 900 = 17,100 Add:…
Q1. Record the following transactions in the Purchases Book of Krishna General Stores, Delhi: Solution – In the Book of Krishna General Store Purchases Book Q2. Verma Bros. carry on business as wholesale cloth dealer. From the following write…
Q1. Enter the following transactions of Ripinder in his Single Column Cash Book and Balance it: Solution – Single Column Book Transaction: Dr Cash Book Cr Working Note – Only Cash transaction recorded in cash book so purchased goods…
Q1. On 1st April, 2025, Gopal started business with a capital of 50,000. He made the following transactions during the month of April: Journalise the above transactions and show the respective Ledger accounts. Solution – Book of Gopal Journal…