Topics
Financial Accounting
Introduction to Accounting
Financial Accounting 1
Theory Base of Accounting
Financial Accounting 2
Recording of Transactions - I
Recording of Transactions - II
Bank Reconciliation Statement
Trial Balance and Rectification of Errors
Depreciation, Provisions and Reserves
- Depreciation, Provisions and Reserves
- Depreciation
- Depreciation and Other Similar Terms
- Causes of Depreciation
- Need for Depreciation
- Factors Affecting the Amount of Depreciation
- Methods of Calculating Depreciation Amount
- Straight Line Method and Written Down Method: a Comparative Analysis
- Methods of Recording Depreciation
- Disposal of Asset
- Effect of Any Addition Or Extension to the Existing Asset
- Provisions
- Reserves
- Types of Reserves-Secret Reserves
Bill of Exchange
Financial Statements - I
Financial Statements - II
- Need for Adjustments
- Effects of Adjustments-Closing Stock
- Effects of Adjustments-Outstanding Expenses
- Effects of Adjustments-Prepaid Expenses
- Effects of Adjustments-Accrued Income
- Effects of Adjustments-Income Received in Advance
- Effects of Adjustments-Depreciation
- Effects of Adjustments-Bad and Doubtful Debts
- Provision for Bad and Doubtful Debts
- Effects of Adjustments-Provision for Discount on Debtors and Creditors
- Manager's Commission
- Interest on Capital
Accounts from Incomplete Records
Applications of Computers in Accounting
Computerised Accounting System
Theoretical Frame Work
- Basis of Accounting System - Cash Basis
- Basis of Accounting System - Accrual Or Mercantile Basis
- Qualitative Characteristics of Accounting Information
- Business Transaction-Cash Transactions
- Business Transaction-Credit Transactions
- Goods
- Profit
- Loss
- Difference Between Profit and Income
- Non-current and Current Asset
- Assets
- Fixed Assets
- Liabilities
- Capital and Drawings
- Capital Expenditure
- Revenue and Deferred Revenue Expenditure
- Cash Discount
- Trade Discount
- Stock
- Concept of Accounting and Objectives
- Advantages and Limitations of Accounting
- Accounting Information Types and Needs
- Inventory
- Trade Receivables (Debtors and Bills Receivable)
- Trade Payables(Creditors and Bills Payable)
- Fundamental Accounting Assumptions-Going Concern
- Fundamental Accounting Assumptions-Consistency
- Fundamental Accounting Assumptions-Accrual
- Accounting Standards (AS)
- Study of Double Entry Book-keeping System
- Explanation About IFRS (International Financial Reporting Standards)
- Accounting Principles Or GAAP-Accounting Entity
- Accounting Principles Or GAAP-Accounting Period
- Accounting Principles Or GAAP-Full Disclosure
- Accounting Principles Or GAAP-Materiality Concept
- Accounting Principles Or GAAP-Prudence,
- Accounting Principles Or GAAP-Cost Concept
- Accounting Principles Or GAAP-Matching Concept
- Accounting Principles Or GAAP-Dual Aspect Concept
- Purchases
- Purchases Returns
- Sales
- Sales Return
- Capital Expenditure
- Revenue and Deferred Revenue Expenditure
Accounting Process
- Vouchers
- Cash Memo
- Debit and Credit Note
- Cheque
- Cash Book with Cash Column
- Cash Book with Cash and Bank Columns
- Petty Cash Book
- Purchase Book Or Purchases Day Book
- Sales Book Or Sales Day Book
- Purchase Return Book Or Purchases Return Day Book
- Sales Return Book Or Sales Return Day Book
- Journal Proper
- Analysis of Transactions Using Accounting Equation.
- Rules of Debit and Credit for Assets
- Rules of Debit and Credit for Liabilities
- Rules of Debit and Credit for Capital
- Rules of Debit and Credit for Revenue and Expenses.
- Origin of Transactions
- Preparation of Accounting Vouchers- Cash (Debit and Credit)
- Preparation of Accounting Vouchers- Non Cash (Transfer).
- Books of Original Entry
- Specimen of Ledger
- Balancing of Ledger Accounts
- Ledger-Posting from Journal
- Need and Importance of Bank Reconciliation Statement
- Preparation of Bank Reconciliation Statement
- Calculating Bank Balance at an Accounting Date
- Corrected Cash Book Balanced
- Meaning and Purpose of Trial Balance
- Preparation of the Trial Balance by the Balance Method
- Meaning and Effects of Errors
- Types of Errors-Errors of Principles
- Types of Errors-Errors of Ommission
- Types of Errors-Errors of Commission
- Types of Errors-Compensating Errors
- Errors Affecting and Not Affecting Trial Balance
- Treatment of Balance of Suspense Account
- Rectification Entries
- Detection of Error
- Depreciation
- Methods of Depreciation-Straight Line Method
- Methods of Depreciation-Written Down Value Method
- Accounting Treatment of Depreciation-By Charging to Asset Account
- Accounting Treatment of Depreciation-By Creating Provision for Depreciation
- Accounting Treatment of Depreciation-Accumulated Depreciation Account
- Accounting Treatment of Depreciation-Treatment of Disposal of Asset
- Provisions and Reserves
- Difference Between Provisions and Reserves
- Types of Reserves-Revenue Reserve
- Types of Reserves-Capital Reserve
- Types of Reserves-General Reserve
- Types of Reserves-Specific Reserves
- Promissory Note
- Important Terms of Bills of Exchange - Term of Bill
- Important Terms of Bills of Exchange - Due Date
- Important Terms of Bills of Exchange - Days of Grace
- Important Terms of Bills of Exchange - Date of Maturity
- Important Terms of Bills of Exchange - Discounting of Bill,
- Important Terms of Bills of Exchange - Endorsement of Bill
- Important Terms of Bills of Exchange - Bill Sent for Collection
- Important Terms of Bills of Exchange - Dishonor of Bill
- Important Terms of Bills of Exchange - Noting of Bill
- Important Terms of Bills of Exchange - Retirement and Renewal of a Bill
- Accounting Treatment of Bill Transactions
Financial Statements of Sole Proprietorship: from Complete and Incomplete Records
- Financial Statements of a Company
- Preparation of Trading Account
- Preparation of Profit and Loss Account
- Gross Profit
- Preparation of Balance Sheet
- Effects of Adjustments-Closing Stock
- Effects of Adjustments-Outstanding Expenses
- Effects of Adjustments-Prepaid Expenses
- Effects of Adjustments-Accrued Income
- Effects of Adjustments-Income Received in Advance
- Effects of Adjustments-Goods Distributed as Free Sample
- Adjustments of Financial Statements - Abnormal Loss
- Effects of Adjustments-Depreciation
- Adjustments of Financial Statements - Goods Taken for Personal Use
- Adjustments of Financial Statements - Goods Distributed as Free Samples and Manager's Commission
- Incomplete Records
- Ascertainment of Profit or Loss by Statement of Affairs Method
- Marshalling of a Balance Sheet Or Assets and Liabilities
- Preparation of Trading and Profit and Loss Account and Balance Sheet of Sole Proprietorship
Financial Statements of Not-for-profit Organizations
- Concept of Not-for-profit Organizations
- Feature of Receipts and Payments Account
- Preparation of Receipts and Payments Account
- Difference Between Receipts and Payments Account and Cash Book
- Feature of Income and Expenditure Account
- Preparation of Income and Expenditure Account
- Balance Sheet from the Given Receipts
- Payments Account with Additional Information
Computers in Accounting
- Introduction to Operating Software, Utility Software and Application Software
- Introduction to Computers
- Introduction to Accounting Information System (AIS) as a Part of MIS
- Stages in Automation - Accounting Process in a Computerised Environment
- Comparison Between Manual Accounting Process and Computerised Accounting Process
- Stages in Automation - Sourcing of Accounting Software
- Kinds of Software - Readymade Software
- Kinds of Software - Customised Software
- Kinds of Software - Tailor-made Software
- Generic Considerations before Sourcing Accounting Software
- Stages in Automation - Creation of Account Groups and Hierarchy
- Stages in Automation - Generation of Reports - Trial Balance, Profit and Loss Account and Balance Sheet
Related QuestionsVIEW ALL [18]
Prepare a trading and profit and loss account for the year ending December 31, 2017. from the balances extracted of M/s Rahul Sons. Also prepare a balance sheet at the end of the year.
| Account Title | Amount ₹ |
Account Title | Amount ₹ |
| Stock | 50,000 | Sales | 1,80,000 |
| Wages | 3,000 | Purchases return | 2,000 |
| Salary | 8,000 | Discount received | 500 |
| Purchases | 1,75,000 | Provision for doubtful debts | 2,500 |
| Sales return | 3,000 | Capital | 3,00,000 |
| Sundry Debtors | 82,000 | Bills payable | 22,000 |
| Discount allowed | 1,000 | Commission received | 4,000 |
| Insurance | 3,200 | Rent | 6,000 |
| Rent Rates and Taxes | 4,300 | Loan | 34,800 |
| Fixtures and fittings | 20,000 | ||
| Trade expenses | 1,500 | ||
| Bad debts | 2,000 | ||
| Drawings | 32,000 | ||
| Repair and | 1,600 | ||
| renewals | |||
| Travelling | 4,200 | ||
| expenses | |||
| Postage | 300 | ||
| Telegram | 200 | ||
| expenses | |||
| Legal fees | 500 | ||
| Bills receivable | 50,000 | ||
| Building | 1,10,000 | ||
| 5,51,800 | 5,51,800 |
Adjustments
1. Commission received in advance ₹ 1,000.
2. Rent receivable ₹ 2,000.
3. Salary outstanding ₹ 1,000 and insurance prepaid ₹ 800.
4. Further bad debts ₹ 1,000 and provision for doubtful debts @ 5% on debtors and discount on debtors @ 2%.
5. Closing stock ₹ 32,000.
6. Depreciation on building @ 6% p.a.
Prepare a trading and profit and loss account of M/s Green Club Ltd. for the year ending March 31, 2017. from the following figures taken from his trial balance :
| Account Title | Amount ₹ |
Account Title | Amount ₹ |
| Opening stock | 35,000 | Sales | 2,50,000 |
| Purchases | 1,25,000 | Purchase return | 6,000 |
| Return inwards | 25,000 | Creditors | 10,000 |
| Postage and | 600 | Bills payable | 20,000 |
| Telegram | |||
| Salary | 12,300 | Discount | 1,000 |
| Wages | 3,000 | Provision for bad debts | 4,500 |
| Rent and Rates | 1,000 | Interest received | 5,400 |
| Packing and | 500 | Capital | 75,000 |
| Transport General expense | 400 | ||
| Insurance | 4,000 | ||
| Debtors | 50,000 | ||
| Cash in hand | 20,000 | ||
| Cash at bank | 40,000 | ||
| Machinery | 20,000 | ||
| Lighting and Heating |
5,000 | ||
| Discount | 3,500 | ||
| Bad debts | 3,500 | ||
| Investment | 23,100 | ||
| 3,71,900 | 3,71,900 |
Adjustments
1. Depreciation charged on machinery @ 5% p.a.
2. Further bad debts ₹ 1,500, discount on debtors @ 5% and
3. make a provision on debtors @ 6%.
4. Wages prepaid ₹ 1,000.
5. Interest on investment @ 5% p.a.
6. Closing stock 10,000
The following balances has been extracted from the trial of M/s Runway Shine Ltd. Prepare a trading and profit and loss account and a balance sheet as on March 31, 2017.
| Account Title | Amount ₹ |
Account Title | Amount ₹ |
| Purchases | 1,50,000 | Sales | 2,50,000 |
| Opening stock | 50,000 | Return outwards | 4,500 |
| Return inwards | 2,000 | Interest received | 3,500 |
| Carriage inwards | 4,500 | Discount received | 400 |
| Cash in hand | 77,800 | Creditors | 1,25,000 |
| Cash at bank | 60,800 | Bill payable | 6,040 |
| Wages | 2,400 | Capital | 1,00,000 |
| Printing and | 4,500 | ||
| Stationery | |||
| Discount | 400 | ||
| Bad debts | 1,500 | ||
| Insurance | 2,500 | ||
| Investment | 32,000 | ||
| Debtors | 53,000 | ||
| Bills receivable | 20,000 | ||
| Postage and | 400 | ||
| Telegraph | |||
| Commission | 200 | ||
| Interest | 1,000 | ||
| Repair | 440 | ||
| Lighting Charges | 500 | ||
| Telephone | 100 | ||
| charges | |||
| Carriage outward | 400 | ||
| Motor car | 25,000 | ||
| 4,89,440 | 4,89,440 |
Adjustments
1. Further bad debts ₹ 1,000. Discount on debtors ₹ 500 and make a provision on debtors @ 5%.
2. Interest received on investment @ 5%.
3. Wages and interest outstanding ₹ 100 and ₹ 200 respectively.
4. Depreciation charged on motor car @ 5% p.a.
5. Closing Stock ₹ 32,500.
Prepare the trading and profit and loss account and a balance sheet of M/s Shine Ltd. from the following particulars.
|
Account Title |
Amount |
Account Title |
Amount |
|
Sundry debtors |
1,00,000 |
Bills payable |
85,550 |
|
Bad debts |
3,000 |
Sundry creditors |
25,000 |
|
Trade expenses |
2,500 |
Provision for bad debts |
1,500 |
|
Printing and Stationary |
5,000 |
Return outwards |
4,500 |
|
Rent, Rates and Taxes |
3,450 |
Capital |
2,50,000 |
|
Freight |
2,250 |
Discount received |
3,500 |
|
Sales return |
6,000 |
Interest received |
11,260 |
|
Motor car |
25,000 |
Sales |
1,00,000 |
|
Opening stock |
75,550 |
||
|
Furniture and Fixture |
15,500 |
||
|
Purchases |
75,000 |
||
|
Drawings |
13,560 |
||
|
Investments |
65,500 |
||
|
Cash in hand |
36,000 |
||
|
Cash in bank |
53,000 |
||
|
4,81,310 |
4,81,310 |
Adjustments
1. Closing stock was valued ₹ 35,000.
2. Depreciation charged on furniture and fixture @ 5%.
3. Further bad debts ₹ 1,000. Make a provision for bad debts @ 5% on sundry debtors.
4. Depreciation charged on motor car @ 10%.
5. Interest on drawing @ 6%.
6. Rent, rates and taxes was outstanding ₹ 200.
7. Discount on debtors 2%.
Following balances have been extracted from the trial balance of M/s Keshav Electronics Ltd. You are required to prepare the trading and profit and loss account and a balance sheet as on March 31, 2017.
|
Account Title |
Amount |
Account Title |
Amount |
|
Opening stock |
2,26,000 |
Sales |
6,80,000 |
|
Purchases |
4,40,000 |
Return outwards |
15,000 |
|
Drawings |
75,000 |
Creditors |
50,000 |
|
Buildings |
1,00,000 |
Bills payable |
63,700 |
|
Motor van |
30,000 |
Interest received |
20,000 |
|
Freight inwards |
3,400 |
Capital |
3,50,000 |
|
Sales return |
10,000 |
||
|
Trade expense |
3,300 |
||
|
Heat and Power |
8,000 |
||
|
Salary and Wages |
5,000 |
||
|
Legal expense |
3,000 |
||
|
Postage and Telegram |
1,000 |
||
|
Bad debts |
6,500 |
||
|
Cash in hand |
79,000 |
||
|
Cash at bank |
98,000 |
||
|
Sundry debtors |
25,000 |
||
|
Investments |
40,000 |
||
|
Insurance |
3,500 |
||
|
Machinery |
22,000 |
||
|
11,78,700 |
11,78,700 |
The following additional information is available :
1. Stock on December 31, 2017 was ₹ 30,000.
2. Depreciation is to be charged on building at 5% and motor van at 10%.
3. Provision for doubtful debts is to be maintained at 5% on Sundry Debtors.
4. Unexpired insurance was ₹ 600.
5. The Manager is entitled to a commission @ 5% on net profit before charging such commission.
