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प्रश्न
Answer in One Sentence:
What is Depreciation?
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उत्तर
Continuous, gradual and permanent decrease in the value of a fixed assets due to factors like wear and tear, passage of time, etc. is known as Depreciation.
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संबंधित प्रश्न
Give a word, term, or phrase which can substitute the following statement:
An additional information provided below the Trial Balance.
Select the most appropriate alternatives given below and rewrite the sentence :
____________ is excess of assets over liabilities
Select the most appropriate alternatives given below and rewrite the sentence :
______________ is a statement which shows the financial position of business on a specific date.
State True or False with reasons :
In every adjustment atleast there are three effects.
State True or False with reasons :
Every item of Trial Balance has only one effect.
State True or False with reasons :
Goodwill is not a fictitious asset
Do you agree or disagree with the following statement:
Capital is excess of Liabilities over Assets.
Bank overdraft should be shown ______.
Mention any two differences between trial balance and balance sheet.
“Balance sheet is not an account” – Explain.
What is meant by grouping and marshaling assets and liabilities?
From the following particulars, prepare balance sheet in the books of Bragathish as on 31st December, 2017:
| Particulars | ₹ | Particulars | ₹ |
| Capital | 80,000 | Cash in hand | 20,000 |
| Debtors | 12,800 | Net profit | 4,800 |
| Drawings | 8,800 | Plant | 43,200 |
Prepare trading and profit and loss account in the books of Ramasundari for the year ended 31st December, 2017 and balance sheet as on that date from the following information:
| Particulars | ₹ | Particulars | ₹ |
| Opening stock | 2,500 | Sales | 7,000 |
| Wages | 2,700 | Purchases | 3,300 |
| Closing Stock | 4,000 | Salary | 2,600 |
| Discount received | 2,500 | Capital | 52,000 |
| Machinery | 52,000 | Cash at Bank | 6,400 |
| Creditors | 8,000 |
Chennai tennis club had a Match fund showing a credit balance of ₹ 24,000 on 1st April, 2018. The receipt to the fund during the year was ₹ 26,000. Match expenses incurred during the year was ₹ 33,000. How these items will appear in the final accounts of the club for the year ended 31st March, 2019?
Compute capital fund of Salem Sports Club as on 1.4.2019.
| Particulars | ₹ | Particulars | ₹ |
| Sports equipment | 30,000 | Prize fund | 10,000 |
| Computer | 25,000 | Prize fund investments | 10,000 |
| Subscription outstanding for 2018-19 | 5,000 | Cash in hand | 7,000 |
| Subscription received in advance for 2019-20 | 8,000 | Cash at bank | 21,000 |
From the following Receipts and Payments account of Sivakasi Pensioner’s Recreation Club, prepare income and expenditure account for the year ended 31st March, 2018 and the balance sheet as on that date.
| Dr. | Receipts and Payments Account for the year ended 31st March, 2018 | Cr. | ||
| Receipts | ₹ | ₹ | Payments | ₹ |
| To balance b/d | By Rent and rates | 18,000 | ||
| Cash in hand | 10,000 | By Electricity charges | 17,000 | |
| Cash at bank | 20,000 | 30,000 | By Furniture purchased | 12,000 |
| To Subscription | By Billiards table purchased | 70,000 | ||
| 2016 – 2017 | 5,000 | By Repairs and renewals | 16,000 | |
| 2017 – 2018 | 25,000 | By Special dinner expenses | 4,000 | |
| 2018 – 2019 | 6,000 | 36,000 | By Special dinner expenses | 2,000 |
| To Legacies | 40,000 | By Balance c/d | ||
| To Rent from hall | 14,000 | Cash in hand | 1,000 | |
| To Lockers rent | 5,000 | |||
| To Collection for special dinner | 12,000 | |||
| To Balance c/d | ||||
| Bank overdraft | 3,000 | |||
| 1,40,000 | 1,40,000 | |||
Additional information:
- The club had 300 members each paying ₹ 100 as annual subscription.
- The club had furniture ₹ 10,000 on 1.4.2017.
- The subscription still due but not received for the year 2016 – 2017 is ₹ 1,000.
What is meant by Grouping and Marshalling of assets and liabilities? Explain the ways in which a balance sheet may be marshalled.
The machinery of ₹ 35,500 is purchased on 1st July 2018 and on the same day ₹ 4,500 are spent on the installation of the Machinery. The proprietor has decided to Depreciate Machinery at the rate of 7% p.a. Calculate the amount of depreciation, assuming that accounting year is ending on 31st March every year.
Mr. Pramod borrowed a Loan from the State Bank of India ₹ 3,50,000 on 1st Oct. 2018 at the rate of interest of 12% p.a. Calculate the Interest on a bank loan for the year 2018-19, assuming that the financial year-end on 31st March every year.
Annual Insurance Premium ₹ 8,000 is paid on 1st Dec 2018. Calculate the amount of Insurance Premium for the accounting year ending on 31st March 2019.
Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M/s Rajiv & Sons for the year ended March 31, 2017.
| ₹ | |
| Opening stock | 50,000 |
| Net sales | 11,00,000 |
| Net purchases | 6,00,000 |
| Direct expenses | 45,000 |
| Administration expenses | 45,000 |
| Selling and distribution expenses | 65,000 |
| Loss due to fire | 20,000 |
| Closing stock | 70,000 |
What does a balance sheet reveal about a business?
What does it indicate if the balance sheet does not tally (totals on both sides are not equal)?
Why is the balance sheet prepared "as on" a date, not "for the year ended"?
Which statement best describes the relationship between assets and source of funds?
