When the bill is payable at a stated number of days then the due date will be that day which comes after adding the specified number of days to the date of the bill plus 3 more days of grace. Note that here the date of bill is excluded.
The date of accepting the bill is 2.04.10.
Add 1 month will give us 2.05.10
Add 3 days of grace gives us 5.05.10
Thus may 5th is the due date.

Cost Price: The price, at which an article is purchased, is called its cost price, abbreviated as C.P.
Selling Price: The price, at which an article is sold, is called its selling prices, abbreviated as S.P.
Profit or Gain: If S.P. is greater than C.P., the seller is said to have a profit or gain.
Here Goods costing Rs. 7,500 were sold at 25% profit on selling price.
Let the sales = x(say)
Then profit = 25% of x = .25x
Sales = cost + profit
Or x = 7500 + .25x
Or 0.75x = 7,500
Or x = Rs. 10,000

A Bank reconciliation is a process that explains the difference between the bank balance shown in an organisation’s bank statement, as supplied by the bank, and the corresponding amount shown in the organization’s own accounting records at a particular point in time.

Such differences may occur, for example, because a cheque or a list of cheques issued by the organization has not been presented to the bank, a banking transaction, such as a credit received, or a charge made by the bank, has not yet been recorded in the organisation’s books, or either the bank or the organization itself has made an error.

Here when balance as per cash book is taken as the starting point then Bank charges debited by Bank Rs. 10 will be reduced from the balance, cheques paid in but dishonoured Rs. 200 will also be subtracted from the balance, cheques paid in but not credited by bank Rs. 950 will also be added

Consignment is the act of consigning, which is placing any material in the hand of another, but retaining
ownership until the goods are sold or person is transferred.
Value of inventory after being placed in the consignees godown = Cost of Goods + Consignors Direct Expenses + Proportionate Consignee Direct Expense
The cost of the goods/stock implies the value at which the goods are consigned by the consignor to the consignee. Since the goods have reached the consignees godown and have been unloaded, we can consider the consignor expenses on the goods to have been incurred. Moreover any direct expenses incurred by the consignee in relation to the transportation of the goods, octroi duties, insurance in transit, unloading charges etc., would also have to be considered as having been incurred on the goods.
Therefore, the direct expenses incurred till that point would include the consignor expenses and that part of the consignee expenses which relate to the expenses incurred till they are unloaded.
Valuation of closing inventory:
Cost of 300 units consigned = 75,000
Add: insurance = 900
Add: freight = 1,500
Add: unloading charges by consignee = 400
Add: octroi = 600
Add: carriage = 800
Total cost of 300 units = 79,200
Units of closing inventory = 300 – 200 = 100units
Cost of unsold goods = 79,200 × 100/300 = 26,400

The cost of a fixed asset includes all amounts incurred to acquire the asset and any amounts that can be directly attributable to bringing the asset into working condition.
Directly attributable costs may include:
– Delivery costs
– Costs associated with acquiring the asset such as stamp duty and import duties
– Costs of preparing the site for installation of the asset
– Professional fees, such as legal fees and architects’ fees
Cost includes the initial and any subsequent capital expenditure.
Here A boiler was purchased from abroad for Rs. 10,000, shipping and forwarding charges amounted to Rs. 2,000, Import duty Rs. 7,000 and expenses of installation amounted to Rs. 1,000.
Thus cost of asset = 10,000 + 2,000 + 7,000 + 1,000 = Rs. 20,000

A joint venture (JV) is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets.
Total expenses on joint venture:
Freight by A = 3,000
Add:selling expenses by B = 5,000
Add:interest on loan by A = 18% of 50,000 for 1 month = 750
Add:interest on loan by B = 18% of 1,50,000 for 2 months = 4,500
Total expenses on joint venture = Rs. 13,250

Owner’s capital refers to the sum of the business resources owned by the business owners. It is calculated through the subtraction of assets from liabilities. When a business pays all its debts, the amount remaining belongs to the business owner and it is the one that is referred to as Owners Capital or Owners Equity.
Formulas of closing capital:
Closing capital =
Opening capital + profit OR
Opening capital + profit + additional capital – drawings OR
Closing assets – closing liabilities
Here closing assets = Rs. 58,300
Closing liabilities = Rs. 4,700
So closing capital = Rs. 53,600
Profit = Rs. 53,600 – Rs. 38,600 = Rs. 15,000

Where interest on drawings is charged it is usually calculated at fixed rate percent from the date of each drawing to the date the accounts are closed. If the dates on which the amounts are drawn are not given, interest is calculated on the whole amount on the assumption that the money was drawn evenly throughout the year. The amount of interest is debited to partners drawings accounts and is credited to the interest on drawings amount. At the close of the accounting period the interest on drawings accounts is closed by transfer to the profit and loss account.