All the expenditures and receipts of revenue nature go to
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Solution
All expenditures and receipts of revenue nature go to either trading or P& L A/c.
Parties to a bill of exchange are
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Solution
Drawer, Drawee and Payee all are parties to bill of exchange.
Whenever errors are noticed in the accounting records, they should be rectified
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Solution
Errors (if noticed) should be rectified without waiting the accounting year to end.
If the cheque issued is not presented for the payment upto the date of the preparation of the Bank Reconciliation Statement, then the balance as per Pass Book will be
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Solution
In the given case, balance as per pass book will be more than the balance as per cash book by amount of unpresented cheque.
If two or more transactions of the same nature are journalised together having either the debit or the credit account common is known as
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Solution
Type of entries mentioned in the question are called compound journal entries.
State the case where the going concern concept is applied?
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Solution
As per going concern concept, fixed assets are acquired for use in the business for earning revenues and are not meant for sale
“Business unit is separate and distinct from the person who supply capital to it”, is based on
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Solution
As per Business entity concept, Business is separate and distinct from the providers of Capital.
Following is the example of external users of financial statements:
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Solution
Owners, Management and employees are internal users. Govt. is external user of financial statements.
When adjusted purchase is shown on the debit column of the trial balance then
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Solution
Closing inventory is shown in Trial Balance and not opening in case of adjusted purchases being shown in trial balance.
In the books of manufacturing concern, opening inventory consists of
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Solution
Opening inventory consists of Raw Materials, Work in progress and Finished goods.