Under bank reconciliation statement, while adjusting the cash book
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Solution
Under Reconciliation Statement, while adjusting cash book, all errors/omissions in cash book are considered.
“Treating a revenue expense as a capital expenditure” is an example of
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Solution
Treating a revenue expenditure as capital or vice-versa is error of principle.
Unintentional omission or commission of amounts and accounts in the process of recording transactions are known as
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Unintentional Omissions/Commissions are called errors.
The basic consideration(s) in distinction between capital and revenue expenditures is/are
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Solution
Basic distinction between capital and revenue expenditure is considered on the basis of nature of business,purpose of expense and effect on revenue generating capacity.
The concerned account debited in the journal should be
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Solution
Each account debited in journal should be debited in ledger with reference of respective credit account.
Narrations are given at the end of
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Solution
Narrations are given for each journal entry
Recording of a transaction in a journal is called
(a) (b)
(c) (d)
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Solution
Recording of transaction in journal is called entry
Following is the example of internal users of financial statements:
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Employees are internal users. All others are external.
Income tax paid by the sole-proprietor from business bank account is debited to
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Solution
Income Tax paid by sole-proprietor from business bank A/c is debited to his Capital A/c.
Drawings account is in the nature of
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Solution
Drawings A/c is a personal account.