All of the following errors do not affect the trial balance, except
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Solution
Compensating, complete omission, errors of principle don’t affect trial balance. Only error of partial omission do affect trial balance.
According to money measurement concept, currency transactions and events are recorded in the books of accounts
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Solution
Currency transactions and events are recorded in books of accounts in the ruling currency of country where books of account are prepared.
Rs. 5,000 incurred for upgradation of computer by installation of 128 MB RAM is
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Solution
Updation of computer is capital in nature.
The expired portion of capital expenditure is shown in the financial statements as
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Solution
Expired portion of Capital expenditure is shown as an expense in financial statements.
What is the order in which the accounting transactions and events are recorded in the books?
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Solution
The order of recording of accounting transactions and events is : Journal, Ledger, Profit & Loss A/c, Balance Sheet.
The determination of the amount of provision for doubtful debts is an accounting
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Solution
Amount of provision of doubtful debts is an accounting estimate.
“Substance of any transaction should be considered while recording them and not only the legal form” is the statement which holds true for:
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Solution
The given statement holds true for substance over form.
Accounting standards are
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Solution
Accounting standards are the set of broad accounting policies to be followed by an entity.
Loss leads to a reduction in
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Solution
Loss leads to reduction in Capital.
Mr. Ashok buys clothing of Rs. 50,000 paying cash Rs. 20,000. What is the amount of expense as per the accrual concept?
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Solution
Expense will be Rs. 50,000 as per Accrual concept.