Tag Archives: accounts receivable

Rectification of Errors Important Question 3 for I.Com Part 1

Rectification of Errors Important Question 3 for I.Com Part 1 Correct the following errors by passing journal entries (i) The purchase book was under casted Rs. 1,000. (ii) Machinery bought Rs.1,000 posted as purchases. (iii) Sales book was overcastted Rs. 550. (iv) Sold old furniture for Rs.250 passed through the day book. (v) Carriage on machinery Rs. 500 has been …

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Final Account Important Question 2 for I.Com Part 1

Final Account Important Question 2 for I.Com Part 1 Prepare trading and profit & loss account and balance sheet for the year ended 31 December, 2007  TRIAL BALANCE Debit Drawings                                                                                 650 Debtors                                                                                    26,250 Furniture                                                                               6,900 Wages                                                                                      2,750 Trade expenses                                                                    475 Selling expenses                                                                   250 Office expenses                                                                      500 Opening stock                                                                          2,000 Purchases                                                                                 5,000 Closing stock                                                                           6,000                                                                                                                                                                                                50,775 Credit   Sales                                                                            …

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Bill of Exchange Important Question 8 for I.Com Part 1

Bill of Exchange Important Question 8 for I.Com Part 1 Y sells goods to Z for Rs.2000 and draws a bill on Z for 3 months, which he accepts and returns it to Y. One month before its maturity, Z retires the bill under a rebate of 6% p.a. Pass journal entries in the books of Y and Z. Solution …

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Bill of Exchange Important Question 7 for I.Com Part 1

Bill of Exchange Important Question 7 for I.Com Part 1 Adil sold goods to Karim for Rs. 10,000 and drew a bill upon him for 3 months. Karim returned the bill to Adil after accepting it and Adil discounted the bill with his bank at 9% p.a. On the due date the bill was dishonored. Required: Pass entries in the …

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What are different kinds of cash book?

What are different kinds of cash book? A journal in which all cash payments and receipts (letting in bank withdrawals and deposits) are recorded 1st in chronological manner for posting to general ledger book. The cash book is regularly made up with the bank instructions as an internal auditing amount. And in larger company, it’s generally divided into 2 divisions: …

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Define floating assets

Define floating assets Asset that is continually changing in quantity and/or value, such as amount of accounts receivable, cash, inventory, outstanding shares Source: http://www.businessdictionary.com/definition/floating-asset.html#ixzz2XLjXTAPy

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Define bad debt

Define bad debt Accounts receivable that is unlikely to be paid and is treated as loss. A firm may use one of the two methods in writing off such losses against its sales revenue: (1) by deducting the uncollectible amounts from revenue in the accounting period they are deemed uncollectible (see direct write off method), or (2) by deducting an …

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Define current assets

Define current assets Cash and other assets that are expected to be converted to cash within a year Or Cash and other resources that are expected to turn to cash or to be used up within one year of the balance sheet date. (If a company’s operating cycle is longer than one year, an item is a current asset if …

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