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Ask QuestionPosted by Pooja Bawa 3 years, 11 months ago
- 2 answers
Posted by The Seven 3 years, 11 months ago
- 1 answers
Yogita Ingle 3 years, 11 months ago
Rectify the following errors:
i. Sales to Vinod of Rs.143 posted to his account as Rs.134.
ii. Sales to Vinod of Rs.143 debited to his account as Rs.134.
iii. Sales to Vinod of Rs.143 credited to his account as Rs.134.
Ans
Journal Entries
Posted by Jahanvi Gupta 3 years, 11 months ago
- 1 answers
Gaurav Seth 3 years, 11 months ago
The fundamental accounting equation is assets= capital + liabilities.
As every accounting equation has two effects( debit and credit). Revenues lead to increase in assets or capital while expenses reduce assets and may also create liability. Revenue and expenses, therefore, are the reasons for stability and soundness of the balance sheet.
Posted by Śěřãj The Cute? 3 years, 11 months ago
- 4 answers
Rutva Dharmeshkumar Patel 3 years, 10 months ago
Posted by Śěřãj The Cute? 3 years, 11 months ago
- 1 answers
Yogita Ingle 3 years, 11 months ago
Contra entry represents deposits or withdrawals of cash from bank or vice versa. The purpose of contra entry is to indicate the transactions that effect both cash and bank balances. This entry does not affect the financial positions of a business. A contra entry is recorded in both sides of a two column Cash Book and is denoted by ‘C’ in the ledger folio column.
Posted by Tanya Tiwari 3 years, 11 months ago
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Posted by Thiem Kipgen 3 years, 11 months ago
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Gaurav Seth 3 years, 11 months ago
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Creating Provision for Depreciation Account− Under this method, depreciation is not credited to the Assets Account; in fact, it is credited to the provision for Depreciation Account. At the year end, asset is shown at the original cost in the Balance Sheet and total depreciation up to the date of Balance Sheet is shown as Provision for Depreciation Account.
Journal entries for depreciation are:
Charging Depreciation
|
Depreciation A/c |
Dr. |
|
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To Provision for Depreciation A/c |
||
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(Depreciation charged) |
Closing of Depreciation Account
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Profit and Loss A/c |
Dr. |
|
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To Depreciation A/c |
||
|
(Depreciation account is transferred to Profit and Loss Account) |
When the asset is sold, the accumulated depreciation on that asset is credited to the Asset Account by passing the following Journal entry:
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Provision for Depreciation A/c |
Dr. |
|
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To Asset A/c |
||
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(Accumulated depreciation transferred to Assets Account) |
Posted by Vijaya Khatri 3 years, 11 months ago
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Posted by Umang Mehta 3 years, 11 months ago
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Posted by Priyanshu Jha 3 years, 11 months ago
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Yogita Ingle 3 years, 11 months ago
| Meaning | A method of depreciation in which the cost of the asset is spread uniformly over the life years by writing off a fixed amount every year. | A method of depreciation in which a fixed rate of depreciation is charged on the book value of the asset, over its useful life. |
| Calculation of depreciation | On the original cost | On the written down value of the asset. |
| Annual depreciation charge | Remains fixed during the useful life. | Reduces every year |
| Value of asset | Completely written off | Not completely written off |
| Amount of depreciation | Initially lower | Initially higher |
| Impact of repairs and depreciation on P&L A/c | Increasing trend | Remains constant |
| Appropriate for | Assets with negligible repairs and maintenance like leases, copyright. | Assets whose repairs increase, as they get older like machinery, vehicles etc. |
Posted by Prabhjot Mahal 3 years, 11 months ago
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Posted by Sparsh Khandelwal 3 years, 11 months ago
- 3 answers
Mansi Chidar 3 years, 11 months ago
Sujal Garg 3 years, 11 months ago
Gaurav Seth 3 years, 11 months ago
| Bookkeeping | |
| Scope | Bookkeeping involves identifying, measuring, recording & classifying financial transactions in the ledger accounts. |
| Objective | The main aim is to maintain systematic records of financial transactions. |
| Stage | It is a primary stage of accounting |
| Nature of job | This job is in routine and repetitive in nature. |
| Level of skills | Bookkeeping does not require special skills. It is performed by Junior Staff. |
Posted by Mamta ? 3 years, 11 months ago
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Akshat Mangrola 3 years, 11 months ago
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Mamta ? 3 years, 11 months ago
Posted by Miss Tannu 3 years, 11 months ago
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Posted by Kaviya Marimuthu 3 years, 11 months ago
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