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Q: Mr Robert commenced business on 1st January, 2011 with a capital of $100,000 in cash. On the same date he opened the bank account in ADCB and deposited
Full accounting questions and answers for you to practice for free. Great preparation for a test or exam. Journal entries, T-accounts, the trial balance and the financial statements. With full solutions and detailed explanations.
Balances at 31 January 2009: Debtors control account.............................$32,400 Creditors control account...........................$25,200 Inventory...................................................$30,000
Q1: The three primary financial statements that we have seen so far are the Balance Sheet, Statement of Owner’s Equity, and the Income Statement. Please
Q: I bought a business warehouse. How do I classify this asset if I paid the full amount with a cashier's check? A: This is a pretty simple transaction
An explanation of what a bank reconciliation is as well as the typical process involved.
Q: I want to ask how do you calculate opening work in progress inventory and closing work in progress inventory... and whether this calculation should
Q: 1. How do I determine the effectiveness of the internal control system with regards to debtors? 2. What are the strategies that I can implement to
Q: Does accrued expenses and revenue need to be closed at the end of the accounting period? A: First let's make sure we understand what accrued expenses
Q: What entry will be passed in the general journal for goods taken as a free sample? A: The first thing to work out here is whether free samples would
Q: Depreciation charged during the year will come under which activities? A: Depreciation actually does not come under any of the categories of the cash
Q: How are the balance sheet, income statement, statement of owner's equity and statement of cash flow useful for investors? 1. Balance Sheet The balance
Q: I was solving an exercise of control accounts in which one of the transactions given was this: Credit balance in purchases ledger transferred from
Q: What is the double entry of recording recovery of bad debts in control accounts? A: First of all, bad debts are debts owed to the business that have
Q: Please what is the main purpose of preparing a cash flow statement in an organization? A: Very good question. The purpose of the cash flow statement
Q: Cash flow statement shows negative from operating activities but shows positive on cash at the end of the period. Is that possible? A: Yes, this is
Q: Which accounts are affected in each of the following transactions? April 3 Purchased office supplies on account, $300. April 4 Received prepayment
Q: State with reasons whether the following expenditure items are capital or revenue in nature: Purchase of Land. Installation of Plant and Machinery
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Q: What are the journal entries for the following: 1) Received gift of Rs 51,000 from father-in-law by check, which is deposited into business bank account.
Q: I want to know how do you make the following journal entries (rs = Rupees = Indian currency): 1. Outstanding expense - rs 3,000 2. Accrued interest
Q: What is the share of undistributed profits? Do we have distributed profits? A: Yes, there is something called undistributed profits and there is
Q: The summaries of balance sheet and income statement data follow. Beginning of year: Total assets $ 85,000 Total liabilities 62,000 Total
Q: Prepare the journal entries for the following credit card sales transactions (the company uses the perpetual inventory system): Sold $3,000 of merchandise
Q: Paid $12,500 for a car which cost $20,000 with the garage accepting $7,500 in part exchange. The old car cost $22,000 and had depreciated by $5,000.
Q: Write the journal entries for the following transactions: Jan 1 Shayam commenced with cash 15,000. Jan 10 Returned goods to Krishna 350. A: Entries
Q:Owner invested PHp (Philippine Pesos) 500,000 cash along with computer equipment that had a market value of php. 120,000 two years ago but was now worth
Q: LaBouche Corporation owns a warehouse. On November 1, it rented storage space to a lessee (tenant) for 3 months for a total cash payment of $600 received
Q: What is the meaning of capital structure? A: The term capital structure refers to the structure of capital (equity) for a business. Actually more often
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Q: What is a folio? A: It's a cross-referencing code, usually a number or a few numbers and letters. It connects two separate records, such as connecting
Q: Is cash flow affected for a company when they have entered into a terms agreement with their customers and no longer receive cash upfront, but sales
Why would tax accountants prefer to use last-in-first-out method?
If the income statement covered a six month period ending on November 30, 2010, the third line of the income statement would read: A. Month ended November
What is the complete format of the indirect method of the cash flow statement?
There was an opening balance of 100 units which had a value of #3900. Bought: may 100units @ #41, june 200units @ #50, august 400units @ #51.875, sold:
Enter the unadjusted trial balance onto a work sheet and close off the temporary accounts (income, expenses, drawings, etc.), leaving only the permanent
Q:Which one of the following alternatives represents the side and general ledger account to which the total of the discount column in the cash payments
Q: In the case of claim receivable from Insurance for stock stolen from a shop, where would the credit be posted and under what group of accounts in Tally?
Q: What type of ledgers are there? A: 3 ledgers: - General Ledger - Debtor's Ledger - Creditor's Ledger