Question

1. State the rules of accounting with examples.
2. Distinguish between Book-Keeping and Accountancy.
3. Why is ‘Bank Reconciliation Statement’ prepared?
4. What do you understand by “Compensation errors”? Give illustrations.
5. Write the proforma of P & L A/C with example.
6. Give the main limitations of financial statements.
7. What is Account Current? State its practical uses.
8. Explain the ‘EPOQUE’ method in Account Current.
9. Narrate the causes of Depreciation.
10. “Depreciation Accounting is a process of allocation and not of valuation”-
Comment.

Answer 1

8. answer :- Method of Computing the numbers of Days

Backward ( Epoque Method): In this method, the number of the days are calculated from the opening date of account to the due date of the transaction. Red – Ink Interest: If the due date of a bill is after the date of closing the account, then we charge no interest for that