Question

1. Write any three adjustments based on expenses.
2. Out of interest on capital and interest on drawings, which is income and which is an expense for
business?
3. Which accounting concept does restrict to create reserve on creditors?
* What is mutual debt?
5. What is difference between accrued and outstanding income?
6. When do we do adjustment entries in the books?
7. On which accounting conept, adjustments are required?
& While recording abnormal loss of goods, which account is credited?
9. Write any two business transactions, for which for which purchase account is credited while
recording in the books.

Answer these questions xD
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Answer 1

Answer:

1. There are four types of account adjustments found in the accounting industry. They are accrued revenues, accrued expenses, deferred revenues and deferred expenses. Pay attention; this can get a little tricky.

2.The amount of interest charged on drawings is an indirect income of the business and on the other hand, it is a personal expense of the owner. ... On the other hand, it is a personal expense of the owner, therefore; it will be added in the Drawings Account in Balance Sheet and ultimately will be deducted from the Capital.

Answer 2

Answer:

$hello$

1. There are four types of account adjustments found in the accounting industry. They are accrued revenues, accrued expenses, deferred revenues and deferred expenses. Pay attention; this can get a little tricky.
2. The amount of interest charged on drawings is an indirect income of the business and on the other hand, it is a personal expense of the owner. ... On the other hand, it is a personal expense of the owner, therefore; it will be added in the Drawings Account in Balance Sheet and ultimately will be deducted from the Capital.
3. Provision for discount on creditors refers to an amount kept aside by estimating a certain percentage on the sundry creditors