Identify the concepts/conventions/principles followed or NOT followed in the following cases. Give reasons a) Ramesh Printers purchased a printing machine for ₹27 lakhs on 1st April, 2010. The market price of the machine on 31st March 2011 was ₹32 lakhs. The company values the machine at ₹32 lakhs while preparing its balance sheet. b) X, a cloth merchant started business investing ₹50,000. He bought goods for ₹40000 and he sold for ₹55,000 to Mr.Y in the month of December 2013.Y pays him Rs.40,000 immediately and promises to pay the balance after 6 months. For the year ending 31st march, 2014, X’s accountant enters the sales at ₹40,000 c) Mohan purchased goods for ₹15,00,000. He sold 4/5th of these for ₹18,00,000 and spent
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Identify the concepts/conventions/principles followed or NOT followed in the following cases. Give reasons a) Ramesh Printers purchased a printing machine for ₹27 lakhs on 1st April, 2010. The market price of the machine on 31st March 2011 was ₹32 lakhs. The company values the machine at ₹32 lakhs while preparing its balance sheet. b) X, a cloth merchant started business investing ₹50,000. He bought goods for ₹40000 and he sold for ₹55,000 to Mr.Y in the month of December 2013.Y pays him Rs.40,000 immediately and promises to pay the balance after 6 months. For the year ending 31st march, 2014, X’s accountant enters the sales at ₹40,000 c) Mohan purchased goods for ₹15,00,000. He sold 4/5th of these for ₹18,00,000 and spent
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Shyam for ₹.3,000 plus CGST and SGST @9% each. d) Cash received from Krishna ₹. 1,770. e) Sold goods to Rakesh for ₹10,000 plus CGST and SGST @9% each. He paid the due amount immediately and availed cash discount @2%. f) Purchased machinery from Pele & sons, for ₹50,000 on credit (IGST 18%). g) Depreciation of ₹ 5,000 was provided on the machinery at the end of the year. h) Ashutosh (proprietor) issued a cheque for ₹ 50,000 from his savings account in firm’s name. Paid ₹5,000 as income tax. i) A cheque amounting to ₹50,000 deposited in the bank from his savings account returned dishonored for technical reasons. (Ashutosh – proprietor cheque........................................