Question

Q3 Enter the following hypothetical transaction in the appropriate type of the cash
books and post the same to the relevant ledger account:
2008
July 1 Started business with an investment of Rs. 9,000
July 2 Deposited in Bank of India, Rs. 7,000
July 4 Acquired a building by issuing a cheque of Rs. 5,000
July 10
Jwy 15 Purcahscd Rs. 800 of merchandise by chcque.
July 18 Withdrew Rs. 100 from the bank
July 20
Sold merchandise for RS. 1,200
July 22 Deposited Rs. 2,000 into the bank
July 25 Bought Rs. 1,000 merchandise
July 26 Sold Rs. 1,500 merchandise by crosscd cheque
July 27 Paid Rs. 100 by chequc as the premium for insuring building
against fire
July 28 Paid freight Rs. 50
Jwy 30 Withdraw from bank for persoria usc Rs. SOO
Jwy 31 Cleared electricity bill Rs. 90
Jwy 31
Paid to Mahesh Rs. 1,080 in full satisfaction by cheque. We owed
to Mahesh Rs. 1,100 for goods purchased.
July 31
Received from Suresh a cheque for Rs. 1,480, in full satisfactin of
the debt of Rs., 1,510.
|

Answer 1

Answer:

Identify the 'Accounting Concepts' involved in the following:

a) Production Manager of the company is interested to reflect the good industrial relations in the

accounts.

b) Machine is recorded at cost (Rs. 50,000) while the market value is Rs. 45,000.

c) Accounts are prepared at the end of every year.

d) Same accounting methods are used year after year.