Financial Accounting

What is realization concept of accounting?

Write about the accrual basis of accounting.

What are the objectives of internal control of a business?

Define the meaning of current liabilities.

What is treasury stock?

On January 1, ABC Company borrowed Rs. 200,000 from bank by signing a 3-month, 10% notes payable. It paid the principal and interest at due date. Required: Journal entries for issue and retirement of note.

You are provided the following information. Sales = Rs.300,000, Wages to workers = Rs.40,000, Interest paid = Rs.10,000, Income tax paid = Rs.12,000, Depreciation = Rs.30,000, Net profit = Rs.20,000. Required: Amount of value added.

The following information are given:

• Started business with cash of Rs.50,000 and machinery of Rs.100,000
• Salary paid Rs.20,000 and outstanding salary was Rs.4,000 Required: Accounting equation

The following transactions of the Light Company are given below: Jestha 8: Returned to Ram Electric Shop 10 Fans @ Rs.2,000 each, 3 dozen Lamps @ Rs.500 each, Carriage charge Rs.2,000 Jestha 20: Returned 10 Heaters from ABC Electricity for Rs.18,000 Jestha 30: Returned 200 Led Lights to DD Electricity Rs.40,000 Required: Return outward book

The following information are given, Trial Balance:

Adjustment:

• Additional bad debts to be written off Rs.10,000
• New provision for doubtful debts @ 5% on debtor Required: Provision for doubtful debt account.