Financial Accounting

What is financial accounting?

Define realization concept of accounting?

What is periodic inventory system?

Write down the meaning of contingent liabilities.

What is GAAP?

Following information are provided: Started business with cash Rs. 300,000 and stock Rs. 100,000. Paid salary Rs. 195,000 including advance of Rs. 15,000. Required: Accounting equation

You are provided the following information: Sales = Rs. 150,000 Dividend received = Rs. 10,000 Opening stock = Rs. 20,000 Purchase = Rs. 80,000 Salary to staff = Rs. 24,000 Income tax paid = Rs. 2,000 Closing stock = Rs. 30,000 Depreciation = Rs. 8,000

Required: Amount of value added.

Following transactions are given: June 10: Purchased from R Furniture

• 6 Sofa Set @ Rs. 20,000 each
• 10 Chairs for Rs. 5,000 (Trade Discount @ 10%) June 25: Purchased from S Furniture:
• 10 Tables @ Rs. 5,000 each
• 10 Chairs @ Rs 4,000 each with trade discount @ 5%

Required: Purchase Book

On 1st Baishak, A Grocery Shop borrowed Rs. 450,000 from a bank by signing a 3-months, 12% note payable. It paid the principal and interest at due date. Required: Journal entries for issue and retirement of note.

A Company issued Rs. 300,000 face value bond at discount of Rs. 30,000. The unamortized discount was Rs. 5,000 and the bond contains a call provision of Rs. 102. Required: Gain or loss on early redemption of bond