Financial Accounting

Define the business entity concept of accounting.

Write about the accrual basis of accounting.

What is a periodic inventory system?

Give the meaning of current liabilities.

What is stock dividend?

Following information are provided: I. Started business with cash Rs. 100,000 and bank balance Rs. 150,000. II. Good costing Rs. 20,000 sold on credit at a profit of 10%. Required: Accounting equation

You are provided the following information: Interest received Rs. 20,000 Wages and salaries Rs. 30,000 Dividend paid Rs. 10,000 Income tax paid Rs. 12,000 Depreciation Rs. 30,000 Net profit Rs. 15,000 Required: Amount of value added.

Following transactions are given: January 10: Sold to ABC Furniture House: 2 sets Sofa Set @ Rs. 20,000 each 10 Chairs for Rs. 10,000 (Trade Discount @ 10%) January 25: Sold to XYZ Furniture House: 10 Tables @ Rs. 1,500 each 10 Chairs @ Rs 1,000 each with trade discount @ 5% Required: Sales book

On 1st Baishak, A grocery shop borrowed Rs. 300,000 from a bank by signing a 6-months, 8% note payable. It paid the principal and interest at due date. Required: Journal entries for issue and retirement of note.

A Company issued Rs. 200,000 face value bond at discount of Rs 20,000. 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