G Ltd brought in from Germany one machinery for sale in India and another machinery for creation purpose. Will you treat them good or fixed property? Ans; First equipment will be treated as goods, and second equipment shall be treated as set asset. 2. Mr. Jaspal Singh dealing in digital goods sold 20 TV sets charging Rs. 30,000 each at Rs. 40,000 each. Out of this Rs.5,00,000 were received in cash and the balance is not yet received.
State the amount of income. Ans. Rs. 8,00,000 ( Rs. 3. Mr. Danesh who owed us Rs. 50,000 became insolvent and paid only 40% of the amount. What is term used for the amount notb received? Q 1 Which basis of accounting is recognised under the business take action 1956? A Accrual basis of accounting.
Q 2 In which basis of accounting excellent expenses are not recorded? A Cash basis of accounting. Q 3 Under which accounting theory quality of manpower is not recommend in the written books of accounts? A Money measurement concept. Q 4 According to which process the same accounting method should be utilized each 12 months? Q5 According to which principle even the proprietor of the business is treated as creditor of the business?
A Business entity theory . Q 5 What’s Business Entity Principle? A Business is treated as an entity individual and distinctive from its owners. Q 6 Closing stock is valued at lower of cost or realisable value . A Principle of Conservatism. Q 7 Which concept states that financial statements should disclose all significant information?
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A Principle of full disclosure. Q 8 Because of which process contingent liability are shown in the balance sheet? A Principle of Full Disclosure. Q 9 Providing depreciation on set assets is in accordance with which principle? Q 10 Because of which rule qualitative transactions are not documented in the written books ? A Money Measurement Principle.
1. Define accounting specifications. Ans. They are the written statements specifying standard rules and methods for planning the financial statements. 2.what’s the nature of accounting standard? Ans. Accounting standard lays down the normsof accounting insurance policies. 3.whatis the utility of accounting specifications? Ans. Accounting standards improves the credibility and reliability of financial statements. 4.which portion of Indian Companies Act is applicable to acconting requirements?