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Depreciation

Accountancy

answered on 24-Jul-21 16:25

I have worked out this problem. Please check the answer.

latest answer

It is a good practice to open depreciation account

Vijay K

Vijay K

CA Inter

9K+

18

644

Final accounts

Accountancy

answered on 24-Jul-21 08:34

In this question closing stock is given in trial balance and purchases is not given in question. How to get them?

latest answer

Just write COGS on debit side of Trading & P&L A/c. Take closing stock directly on asset side of balance sheet

siva chaitanya

siva chaitanya

CA Final

13K+

7

518

Final accounts

Accountancy

answered on 24-Jul-21 08:33

Sir, here the fire broke out on 1st April 2018 but the financial year closes on 31st March 2018. So should we consider this adjustment in final accounts or not?

latest answer

No, we shall not consider it.

siva chaitanya

siva chaitanya

CA Final

13K+

3

500

Treatment of membership fees and entrance fee

Accountancy

answered on 24-Jul-21 12:37

If nothing is specified in the question how should we treat membership fee and entrance fee in npo?

latest answer

You mean whether income or not? You can show in Income and Expenditure and put a note.

MATURU HAMSA GAYATRI

MATURU HAMSA GAYATRI

CA Final

23K+

1

485

Final accounts

Accountancy

answered on 23-Jul-21 09:59

What is the effect of this adjustment in the final accounts

latest answer

Yes sir, understood

siva chaitanya

siva chaitanya

CA Final

13K+

9

468

Final accounts

Accountancy

answered on 24-Jul-21 08:26

when income tax paid is given inside trial balance Then we should deduct from drawings know sir?

latest answer

It will be deducted from capital in the balance sheet. It will be treated similar to drawings as income tax in case of propreitor is personal liability

siva chaitanya

siva chaitanya

CA Final

13K+

8

585

Final accounts

Accountancy

answered on 24-Jul-21 08:28

when cost of goods sold is given in trial balance and closing stock also given inside trial balance then can we find purchases sir?

latest answer

Now, we can't separately find Purchases in that situation. All we can get to know is Opening Stock + Purchases amount. Then there could be any assumption, whether opening stock is zero or equal to closing stock etc.

siva chaitanya

siva chaitanya

CA Final

13K+

9

486

Final accounts

Accountancy

answered on 23-Jul-21 09:56

Sir can you please explain the effect of that adjustment

latest answer

Yes, understood Thanks

siva chaitanya

siva chaitanya

CA Final

13K+

5

509

Final accounts

Accountancy

answered on 22-Jul-21 22:32

Can you please explain the effect of adjustment in final accounts

latest answer

One fourth of the printing and stationary expenses are prepaid. So, it shall be deducted from Printing expenses and shown on asset side of Balance Sheet. So, if we are given printing and stationary expenses as 10,000. 7,500 will only be shown as expense in P&L; 2,500 will be shown on asset side

siva chaitanya

siva chaitanya

CA Final

13K+

2

508

Depreciation

Accountancy

answered on 22-Jul-21 22:38

Is provision for depreciation a/c and accumulated depreciation a/c the same?

latest answer

Every year provision for depreciation a/c is credited for depreciation of that year. Accumulated depreciation is a term which implies depreciation till date from asset purchase. So, total amount lying in Provision for depreciation account is nothing but accumulated depreciation

Girinath A

Girinath A

CA Inter

765

1

469