Professional Documents
Culture Documents
-------- are the third persons/parties, who owe money from the business.
Business partner
Debtor
Customer
Creditors
Creditors are -------
Fixed Assets
Current Assets
Long term Assets
Current liabilities
At times, we receive discounts from our creditors. This discount is either treated as
income of the business or as a reduction in the cost of
Income
Balance
Stock
Returned
When an expense or other payable is accrued it is
current liability
Assets
Income
current assets
------------ is made when it is known that an expense will arise but the exact amount is
not known.
Accrual
Provision
Reserves
Good will
Accounting Treatment of Provision
Relevant Expense Account (Dr) Provisions (Cr)
cash (Dr) Provisions (Cr)
Account payable (Dr) Provisions (Cr)
Provisions (Dr) Relevant Expense Account (Cr)
Debtors is also called
Provisions
Stock
Receivables
none of them
Receivables are the ----------
current assets
Fixed assets
long term assets
all of above
When a debtor does not pay the amount due to him, it is said
Provision
Accrual
Debt
Bad Debts
Bad Debts charged to the
Profit & loss
Cost of goods
Capital
Drawings
Recording of Bad Debts
Bad Debts (Dr) Debtors a/c (Cr)
Drawings (Dr) Debtors a/c (Cr)
Bad Debts (Dr) Drawings (Dr)
Debtors a/c(Dr) Bad Debts (Cr)
Debtors 100,000 Provision for Bad Debts 5,000 so the net receivable income is
100000
105000
95000
none of them
Provision for bad debts is also --------- deboters
add
less
save
recorded
Debtors are 15000 and the provision is 37% calculate net Debtors
15000
9400
11000
9450
which one of them is current asset
cash
land
bill paid
advance income
Sales Ledger Control Account is also called
Debtors Control Account
Creditors Control Account
---
---
In General Ledger one account is kept for all the -------- Creditors Control Account.
Debtors Control Account,
Creditors Control Account.
--
---
List of debtors balances drawn up to the end of previous period is --------
Opening balance of debtors
Opening balance of account payable
Closing Balance of debtors
none of these
Opening balance of recorded on the ---------- side of Debtors Control Accounts
Dr
Cr
--
--
Credit Sales ---------- the debtors balance
equal to
decrease
no effect on
increase
Sales Return means
customer returned the goods
Supplier returned the goods
Store returned the goods
all of these
Cheques/Cash Received from the customer ------ the debter balance
increased
no affect
decreased
A&C
Which is the simple formula of calculating closing balance of deboter
Opening balance + Credit Sales +(Sales Return + Cheques/Cash Received)=
Opening balance + Credit Sales - (Sales Return - Cheques/Cash Received)=
Opening balance - Credit Sales - (Sales Return + Cheques/Cash Received)=
Opening balance + Credit Sales - (Sales Return + Cheques/Cash
Received)=
List of creditors balances drawn up to the end of previous period is ------------ balance of
creditor for this year
Closing
Opening
--
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Salaries and benefits of sales and marketing staff become part of -----
Administrative Expenses
Selling Expenses
Financial Expenses
A&C
Salaries / wages paid to labor and supervisors/officers working for the manufacturing of
goods become a part of
Administrative Expenses
Selling Expenses
Financial Expenses
Cost of Goods Sold
Transportation/carriage of goods sold Tax/freight paid on sale is an example of ------
Cost of Goods Sold.
Selling Expenses
Financial Expenses
Administrative Expenses
Interest on loan, Bank charges are ----------
Selling Expenses
Administrative Expenses
Financial Expenses
none of these
------- are the assets of permanent nature that a business acquires, such as plant,
machinery, etc
Fixed assets
Current assets
non Current assets
B&C
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An expense that has a future benefit in excess of one year and recorded in a capital asset account
Income Tax
Capital Work In Progress
Deferred Costs
all of above