correction of errors Flashcards
entry of closing stock in periodic system
Inventory Dr
Cost of sales Cr
if question is silent then goods and assets are bought at credit or cash?
ASSET AT CSH WHILE GOODS AT CREDIT
If a N.C asset is wrongly recorded than what is the treatment of depreciation in rectifying asset?
if N.C asset is Debitted in rectifying ENTRY than charge depreciation on it
dep Dr
acc dep/ eqp Cr
but if it is creddited than reverse the already charged depreciation
eqp DR
dep Cr
if no date is given than when asset is bought?
on 1st day of year
Dr and Cr of which enteries are equal?
Original and rectifying
Dr and Cr of which enteries may or may not be equal?
wrong entry
which 5 things have only
1-item and 2- suspense in rectifying entry and no need of original and wrong enteries?
1- Over casted
2- under casted
3- carried forward
4- brought forward
5- sub total of any page
what do you mean by sales and purchase ledger?
debtor and creditor a/c
entry of contra entry?
creditor dr
debtor cr
whichever is lower
which items are recorded on cost price instead of sales price?
drawings
donations
free samples
loss
charity
or any goods of business used for business
always recorded on cost
if question is silent then which system of inventory is used?
periodic
entry of carriage inward(transportation exp) in periodic and perpetual?
periodic;
carriage inward Dr
carriage payable Cr
perpetual;
inventory dr
carriage inward cr
discount allowed and discount received treatment in fr1?
discount allowed;
dr sales
discount received;
cr purchases
tell treatment of businesss inventory placed in someone others store and someones other stock in business*s store
1st will be added to own stock
2nd will not be added to own inventory
We take two assumptions about depreciation in correction of errors while rectifying errors?
TIME LIFE ENTERPRISES PAGE 454
1– depreciation has been charged before rectification
2– depreciation has not been charged
