Page 43 - DMGT403_ACCOUNTING_FOR_MANAGERS

Accounting for Managers

Notes Choose the correct Answer
12. Outstanding rent A/c is an example for:
(a) Nominal account
(b) Personal account

(c) Representative personal account
(d) None of these
13. The giving aspect in a transaction is called as:
(a) Debit aspect

(b) Credit aspect
(c) Neither of the two
(d) Both of them

2.12 Review Questions

1. Pass the following various journal entries:

(a) Jan. 1, 2009 Mr. Sundar has started business with a capital of 50,000
(b) Jan. 2, 2009 Goods purchased 10,000
(c) Jan. 5, 2009 Goods sold 5,000

(d) Jan. 10, 2009 Goods purchased from Mittal & Co. 10,000
(e) Jan. 11, 2009 Goods sold to Ganesh & Co. 10,000
(f) Jan. 12, 2009 Goods returned to Mittal & Co 1,500

(g) Jan. 20, 2009 Goods returned from Ganesh 2,000
(h) Jan. 31, 2009 Office Rent paid 500
(i) Feb. 2, 2009 Interim Dividend paid 3000

(j) Feb. 8, 2009 Cash withdrawn from bank 2,000
2. Your purchases 10 Furniture from other company, your starting own furniture business.
Each furniture value is 1000/-, your business purpose use two furniture and other furniture
are sales purpose. What will be the Purchases Entry?
3. Distinguish between material and immaterial transactions of business.

4. The ledger of Salizar Company at the end of the current year shows Accounts Receivable
$110,000, Sales $840,000, and Sales Returns and Allowances $40,000. If Allowance for
Doubtful Accounts has a credit balance of $2,500 in the trial balance, journalize the adjusting
entry at December 31, assuming bad debts are expected to be
(a) 1% of net sales, and

(b) 10% of accounts receivable.
5. Which A/c will you put goodwill in, what about commission received and why?
6. What would you debit/credit the rent and rates paid? Give reasons.

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