Q1 (ii).VimalZarival and Rajesh Garg operate as estate agents in Mumbai. When their bookkeeper retired, Vimal decided to take over the financial aspect of the business. While updating records, Vimal was unsure about the treatment of a number of transactions- One month before the end of the financial year April 2011- March 2012, Vimal sent a cheque for Rs. 6,000 to the landlord. This was to cover the payment of rent for the next 12 months. Vimal decided not to record this payment because most of it was for the next financial year. • The company purchased a new computer for Rs. 31,400, However, two months after the purchase, Rajesh noticed that the same computer was available in the market for Rs. 26,500, Now Vimal is not sure which value to record. • One of their clients sent a cheque for Rs. 3,200, while the amount due was Rs. 2,300. Vimal is not sure which figure to enter in the financial records. Question (a). Explain how Vimal should treat each of the above transactions according to the appropriate accounting concepts. Question (b). Assume yourself as Vimal'saccountant; write him a document explaining why accounting concepts are integral part to bookkeeping and Double entry system.

Q1 (ii).VimalZarival and Rajesh Garg operate as estate agents in Mumbai. When their bookkeeper retired, Vimal decided to take over the financial aspect of the business. While updating records, Vimal was unsure about the treatment of a number of transactions- One month before the end of the financial year April 2011- March 2012, Vimal sent a cheque for Rs. 6,000 to the landlord. This was to cover the payment of rent for the next 12 months. Vimal decided not to record this payment because most of it was for the next financial year. • The company purchased a new computer for Rs. 31,400, However, two months after the purchase, Rajesh noticed that the same computer was available in the market for Rs. 26,500, Now Vimal is not sure which value to record. • One of their clients sent a cheque for Rs. 3,200, while the amount due was Rs. 2,300. Vimal is not sure which figure to enter in the financial records. Question (a). Explain how Vimal should treat each of the above transactions according to the appropriate accounting concepts. Question (b). Assume yourself as Vimal'saccountant; write him a document explaining why accounting concepts are integral part to bookkeeping and Double entry system.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 14DQ

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VimalZarival and Rajesh Garg operate as estate agents in Mumbai. When their bookkeeper retired, Vimal decided to take over the financial aspect of the business. While updating records, Vimal was unsure about the treatment of a number of transactions- One month before the end of the financial year April 2011- March 2012, Vimal sent a cheque for Rs. 6,000 to the landlord. This was to cover the payment of rent for the next 12 months. Vimal decided not to record this payment because most of it was for the next financial year. The company purchased a new computer for Rs. 31,400, However, two months after the purchase, Rajesh noticed that the same computer was available in the market for Rs. 26,500, Now Vimal is not sure which value to record. One of their clients sent a cheque for Rs. 3,200, while the amount due was Rs. 2,300. Vimal is not sure which figure to enter in the financial records. Question (a). Explain how Vimal should treat each of the above transactions according to the…
VimalZarival and Rajesh Garg operate as estate agents in Mumbai. When their bookkeeper retired, Vimal decided to take over the financial aspect of the business. While updating records, Vimal was unsure about the treatment of a number of transactions-· One month before the end of the financial year April 2011- March 2012, Vimal sent a cheque for Rs. 6,000 to the landlord. This was to cover the payment of rent for the next 12 months. Vimal decided not to record this payment because most of it was for the next financial year.· The company purchased a new computer for Rs. 31,400, However, two months after the purchase, Rajesh noticed that the same computer was available in the market for Rs. 26,500, Now Vimal is not sure which value to record. · One of their clients sent a cheque for Rs. 3,200, while the amount due was Rs. 2,300. Vimal is not sure which figure to enter in the financial records. (a). Explain how Vimal should treat each of the above transactions…
On 1 August 2021, the owners of the ABC Enterprise, Maurice & brothers, decided that they will boldly go and keep their records on a double entry system. Their assets and liabilities at that date were. Their assets and liabilities at that date were: office fixtures £1200, a van £32,000 and£36,800 in the bank account. They have no liabilities at the 1st of August 2021Their transactions during August 2021 were as follows:2021August2 Maurice & brothers received a loan of £12,400 from Santander Bank and they deposited in their bank account. 3 The amount of £2800 was transferred from bank Account to Cash in hand account.4 Bought a second-hand Van paying by cheque £6,200 5 Bought office fixtures £3400 from Sharp Office Ltd. They paid £1000 by issuing a cheque and rest of the fixtures value would remain as credit. 8 Bought a new van on credit from Toyota Co. £8,700 15 Bought office fixtures paying by cash £110 19 Paid Toyota Co. a cheque for whole amount of debt25 Paid £430 of the…
Below are the transactions for Alex in Jan 2019: 1 Alex commenced business by depositing cash RM80,000 in the bank as capital 4 A machine was purchased and paid for with company cheque for RM42,000 8 Alex purchased goods for resale amounting to RM17,500 on credit 12 Alex made a cash sales of RM4,800; cost of good sold was RM2,600 16 Alex received a bank loan of RM30,000, the money was credited to the business bank account 20 Alex brought in his personal car for business use, the car was valued at RM65,000 23 Alex purchased goods for resale amounting to RM35,600, he paid the supplier by cheque 27 Alex paid supplier RM17,000 for the goods purchased on 8 Jan 2018, discount received RM500 30 Alex bought a computer for RM5,200 by cheque Required: Prepare the accounting equation for the month of January 2019.
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F Polk, after being in Bakery business for some years without keeping proper records, now decidesto keep a double entry set of books. On 1 September 2021 he establishes that his assets andliabilities are as follows: Assets: Van £5,700, Fixtures £2,800, Stock £5,200, Debtors – P Mullen£105, M Abel £311, Bank £1060, Cash £85. Liabilities: Creditors – Syme Ltd £229, A Hill £80.
Taylor Company recently purchased a piece of equipment for $2,000 which will be paid within 30 days after delivery. At what point would the event be recorded in Taylors accounting system? When Taylor signs the agreement with the seller When Taylor receives an invoice (a bill) from the setter When Taylor receives the asset from the seller When Taylor pays $2.000 cash to the seller
R. Nelson invests his personal computer, with a fair market value of 2,500, in the business. How would this transaction be recorded? a. A debit to R. Nelson, Capital, 2,500. b. A credit to Cash, 2,500. c. A credit to Professional Fees, 2,500 d. A debit to Computer, 2,500.
1.1 S Temba owns and personally operates a business, TS Services. The following are a summary of the transaction for the period ended 31 May 2021 No Details of transaction I . Temba deposited an additional R50 000 into the business bank account. 2. Temba bought a second hand vehicle from H Ford Cars for R80 000. A deposit of R30 000 was paid and the balance will be paid in 5 instalments 3. Bought uniforms marked at R 15 000 from Major Fabs. Received a 10% cash discount and paid by electronic funds transfer. 4. Paid an amount of RI 8 000 for rent. 5. Received R8 400 from debtor to settle and account of R8 700. 6. Received an account for repairs to vehicles for R3 800. 7. A total of R72 400 was deposited by clients for services rendered. 8. Temba drew R7 000 from the business for personal use. 9. The first instalment for the vehicle bought from Ford Cars (refer No 2 above) was paid by an electronic funds transfer. 10. Paid…
Mia Toretto has been in business since 1st January 2020. The following is a list of her transaction for January 2020: 1/1/2020 Capital of RM30,000 paid into a business bank account. 2/1/2020 Van purchased on credit from Lang for RM5,000. 6/1/2020 Goods purchased on credit from Green for RM15,000. 10/1/2020 Cheque drawn on the bank for RM1,000 in order to open a petty cash account. 14/1/2020 Goods sold on credit for RM6,000 o Haddock. 18/1/2020 Cash sales of RM5,000. 20/1/2020 Cash purchases of Rm3,000. 22/1/2020 Miscellaneous expenses of RM500 paid out of petty cash. 25/1/2020 Lang’s account settled by cheque. 28/1/2020 Green allows Mia Toretto a cash discount of RM500. 29/1/2020 Green sent a cheque for RM10,000. 30/1/2020 Haddock is allowed a cash discount of RM600. 31/1/2020 Haddock settles his account in cash. Required: Enter the above transaction in Mia Toretto’s ledger accounts.
3. Hashem started a business that offers legal services on 1 December 2019. The following are transactions occurred during the month of December 2019: paying • Hashem brought in OMR50,000 cash and office equipment worth OMR12,000 into the business. • Bought a car for his own use worth OMR112, 000 by cash (company's money) of OMR12, 000 and signing a note payable for the balance. • Provided legal services to a client worth OMR7,000 and received cash of OMR3,000 from the client. • Purchased office supplies worth OMR2,000 cash. Paid OMR 700 cash for advertising expenses for the months of December2019. Sent a bill totaling OMR5, 000 to a client for the legal service provided and yet to receive payment. • Received OMR3, 000 cash as an agreement to start work as a legal advisor for a company starting February 2020. • Paid OMR3, 600 cash for employees' salary. Paid OMR2, 400 cash for December office rental. As at 31 December 2019, the office supplies used is OMR400. Based on the…
Can you recheck the transaction on Feb. 12? It was said that the owner received P50,000 from customers, why did you deduct the P50,000 in accounts receivable? The cash came from the customers and not from the Nestle Corporation, does it? Should that P50,000 be added on the Capital? A revenue earned?