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What is the Difference between Rectification of Errors and
Adjustment Entry ?
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Answer / waleed butt
Rectification of errors:-
Every businessman is interested in finding out
the true profit and correct financial position of his
business at the close of the trading period. The effort of
the accountant is to prepare the final accounts in such a
fashion which exhibits true picture of the business.
Accounts are considered to be authentic proof of true
financial position of a concern. But in spite of best
efforts there are certain transactions which are omitted to
be recorded or entered wrongly in the books. Such errors
affect the final accounts. An accountant should, therefore,
try to locate such errors and rectify them before the
preparation of final accounts.
Adjustment entry:-
A book-keeping entry made at the end of an
accounting period to assign income and expenses to a
different period. These entries are made under the accrual
accounting systems in order to correctly reflect the timings
of income and expenditure. Some adjusting entries include
accounts receivable, accounts payable, depreciation and
amortization.
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In SAP FICO How many ways we are Procuring the assets in the Company?
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(a) Rajesh Ltd. gives you the following information for the year ended 31st March, 2006: (i) Sales for the year Rs. 48, 00, 000. The Company sold goods for cash only. (ii) Cost of goods sold was 75% of sales. (iii) Closing inventory was higher than opening inventory by Rs.50,000. (iv) Trade creditors on 31.3.2006 exceed the outstanding on 31-3.2005 by Rs. 1, 00, 000. (v) Tax paid during the year amounts to Rs. 1, 50, 000. (vi) Amounts paid to Trade creditors during the year Rs. 35, 50, 000. (vii) Administrative and Selling expenses paid Rs. 3, 60, 000. (viii)One new machinery was acquired in December, 2005 for Rs. 6, 00, 000. (ix)Dividend paid during the year Rs. 1,20, 000. (x)Cash in hand and at Bank on 31.3.2006 Rs. 70, 000. (xi) Cash in hand and at Bank on 1. 4.2005 Rs. 50, 000. Prepare Cash Flow Statement for the year ended 31.3.2006 as per the prescribed Accounting Standard. (b) Define the teen "Operating Activities", "Investment Activities" and "Financing Activities" as per NA S-3 Send me this question answer in my mail Address please help me to how solve the question ( deepakgaire@gmail.com) plese plese
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