Defects of single entry system
- 1 Answers
- 10770 Views
- Mphasis, Outsource Partners International, I also Faced
- E-Mail Answers
Answer / sonali
This system does not track the assets and liabilities
account such as inventory, account receivable and account
payable.
It facilitates the calculation of income but not the
financial position. There is no direct linkage between the
income and the balancesheet.
Errors may go undetected and often are identified through
bank reconciliation statement
| Is This Answer Correct ? | 15 Yes | 1 No |
Which points are include and which point are exclude from Bank Reconciliation (balance as per our book)?
Expand ________GST
2. You are required to prepare a Profit & Loss Account for the year ending 31st December, 2007 and the Balance Sheet on that date. The Trial Balance of XYZ Ltd. for the year ended 31st December 2007 is as follows:- Trial Balance of XYZ Ltd. as on 31st Dec. 2007 Debit Balances Rs. Credit Balances Rs. Materials used 3,50,000 Sales(including 2% Sales tax) 9,18,000 Cost of Labour 1,50,000 Sale of Scrap 100 Stock, finished and work in process on 31st December, 2006 50,000 Rent received 2,000 Wages : Factory Staff 15,000 Discounts 2,750 Directors Remuneration 50,000 Recovered against fire claim re : Stock 5,000 Salaries : Clerical Staff 75,000 Capital : Equity 25,000 Insurances : Workmen’s Compensation 1,500 Preference- 9% 8,000 General, fire etc. 2,000 Creditors 1,56,000 Directors’ Life Insurance 1,500 Provision for Taxation 1,05,000 Maintenance : Buildings 1,000 Profit & Loss Account 13,750 Plant and Machinery 12,500 Rent and Rates of premises and hire of plant 20,000 Heat, Light and Power 15,000 Experimental and Laboratory Expenses 10,000 Canteen Expenses 5,000 Staff Welfare expenses 2,500 Motor Expenses 12,500 Professional Charges 2,800 Postage and Telephone 3,500 Books, Printing and Stationery 11,000 Sundry expenses 10,000 Carriage and Packing on Sales 3,300 Discounts 5,000 Debtors 1,78,000 Freehold Property 50,000 Plant and Machinery 12,500 Fixtures and Fittings – Offices 3,500 Office machinery and Equipment 3,000 Motor Car and Van 6,500 Stock of materials on 31st Dec. 2007 1,20,000 Bank 38,000 Sales Tax Paid 15,000 12,35,600 12,35,600 Depreciation is to be provided at the following rates: Plant and Machinery 10% Fixture and Fittings 05% Office Machinery, etc. 10% Motor Vans and Cars 25% The stock of finished goods and work in progress as on 31st December, 2007 was Rs. 35,000. Provide for preference dividend and ordinary dividend at 10%. The total taxation liability is estimated at Rs.1,50,000 of which Rs. 75,000 relates to the current year. Debtors include Rs. 10,000 deposited as security against government contracts. The Works Manager is paid partly by salary and partly by a commission; he is entitled to a commission of 5% on the amount by which the surplus in the factory cost exceeds 20% of the sales for the period. Charge the commission if any in the Profit and Loss Account.
do we have to learn all the shortcutkeys in tally.i am from non commerce background ,where should i start from.
what is OTC derivatives and Depository Trust & Clearing Corporation (DTCC) ?
What is the Purpose of Preparing Bank Reconciliation Statement?
what is the difference between cash flow and fund flow?
what are the financial reports to be accompanied with income tax return of a business concern?
how to entery pass in tally when items damage(items insured)and claim to insurance co.
Why provisions are made & what will be the Journal entry for different types of provisions.
why balance sheet should tally
difference between contra entry and double entry?
Audit 
