Answer Posted / sridhar

Dear Friends, Actually the entry
Purchase A/c. Dr. XXX
To Mr.X A/c. Cr. XXX
[This entry is correct [ but here again the question is
what you purchased again we need to show ie,. either
purchase of Goods or Raw Material etc,.]]

so instead of that

Good A/c. Dr. XXX
To Mr.X A/c. Cr. XXX
(Goods coming in from Mr.X)

Please pass your comments on it to my mail ID:
s4sridhar@gmail.com

Explain financial accounting. What are its characteristic features?

1174

---

Assume that the real risk-free rate is 3% and that inflation is expected to be 8% on year 1,5% in year 2,and 4% thereafter.Assume also that all Treasury bonds are highly liquid and free of default risk. If 2-year and 5-year Treasury bonds both yield 10%,calculate the difference in the maturity risk premium on the two bonds.

2396

---

WHAT ARE THE MOST ELEMENTS OF YOUR JOB?

1968

---

in our co we are sales of good to branch in order sales+fright, branch made jv entry in own book as full amount debit and credit. now our book show sales without freight but branch shows including freight that why differences is arise due to wrong entry passes pls clarify this entry and this entry is done last year book now balance is finalize.

2106

---

Do you know what are trade bills?

1485

---

What is the difference between deferred revenue and accrued revenue?

1138

---

Case Study: Deepak Hand tools Private Limited DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?

6601

---

under the modified cash basis of accounting, most revenues and expenses are recognized on the cash basis. Which one of the following items is an EXCEPTION to this accounting practice? a.Advertising b.Professional Fees. c.Supplies d.Rent

2163

---

What is the formula for acid test ratio in accounting?

1086

---

if we have provision for bad debts and RDD then on which amount we have to calculate RDD original or deducted?

3812

---

How do you prepare a balance sheet from a trial balance?

1155

---

My question is that can i taken input credit of service tax of telephone bill & courier bill & labour contractore bills in exemption Area.

1944

---

Tell me what is reversing journal entries?

1096

---

What is the difference between cost accounting management accounting and financial accounting?

1127

---

what is the format of salary slip when basic , D.A.H.R.A. ,conveyance allowence , concluded and in deduction part P.F. E.S.I. & P.Tax.

3890

---