Tag Archives: Financial-Accounting

FINANCIAL STATEMENT ANALYSIS IMPORTANT  SHORT QUESTIONS with Answers Q. 1: Why are notes to statements necessary? ANS: Footnotes (notes) increase the full disclosure of the statements by providing information on inventory and depreciation methods, subsequent events, contingent liabilities, etc. Q. 2: What are contingent liabilities? Are lawsuits against the firm contingent liabilities? ANS: Contingent liabilities are dependent on an occurrence …

Bank Reconciliation Statement Problems and Solutions Problem # 1:  From the following information, extract a bank reconciliation statement as on 31st Decembar, 2008             1.         The balance as per Cash book on 31-12.2008 Rs.12000/-             2.         Cheques issued but not presented in the bank Rs.1600/- 3.         Cheques paid into bank but not cleared before 31st Dec,08 Rs.2000/-             4.         Interest …

BANKING TRANSACTIONS Q.1      WHAT IS BANK.? Ans.    Bank is a financial institution which deals in money. It takes money from those people who have spare it  on low rate of interest and lends to the needy people at a high rate of interest. This difference of rate of interest its income. Q. 2     WRITE THE KINDS OF BANK …

Problem .No.1                         Write up a single column Cash book from the following transactions: 2000 May-1   Cash in hand                                                           Rs.2000/-             2          Purchased merchandise for Cash                                200/-             3          Paid carriage                              …

Journal, Ledger and Trial Balance Problems and Solutions Problem-1 Record the following transactions in General Journal and post them into ledger. March.1          Anwar invested Rs.60000/- in the business. 8                   Bought furniture Rs.5000/- on credit. 10.       Purchased Supplies for Rs.1000/- 18.       Purchased Equipment Rs.1700/- 25.       Invested additional cash into …

 Journal Entry Problems and Solutions  Problem-1 Record the following transaction into General Journal during the month of January, 2008. Jan. 1 Mr. Khubaib invested Rs.100,000 into the business.        2 Purchased Land for Cash Rs.52000.       4. Purchased Building Rs.36000, paid Rs.6,000 and issued note for the remaining       8. Purchased equipment on credit Rs.13,800.      15 Sold a part …

Accounting Equation Problems and Solutions Problem No.1 Show the effect of the following transactions on assets, owner’s equity and Liabilities: 1.         Mr. Sultan invested cash into business Rs.30000/- 2.         Bought Supplies for Cash Rs. 500/- 3.         Purchased Furniture on account Rs.1000/- 4.         Paid Salaries Rs.200 5.         Earned Rs.2000/- by performing services to the clients. 6.         Paid Rent of …

As a Muslim, it is our faith that the Holy Quran is a comprehensive code of life and is a complete Source of Guidance to us in conduct of all our worldly affairs. The Holy Quran lays great stress on “KITABAT” (recording in Black and White), particularly writing down of financial and business transactions. The contents of Verses 282 and …

Firstly, Question is that Who are Stakeholders? Simply, we can say that Stakeholders are the parties whose Stake means Interest is linked with the organisation whether directly or indirectly. Now, we will discuss some possible Internal or External stakeholders of accounting information, whose benefit is associated with the organisation. Followings you will find a list of parties whose stake directly …

The word “ACCOUNTING” means “Language of Business“. As we know the main aim of Business is only to earn Profit. But how much profit is earned by business or is there any loss suffered by it. The real story about the operations of business can only tell Accounting. That’s why! we said that, “Accounting is the Language of Business.” The …