Podcast
Questions and Answers
In the balance sheet, which of the following is the correct accounting equation?
In the balance sheet, which of the following is the correct accounting equation?
- Assets + Liabilities = Equity
- Liabilities - Assets = Equity
- Equity - Liabilities = Assets
- Assets - Liabilities = Equity (correct)
Based on the trial balance, what is the combined debit balance of Cash and Furniture?
Based on the trial balance, what is the combined debit balance of Cash and Furniture?
- $3,00,000.00
- $2,50,000.00 (correct)
- $1,00,000.00
- $1,50,000.00
What is the purpose of preparing a trial balance?
What is the purpose of preparing a trial balance?
- To verify the equality of debit and credit balances. (correct)
- To determine the net profit or loss for a period.
- To present the final financial performance of a company.
- To prepare the cash flow statement.
Based on the balance sheet, what percentage of total liabilities is represented by current liabilities?
Based on the balance sheet, what percentage of total liabilities is represented by current liabilities?
Which financial statement would provide information about a company's revenues and expenses over a specific period of time?
Which financial statement would provide information about a company's revenues and expenses over a specific period of time?
If the Sales Accounts have a total of $5,00,000.00 and the total of Purchase Accounts is $3,00,000.00, what is the Gross Profit, assuming there are no Direct Expenses?
If the Sales Accounts have a total of $5,00,000.00 and the total of Purchase Accounts is $3,00,000.00, what is the Gross Profit, assuming there are no Direct Expenses?
What is the primary purpose of the Balance Sheet?
What is the primary purpose of the Balance Sheet?
Using the trial balance, calculate the total of all credit balances.
Using the trial balance, calculate the total of all credit balances.
How do 'Prepaid Expenses' typically appear on the balance sheet?
How do 'Prepaid Expenses' typically appear on the balance sheet?
What type of account is 'Bank Loan' and where would it be classified?
What type of account is 'Bank Loan' and where would it be classified?
What is the effect on the accounting equation if a company purchases furniture with cash?
What is the effect on the accounting equation if a company purchases furniture with cash?
How are 'Unpaid Expenses' classified in accounting?
How are 'Unpaid Expenses' classified in accounting?
Which of the following best describes the relationship between the Trial Balance and the Balance Sheet?
Which of the following best describes the relationship between the Trial Balance and the Balance Sheet?
Based on the provided documents, which account is most likely categorized under 'Loans (Liability)' in the balance sheet?
Based on the provided documents, which account is most likely categorized under 'Loans (Liability)' in the balance sheet?
If Harisha & Co. has total assets of $8,00,000 and total liabilities of $3,00,000, what is the amount of owner's equity?
If Harisha & Co. has total assets of $8,00,000 and total liabilities of $3,00,000, what is the amount of owner's equity?
Which account from the Trial Balance represents a company's investment in long-term physical assets?
Which account from the Trial Balance represents a company's investment in long-term physical assets?
Under which main heading would 'Bills Payable' be categorized on a balance sheet?
Under which main heading would 'Bills Payable' be categorized on a balance sheet?
What does the 'Profit & Loss A/c' primarily determine?
What does the 'Profit & Loss A/c' primarily determine?
What does the inclusion of 'Opening Balance' under 'Profit & Loss A/c' typically represent?
What does the inclusion of 'Opening Balance' under 'Profit & Loss A/c' typically represent?
What is the purpose of financial year beginning and book beginning from information in alteration company?
What is the purpose of financial year beginning and book beginning from information in alteration company?
Flashcards
Assets
Assets
Resources owned by a business that are expected to provide future economic benefits.
Liabilities
Liabilities
Obligations of a business to transfer assets or provide services to others in the future.
Capital Account
Capital Account
The owner's investment in the business, calculated as Assets - Liabilities.
Bank Loan
Bank Loan
Signup and view all the flashcards
Bills Payable
Bills Payable
Signup and view all the flashcards
Cash
Cash
Signup and view all the flashcards
Furnitures
Furnitures
Signup and view all the flashcards
Kvb Bank
Kvb Bank
Signup and view all the flashcards
Study Notes
- Harisha & Co is located at Nanthi Kovi Street, Trichy - 639103, with the email address harisha & co gmail.com.
- Financial year and books begin on 1-Apr-20.
- The base currency symbol is INR.
Balance Sheet (1-Apr-20 to 31-Mar-21)
- Liabilities total to ₹6,00,000.00 comprising:
- Capital Account: ₹3,00,000.00
- Loans (Liability): ₹1,20,000.00
- Current Liabilities: ₹1,80,000.00
- Profit & Loss A/c: Includes Opening Balance and Current Period.
- Assets total to ₹6,00,000.00 comprising:
- Fixed Assets: ₹2,50,000.00
- Current Assets: ₹3,50,000.00
Profit & Loss A/c (1-Apr-20 to 31-Mar-21)
- Includes sections for Purchase Accounts, Direct Expenses, and Gross Profit carried down.
- Sales Accounts, Gross Profit brought forward, Indirect Expenses, Nett Profit, and Indirect Incomes are also listed.
Trial Balance (1-Apr-20 to 31-Mar-21)
- Lists debit and credit closing balances for various accounts:
- Anu Enterprises: ₹30,000.00 (Credit)
- Bank Loan: ₹1,20,000.00 (Credit)
- Bills Payable: ₹1,00,000.00 (Credit)
- Capital: ₹3,00,000.00 (Credit)
- Cash: ₹1,50,000.00 (Debit)
- Furnitures: ₹1,00,000.00 (Debit)
- Kvb Bank: ₹1,50,000.00 (Debit)
- Machinery: ₹1,50,000.00 (Debit)
- Prepaid Expenses: ₹25,000.00 (Debit)
- Ryas & Co: ₹25,000.00 (Debit)
- Unpayed Expenses: ₹50,000.00 (Credit)
- Grand Total: Debits and Credits both total ₹6,00,000.00
Select Group
- Lists accounting groups such as Primary, Bank Accounts, Capital Account, and Current Liabilities.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
