Q1 (ii).VimalZarival and Rajesh Garg operate as estate agents in Mumbai. When their bookkeeper retired, Vimal decided to take over the financial aspect of the business. While updating records, Vimal was unsure about the treatment of a number of transactions- • One month before the end of the financial year April 2011- March 2012, Vimal sent a cheque for Rs. 6,000 to the landlord. This was to cover the payment of rent for the next 12 months. Vimal decided not to record this payment because most of it was for the next financial year. • The company purchased a new computer for Rs. 31,400, However, two months after the purchase, Rajesh noticed that the same computer was available in the market for Rs. 26,500, Now Vimal is not sure which value to record. • One of their clients sent a cheque for Rs. 3,200, while the amount due was Rs. 2,300. Vimal is not sure which figure to enter in the financial records.

Q1 (ii).VimalZarival and Rajesh Garg operate as estate agents in Mumbai. When their bookkeeper retired, Vimal decided to take over the financial aspect of the business. While updating records, Vimal was unsure about the treatment of a number of transactions- • One month before the end of the financial year April 2011- March 2012, Vimal sent a cheque for Rs. 6,000 to the landlord. This was to cover the payment of rent for the next 12 months. Vimal decided not to record this payment because most of it was for the next financial year. • The company purchased a new computer for Rs. 31,400, However, two months after the purchase, Rajesh noticed that the same computer was available in the market for Rs. 26,500, Now Vimal is not sure which value to record. • One of their clients sent a cheque for Rs. 3,200, while the amount due was Rs. 2,300. Vimal is not sure which figure to enter in the financial records.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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