Chapter 15, Problem 15.50AC

Internal auditors are often used to review an organization’s financial statements, such as balance sheets, income statements, and cash flow statements, prior to public filings. Auditors seek to verify that the financial statements accurately represent the financial position of the organization and that the statements follow accepted accounting principles. Many errors that are discovered by auditors are minor errors that are easily corrected. However, some errors are serious and require substantial time to rectify. Suppose that the financial statements of 567  public companies are audited. The following table contains the number of errors discovered during the internal audit of each of 567 these  public companies that were classified as “serious.”   Number of Serious   Errors (x) Frequency 0 237   1 93   2 52   3 40   4 80   5 56   6 7       Number of Serious       Errors (x) Frequency Probability f(x) 0 237     1 93     2 52     3 40     4 80…

Illu.16 : On 31st Lecember, 2003 Andhra Traders Lid, shored in thei accouts the following balances : Rs. 1.50.000 Debenture Redemption Fund Debenture Redemption Fund Investments 1.50,000 5% Debentures 150,000 On 1st March, 2004, the Company sold the investments for Rs.150,500 and the debentures were paid off. Prepare (a) Debenture A/e (b) Debenture Redemption Fud a/c (c) Debenture Redemption Fund Investment a/e. CS Scanned with CamScanner

Illu.7: Journalise the following transactions at the time of issue. i. Rs.1,00,000 debentures of Rs.100 each issued at par and redeemable at par. ii. Rs.1,00,000 debentures of Rs.100 each issued at Rs.95 and redeemable at ar iii. Rs.1,00,000 debentures of Rs.100 each issued at Rs.95 and redeemable at Rs,105 each. CS Scanned with CamScanner