The monthly statement which is prepared to disclose the position of budget & position of the fund is known as statement of .....

The following are the items included in debit side of trading account: Opening stockIt is the stock of goods available at the opening day of the accounting period. It is the stock of goods, which remained unsold at the end of the previous accounting .....

Profit and loss account is prepared by following certain procedures. It is prepared in the form of the ledger and hence it contains two sides: Debit and Credit. While placing the items in the profit and loss account, expenses and losses are debited .....

The following are the items relating to debit side of the profit and loss account: Office and administrative expenses: All the expenses, which are incurred in the process of operating the business, are known as office and administrative expenses. .....

The expenses, which are incurred inside the factory for the production of the goods, are known as factory or manufacturing expenses. Factory rent, motive power, gas, fuel, wages, and royalties are some of the examples of manufacturing or factory .....

The expenses, which are incurred for fulfilling the financial need of the business, are known as financial expenses. These expenses are incurred for the steady supply of financial necessary for the .....

The following are the main points of differences betweenTrial Balance and Balance Sheet: - Bases of differences Trial Balance Balance Sheet Basis Trial balance is prepared on the basis of ledger balances. Balance sheet is prepared on the .....

Fixed assetsThe assets, which are bought for sing in the business for long-term purpose is called, fixed assets. Goodwill, land, building, plant and machinery, vehicles and furniture are some of the examples of fixed assets. InvestmentThe amount of .....

Fixed assetsThe assets, which are bought for sing in the business for long-term purpose is called, fixed assets. Goodwill, land, building, plant and machinery, vehicles and furniture are some of the examples of fixed assets. InvestmentThe amount of .....

The main differences between budget sheet and bank cash book are as follows: Budget sheet Bank cash book 1. It is a budgetary statement to be prepared by operating level government offices. 1. It is a subsidiary ledger to be prepared by .....

The budget sheet is closed monthly as well as annually. It is closed to report about the budget release and expenditure till the date. Monthly ClosingAl the end of each month, the budget sheet is closed. The process of obtaining the total budget .....

Expenses, which are incurred in the process of selling and distributing the goods, are known as selling and distributing expenses. These expenses are incurred in maintaining and promoting .....

All the expenses, which are incurred in the process of operating the business, are known as office and administrative expenses. These expenses are incurred in managing the whole activities of the business. It includes the expenses like office .....

The following are the items relating to credit side of profit and loss account: Indirect incomes: Profit and loss account contains all the indirect incomes in its credit side. Incomes from commission and discount are the examples of indirect .....

The incomes, which are not earned but received in advance, are called advance incomes. They are the liabilities of the business. These are shown on the liabilities side of the balance sheet and deducted from the concerned item on the credit side of .....

A budget sheet is prepared on the basis of journal voucher. It is prepared by recording the transactions in its related parts. The procedures of preparing budget sheet are as follows: - Recording annual appropriationIn the first part of the budget .....

A budget sheet is a budgetary account to be prepared by operating level government offices. It has three parts which are described below: Annual appropriation partIt is the first part of a budget sheet which is placed at the top of the sheet. It .....

The main objectives of preparing budget sheet are as follows: - To keep systematic record of the annual appropriation of budget, budget release and budget expenditure under different budget heads and subheads. To provide detailed information .....

The office establishes the petty cash fund for paying petty expenses incurred daily. The following factors should be considered carefully by the petty cashier for proper operation of the fund: - Payment should be made only for petty expenses. .....

Imprest system of petty cash fund is a more popular system of the petty cash fund. Under this system, the petty cashier is given a certain amount of cash usually at the beginning of the accounting year. At the end of each month, the petty cashier .....

Prepaid expenses are those expenses that are paid in advance. They are assets of the business. These are shown on the assets side of the balance sheet and deducted from the concerned item on the debit side of the trading or profit and loss .....

The uncollectible or irrecoverable amount of debtors is known as bad debts. The amount of provision, which is created for uncollectible debtors, is called provision for bad and doubtful debts. These are losses of the business. It is deducted from .....

The amount of interest, which is allowed on capital, is known as interest on capital. It is an .....

The amount of provision, which is created for uncollectible debtors, is called provision for bad and doubtful .....

The uncollectible or irrecoverable amount of debtors is known as bad .....

The permanent decrease in the value of fixed assets due to continuous use is called depreciation. It is the loss of the .....

The incomes, which are not earned but received in advance, are called advance incomes. They are the liabilities of the .....

Prepaid expenses are those expenses that are paid in advance. They are assets of the .....

Government of Nepal AGF No. 22 ….Office/Dept./Ministry Petty Cash Book/ Account Date Particulars JV No. Debit Credit Dr./Cr. Balance Rs. Paisa Rs. Paisa Rs. Paisa Jestha 1 Dr. 400 Jestha .....

Government of Nepal AGF No. 22 ….Office/Dept./Ministry Petty Cash Book/ Account Date Particulars JV No. Debit Credit Dr./Cr. Balance Rs. Paisa Rs. Paisa Rs. Paisa Bhadra 1 Balance b/d Dr. .....

Accrued incomes are those incomes that are earned but not yet received. They are the assets of the .....

The entries, which are passed for those transactions, which are not included in the trial balance are called adjustment .....

A trial balance is similar to the balance sheet in respect to the following points: - Both trial balance and balance sheet are statements but not accounts. Both trial balance and balance sheet are prepared on the basis of ledger balances. Both trial .....

The amount of bank balance is called cash at the bank. The excess of deposit over withdrawal is considered as cash at the .....

The amount of cash remains in the business at the end of the period is called cash in hand. It includes the amount of petty cash fund and the undeposited amount of .....

The amount of bank balance is called cash at the bank. The excess of deposit over withdrawal is considered as cash at the .....

Expense paid in advance is called prepaid expense. Prepaid expense is an asset of the .....

Income earned but not yet received is called accrued income. Accrued income is an asset of the .....

The amount of money, which is invested outside the business for earning incomes, is called .....

The amount of bill relating to the credit sale drawn by the business and accepted by the debtor promising in writing for paying the amount of bill on a certain date is called bills .....

The main objectives of petty cash fund are as follows: - To facilitate for paying petty expensesPetty expenses can be paid directly in cash from the petty cash fund. It facilitates the accountant to pay petty expenses easily. It removes the .....

A government office performing a large number of petty transactions usually maintains a separate petty cash book because of the following advantages: - It makes a record of all petty payments systematically. It supplies information regarding petty .....

Solution: Balance Sheet of Sarala Traders For the year ended 31st Chaitra Liabilities Amt (Rs.) Assets Amt (Rs.) Capital 10,40,000 Machine 6,80,000 Less: Net loss 80,000 9,60,000 Goodwill 37,000 Outstanding wages .....

Debtors are the buyers of goods. The amount receivable from the customer against the goods sold on credit is called the .....

The assets, which are bought for sing in the business for long-term purpose is called, fixed .....

The incomes, which are not earned but received in advance, are called advance incomes. Advance incomes are the liabilities of the .....

Expenses incurred but not yet paid, are called outstanding expenses. Outstanding expenses are the liabilities of the .....

Solution: Balance Sheet of Suruchi Traders For the year ended 31st Chaitra Liabilities Amt (Rs.) Assets Amt (Rs.) Capital Add: Net profit Less: Drawing 3,00,000 16,000 3,16,000 50,000 2,66,000 Furniture Prepaid expenses .....

Solution: Balance Sheet of Suruchi Traders For the year ended 31st Chaitra Liabilities Amt (Rs.) Assets Amt (Rs.) Capital 10,40,000 Machine 6,80,000 Less: Net loss 80,000 9,60,000 Goodwill 37,000 Outstanding wages .....

The balance sheet is a statement of assets, capital, and liabilities of the business. It is not an account rather a financial statement. It presents the liability on the left-hand side and the assets on its right-hand side either in order of .....