Question

Q1. Relate the Sarbanes-Oxley Act with global convergence of the financial reporting standards. Q2. Sketch the concept of Debit and Credit in terms of accounting equation’s elements. Q3. Summarize the following entries in Journal Ledger format. Harish started business with cash Rs. 10000 Bought goods from Manohar 5000 Purchase fittings for cash Rs. 800 Sold goods to Charanjeet Rs. 1600 Paid Manohar Rs. 3000 Sold goods Vadva Ram Rs. 2000 Received from Charanjeet Rs. 1540 and allowed him discount Rs. 60 Paid wages Rs. 80 Bought goods for cash Rs. 600 Sold goods to Ramesh Rs. 3400 Purchase goods from Purchotam Ra. 2600 Paid Manohar in settlement Rs. 1900 and discount allowed by him Rs. 100 Paid carriage from goods and sold Rs. 40 Paid wages Rs. 80 Bought goods Manohar Rs. 3000 Bought goods for cash Rs. 800 Sold goods Vadva Ram Rs. 3600 Vadva Ram paid on account Rs. 4000 Purchase goods from Harbans Rs. 1500 Sold goods for cash Rs. 1600

Answer 1

2. Concept of Debit and Credit in terms of accounting equation’s elements

A) Real Account :- Debit what comes in, Credit what goes out

B) Personal Account :- Debit the receiver, Credit the Giver

C) Nominal Account :- Debit all expenses/losses, credit all incomes/gains

3. A. Cash A/c Dr. 10,000

To Capital A/c 10,000

B. Purchase A/c Dr. 5,000

To Manohar A/c 5,000

C. Furniture & Fittings A/c Dr. 800

To Cash A/c 800

D. Charanjeet A/c Dr. 1,600

To Sales A/c 1,600

E. Manohar A/c Dr. 3,000

To Cash A/c 3,000

F. Vadva Ram A/c Dr. 2,000

To Sales A/c 2,000

G. Cash A/c Dr. 1,540

Discount Allowed A/c Dr. 60

To Charanjeet A/c 1,600

H. Wages A/c Dr. 80

To Cash A/c 80

I. Purchase A/c Dr. 600

To Cash A/c 600

J. Ramesh A/c Dr. 3,400

To Sales A/c 3,400

K. Purchase A/c Dr. 2,600

To Purchotam A/c 2,600

L. Manohar A/c Dr. 2,000

To Cash A/c 1,900

To Discount Received A/c 100

M. Carriage Outwards A/c Dr. 40

To Cash A/c 40

N. Wages A/c Dr. 80

To Cash A/c 80

O. Purchase A/c Dr. 3,000

To Manohar A/c 3,000

P. Purchase A/c Dr. 800

To Cash A/c 800

Q. Vadva Ram A/c Dr. 3,600

To Sales A/c 3,600

R. Cash A/c Dr. 4,000

To Vadva Ram A/c 4,000

S. Purchase A/c Dr. 1,500

To Harbans A/c 1,500

T. Cash A/c Dr. 1,600

To Sales A/c 1,600