Fin. Account Answers
Adjusted Cash book:
bank reconcilation statement:
bal as per adj cash book(3860)
add unpresented chequer(4800)
bal as per bank statement(6670)
A general journal account is an account or record used to sort and store balance sheet and income statement transactions.
i)They are used to record errors
ii)record purchase and sale of fixed assets on credit.
iii)record closing entrie
iv)record transfers between ledgers.
v)Record opening the closing entires,write off debt
vi)use to record credit purchase of a transaction
4a) Depreciation of an assets is the measure of the wearing out, consumption or other loss of value of a fixed asset whether arising from use, effluxion of time or obsolescence through technology and market changes.
i)Straight line: This allows an equal amount to be charged as depreciation for each year of expected use of the asset. The basic formulae is
Cost- Estimated residual value/ number of years of expected use.
ii)Reducing balance: Under this method, the depreciation charged per annum is determined by applying a fixed rate of depreciation on the net book value of the asset at the beginning of each year.
iii)Revaluation of fixed assets is the process of increasing or decreasing their carrying value in case of major changes in fair market value of the fixed asset.