Question 1: Pass adjustment entries for the given transactions:
a) Purchase of machinery = 50,000 wrongly debited to purchase account.
b) The proprietor employs materials = Rs.5,000 for his personal use.
c) Stock destroyed by fire Rs.7,000 and the insurance company admitted a claim = Rs.6,000.
d) Outstanding liabilities:
Wages Rs.1,000
Salaries Rs.2,000
e) Of sundry debtors of Rs.60,500, Rs.500 proved bad and the company maintained a provision of 5 percent on debtors.
Question 2: Write detail notes on any two:
a) GAAP.
b) Amended cash book.
c) Doctrine of consistency.
d) Accounting-a language of business.