All important Definations Short and Long:-
1 - what is ledger balance ? differentiate between the debit balance and the credit balance (5 marks )
Ans:- The ledger balance is also often called the book balance. The ledger or book balance includes all deposits that have posted to your account
A debit is an entry on the left side of an account. For example, the account Cash is debited when cash is received. The account Cash will be credited when cash is paid out. (A credit is an entry on the right side of an account.)
All expance include debit side .. will be a debit balance
A debit is an entry on the left side of an account. For example, the account Cash is debited when cash is received. The account Cash will be credited when cash is paid out. (A credit is an entry on the right side of an account.)
2- what do you know about the nominal capital of company ? (3marks )Ans:- Nominal capital, also known as authorized capital, represents the securities that are designated for shareholders. Companies that release nominal capital to shareholders do so in order to generate income through traded shares.
3-what type of changes you have to made " statement changes in equity "?(3marks )Ans:- statement of changes in equity include:
1)The amount of new share capital issued
2)The amount of dividend paid during the year to shareholders.
3)The amount by which PPE is valued up or valued down.
4)The amount of net income earned during the year.
5)The amount of net income retained during the year.
6)Any movement in the unrealized loss or gain reserve and reserve for changes in foreign exchange gain or loss, etc.
Q4-what is cash flow statement.give examples of cash flow statement?
Ans:-A statement of changes in equity summarizes the movement in the equity accounts during the year .A statement of changes in equity is an important component of financial statements since it explains the composition of equity and how has it changed over the year.
.cash flow--- The money coming into the business is called cash inflow, and money going out from the business is called cash outflow.
The cash flow statement is partitioned into three segments, namely:
1) cash flow resulting from operating activities;
2) cash flow resulting from investing activities;
and 3) cash flow resulting from financing activities
Q5. What is the difference between creditor turnover ratio and debtor turnover ratio? 3 marks
Ans:-Creditors are the businesses or people who provide goods and services in credit terms. That is, they allow us time to pay rather than paying in cash.
The formula for this ratio is:
Creditors' Turnover = Average Creditors (Cost of Sales/365)
Debtor turnover ratio is the relationship between net sales and average debtors. It is also called account receivable turnover ratio .
Q6- Write the advantage of trial balance? 5 marks
Ans:-
It has four advantages:-
1) It ensures that the transactions recorded in the books of accounts have identical debit and credit amount.
2) Balance of each ledger account has been computed correctly.
3)Balance of each and every ledger account has been transferred accurately and on the correct side of the sheet on which trial balance has been prepared.
4)The debit and the credit columns of trial balance have been added up correctly.
Q7-Differentiate b/w Advanced and short term Advanced.
Ans:- Sums paid or received before the fulfillment of an obligation, such as supply of goods or provision of services. that called advance.
Usually one year or less, often used to refer to bonds or loans. called short term finanace.
Q8-Differentiate between Cash and Cash equal.
Currency and coins on hand, bank balances, and negotiable money orders and checks.these are all called cash.
And anything that can be changed into cash immidiately in need is cash equals.
Q9- Steps of formation of Private Company.
Ans:- Steps of formation of Private Company
Minimum 2 director
Minimum 2 shareholder
The director and the shareholder can be the same persone
Minimum share capital shell be Rs100,000
Din (director identification number)
DSC 9 digital singnature certificate)of one of the director.
Q10- Define profit and loss appropriation account in case of partnership(3 marks).
Ans:-The profit and loss account serves the purpose of showing how much a company has available, in terms of surplus funds, at the end of a specific accounting period. These accounts do not necessarily provide a specific answer as to how funds will be spent. However, they do provide an idea of what money is available for distribution among partners or for the purpose of being held in a reserve account until the decision has been made regarding how to spend the surplus. If no surplus exists, the statement indicates the losses for the accounting period.
Q11- Difference between "advance or deposit"and running finance.
Ans:- A deposit is usually one copy or two copies of the work to be registered for copyright. It is one of the three things you have to submit as part of your application for copyright registration.
that is deposit.
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