Answer Posted / samir sharma

A cash system of accounting is a system of accounting in
which all transactions are recorded only when actual cash
is received or paid. On the other hand in Mercantile system
of accounting the transactions are recorded on due basis
ie. when a transaction arises.
Eg. when sale is made on credit, in cash system of
accounting no transactions will be recorded however under
mercantile system of accounting the transactions will be
recorded.

Short Answer on ______Transaction

2120

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while passing a journal entry we rite dr. for the a/c to be debited but why don't we write cr. for the a/c which is credited and instead write 'TO'??

2098

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What is the difference between income statement & Profit&loss A/c?

1933

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Distinguish value andPrice

1948

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what are the certificates needed at the time of SBI clerical interview?

2129

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Expand SCERT

2273

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how to calculate stt

2726

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From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.

4218

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Short Answer on _________Business

2069

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while i creating a main asset master there is a error called process being terminated? pls send the solution

2176

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difference between office expense and miscelleanous expense with some examples

2075

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what is the meaning of Processing Vendor/Employee payments

2911

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What is Free Cash?

2199

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what is cnc machine hour rate? how it is calculated?

5091

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What is the accounting treatment for finance lease in lessee's viewpoint?

2325

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