sathis (accounts executive) (311 Points)
11 May 2009Dear All,
I want to know some queries related to interview questions.
1. What is Trade Discount? Is it affect in P & L and Balance Sheet?
2. What is Equity?
3. A company purchase a car and used for 3 years and sold it. What entry should be pass?
4. If we check quartely stock taking that time shortage in inventory? What steps we will take to this?
Pls tell me briefly and help to me.
Thanxs
Sathis
Bineet
(CA Final)
(32 Points)
Replied 11 May 2009
Trade Discount is given for bulk purchase and just as season end sale. No trade discount not affect either P&L or B. Sheet
Bineet
(CA Final)
(32 Points)
Replied 11 May 2009
Ans 2 : From Financial Managements point of view Equity = Equity Share Capital + Pef. Share Capital - Acc. Losses + Debentures
Milan Somani
(CA)
(1456 Points)
Replied 11 May 2009
1. a discount from the list price of a commodity allowed by a manufacturer or wholesaler to a customer in order to increase the trade. Generally it doesn’t affect P&L and Balance Sheet.
2. Equity is the capital amount which is raised or contributed by the members of the company.
3. bank/cash dr
loss(if any) dr
To car
To profit (if any)
4. A entry of shortage is passed.
Bineet
(CA Final)
(32 Points)
Replied 11 May 2009
Ans 3 :
Bank/Cash A/c--------Dr.
Depreciation A/c-------Dr. (According to Companies Act)
Loss on sale of Car---Dr. (If sale price is less)
Car A/c--------------------Cr.
Profit on sale of car ----Cr.( if sale price is higer)
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
