2 cash purchases are not recorded in the purchases

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2. Cash purchases are not recorded in the Purchases Book since they are recorded in the Cash Book. 3. The entries in the Purchases Book are made on the basis of invoices received from the suppliers with the net amount after Trade Discount. Q.10. What is an opening entry ? Ans. Opening entry is the entry made in the beginning of a financial year to open the books by debiting assets and crediting liabilities and capital, appearing in the Balance Sheet of the previous year. Q.11. Give two examples of entries which appear in a ‘Journal Proper’. Ans. Credit purchase of plant and machinery, Credit sales of fixed assets. Q.12. For what purposes is a Journal Proper used ? Ans. Journal Proper is a residuary book which is used for recording those transactions which are not recorded in any of the other books of original entry. Q.13. What is Closings Entries ? Ans. Closing entries are passed at the end of the year to close the accounts relating to expenses and revenues by transferring them to the Trading Accounts and Profit and Loss Account. Q.14.What is meant by Rectification Entries ? Ans. Entries to rectify the errors in the books of original entries or of a Ledger are recorded in the Journal Proper. Q.15. Define Transfer Entries. Ans. If an amount is to be transferred from one account to another, such a transfer is also made through a Journal entry only. Q.16. What is Transfer Entries ? Ans. If an amount is to be transferred from one account to another, such a transfer is also made through a Journal entry only.
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50 Address: Plot No 420, Behind Shopprix Mall, Vaishali Sector 5, Ghaziabad 201010 M: 9999907099, 9818932244 O: 0120-4130999 Website: , Q.17. What are Adjusting Entries ? Ans. At the end of the year, the amount of expenses or incomes may have to be adjusted for amounts paid or received in advance or for amounts not yet settled in cash. Such an adjustment is also made through Journal entries only. Usually the adjustment entries may pertain to the following: (a) Outstanding expenses, i.e., expenses incurred but not yet paid. (b) Prepaid expenses, i.e., expenses already paid in advance for some period in the future. (c) Income received in advance. (d) Accrued Income, i.e., income earned but not received. (e) Interest on capital, i.e., the interest which the proprietor thinks proper to allow on his investment. (f) Depreciation, i.e., fall in the value of the assets used on account of wear and tear over a period. Q.18. What do you mean by Entries for Dishonour of Bills ? Ans. If someone who accepted a Bill of Exchange or issued a Promissory Note, is not able to pay it on its due date , a Journal entry is necessary to record the non-payment or dishonour. Q.19. Write the following Miscellaneous Entries. Ans. The following Miscellaneous Entries are: (a) Credit purchase of goods other than goods dealt in or materials required for production of goods, e.g., credit purchase of furniture or machinery will be journalising.
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