Cash book overdraft = Rs. 3,000 Cheques issued but not presented for payment=  (- ) Rs. 550 (200+150+250) The cheque paid into the account had not been cleared- (+) Rs. 800 The balance as per the cash book= Rs. 3,250   

The amount wrongly recorded in the cash column will be subtracted from the cash book . 

 An under cast of withdrawal column in pass book means the withdrawal side of the pass book is recorded short, therefore to match the Cash Book with the Pass book, we will add the same amount to Cash book.

 If the balance as per Amended Cash Book is taken as the starting point, the wrong entry passed in the Pass book will effect the totals. 

 Rs. 121 was wrongly credited into the account, therefore to match the books  the same amount will be added in the Cash Book as well. 

 Direct payment to the third party on behalf of the account holder needs to be posted in the Cash Book after the entry has been posted in the pass book. 

 Annual expenditure= 12,000Monthly= 1,000Year ending= 31st march 2006, Amount paid on january 1, 2006Therefore, the amount paid for the current year is 3,000( Jan + Feb+ March)and rest of the amount is prepaid, which is (12,000 - 3000) = Rs. 9,000

 It will be considered as Revenue receipt and not a Capital expenditure and the journal entry passed will be:Insurance Company's Claim A/c Dr. Loss by fire A/c Dr.
To Stock A/c  (Being goods lost by fire and insurance company's claim received.)

 Amount debited to the Car account will be all the expenditure that has been incurred on the car. =(20,000+3,000+1,000+2,000)= Rs. 26,000

 A contingent liability is a potential liability. It depends on a future event occurring or not occurring. If there is a reliable outflow of resources to settle a present obligation, it will be condsidered as contingent liability. 

 Goods destroyed not recorded will decrease the stock,  which ultimately will decrease the Gross Profit.

 As given in the questioon that the ledger accounts are correct, therefore there is no chance of the first three options to be correct ( because journal and ledger posting is correct) , there must be some omission of an account from trial balance. 

 An error of principle is an error in which the value recorded was the correct value but placed incorrectly.

 Deferred revenue expenditure is the expenditure for which the payment has been made or the liability has been incurred, but which is carried forward on the presumption that it will be beneficial over the subsequent period or periods.

 A loss contingency which is possible but not probable, will not be recorded in the accounts, It will be disclosed in the notes to the financial statements.

 a) This error is not an error of omission as the entry has not been omitted.  b) This error will not effect the trial balance as the amount recorded is correct.  c) It will affect the net profi as wrong account has been debited.  

 Repair of machine is the revenue expenditure. 

 All the expenditure incurred on the machinary till the tme the machinary has not  been started production,  are recorded in the Capital Expenditure. 

Correct entry :- Cash A/c debit  To Y A/c 

Entry Done:- Purchase A/c debit   To Cash A/c SO It will decrease the gross Profit. 

 Correct Entry;- Cash A/c debit  To Office Furniture A/c

 Entry Done :- Cash A/c  debit  To Sales A/c   So this is an error of principle, as it means that the value recorded was the correct value but placed incorrectly.

 The error will affect the Net Profit and not the Trial Balance. 

 The above mentioned entry will affect the trial balance but willnot affect the Gross Profit as it was posted correctly in the purchase account.

 If the starting point is  with the Pass Book that means changes can be made in the Pass Book, so if there is wrong Credit in the Pass Book that will be subtracted from tha Pass book. 

 To calculate the amended cash book balance, only Cash book errors are taken into consideration.

 While adjusting the cash book, all the errors and omissions in the cash book only are taken into consideration.

 Amended cash book is A financial journal that contains all cash receipts and payments, including bank deposits and withdrawals, and it is rectified before the preparation of BRS. 

 Balance as per cash Book-  Rs. 48, 000

A cheque issued worth but not cleared     (+) Rs. 24, 000 ( when it was issued the amount got subtracted from cash book but as the information provided in the question, it has not been cleared that means has not been subtracted from Pass book so it will be added again in the cash book also. )

Cheque worth Rs. 10, 000 received on 20th January, and deposited on 21.1.98, was cleared on 27.1.98  -  NO EFFECT  (for this entry both the Pass book and Cash book stands same.) 

So, 48,000 + 24,000= Rs.  72,000