A provision is made for possible bad and doubtful debts out of current year's profits based on the convention of

Accounting equation is based on

Mohan purchased goods for Rs. 15,00,000 and sold 4/5^th of the goods amounting Rs. 18,00,000 and paid expenses amounting Rs. 2,70,000 during the year 2005. He paid Rs. 5000 for an electricity bill in December 2004 and advance salaries amounting Rs. 15,000 were paid in the month of January in year 2006. He counted net profit as Rs. 3,50,000. The profit calculated by him is correct according to which of the following concepts?

Mr. A purchased a machinery costing Rs. 1,00,000 on 1^st October, 2005. Transportation and installation charges were incurred amounting Rs. 10,000 and Rs. 4,000 respectively. Dismantling charges of the old machine, in place of which new machine was purchased amounted to Rs. 10,000. Market value of the machine was estimated at Rs. 1,20,000 on 31^st March 2006. While finalising the annual accounts, A valued the machinery at Rs. 1,20,000 in his books.

Which of the following concepts was violated by A?

On what basis does the economic life of an enterprise split into the periodic interval?

A businessman purchased goods for Rs. 25,00,000 and sold 80% of such goods during the accounting year ending on 31^st March 2005. The market value of the remaining goods was Rs. 4,00,000. He valued the closing stock at cost. Thus, he violated the concept of

Which of the following is not a function of accounting?

“Business unit is separate and distinct from the person who supplies capital to it”, is based on

In which of the following cases is the 'going concern' concept applied?

RPG Ltd. purchased an equipment from PQR Ltd. for Rs. 50,000 on 1^st April, 2005. The freight and cartage of Rs. 2,000 was spent to bring the asset to the factory and Rs. 3,000 was incurred on installing the equipment to make it possible for the intended use. The market price of machinery on 31^st April, 2006 was Rs. 60,000 and the accountant of the company wanted to disclose the machinery at Rs. 60,000 in their financial statements. However, the auditor emphasized that the machinery should be valued at Rs. 55,000 (50,000 + 2,000 + 3,000) according to

Which of the following statements is not an objective of accounting?

____________ principle requires that the same accounting method should be used from one accounting period to the next.

Transactions between owner and business are recorded as per

Accounting has certain norms to be observed by the accountants, while recording transactions and preparation of final statements. These norms reduce the vagueness and chances of misunderstanding by harmonizing various accounting practices. Which of the folllowing represent these norms?

A trader purchased a machinery worth Rs. 1,00,000 on October 1, 2005. Transportation and installation charges were incurred amounting Rs. 10,000 and Rs. 4,000 respectively. Dismantling charges of the old machine, in place of which a new machine was purchased, amounted Rs. 10,000. Market value of the machine was estimated as Rs. 1,20,000 on March 31, 2006, while finalizing the annual accounts. Trader valued the machinery at Rs. 1,20,000 in his books. Which of the following concepts was violated by the trader?