There was Rs. 4300 at the petty cashier of Asela PLC as at 28.02.2019. The totals of the analysis columnsin the month of February 2019 of the petty cash payment journal are given below.RsTravelling expense 2000Stationery 1500Refreshment expenses 800Postage 1400The value of the petty cash float was decided to increase to Rs. 15,000 from 1.3.2019. Calculatefollowings.(1) Total petty expenses in the month of February - ''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''(2) The amount should be reimbursed as at 1.3.2019 - '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''36' Complete following sentences with suitable words. (matching concept, income statement, statement offinancial position, profit or loss)1. ...................................................... is prepared to calculate the financial performances of a specificaccounting period.2. The statement represent the assets, Liabilities and equity of a firm as at specific date is called as.....................................................................3. Relevant expenses are adjusted with the earned income to calculate profit or loss for a time period isdone as per .........................................................4. The major objective of an income statement to calculate ............................................ for a specifictime period.37' Indicate whether the following statements are True or False in appropriate column with a "" or ""1 The relationship of assets with the ownership of that assets is shown by anaccounting equation ^''''''''''&2 When calculating profit or loss by net asset method. Opening net assets should bededucted form closing net assets and drawings and additional capital should bededucted. ^''''''''''&3 Money measurement concept says that the only resources can be measured bymonetry value should be recorded. ^''''''''''&4 It is better to consider all business as one when accounting when there are severalbusiness for one owner. ^''''''''''&38' There are two types of errors when occure recording transactions. Those two types are,1. ……………………………………………......………………………………………….............…..2. ………………………………….......…………………………………………………….............…..39' Write two circumstances that an accounting policy can be changed.1. ……………………………………………......………………………………………….............…..2. ………………………………….......…………………………………………………….............…..
Question
There was Rs. 4300 at the petty cashier of Asela PLC as at 28.02.2019. The totals of the analysis columnsin the month of February 2019 of the petty cash payment journal are given below.RsTravelling expense 2000Stationery 1500Refreshment expenses 800Postage 1400The value of the petty cash float was decided to increase to Rs. 15,000 from 1.3.2019. Calculatefollowings.(1) Total petty expenses in the month of February - ''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''(2) The amount should be reimbursed as at 1.3.2019 - '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''36' Complete following sentences with suitable words. (matching concept, income statement, statement offinancial position, profit or loss)1. ...................................................... is prepared to calculate the financial performances of a specificaccounting period.2. The statement represent the assets, Liabilities and equity of a firm as at specific date is called as.....................................................................3. Relevant expenses are adjusted with the earned income to calculate profit or loss for a time period isdone as per .........................................................4. The major objective of an income statement to calculate ............................................ for a specifictime period.37' Indicate whether the following statements are True or False in appropriate column with a "" or ""1 The relationship of assets with the ownership of that assets is shown by anaccounting equation ^''''''''''&2 When calculating profit or loss by net asset method. Opening net assets should bededucted form closing net assets and drawings and additional capital should bededucted. ^''''''''''&3 Money measurement concept says that the only resources can be measured bymonetry value should be recorded. ^''''''''''&4 It is better to consider all business as one when accounting when there are severalbusiness for one owner. ^''''''''''&38' There are two types of errors when occure recording transactions. Those two types are,1. ……………………………………………......………………………………………….............…..2. ………………………………….......…………………………………………………….............…..39' Write two circumstances that an accounting policy can be changed.1. ……………………………………………......………………………………………….............…..2. ………………………………….......…………………………………………………….............…..
Solution
(1) Total petty expenses in the month of February -
To calculate the total petty expenses in the month of February, we need to add up all the expenses listed.
Travelling expense: Rs 2000 Stationery: Rs 1500 Refreshment expenses: Rs 800 Postage: Rs 1400
Total petty expenses = 2000 + 1500 + 800 + 1400 = Rs 5700
(2) The amount should be reimbursed as at 1.3.2019 -
The petty cash float is being increased to Rs 15,000 from 1.3.2019. The amount to be reimbursed would be the difference between the new petty cash float and the remaining petty cash as at 28.02.2019.
Remaining petty cash as at 28.02.2019 = Initial petty cash - Total petty expenses = Rs 4300 - Rs 5700 = -Rs 1400
Since the remaining petty cash is negative, it means that the petty cash is short of Rs 1400. Therefore, to increase the petty cash float to Rs 15,000, we need to add Rs 1400 to it.
Amount to be reimbursed = New petty cash float - Remaining petty cash = Rs 15,000 - (-Rs 1400) = Rs 16,400
Complete following sentences with suitable words.
- Income Statement is prepared to calculate the financial performances of a specific accounting period.
- The statement represent the assets, Liabilities and equity of a firm as at specific date is called as Statement of Financial Position.
- Relevant expenses are adjusted with the earned income to calculate profit or loss for a time period is done as per Matching Concept.
- The major objective of an income statement to calculate Profit or Loss for a specific time period.
Indicate whether the following statements are True or False in appropriate column with a "" or ""
1 The relationship of assets with the ownership of that assets is shown by an accounting equation - True 2 When calculating profit or loss by net asset method. Opening net assets should be deducted form closing net assets and drawings and additional capital should be deducted. - True 3 Money measurement concept says that the only resources can be measured by monetary value should be recorded. - True 4 It is better to consider all business as one when accounting when there are several business for one owner. - False
There are two types of errors when occur recording transactions. Those two types are,
- Clerical Errors
- Errors of Principle
Write two circumstances that an accounting policy can be changed.
- When there is a significant change in the nature of the company's operations.
- When changes are required by new accounting standards or laws.
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