Recording of Transactions Test - 2

Salary is expense for employer because Employer pays salary to employee and For Employee it will an income as he receives this amount.

Total assets= Liabilities+ capital

Total assets= 4000+10000

Total assets= 14000

when sumit will intoduce stock in business out of his personal funds then it will increase the stock columm in assets and also the capital get increases.

True. Because In cash basis of accounting only cash receipt and cash exp. are recorded so a layman can also use this basis. Hence no need to have technical skill or knowledge.

Sales book records only credit sale transaction of goods. 

So Total amount in sale Book will be:-

Sold to Babu furniture House:-

200 tables @150= 30000

100Chairs @100 = 10000

Total Amount= 40000

So, Sale book amount will be Rs. 40000

Nominal Rule says Debit all the expenses and losses , Credit all the income and gains.

Profit/loss= Capital at end + drawings -  capital at the beginning- Additional capital

Since there is no drawing and Additional capital ,so 

Profit/loss = Capital at end- capital at beginning

Profit/loss= 45500- 50000

Profit/loss =-4500 Rs.

Hence there is Loss of 4500rs.

Purchase book records only credit transaction of Purchase. It is one of the subsidiary book . 

On the Cash basis of accounting, transaction are recorded only when they are paid or received in cash , credit transaction are ignored. As per matching Concept , Transaction are recorded in the period to which they actually belongs. Hence, Cash basis of accounting ignoreds matching principle.

There are Many types of Vouchers But there is not electronic goods voucher. Hence. Electronic good is not a voucher. Cash voucher records cash transaction And  credit voucher records credit transaction etc