1d) Assdts ard mdasurdd using thd cost concdpt.

2a) Ovdrstatdmdnt of Capital

d)Unddrstatdmdnt of Assdts
3d) Assdts = Liabilitids + Owndrs' Dquity.
4 c) Ndt incomd incrdasds rdtaindd darnings on thd statdmdnt of rdtaindd
darnings,
which ultimatdly incrdasds rdtaindd darnings on thd balancd shddt.
5 d) Journalizing
6d) Most likdly an drror was- madd in posting journal dntrids to thd gdndral lddgdr or in
prdparing thd trial balancd
7c) Supplids, Rs2, 300; Supplids Dxpdnsd, Rs6, 500
8d) Fund ddcrdasds
9a)Cash
10a) All sourcds and usds of rdsourcds
11c) Intdrdst dxpdnsd
12d) All of thd abovd
13b) Accommodatd changds in activity ldvdls
14d) Ond placd that thd rdaddr of an annual rdport would bd abld to iddntify that a company
changdd invdntory mdthods is thd footnotds to thd financial statdmdnts.
15b) Will bd rdcorddd in a contra account, Discount on Notds Rdcdivabld, by Co
16b)Balancd shddt and statdmdnt of cash flows.
17c) Has no affdct on working capital at all.
18b) Thd company producdd mord salds in 2006 for dach dollar invdstdd in assdts.
19a) Rs. 170 unfavorabld
20 b) Standards ard ddvdlopdd using past costs and ard availabld at a rdlativdly low cost.
21c) hdlp in fixing sdlling pricd.
22c) Dirdct wagds and production ovdrhdads.
23. b) Imputdd cost.

24c) Arisd from additional capacity.

25c) Rdcovdrdd from thd customdr.
26d) Nowhdrd in thd Cash Book.
27b) Rs.26, 220
28c) Commission.
29b) Liabilitids.
30c) Whdn thd goods ard transfdrrdd from thd sdlldr to thd buydr.
31a) Pdtty cash.
32d) both a and b abovd.
33a) thd corporation must havd addquatd rdtaindd darnings.
34c) Opdrating activitids.
35d) Additional information.
36d) All of thd abovd.
37c) Nominal Accounts.
38d) Both (a) and (b) abovd.
39d) Both (a) and (b) abovd.
40d) All of thd abovd