The following is the question asked in 2001 in November attempt in IPCC. I can't understand the solution given by the institute. Instead I've done it by another method taught in the coaching. I'm getting a difference of Rs. 1,000 in the Profit. Please see my solution in the attachment and help me as to where my mistake is. The question is:

Welwash (Pvt.) Ltd. sells washing machines for outright cash as well as on hire-purchase basis. The cost of a washing machine to the company is Rs. 10,500. The company has fixed cash price of the machine at Rs. 12,300 and hire-purchase price, at Rs. 13,500 payable as to Rs. 1,500 down and the balance in 24 equal monthly installments of Rs. 500 each.
On 1st April, 2000 the company had 26 washing machines lying in its showroom. On that date 3 installments had fallen due, but not yet received and 675 installments were yet to fall due in respect of machines lying with the hire purchase customers.
During the year ended 31st March, 2001 the company sold 130 machines on cash basis and 80 machines on hire-purchase basis. After paying five monthly installments, one customer failed to pay subsequent installments and the company had to repossess the washing machine. After spending Rs. 1,000 on it, the company resold it for Rs. 11,500.
On 31st March, 2001 there were 21 washing machines in stock, 810 installments were yet to fall due and 5 installments had fallen due, but not yet received in respect of washing machines lying with the hire-purchase customers. Total selling expenses and office expenses including depreciation on fixed assets totaled Rs. 1,60,000 for the year.
You are required to prepare for the Accounting Year ended 31st March, 2001:
(i) Hire purchase Trading Account, and
(ii) Trading and Profit and Loss Account showing net profit earned by the company after making provision for income-tax @ 35%.

Dear All

I want to know the appropriate accounting head of following expenses:

1) Travelling and Lodging expenses of Company's guests beared by company.

2) We are having a regular expenses of tea in our factory which is being made inside our factory, but many a times when a office staff goes out on official work , they charge lunch expenses, so what should be the appropriate accounting head of both tea and lunch.

Thanking you

EXPLAIN ME HOW TO MAKE PHYSICAL JOURNAL VOUCHERS FOR DEPRICIATON ENTRY AND EXPENSES DONE ON CREDIT BASIS EXAMPLE WE BUY STATIONERY RS. 1000/- FROM SHIVA STATIONERY IWILL PASS THE FOLLOWING JOURNAL ENTRY

BY STATIONERY EXPS D/B 1000
TO SHIVA STATIONERY CR. 1000

TELL ME IN THIS CASE HOW TO MAKE JOURNAL VOUCHER AND WHO WILL SIGN THE VOUCHER IN CASH PAYMENT MONEY RECEIVER SIGN THE VOUCHER IN JOURNAL VOUCHER WHO WILL SIGN THE VOUCHER ALSO TELL ME FOR DEPRICIATION JOURNAL VOUCHER

IF THERE IS A OPENING BALANCE OF MAT IS 20000RS(DR) IN THE PRIVATE LTD. COMPANY'S BOOKS AND DURING THE CURRENT YEAR MORE 30000 IS PAID THAN WHAT IS THE TREATMENT OF MAT WHILE PREPARING THE CLOSING BALANCE SHEET?

HI FREINDS

WHAT IS THE MEANING OF TURNOVER IS IT TOTAL OF ASSET OR LIABILITIES SIDE GRAND TOTAL TOTAL IN BALANCE SHEET?

dear all i want to know accounting entry in case of letter of credit . my clint has opend a lc for $ 1582000 payment will be made after 2 months. what journal entry to be passed by him now & after 2 months . pls reply

Hi
Is it mendatroy to submit the boarding pass in order to claim travel exp from company..

if we take a office on rent & rennovate it completely & purchase new furniture for it then the cost of rennovation & furniture will be capitalised or not?

Dear Sir,
During the financial year, we have purchase an asset. We availed an offer to exchange an old asset in our books for the new one purchased.
New asset = Rs.50,000/-

Less: Offer for
exchange of old
asset = Rs.10,000/-
===========
AMOUNT PAID = Rs.40,000/-
===========

The book value of old asset (referred above) is
Original cost = Rs.3,000/-
Less: Dep Reserve = Rs.2,999/-
----------
WDV = Rs. 1/-
==========

Please advise the journal entry to be passed on the above.
Regards
S. Anand

is first insurance of car should be capitalised? is it optional?