13 March 2012
Kindly furnish answers in layman terms to the following:
1. What is Remittance in transit? 2. What is Sundry debtors/Sundry creditors? 3. Claims not acknowledged as debts? 4 Conversion of cash basis of accounting into mercantile basis? 5. Closing provision of expenses? 6. Inventories?
19 March 2012
1.cash or cheque in transit. 2.debtors-customers/creditors-suppliers (balance at the end of the year). 3.contingent liability - possible losses against company. (e.g.,case against company pending which we can lose). 4.cash basis-recording of entries only when cash is received or paid. mercantile Basis- it is based on accrual / due irrespective of cash received or paid. 5.expenses payable at the end and likely to be payable (e.g.,audit fees payable or provision for tax) 6.unsold stock of goods at the end of the year.
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