Doubt in accounting for incomplete records - tulsian book ilustratration 24

1. Boarding expenses is actually lunch and dinner provided to restaurant and other staff and should be shown seprately i.e 20000 in Trading and Rs. 7500 in P/L, since expenses on meal prvided to staff is included in purchase and wages therefore it will be deducted from purchase and wages or alternatively instead of deducting it from pur and wages it shall be credited to trading account and shown seprately i.e. rs. 20000 on trading account and Rs. 7500 in profit and loss as it relates to other staff.

2. Eg. Cash purchase be 10000 and credit be 1000 total purchase will be 11000, so we can say that Credit pur =1/11 of total pur(i.e. 1000/11000) or 1/10 of cash purchase(1000/10000).

instead of above you can also calculate it by equation method. i.e. assume cash pur x then total pur be 1000000 +x.
therefore cash pur(x) = (1000000+x)*1/11

similar for calculation for sales.

Hi Prakash Sir,

Its nice to see your quick reply

I am very well comfortable with the clarification of second doubt.

For the first doubt i couldn't get it, can you please explain ellaborately, from the question i feel that it can be rental expenses also which may or may not be reimbursed.

Thanks and Regards

You are correct but boarding includes lodging and meals and they has considered boarding as meal expenses, therefore they has credited such expenses in trading acvount and show such expenses seprately.