Hi friends,
I have 2 doubts in problem no. 15 page no. 28 in attachment. It is similar to Illustration no. 24 in Mr. Tulsian book in Accounts from incomplete records chapter.
1. Total Boarding expenses of Rs. 27500/- is both debited and credited in Restaurant trading a/c. How is it? If the amount is received or paid from/for staff then it should be reflected either in cash and bank a/c or in balance sheet. I cannot find any entry there.
2. I dont understand the concept behind the following
a. Question - Cash purchases of provisions - 1/11 of total purchases
Answer - they have calculated like 1/10th of credit purchases has cash purchases, how?
b. Question - Cash sales of provisions - 10% of Total sales
Answer - they have calucated like 1/9 th of credit sales is cash sales, how?
Thanks and Regards
CAclubindia
