Interview questions

Trade Discount is given for bulk purchase and just as season end sale. No trade discount not affect either P&L or B. Sheet

Ans 2 : From Financial Managements point of view Equity = Equity Share Capital + Pef. Share Capital - Acc. Losses + Debentures

1.       a discount from the list price of a commodity allowed by a manufacturer or wholesaler to a customer in order to increase the trade. Generally it doesn’t affect P&L and Balance Sheet.

2.       Equity is the capital amount which is raised or contributed by the members of the company.

 The net worth of a company. This represents the ownership interest of the shareholders (common and preferred) of a company. For this reason, shares are often known as equities.

3. bank/cash    dr

    loss(if any)   dr 

    To car

    To profit (if any)

4. A entry of shortage is passed.

Ans 3 :

 Bank/Cash A/c--------Dr.

Depreciation A/c-------Dr. (According to Companies Act)            

Loss on sale of Car---Dr. (If sale price is less)

 Car A/c--------------------Cr.

Profit on sale of car ----Cr.( if sale price is higer)