Tabulated below are some of the advantages of preparing a Debtors’ ledger control account: Debtors’ ledger control account provides the total of debtors quickly and easily when a trial balance is prepared It acts as an independent check on the arithmetical accuracy of the balances in the Debtors’ ledger It will confirm whether or not … Read more
Life subscription and entry fee in a non profit organization are: lump sums paid by members and using the matching method they should be credited when received to Deferred Income account and credited to Income and Expenditure account in equal annual installments over such period as determined by the committee.
When goods have been lost in a fire or by a theft the value of such loss must be calculated for: (a) The loss to be reflected in the trading account at the year end as a reduction of the cost of sales (b) A claim for compensation to be prepared for insurance compensation (c) … Read more
Tabulate below are some of the reasons to prepare bank reconciliation statement: The reasons for us to prepare Bank Reconciliation statement are as follows: To detect items not entered and errors in the cash book To ensure that the cash book entries are complete. Items missing from the cash book will not have been recorded … Read more
Two ways of handling them: (a) To omit unpaid subscriptions from the Income and Expenditure account and the balance sheet. If the subscriptions are paid at a later date, they will be credited to the Income and Expenditure account in the year in which RECEIVED ( this method is seldom used) (b) To credit all … Read more