Accounting

CRJ means cash receipt journal. In CRJ, we record only cash receipts. There are lots of sources of receiving cash, so we can make different columns in this journal. CPJ means cash payment journal. In CPJ, we record only cash payments. These payments are done for creditors, repayment of loans and other expenses. For knowing how much payment has been done, we show the different columns.

Depreciation =cost of machinery - net scrap value / estimated life
415000 - 65000 = 3500035000/20= 17500
It is the correct answer.

Holding period is the period in which investor will keep his investment. Investment may be in stock, debentures or any other assets. Investor can invest his money for short period or long period. So, holding period may also be short period or long period.
In a long position, holding period refers to the time between an asset's purchase and its sale. In a short sale, the holding period is the time between when a short seller initially borrows an asset from a brokerage and when he or she sells it back - in other words, the length of time for which the short position is held.

Interim financial statements refer to profit and loss account and balance sheet, which are made and presented for an accounting period of less than one year, such as quarterly or monthly. Interim financial statements are normally prepared after every three months. For accurate interim financial statements, accountant should evaluate inventory correctly and also reconcile the bank balance with company's record.

Fund accounting is a system of accounting widely used in non-business entities, such as nonprofits, government agencies, churches, hospitals and colleges and universities. Fund accounting differs from traditional business accounting, which focuses on identifying how successful an entity has been at creating profits. Since nonprofits and governments are not designed to generate profits, an alternative accounting method gives them a more fitting approach to tracking and reporting their finances.

It is  a General ledger account whose balance reflects the total of balances of related subsidiary ledger accounts. Accounts receivable and accounts payable are the most commonly used control accounts, and their balances serve as a crosscheck (control) of the accuracy of the associated subsidiary records.

Cost of purchasing of machinery is not part of cost classification.

Death spiral term is taken from cost accounting. It is bad situation of company when company's sale decreases rapidly.  The cost of each of these activities will be assigned only to the products that demanded the activities.

Journal Entries in the books of Drawer when Drawee dishonours the bill on due date.

High Low Method is the method which is used to divide total cost into variable cost and fixed cost. We know that fixed cost will be paid whether there will be production or not. Variable cost will be paid only for production. So, with high-low method, we compare total cost in highest level of production activity and in lowest level of production activity. 

Directors must prepare accounts,  which give a true and fair view; it is accepted that compliance with accounting standards is necessary to assist in this objective.

There will be no effect on current assets and current liabilities. So the effect will be nil. 

Surplus is for income and expenditure account.

Deferred revenue represents future income collected in advance. When the gift certificates are sold, deferred revenue is increased. When the certificates are redeemed, the revenue is earned and shown in the income statement. Deferred revenue is decreased. When the certificates lapse, the company has no further liability and revenue is earned. Deferred revenue is decreased.

AGING OF ACCOUNTS is the classification of accounts by the time elapsed after the date of billing or the due date. The longer a customers account remains uncollected or the longer inventory is held, the greater is its realization risk. Aging of accounts is the technique to classify accounts according to billing or due date. In this classification, we get the idea to whom, we have to get first and to whom, we have to pay first.

All the above entries are entered in journal proper.

Super Profit

Yes, Seigniorage is the profit earned by the government by issuing currency. It is the profit earned on the difference between face value of currency and its production cost. For instance, if the cost of production of a ten rupee coin is 50 paisa and its face value is Rs 10, then a profit of Rs 9.50 is earned on it.

Excess value of net assets over purchase consideration at the time of purchase of business is credited to capital reserve account.

To record annual charges of depriciation profit and loss account will be debited and provision for depreciation account will be credit because we are maintaining it and is just like liability of business. Like other liabilities, this liability account will be credit.

Debenture Trust dead. It is a formal legal document/contract that outlines the terms of the debenture issue between issuer and holders. States concerns to maturity date, interest rate, interest payment , protective provisions and any other terms and conditions between issuer and holders.

Amalgamation is the term used when two or more companies liquidate to form a new company. 

Cash flow statements aim to present the cash flow effects of transactions that occur during an accounting period and are therefore not based on the accruals principle.

Overstatement of closing stock results in overstatement of profit and overstatement of opening stock results in understatement of profit. In the instant case, there will be overstatement of profit by Rs 12,000 - Rs 5,000= Rs 7,000.

Payments received from debtors results in decrease of debtors and increase in cash. It does not result in any change in the total assets as decrease in one asset is compensated by increase in the other asset.

Under Business Entity concept shareholders are treated as creditors of the business. It is also known as separate entity concept.