Accounting Principles and Practices

Bills Payable is a liability, thus would have credit balance. The balance of bills payable account would be carried forward in the Bills Payable a/c in the next period.

 When the goods are sent for approval basis, transaction is recorded in Sales or return Day book.

In modern mutual fund operations, investors receive account statements as proof of purchase. Unit certificates were used historically but have been largely discontinued in favor of dematerialized holdings and electronic record-keeping, making account statements the standard proof of investment.

SEBI requires daily accrual of major expenses like management fees, operating expenses, and other accrued costs when computing NAV. Quarterly or annual accrual would create inaccurate NAV values. Accrual must happen day-to-day to reflect true net asset value on any given date.

The transfer is made to suspense account.

When a new partner is admitted, asset increases must first be recorded in a Revaluation Account. This account adjusts asset values to current market prices before calculating the new partner's share. Only after revaluation are changes reflected in partners' capital accounts.

Financial audit is conducted to verify the accuracy and fairness of financial accounting records and statements. It examines whether financial transactions are properly recorded in the books of accounts and whether the final accounts present a true and fair view of the entity's financial position. Cost accounting and management accounting are internal systems not subject to statutory financial audit.

Revaluation account is not prepared at the time of dissolution.  

Office furniture, freehold land and buildings, and plant and machinery are all fixed assets (non-current assets) that appear on the balance sheet. Stock of raw materials is a current asset (inventory) that will be used up or sold within the operating cycle. The question tests ability to distinguish between asset categories based on their nature and convertibility.

Consignment account is a nominal account because it records all expenses, incomes, and ultimately the profit or loss arising from the consignment transaction. It is not a real account (which represents assets) or a personal account (which represents persons/entities). The account is closed at the end of the consignment period by transferring the profit or loss to the consignor's account.

Memorandum joint venture account is a nominal account because it records the profit or loss from the joint venture transaction. It is maintained outside the regular books of account (hence 'memorandum') to compute each co-venturer's share of profit or loss, which is then transferred to their personal accounts. It is not a real account (assets) or personal account (persons).

When a stationer purchases stationery for resale, it is treated as inventory (purchases) and debited to the Purchases account. If the stationer uses stationery for internal office use, it would be debited to Stationery account. General expenses account would be used for other administrative expenses. Sales account is used for recording sales revenue.

The sales book is a subsidiary book that records all credit sales. Its total is periodically posted to the credit of the Sales account in the ledger. This follows the principle that sales revenue has a credit balance. Cash book records cash transactions, journal book records general journal entries, and profit and loss account records expenses and incomes.

When a proprietor takes goods for personal use, it is treated as drawings. The entry is to debit Drawings account (or Proprietor's account) and credit Purchases account to reduce the purchases figure. This reduces the cost of goods sold and adjusts the trading account. Sales account is unaffected, and expenses account is not relevant for this transaction.

It will be shown on the credit side of partner's current account. When the capital is fixed, the current accounts of partners are prepared. It is an income for the partner. So, it will be shown on the credit side of the partner's current account.