Accounting Principles and Practices

 When a transaction is not recorded at all or partially recorded in the books of original entry, both it's debit and credit aspects would be ommitted.

 In this type of error, an item of nominal account is entered into a real account or vice versa.

 Such errors include entries of the transactions in a wrong account of the same class. It means the posting of an item is made to the correct side of a wrong account.

Depreciation account is an allowed expense. So it should be transferred to the Profit & Loss A/c

Trade Mark is an intengible asset and amortisation belongs to it.

The 12^th month's salary is not recorded in the books of original entry. Both it's debit and credit aspects have be omitted.

When any nominal account is affected because of any error, it will affect the profilt, so after prepration of profit and loss account,  we can adjust the profit,  with the profit and loss adjustment account.

Income received in advance is a current liability because you need to pay for this advance amount in the future.

A key factor (or limiting factor) is a constraint that limits the volume of production or sales. Identifying this factor helps management prioritize products that offer the highest contribution per unit of that limiting factor, thus maximizing profitability.

When the sale value of a by-product is treated as other income, it is credited directly to the profit and loss account rather than being used to reduce the cost of the main product.

Obsolescence refers to the decline in the value of an asset due to technological advancements or changes in market demand, which are external factors rather than internal wear and tear.

Cost ledger accounting, like financial accounting, follows the double entry system where every transaction has a debit and a credit entry to maintain the accounting equation.

General ledger adjustment accounts are used to maintain control over subsidiary ledgers. They represent the total of the individual accounts within those ledgers, which are personal accounts (debtors or creditors).

The wage analysis sheet provides the breakdown of labor costs by department or cost center, which is the necessary source document for posting to the wage control account.

The stock ledger control account is a summary account in the general ledger that represents the total value of all individual stock items recorded in the subsidiary stock ledger.