1) Bank Reconciliation?

Bank reconciliation statement is a statement prepared on a particular day to reconcile the bank balance as per Cash book
with the balance as per bank pass book, showing entries causing difference between the two balances.
2) What is A Prepaid Expense?
Prepaid expenses are those expenses which have been paid in advance and related benefits are not consumed within the
accounting period. The benefits of expenses incurred are carried to the next accounting period. Examples include prepaid
salary, prepaid rent etc. Prepaid expenses are recorded in the books at the end of an accounting period to show true
numbers of a business.
6) What is Capital Expenditure?
Capital expenditure, or CapEx, are funds used by a company to acquire or upgrade physical assets such as property,
industrial buildings or equipment. It is often used to undertake new projects or investments by the firm.
7) How to Reverse Wrong Entry? 8) What is Capital Revenue?
Sale of any fixed asset reduces fixed assets hence, the amount received is notrevenue earned in the normal course of
business. In fact, capital receipts do not affect the profit or loss of the business. They either increase the liabilities or
reduce the assets.

9) What are Control Ledgers? What are the purposes of Maintaining It?
In a business, sometimes it is not feasible to carry accounts of all the suppliers and customers
in the main ledger. In such cases apart from General or main ledger, the control ledgers are
maintained. Control ledgers records the individual accounts. In the end of the period, balance
shown in the main ledger has to tally with the balance in the individual ledger accounts
maintained in the control ledger. Purposes of maintaining control ledgers are:
- Sundry Debtors
- Sundry Creditors
- Advances to Staff
10) What is trial Balance? What does an Accurate Trial Balance Suggest?
Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first
step towards the preparation of financial statements. It is usually prepared at the end of an
accounting period to assist in the drafting of financial statements.
11) What are the reasons which cause pass book of the bank and your bank book not tally?

What are the reasons which cause pass book of the bank
and your bank book not tally?
* Cheques deposited into the bank but not yet collected
* Cheques issued but not yet presented for payment
* Bank charges
* Amount collected by bank on standing instructions of the concern.
* Amount paid by the bank on standing instructions of the concern.

* Interest debited by the bank

* Interest credited by the bank
* Direct payment by customers into the bank account
* Dishonour of cheques
* Clerical errors
15) What Is Basic Purchase Sale Entry? 16) Write Basic Bank Entry- Payment/ Deposit- (On both Side Candidate As Well
As Bank) Depreciation Entry- Asset And How Much % It Company-10.39% Computer- 4% , Furniture (It And
Company) , 19) Basic Rules of Accounts? 20)What is rent provision. 20) End of Financial Year?

What is a prepaid expense?

A prepaid expense is expenditure you incur for things to be done (in whole or in part) in alater income year.
If you incur expenditure for something to be done in full within the same income year, it is not a prepaid
expense and the prepayment rules do not apply.

What are the prepayment rules?

Generally, a prepaid expense is deductible over the eligible service period, or 10 years if that is less, rather than
being immediately deductible. However, a prepaid expense may be immediately deductible if:

it is excluded expenditure
the 12-month rule applies, or
it relates to a pre-Review of Business Taxation (RBT) obligation.

What is the eligible service period?

The eligible service period is the period during which the thing is to be done under the agreement in return for
the expenditure.
The eligible service period begins on the day the thing under the agreement begins to be done or on the day the
expenditure is incurred, whichever is later. The eligible service period continues until the end of the last day the
thing under the agreement ceases to be done or 10 years, whichever is earlier.

What is excluded expenditure?

Certain types of expenditure are excluded from the prepayment rules. These are:

amounts of less than $1,000

amounts required to be incurred by a court order or law of the Commonwealth, state or territory
payments of salary or wages (under a contract of service)
amounts that are capital, private or domestic in nature (except certain research and development amounts) and
certain amounts incurred by a general insurance company in connection with the issue of policies or the payment
of reinsurance premiums.