Note: We encourage you to attempt this with complete conscience within a 60 minutes time frame. Please feel free to refer to the ICAI Material and TowardsCA study notes before attempting the same. You can e-mail your answers to towardsca@gmail.com for verification.
Direct Questions:
- What is the purpose of journal entries in accounting?
- Why is it important to maintain the equality of debits and credits in journal entries?
Practical Numerical Questions:
- ABC Company purchased inventory worth Rs. 10,000 on credit from XYZ Supplier. Record the journal entry for this transaction.
- On January 1, 2023, XYZ Company paid Rs. 5,000 as rent for the office space for the next three months. Record the journal entry for this transaction.
- ABC Enterprises sold goods worth Rs. 15,000 to a customer on credit. Record the journal entry for this transaction, considering a sales tax rate of 10%.