(i) Receipts which is not revenue in nature is called capital receipt. It is non-recurring in nature.
(ii) The amount received is normally substantial. It is shown on the liabilities side of the balance sheet.
Examples:
1) Proceeds of sale of fixed assets.
2) Receipt of special donations.

(i) The decrease in value of fixed assets due to usage or passage of time is called depreciation.
(ii) It is a loss to the business.

No, it is not necessary that a suspense account will balance after rectification of the errors detected by the accountant.
Suspense account can remain unbalanced if all the' errors are not detected. Balance remaining in the suspense account is transferred to the balance sheet on the assets side, if there is a debit balance, or the liabilities side if there is a credit balance.

Examples of Readymade software:
(i) TALLY
(ii) MS-EXCEL

Amount of Depreciation = \({Total\ cost - Scrap\ value\over Estimated\ life}\)
\(={25,000-1,000\over 10}={24,000\over 10}\)
= Rs.11,200
Rate of Depreciation = \({Amount\ of\ Depreciation\over Original\ Cost}\times100\)
\(={11,200\over 60,000}\times100=18.67\%\)

Fixed assets are those assets which are acquired or constructed for continued use in the business and last for many years such as land and building, plant and machinery, motor vehicles, furniture, etc.

The debit side of the trial balance will be more by Rs. 10,000.

(i) Sales book is maintained to record only credit sale of goods in which the business is dealing.
(ii) Cash sale of goods and sale of property and assets whether for cash or on credit are not recorded in the sales book. This book is also named as sales day book, sold day book, sales journal or sale register.

There are several persons who need the accounting information for various purposes. They can be classified into two.
(i) Internal users :
1. Owners
2. Management
3. Employees
(ii) External users :
1. Creditors and Financial institutions
2. Investors
3. Customers
4. General public
5. Tax authorities and regulatory bodies
6. Government
7. Researchers

The main advantages of computerised accounting system are as follows:
1. Faster processing:
Computers require far less time than human beings in performing a particular task. Therefore,accounting data are processed faster using a computerised accounting system.
2. Accurate information:
There is less space for error because only one account entry is needed for each transaction unlike repeated posting of the same accounting data in manual system.
3. Reliability:
Computer systems are immune to boredom, tiredness or fatigue. Therefore, these can perform repetitive functions effectively and are highly reliable.
4. Easy availability of information:
The data can be communicated to different users at the same time.
5. Up-to-date Information:
Account balances will always be up to date since the records are automatically updated as and when accounting data are entered or stored.
6. Efficiency:
The computer based accounting system ensure better use of time and resources.
7. Storage and retrieval: 
Computer based systems require a fractional amount of physical space as compared to the books of accounts in the form of journals, ledgers and accounting registers.

R.R. Store is a stationary shop in Kodambakkam, the following transactions have been recorded.

(i) Accounting Conventions:
1. The word convention refers to traditions or customs. The accounting convention describes the customs or traditions followed as a guide to the preparation of accounting statements.
2. Modern business world has accepted the utility of these Accounting conventions in making financial statements more realistic, reliable, and useful to all concerned parties. The following four conventions are generally adopted over a period of time.
(ii) Convention of consistency:
1. The consistency convention implies that the Accounting practice should remain the same from one year to another. The results of different years will be comparable only when same accounting methods are followed from year to year.
2. For Example: If a firm follows the original or fixed installment method of charging depreciation since its purchase/construction, the method should be followed without any change.
(iii) Convention of full disclosure:
1. The accounts must disclose all material information. The Accounting reports should disclose full and fair information to the related parties. The financial position and performance should be disclosed very honestly to all the users.
2. All the information should be relevant, reliable, comparable and understood by all the concerned authorities.
(iv) Convention of conservatism or prudence:
It is a policy of caution or playing safe. While recording the business transactions one has to anticipate no income but provide for all possible losses.

There are three bases of accounting in common usage, namely
(i) Cash basis
(ii) Accrual or mercantile basis
(iii) Mixed or hybrid basis
(i) Accounting on cash basis:
1. Under cash basis of accounting, actual cash receipts and actual cash payments are recorded.
2. Credit transactions are not recorded till the cash is actually received or paid.
3. Under the basis,
a) Any income received  
b) Any expenditure paid  
c) Any asset purchased for which cash is paid.
d) Any liability paid during the accounting period. Whether related to the past, present or future is taken into account.
(ii) Accrual or mercantile basis :
1) Under accrual basis of accounting, the income whether received or not but has been earned or accrued during the period and expenses incurred whether paid or not are recorded.
2) Under this basis,
a) Any income earned whether received or not
b) Any expenditure incurred whether paid or not
c) Any asset purchased whether cash is paid or not
d) Any liability incurred whether paid or not during the accounting period is recorded.
(iii) Hybrid or mixed basis :
1. Under mixed basis of accounting both cash basis and accrual basis are followed.
2. Incomes are generally recorded on cash basis whereas expenses are generally taken on accrual basis.

An accountant designs the accounting procedures for an enterprise. He plays several roles in an organisation as follows:
(i) Record keeper :
1. The accountant maintains a systematic record of financial transactions.
2. He also prepares the financial statements and other financial reports.
(ii) Provider of information to the management :
The accountant assists the management by providing financial information required for decision making and for exercising control.
(iii) Protector of business assets :
The accountant maintains records of assets owned by the business which enables the management to protect and exercise control over these assets.
(iv) Financial advisor :
The accountant analyses financial information and advises the business managers regarding investment opportunities, strategies for cost savings, capital budgeting, provision for future growth and development, expansion of enterprise, etc.
(v) Tax Manager :
1. The accountant ensures that tax returns are prepared and filed correctly on time and payment of tax is made on time.
2. The accountant can advisee the managers regarding tax management, reducing tax burden, availing tax exemptions, etc.
(vi) Public relation officer :
The accountant provides accounting information to various interested users for analysis as per their requirements.

1. Capital expenditure
2. Revenue expenditure
3. Deferred revenue expenditure

Procedure
1. Open new excel sheet.
2. Input the table as given in the question.
3. Enter the data “Result” in Cell A3.
4. Type the following in Cell B3
B3 = IF(B1 > = 50,”Pass”,”Fail”)
5. Copy the formula from B3 to C3, D3 and E3
Output

(a) Cheques issued but not yet presented for payment: When the cheques are issued by the business, it is immediately entered on the credit side of the cash book by the business. But, this may not be entered in the bank statement on the same day. It will be entered in the bank statement only after it is presented with the bank.
For example, the balances as per cash book and bank statement are Rs. 20,000 for X & Co. X & Co. issued a cheque in favour of Y & Co for Rs. 10,000, on 27^th March 2017. So, X & Co's cash book is credited with Rs. 10,000 on 27^th March 2017.
(b) Cheques deposited into bank but yet credited: When the cheques are deposited into bank, the amount is debited in the cash book on the same day. But, these may not be shown in the bank passbook on the same day because these will be entered in the bank statement only after the collection of the cheques.
For example, the balances as per cash book and bank statement are Rs. 20,000 for X & Co. X & Co. receives a cheque on 25^th March 2016, from ABC Limited for Rs. 5,000. On the same day, X & Co, debits its cash book with Rs. 5,000.
(c) Bank charges and Interest on loan and overdraft by the bank: The bank has to cover the cost of running the customer's account. So debit is given to the account of the business towards bank charges.
For example, the opening balance as per cash book and the bank statement as on 1^st March 2017 is Rs. 7,000. Bank debits for bank charges Rs. 300 as on 27th March 2017. But there is no entry for the same in the cash book as on such date.

(i) Bills Receivable Book :
     (a) Bills receivable refers to Bills drawn, the payment for which has to be received.
     (b) Such bills are drawn on debtor for a specified amount payable at sign on or after specified period.
     (c) Bills receivable book contains the details of bills drawn and its disposal.
(ii) Bills Payable Book:
      (a) Details recorded in the bills payable book are the names of the parties whose bills are accepted, date of the bills payable, due date, amount, etc.
      (b) The individual accounts of the parties whose bills are accepted will be debited with the corresponding amount in the bills payable book.

When the two accounts involved in a transaction are cash account and bank account, then both the aspects are entered in cash book itself. As both the debit and credit aspects of a transaction are recorded in the cash book, such entries are called contra entries.
Example:
(i) When cash is paid into bank, it is recorded in the bank column on the debit side and in the cash column on the credit side of the cash book.
(ii) When cash is drawn from bank for office use, it is entered in cash column on the debit side and in the bank column on the credit side of the cash book.

The following are the limitations of trial balance.
(i) It is possible to prepare trial balance of an organisation, only if the double entry system is followed.
(ii) Even if some transactions are omitted, the trial balance will tally.
(iii) Trial Balance may tally even though errors are committed in the books of account.
(iv) If trial balance is not prepared in a systematic way, the final accounts prepared on the basis of trial balance may not depict the actual state of affairs of the concern.
(v) Agreement of trial balance is not a conclusive proof of the arithmetical accuracy of entries made in the accounting records.

(i) According to this concept, revenues during an accounting period are matched with expenses incurred during that period to earn the revenue during that period.
(ii) This concept is based on accrual concept and periodicity concept.
(iii) Periodicity concept fixes the time frame for measuring performance and determining financial status.
(iv) All expenses paid during the period are not considered, but only the expenses related to the accounting period are considered.