The Way (Principles Of Account)

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When a customer returns merchandise purchased with cash for a refund, Mayana Corporation would make an entry in the sales journal. The sales journal is used to record all sales transactions, including returns. This journal is specifically designed to track sales and related information, such as customer name, date of sale, and amount. By recording the return in the sales journal, Mayana can accurately track its sales and monitor any returns or refunds made to customers.

Responsibility accounting is a system that assigns responsibility for certain costs to specific individuals or departments within an organization. It focuses on controllable costs, which are costs that can be influenced or controlled by the individuals or departments responsible for them. This means that those individuals or departments are accountable for managing and controlling these costs effectively. Historical accounting, storekeeping, and valuation of stocks may be important aspects of accounting, but they are not the primary focus of responsibility accounting.

The correct answer is 1st October, 1963. This is because the Act establishing the Institute of Chartered Accountants of Nigeria (ICAN) came into force on this date, as stated in the question.

If the inventory at the end of the current year is understated and the error is not caught during the following year, it means that the actual value of the inventory is lower than what is recorded. This would result in a lower cost of goods sold and therefore, a higher gross profit. As a result, the income for this year would be understated. However, since the error is not caught and corrected in the following year, there would be no effect on the income for that year. Therefore, the correct answer is "understate this year's income with no effect on next year's".

The actual cash in the till as at 15th July was N101. This can be calculated by subtracting the IOU slip received from the coworker (N65) and the shortage of N5 from the total amount of petty cash vouchers (N394). Therefore, N394 - N65 - N5 = N324. Since the initial imprest was N500, the actual cash in the till is N500 - N324 = N176. However, the coworker made a refund of N75 on July 18th, so the actual cash in the till is N176 + N75 = N251.

The use of a voucher system provides a highly flexible system for handling unusual transactions. This means that the voucher system allows for easy and efficient processing of transactions that may not fit into the standard payment methods or require special handling. It offers the necessary flexibility to accommodate unique or irregular transactions, ensuring that they can be properly recorded and processed without disrupting the normal payment procedures.

The initial imprest was N500. Petty cash vouchers totaling N394 were given to the custodian by July 15th. Additionally, an IOU slip of N65 was received from a coworker and there was a shortage of N5 in cash. However, the coworker made a refund of N5 on July 18th before the imprest was replenished. Therefore, the amount required to replenish the payments made from the imprest is N358.

The total of the discounts received column in the cash book is posted to the credit of the discounts allowed account because discounts received are considered as income for the business. By crediting the discounts allowed account, it increases the balance of this account, which represents the income received from discounts.

The cost reports for attention of management should include details of non-controllable expenses. This means that the reports should provide information about expenses that cannot be controlled or influenced by management, such as rent, utilities, or taxes. Including these details in the reports allows management to have a clear understanding of the overall costs and helps them make informed decisions regarding budgeting and resource allocation.