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Theory Base of Accounting Activity 2 Solutions
- Q1: A customer has filed a suit against a trader who has supplied poor quality goods to him. It is known that the court judgment will be in favour of the customer and the trader will be required to pay the damages. However, the amount of legal damages is not known with certainity. The accounting year has already been ended and the books are now finalised to ascertain true profit or loss. The accountant of the trader has advised him not to consider the expected loss on account of payment of legal damages because the amount is not certain and the final judgment of the court is not yet out. Do you think the accountant is right in his approach.
- Q1: A customer has filed a suit against a trader who has supplied poor quality goods to him. It is known that the court judgment will be in favour of the customer and the trader will be required to pay the damages. However, the amount of legal damages is not known with certainity. The accounting year has already been ended and the books are now finalised to ascertain true profit or loss. The accountant of the trader has advised him not to consider the expected loss on account of payment of legal damages because the amount is not certain and the final judgment of the court is not yet out. Do you think the accountant is right in his approach.
Other Exercises for CBSE - Class 11 Accountancy Theory Base of Accounting
- Theory Base of Accounting Class 11 Activities
- Theory Base of Accounting Class 11 Activity
- Theory Base of Accounting Class 11 Activity 1
- Theory Base of Accounting Class 11 Do it yourself
- Theory Base of Accounting Class 11 Questions for Practice
- Theory Base of Accounting Class 11 Questions for Practice - Long Answers
- Theory Base of Accounting Class 11 Questions for Practice - Short Answers
- Theory Base of Accounting Class 11 Test Your Understanding - I
- Theory Base of Accounting Class 11 Test Your Understanding - II
Chapters in CBSE - Class 11 Accountancy
- Unit 1-Financial Accounting(Part A)Theoretical Framework
- Introduction to Accounting
- Recording of Transactions – I
- Recording of Transactions – II
- Bank Reconciliation Statement
- Trial Balance and Rectification of Errors
- Depreciation, Provisions and Reserves
- Bills of Exchange
- Financial Statements – I
- Financial Statements – II
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