The Students Guide to Accountancy

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. . . . . 12, 000 Stocks of Engravings . . . . . . . . 6, 000 Cost of Copyrights.. .. .. .. .. 8, 000 Sundry Debtors . . . . . . . . . . 3, 000 Cash Balances . . . . . . . . 2, 000 40, 000 Q. 9. The system of payment by results is largely adopted. Thus, the salary of a manager may be (1) a fixed sum per annum, and (2) a proportion of the profits. The directors' remuneration may be on a similar basis. In both cases the profits are to be those certified by the auditor after charging all expenses.... How would you treat these cases in the Accounts and Balance Sheet ?
Q. 10. Under what circumstances would an auditor of a com- pany, in your opinion, be justifi3d in refusing to give any certificate whatever to a Balance Sheet ?
THE FINAL EXAMINATION. 67 BOOKKEEPING AND ACCOUNTS (INCLUDING EXECUTORSHIP ACCOUNTS).
Q. 1. In the event of your being called in to prepare a Profit and Loss Account of a business where the books had hitherto been kept on the simplest form of single entry, what would be your mode of procedure in the matter, and what would you consider absolutely necessary to be done so as to effect the object you had in view?


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