What is outstanding expense?

What is prepaid expense?

What are accrued incomes?

What is depreciation?

What is Bad debts?

Give adjusting entry for depreciation at 10% p.a. on machinery of Rs.25,000.

How will the following adjustment appear in the balance sheet as on 31-12-2010?
Sundry Debtors Rs.21,000
Bad debts to be written off Rs.1,000
Provide 5% provision for bad and doubtful debts and 2% provision for discount on debtors.

Accrued income is credited to the profit and loss account and shown in the balance sheet a current asset. Why

If unearned income is credited to the profit and loss account would it be correct?

If depreciation reduces profits, reduces value of assets and also reduces capital of the proprietor, then why do enterprises provide for depreciation?