Fundamentals of Accounts — Winter 2021

Define the following Terms with example (1) Assets (2) Liabilities (3) Receipts (4) Payments (5) Profit

Give Journal Entries for following transactions in the books of Mr. Sameer (1) Purchase of Furniture worth INR 15,000 for Cash from Ramesh Stores (2) Sales made to Mr. Ram for INR 20,000 on 30 days Credit (3) Drawing from business made for personal purpose worth INR6000 (4) Machine of INR 20,000 sold for cash (5) INR 5000 paid for Salary

Classify the following accounts under Real, Personal or Nominal Account (1) Machinery Account (2) Wages Account (3) Mihir’s Account (4) Dividend Received Account (5) Closing Stock Account1

From the following transactions, prepare a Purchase Book in the books of Harshadbhai2022 March, 1 Goods of INR 10,000 purchased from Chhotubhai on one month credit March, 2 Goods of INR 15,000 purchased from Mr. Jagani at 10% trade discount March 13, Place an order with Namra for supply of goods worth INR 20,000 at 15% trade discount and the same is received on March 15,2022 March 17, Goods of INR 8000 purchase from Bhanumati at 10% trade discount and paid half of the amount immediately by cheque March 19, Goods of INR 6,000 purchased from Raj. Bill No. 108.

From the following transactions, prepare three columnar Cash Book of Shri Jayminbhai2022 January 1, Opening Cash Balance INR 5,000, Bank Overdraft INR 4,000 January 5, Goods of INR 1500 purchased from Ishan at 10% Cash Discount and issued cheque of necessary amount January 13, Salary of INR 400 and Stationery of INR 350 is paid by cheque January 20, INR 2000 is deposited in Bank January 28, Cheque of INR 3000 is issued to Pankaj towards full settlement of the account of INR 3050.

Prepare Trading Account for the year ended 31-03-2022 from the following balances in the books of Mr. Chaturvedi Particulars Debit Credit Opening Stock 20000 Purchases 82000 Purchase Return 5000 Sales 110000 Sales Return 10000 Wages 5000 Railway Freight 4000 Carriage Inward 1000 Cost Price of Closing Stock as on 31-03-2022 was INR 22,000, where as its Market Value was INR 25,000.

Write difference between Trial Balance and Balance Sheet (Any five)

What is Consistency Concept of Accounting? Give examples.

Prepare Specimen of Balance Sheet for Mr. Amit with imaginary figures2

Sneha Ltd. has purchased a machine for INR 70,000 on 01-04-2021. Annual Depreciation Rate under Straight Line Method of Depreciation is 10%. Pass Journal Entry for purchase of Machinery and Depreciation Charge including its P&Leffect for first two years.

A Manufacturer has following records of purchases and issues of a Circuits used for manufacturing of Television Sets Date Purchase Issue Price per unit Feb 1 900 50 Feb 10 400 52 Feb 15 400 Feb 22 400 48 Feb 28 1000 Compute value of Closing Stock using FIFO Method

Sahaj Ltd. purchased a Machinery costing INR 57,000 on 01-04-2020 and incurred installation cost of INR 3,000 for the same. Compute Depreciation @10% RBM for first Two Years and prepare Machinery Account for the same period.

A Manufacturer has following records of purchases and issues of a Circuits used for manufacturing of Television Sets Date Purchase Issue Price per unit Feb 1 900 50 Feb 10 400 52 Feb 15 400 Feb 22 400 48 Feb 28 1000 Compute value of Closing Stock using LIFO Method

From the following information made available by Rana Ltd., calculate Current Ratio and Liquid Ratio Particulars Amount (INR) Debtors 1,10,000 Stock 50,000 Cash on Hand 30,000 Cash at Bank 60,000 Creditors 80,000 Bills payable 20,000

What do you mean by Cash Flow Statement? What is the usefulness of preparing the Cash Flow Statement? OR3

Sales INR 4,20,000 Purchase INR 2,80,000 Closing Stock INR 60,000 Opening Stock INR 30,000 Interest on Loan INR 15,000 Depreciation on Machinery INR 5,000 From the above information, calculate Gross Profit Ratio, Net Profit Ratio and Stock Turnover Ratio.

Differentiate following activities into Operating, Investment and Financial Activities (1) Cash payment to Suppliers for Goods and Services (2) Cash payment to Employees (3) Cash receipts from Sale of Property, Plants and Equipment (4) Cash payment to acquire Fixed Assets (5) Cash proceeds from issuing Shares or Debentures