Fundamentals of Accounts — Winter 2022

Write down difference between Accounting and Book keeping

Explain in brief Accounting Concept related to Conservatism and Consistency.

Which are three Golden Rules of Journal Entries? Explain each with example.

From the following transactions, pass Journal Entries with narration for M/s Sanju & Co.2022 1. Sanju introduced capital through bank of INR 4,000. 2. Cash withdrawn from the City Bank INR 200. 3. Loan of INR 500 taken from Mr. Y. 4. Salaries paid for the month of March, 2022, INR 300 and INR 100 is still payable for the month of March, 2022. 5. Furniture purchased INR 500.

Classify the following items as Real, Personal or Nominal (1) Building (2) Sales (3) Bank Fixed Deposit (4) Rent (5) Cash (6) Closing Stock (7) Bad Debts (8) Capital (9) Drawing (10) Depreciation1

From the following ledger balances, prepare Trial Balance of Arman Traders as on 31-03-2022 Particulars INR Capital 100000 Purchases 150000 Discount Allowed 2000 Sales 166000 Sales Return 1000 Expenses 10000 Trade Receivables 75000 Trade Payables 25000 Investment 15000 Cash at Bank 37000 Interest received on 1500 investment Insurance Premium paid 2500

Write note about Triple Column Cash Book and draw format of the same.

Prepare Single column cash book from following information 2022 INR Jan.1 Cash in hand 1,200 “5 Received from Ram 300 “7 Paid Rent 30 “8 Sold goods for cash 300 “10 Paid to Shyam 700 “27 Purchased Furniture 200 “31 Paid Salaries 100 “31 Rent due, not yet paid, for January 30

Prepare Specimen of Profit & Loss Account for Mr. Jasmitbhai with imaginary figures

Raghuvanshi Bros. acquired a machine on 1st July, 2020 at a cost of INR 14,00,000 and spent INR 1,00,000 on its installation. The firm writes off depreciation at 10% p.a. of the original cost every year. The books are closed on 31st December every year. You are required to show Machinery Account for 2020-21 and 2021-22. Also show how you have derived the amount of Depreciation for the above years.2

A Manufacturer has following records of purchases and issues of a Cartridge used for manufacturing of Printer Sets Date Purchase Issue Price per unit Feb 1 900 50 Feb 5 500 Feb 10 400 55 Feb 11 300 55 Feb 19 200 60 Feb 20 600 Feb 27 800 47 Feb 28 500 Compute value of Closing Stock using Weighted Average Method of valuing stock.

Ashwin & Bros. acquired a machine on 1st July, 2020 at a cost of INR 14,00,000 and spent INR 1,00,000 on its installation. The firm writes off depreciation at 10% p.a. of the written down value every year. The books are closed on 31st December every year. You are required to show Machinery Account for 2020-21 and 2021-22. Also show how you have derived the amount of Depreciation for the above years.

A Manufacturer has following records of purchases and issues of a Cartridge used for manufacturing of Printer Sets Date Purchase Issue Price per unit Feb 1 900 50 Feb 5 500 Feb 10 400 55 Feb 11 300 55 Feb 19 200 60 Feb 20 600 Feb 27 800 47 Feb 28 500 Compute value of Closing Stock using LIFO Method

X Ltd., has a current ratio of 3.5 : 1 and quick (liquid) ratio of 2 : 1. If excess of current assets over quick (liquid) assets represented by inventories is INR 24,000, calculate Current Assets and Current Liabilities.

Cash Flow Statement helps in managing company’s Operating, Investing and Financial Activities effectively. Discuss

Write down the formula for the followings: (1) Current Ratio (2) Liquid Ratio (3) Stock Turnover Ratio (4) Operating Profit Ratio (5) Return on Capital Employed3

Differentiate following activities into Operating, Investment and Financial Activities (1) Cash payment to Suppliers for Machinery (2) Cash payment towards Office Staff Salary (3) Cash receipts from issue of Shares to public (4) Cash payment to make investment in shares of other company (5) Cash payment to Creditors of Goods and Services