Accountancy
(224)
Tutor
Marked Assignment
Max. Marks: 20
Note: (i) All questions are compulsary. The marks allotted for each
question are given at same place.
(ii)
Write your name enrollment numbers, AI name subject on the top of the first
page of the answer sheet.
1.
Answer any one of the following
i. How can you show Prepaid Insurance in the Accounting Equation? If
commission worth Rs. 2800/- is received, what will be its effect in the
Accounting Equation? (2 Marks)
Ans:
Accounting equation => Assets = Liabilities + Capital
If
insurance premium is paid in cash, two aspects involved is prepaid insurance
which is an asset and cash which is also an asset. In this transaction, one
asset is increased and another assets is decreased with similar amount by the
reason of which accounting equation is balance. In this transaction there is no
change in value of assets , liabilities and capital.
Again,
if commission of Rs. 2,800 is received, two aspects involved is cash which is
an asset and commission which is an income and increases capital. In this
transaction, assets are increased by Rs. 2,800 and capital is also increased by
the same amount. Change on left hand side and right hand side of the accounting
equation is same and accounting equation is balanced.
ii. From the following
information prepare Credit Voucher of M/s Stanley Leather shoes Ahmedabad. 2015
April 17 Sold leather bags for cash
vide Cash Memo No.: 514 Rs. 5800
April 24 Received cash from Tyagi &
Co. on account vide Cash receipt No.: 38 Rs. 4200 (Lesson 5)
Credit voucher
M/S Stanley Leather
Shoes Ahmadabad
Voucher Number: 514
Date:
17-04-2015
Credit Account: Sales
Amount: Rs. 5,800
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S.N.
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Accounts name
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Amount (Rs.)
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Narration
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1.
2.
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Cash
Sales
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5,800
5,800
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Sales of leather bags
for cash vide cash memo no.: 514
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Authorised by:
Prepared
by:
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Credit voucher
M/S Stanley Leather
Shoes Ahmadabad
Voucher Number: 38
Date:
24-04-2015
Credit Account: Tyagi & Co.
Amount: Rs. 4,200
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S.N.
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Accounts name
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Amount (Rs.)
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Narration
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1.
2.
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Cash
Tyagi & Co.
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4,200
4,200
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Received cash from
Tyagi & co. on account vide cash receipt no.: 38
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Authorised by:
Prepared by:
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2.
Answer any one of the following
i. What does the Going Concern Concept
say? (Lesson 2) (2 marks)
Ans:
According to Going concern concept, the reporting entity is normally viewed
to be continuing in operation in the foreseeable future, and without there
being any intention or necessity for it to either liquidate or curtail
materially its scale of business operations.
ii. How can you explain
'Creditors' and 'Proprietors' as users of accounting information? (Lesson 1)
Ans: Creditors as an user of accounting
information: Creditors supply goods and services on credit. Before granting
credit, Creditors satisfy themselves about the creditworthiness of the
business. The financial statement helps them in making such assessment.
Proprietor
as an user of accounting information: Proprietor contribute capital in the
business and they are always exposed to risk. In view of risk involved, the proprietors
are always interested in knowing the profitability and financial strength of
the company.
3.
Answer any one of the following (2 Marks)
i. Can 'Capital' be considered
as External Liability? Why?
Ans: No, capital is an internal
liability. Internal Liabilities means the liability of business towards it's
owners and External Liabilities means what a business owes to outsiders e.g.,
creditors, bank loan, overdraft etc. Since, Capital is the money contributed by
owners or shareholders to the firm. That is why we considered capital as an
internal liability.
ii. Identify
the type of accounts in this transaction: Paid for Printing & Stationary Rs.
12,500/-
Ans: Types of
accounts involved in the given transaction:
Particulars
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Types
of Account
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Dr/Cr
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Transaction: Paid for Printing
& Stationary
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Printing & Stationery:
Expenses – Nominal Account
Cash : Assets – Real Account
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Debited
Credited
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