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Wednesday, September 09, 2020

IGNOU FREE SOLVED ASSIGNMENT: ECO - 14 ACCOUNTANCY - II (2019 - 2020)


FULL SOLVED ASSIGNMENTS ARE AVAILABLE FOR FREE IN OUR MOBILE APP. LINK GIVEN AT THE END OF THIS POST.

Bachelor’s Degree Programme (BDP)
ASSIGNMENT (2019-20)
Elective Course in Commerce
ECO – 14: Accountancy - II
For July 2019 and January 2020 admission cycle

Dear Students,
As explained in the Programme Guide, you have to do one Tutor Marked Assignment in this Course.
Assignment is given 30% weightage in the final assessment. To be eligible to appear in the Term-end examination, it is compulsory for you to submit the assignment as per the schedule. Before attempting the assignments, you should carefully read the instructions given in the Programme Guide.
This assignment is valid for two admission cycles (July 2019 and January 2020). The validity is given below:
1)         Those who are enrolled in July 2019, it is valid up to June 2020.
2)         Those who are enrolled in January 2020, it is valid up to December 2020.
You have to submit the assignment of all the courses to The Coordinator of your Study Centre. For appearing in June Term-End Examination, you must submit assignment to the Coordinator of your study centre latest by 15th March. Similarly for appearing in December Term-End Examination, you must submit assignments to the Coordinator of your study centre latest by 15th September.

TUTOR MARKED ASSIGNMENT
Course Code: ECO - 14
Course Title: Accountancy - II
Assignment Code: ECO – 14/TMA/2019-20
Coverage: All Blocks
Maximum Marks: 100
Attempt all the questions.
1. What are the three systems of maintaining the accounts of a dependent branch and describe how is profit ascertained under each system? Explain how branch stock account helps in keeping effective control over the branch stock?                 (20)
Ans: Dependent Branch: The term ‘Dependent Branch’ means a branch which does not maintain its own set of books. All records have to be maintained by the head office. When the business policies and the administration of a branch are wholly controlled by the head office, its accounts also are maintained by it. In such a case, Branch accounts are written up at the head office out of reports and returns received from the branch.
The following are the main features of such branches:
a.       Such branches sell only those goods which are received from the head office and are not usually allowed to make purchases in the open market except with the express permission of the head office.
b.      Goods are supplied by the head office to such branches either at cost price or at invoice price.
c.       All expenses of the branch such as rent, salary of staff, advertisement etc., are paid by the head office.
d.      Petty expenses such as cartage, entertainment, freights etc. are paid by the branch manager out of petty cash book balance. Such book is maintained at the branch either as simple petty cash book or on imprest system.
e.      The amount received from cash sales or cash received from debtors is either remitted to the head office daily or deposited in the account of the head office in some local bank.
f.        The branch manager is normally expected to sell the goods for cash only but he may be authorized to sell goods on credit as well.
ACCOUNTING IN RESPECT OF DEPENDENT BRANCHES
In case of a dependent branch, the head office may keep accounts of the branch acc to any of the following systems
1)      Debtors System
2)      Stock and Debtors system
3)      Final Account system 
(1) Debtors System (Synthetic Method): This system is adopted in case of branches of small size. Under this system, a branch account is opened separately for each branch in the books of head office. This account is nominal account in nature. In order to determine the profit of any branch, a separate branch account is opened and it is debited with opening balance of assets, goods sent to branch less returns, cheque sent for expenses of the branch and credited with opening balance of liabilities, cheque received fro remittance and closing balance of branch assets. The difference between the two sides will be profit or loss of the branch.
When goods are sent by the head office to the branch at invoice price, i.e., cost plus some percentage of profit, the branch manager is required to sell the goods at invoice price only. In branch account, necessary adjustments regarding percentage of profit charged by the head office is required to be deducted from opening stock, goods sent to branch and closing stock.
(2) Stock and Debtors System: Profit and loss of a branch can be found out by preparing branch account but there is another method for the same purpose. This method is known as stock and debtors method. If it is desired to exercise a more detailed account control over the working of a branch, the accounts of the branch are maintained under which is described as the stock and debtors method. According to this system, instead of opening one branch account, separate accounts are opened for various transactions at branch. According to this system, a separate ledger for each branch will have to be maintained at head office for keeping accounts, such as branch stock, branch debtors, goods sent to branch, branch expenses and branch assets etc. branch cash or petty cash account may sometimes be required to be maintained if the branch is permitted to use the available cash for making certain payments. In addition to the above, branch adjustment account is prepared to find gross profit of the branch. In this account loading included in stocks,  goods sent and loss of stock are shown. After ascertaining gross profit, branch profit and loss account is prepared to find net profit of the branch. All the expense and losses relating to branch are shown in this account to find net profit of the branch.
(3) Final Accounts System: According to this system, the profit or loss made by the branch is determined by preparing branch trading and profit and loss account at cost price. It should be carefully noted that all expenses whether paid by the head office or by the branch are debited to the trading and profit and loss account prepared for the branch. The profit and loss disclosed by this account is exactly same as that of the branch account prepared according to debtors system and stock and debtors system. It should be further noted that the branch trading and profit and loss account is only a memorandum account not forming part of the full accounting system.
Branch stock account:
Branch stock account is similar to that of the branch trading account where opening stock, goods received from head office less return, and credited with cash sales plus credit sales less return from customers. The balance of this account represents gross profit or gross loss if branch stock account is maintained at cost and shortage or surplus of goods if branch stock account is maintained at invoice price. This account helps the head office to exercise better control over the branch stock. This account clearly brings into focus the shortage or surplus in stock at branch. The balance of this account, after posting all the relevant entries should be equal to the stock in hand available at branch, unless there is any surplus or shortage. The profit or the load included in such surplus or shortage should be transferred to branch adjustment account while the cost of such surplus or shortage should be adjusted to branch profit and loss account.
2. Jalani Distributors sold three light commercial vans to Jain Enterprises on January 1, 2017 on hire purchase system. The price of each van was Rs. 90, 000 payment of which was to be made as follows:
1)         Rs. 30, 000 as down payment for each van
2)         Remaining amount in 3 equal installment along with interest @15%
Jain Enterprises were charging depreciation @ 20% each year on written down value method. After payment of the first installment as on December 31, 2017, they could not pay further installments. It was agreed between the parties for repossession of two van adjusting their values against the amount due. For the purpose of repossession, depreciation @ 30% p.a. was charged. Repossessed goods were repaired at a cost Rs. 2,000 and were then sold for Rs. 92,000. Calculate the value of repossessed stock and show the necessary accounts in the books of both the parties. (20)
Ledger A/c
In the Books of Jain Enterprises
Date
Particulars
Amt. (Dr.)
Date
Particulars
Amt. (Cr.)
1-1-17
To Jalani Distributers
2,70,000
31-12-17


31-12-17
By Depreciation A/c
(2,70,000 x 20%)

By Balance c/d

54,000

2,16,000


2,70,000


2,70,000
1-1-18
To Balance b/d
2,16,000

31-12-18


31-12-18


31-12-18
By Depreciation A/c
(2,16,000 x 20%)

By Jalani Distributers
By P/L A/c

By Balance c/d

43,200

88,200
27,000

57,600


2,16,000


2,16,000
Jalani Distributers
Date
Particulars
Amount.
Date
Particulars
Amount
1-1-17

31-12-17

31-12-17
To Bank A/c  (Down Payment)

To Bank A/c (60,000 + 27,000)

To Balance c/d
90,000

87,000

1,20,000
1-1-17

31-12-17
By Vans A/c

By Interest A/c
2,70,000

27,000


2,97,000


2,97,000
31-12-18

31-12-18
To Vans A/c

To Balance c/d
88,200

49,800

1-1-18

31-12-18
By Balance b/d

By Interest A/c  (1,20,000 x 15%)
1,20,000

18,000


1,38,000


1,38,000
Ledger A/c
In the Books of Jalani Distributers
Jain Enterprises
Date
Particulars
Amt. (Dr)
Date
Particulars
Amt. (Cr)
1-1-17

31-12-17
To H.P. Sales A/c

To Interest A/c
2,70,000

27,000
1-1-17

31-12-17

31-12-17
By Bank A/c

By Bank A/c (60,000 + 27,000)

By Balance c/d
90,000

87,000

1,20,000


2,97,000


2,97,000
1-1-18

31-12-18
To Balance b/d

To Interest A/c
1,20,000

18,000
31-12-18

31-12-18
By Vans A/c

By Balance c/d
88,200

49,800


1,38,000


1,38,000

Calculation of repossession values loss as repossession (2 vans)
Particulars
Depreciation @ 30%
Depreciation @ 20%
Cash price (1-1-17)
Less: Depreciation (31-12-17)
1,80,000
54,000
1,80,000
36,000
Book value (1-1-18)
Less: Depreciation (31-12-18)
1,26,000
37,800
1,44,000
28,800
Book value (31-12-18)
88,200
1,15,200
Repossession value = 88,200
Loss on repossession = 1,15,200 – 88,200 = 27,000



3 comments:

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    ReplyDelete
  2. sir send me full Solved Assignment pdf file eco-7

    ReplyDelete
  3. Send me the full PDF file of solved assignment

    ReplyDelete

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