NIOS Free Solved Assignments (2020 - 2021) | Accountancy 320 English Medium

 NIOS FREE SOLVED ASSIGNMENT

Session 2020-21

SENIOR SECONDARY (Accountancy 320)

Tutor Marked Assignment (TMA)

Note:

(i) All questions are compulsory. The marks allotted for each question are beside the questions.

(ii) Write your name enrollment numbers, AI name, and subject on the top of the first page of the answer sheet.

1. Answer any one of the following questions in about 40-60 words:

(a) Which branch of Accounting is known as 'social reporting' or 'social responsibility accounting'? Explain that branch. (See lesson-1)

Ans: Social Accounting: This branch of accounting is also known as social reporting or social responsibility accounting. It discloses the social benefits created and the costs incurred by the enterprise. Social benefits include such facilities as medical, housing, education, canteen, provident fund and so on while the social costs may include such matters as exploitation of employees, industrial interest, environment pollution, unreasonable terminations, social evils resulting from setting up industries etc.

(b) Which accounting concept answers that all business transactions must be in terms of money? Explain the concept. (See lesson-2)

Ans: Money Measurement Concept: According to this concept, only those events and transactions are recorded in accounts which can be expressed in terms of money. Facts, events and transactions which cannot be expressed in monetary terms are not recorded in accounting. Hence, the accounting does not give a complete picture of all the transactions of a business unit.

Also Read:

1. Accountancy 320 (NIOS Free Solved Assignments 2019 - 2020)

2. Accountancy 320 (NIOS Free Solved Assignments 2020 - 2021)

3. Accountancy 320 (NIOS Free Solved Assignments 2021 - 2022)

2. Answer any one of the following questions in about 40 to 60 words.

(a) On January 01, 2020 M/s Rajesh Tea Company paid Rs. 20,000 in cash and balance amount of Rs. 80,000 by cheque to Madhav Tea Company, prepare Debit Voucher. (See lesson-4)

Rajesh Tea Company Debit Voucher Voucher No.: 50                                                                                          Date: 01-01-2020 Debit Account: Madhav Tea Company Amount: 1,00,000
S.N.	Account Name		Amount (Rs)	Narration
1. 2.	Cash Bank		40,000 1,60,000	Paid Part payment in cash and Balance by cheque
Authorised by:					Prepared by:

 (b) Which Accounting Convention states that same accounting principles should be used for preparing financial statements year after year? Explain that convention.

Ans: Convention of Consistency: The convention of consistency implies that the same accounting procedures should be used for similar items over periods. It is essential for clear and correct understanding and interpretation of the financial statements. It is also important for inter-period comparison. Also intra-firm comparison is effective if same accounting principles are followed by the firms.

3. Answer any one of the following questions in about 40 to 60 words.
(a) "The process of journalising involves certain steps". Explain these steps with the help of examples. (see lesson-5)

Ans: Journalising: The process of recording the transaction in the Journal or making entry in the journal is called Journalizing. Since transactions are first of all recorded in this book, Journal is also called "The Book of Original Entry'. Entries in the Journal are recorded on the basis of source Documents like Cash Memos, Vouchers etc which serve as an evidence of a transaction. Entries in the Journal are made on the basis of ' Rules of Journalizing'.

The following steps lead to the preparation of a journal:

a)      Identifying the Affected Accounts. First of all, the affected accounts in a transaction should be identified. For example, if goods worth Rs. 20,000 are sold for cash, then goods (sales) and ‘Cash’ are the two affected accounts.

b)      Recognizing the Kinds of Affected Accounts. The kind of the affected accounts should be determined e.g. in the above case, ‘goods’ and ‘Cash’ are both asset accounts.

c)       Applying the Rules of Debit and Credit. Then the rules of ‘debit’ and ‘credit’ should be applied to the affected accounts. In the above case, cash is debited and sales are credited.

(b) Suppose rent (payable) is outstanding for Rs. 10,000 for December 2019. Which type of expenses it is? What entry will be passed for it? (See lesson-5)

Ans: An expense for the current accounting period should be debited (as increase in expense is to be debited). It is immaterial whether it is paid in that accounting period or not. In case the same expense is not paid during the year, it becomes outstanding for that particular year. It is the liability of the business for that year and, thus, expense outstanding account will be credited, because liabilities are credited for increase.

Journal Entry

Particulars	L.F.	Amount	Amount
Rent A/c                    Dr To Rent Outstanding A/c (For rent not paid debited to rent account)		10,000	10,000

4. Answer any one of the following questions in about 100 to 150 words.

(a) Following are the transactions of X and Sons for the month of July 2019. Make journal entries, post them into ledger and balance the accounts. (See lesson-6) - 2019

July 1: Commenced business, with cash Rs. 1, 00,000

July 5: Purchased furniture for cash Rs. 20,000

July 20: Purchased goods from Rahul Rs. 60,000

July 31: Paid salary by cheque 10,000

Ans:

Journal Entries

In the Books of X & Sons

Date	Particulars	L.F.	Amount (Dr.)	Amount (Cr.)
July 1	Cash Account                                     Dr To Capital Account (For business started with cash)		1,00,000	1,00,000
July 5	Furniture Account                            Dr To Cash Account (For Furniture purchased for cash)		20,000	20,000
July 20	Purchases Account                     Dr To Rahul (For goods purchased for cash)		60,000	60,000
July 31	Salaries Account To Bank Account (For Salaries paid by cheque)		10,000	10,000

Cash Account

Date	Particulars	L.F.	Amount	Date	Particulars	L.F.	Amount
July 1	To Capital A/c		1,00,000	July 5 July 31	By Furniture A/c By Balance c/d		20,000 80,000
			1,00,000				1,00,000

Capital Account

July 31	By Balance C/d		1,00,000	July 1	By Cash A/c		1,00,000
			1,00,00				1,00,000

Furniture Account

July 5	To Cash A/c		20,000	July 31	By Balance C/d		20,000
			20,000				20,000

Purchases Account

July 20	To Rahul		60,000	July 31	By Balance c/d		60,000
			60,000				60,000

Rahul Accounts

July 31	To balance C/d		60,000	July 20	By Purchases A/c		60,000
			60,000				60,000

Bank Accounts

July 31	To Balance C/d		10,000	July 31	By Salaries A/c		10,000
			10,000				10,000

Salaries Accounts

July 31	To Bank Account		10,000	July 31	By Balance C/d		10,000
			10,000				10,000

(b) Prepare Bank Column cash Book of M/S Young Company from the following transactions for the month of September 2019.

Double column Cash Book

Date	Particulars	L.F.	Cash	Bank	Date	Particulars	L.F.	Cash	Bank
Sept. 1 Sept. 2 Sept. 15 Sept. 28	To Balance b/d To Sales A/c To Rajesh To Bank A/c	(c)	45,000 25,000   14,000	70,000   17,000	Sept. 19 Sept. 20 Sept. 25 Sept. 28 Sept. 29 Sept. 31 Sept. 31	By Furniture A/c By Drawings A/c By Rent A/c By Cash A/c By Salary A/c By Telephone Bill A/c By Balance C/d	(c)	12,000 8,000 3,000 61,000	22,000 16,000    14,000     35,000
			84,000	87,000				84,000	87,000

5. Answer any one of the following questions in about 100 to 150 words.
(a) Suppose you are an accountant in a firm. You are given options of 'manual Accounting' and 'Computerised accounting'. Differentiate between the two. (See lesson 13)

Ans: Accounts can be maintained either manually or with the help of computers. Most organizations now do their work with an electronic computer rather than the manual methods.  The similarity between the both systems is that regardless of the degree of computerization in the record keeping process, professional accounting judgment is required in analyzing transactions and in creating source documents or machine methods to capture the important information about routine transactions.

Difference between Manual Accounting System and Computerized Accounting

a)      Recording of data: The recording of financial transactions, in manual accounting system is through books of original entries while the data content of such transactions is stored in a well-designed accounting database in computerised accounting system.

b)      Classification and processing of data: In a manual accounting system, transactions recorded in the books of original entry are further classified by posting into ledger accounting. This results in transactions data duplicity. In computerized account, no such data duplication is made to cause classification of transactions.

c)       Summarizing and updating of data: The transactions are summarized to produce trial balance in manual accounting system by ascertaining the balances of various accounts. The generation of ledger accounts is not a necessary condition for producing trial balance in a computerized accounting system because it is done automatically.

d)      Adjusting entries. In a manual accounting system, entries are made to the principle of cost matching revenue. These entries are passed to match the expenses of the accounting period with the revenues generated by them. However, in computerized accounting, journal vouchers are prepared and stored to follow the principle of cost matching revenue, but there is nothing like passing adjusting entries for errors and rectification, except for rectifying an error of principle by having passed a wrong voucher.

e)      Cost of reporting: Since with a manual system, the cost of preparing reports other than the basic financial statements is high. On the other hand, the cost of preparing specialized management reports in computerized systems is usually quite law.

f)       Financial Statements: In a manual system of accounting, the preparation of financial statements pre-supposes the availability of trial balance. However, in computerised accounting, there is no such requirement. The generation of financial statements is independent of producing the trial balance because such statements can be prepared by direct processing of originally stored transaction data.

(b) X sold goods worth Rs. 60,000 to Y taking bill at 3 months, dated 1st July 2019. On 4th August, X discounted the bill at 5.5% p.a. with his bankers. At maturity the bill was dishonoured and on that date Y paid Rs. 15,000 with no charges and accepted another bill at 3 months for Rs. 45,000 at 6% annual interest, but before maturity Y had become insolvent and ultimately he paid his creditors 75 paise in the rupee. Make the entries in X's journal recording the above transactions. (See lesson 11)

Journal Entries

In the Books of X (Drawer)

Date	Particulars	L.F.	Amount (Dr.)	Amount (Cr.)
2019 July 1	Y’s                                            Dr To Sales A/c (For goods sold to Y)		60,000	60,000
July 1	Bills receivable Account      Dr To Y’s (For bills receivable received from Y)		60,000	60,000
Aug 4	Bank Account                       Dr Discount Account                Dr To Bills Receivable Account (For bills discounted with bank @ 5.5% p.a.)		59,450 550	60,000
Oct 4	Y’s                                        Dr To Bank Account (For Bills receivable dishonoured on due date)		60,000	60,000
Oct 4	Cash Account                    Dr To Y’s (For part payment received on bills dishonoured)		15,000	15,000
Oct 4	Y’s                                   Dr To Interest Account (For interest @ 6% P.a. charged on Y for renewal of bills on remaining amount)		675	675
Oct 4	Bills receivable Account      Dr To Y’s (For new  bills receivable received from Y for remaining amount)		45,675	45,675
2020 Jan 7	Y’s                                Dr To Bills Receivable Account (for new bills receivable dishonoured due to insolvency of y)		45,675	45,675
Jan 7	Cash Account                   Dr Bad Debt Account          Dr To Y’s (For 75% of the cash received from Y on account of insolvency)		34,256 11,419	45,675

 6. Prepare any one project of the given below:
(a) You are an assistant accountant in a business unit; prepare the Performa of a journal and ledger with imagining entries. (See lesson-6)

July 1: Commenced business, with cash Rs. 1, 00,000

July 5: Purchased furniture for cash Rs. 20,000

July 20: Purchased goods from Rahul Rs. 60,000

July 25: Sold goods Rs. 60,000

July 29: Commission received Rs. 10,000

July 31: Paid salary by cheque 10,000

Ans:

Journal Entries

In the Books of X & Sons

Date	Particulars	L.F.	Amount (Dr.)	Amount (Cr.)
July 1	Cash Account                                     Dr To Capital Account (For business started with cash)		1,00,000	1,00,000
July 5	Furniture Account                            Dr To Cash Account (For Furniture purchased for cash)		20,000	20,000
July 20	Purchases Account                     Dr To Rahul (For goods purchased for cash)		60,000	60,000
July 25	Cash Account                                Dr To Sales Account (For goods sold)		60,000	60,000
July 29	Cash Account                              Dr To Commission Account (For commission received)		10,000	10,000
July 31	Salaries Account To Bank Account (For Salaries paid by cheque)		10,000	10,000

Cash Account

Date	Particulars	L.F.	Amount	Date	Particulars	L.F.	Amount
July 1	To Capital A/c To Sales A/c To Commission A/c		1,00,000 60,000 10,000	July 5 July 31	By Furniture A/c By Balance c/d		20,000 1,50,000
			1,70,000				1,70,000

Capital Account

July 31	By Balance C/d		1,00,000	July 1	By Cash A/c		1,00,000
			1,00,00				1,00,000

Furniture Account

July 5	To Cash A/c		20,000	July 31	By Balance C/d		20,000
			20,000				20,000

Purchases Account

July 20	To Rahul		60,000	July 31	By Balance c/d		60,000
			60,000				60,000

Rahul Account

July 31	To balance C/d		60,000	July 20	By Purchases A/c		60,000
			60,000				60,000

Bank Account                                  

July 31	To Balance C/d		10,000	July 31	By Salaries A/c		10,000
			10,000				10,000

Salaries Account

July 31	To Bank Account		10,000	July 31	By Balance C/d		10,000
			10,000				10,000

Sales Account

July 31	To Balance C/d		60,000	July 25	By Cash A/c		60,000
			60,000				60,000

Commission Account

July 31	To Balance C/d		10,000	July 29	By Cash A/c		10,000
			10,000				10,000

 (b) Suppose you are going to attend interview board for the post of an accountant in a company. Give the Performa of special journals mentioning five specific items in it. (See lesson 5)