Accoutancy 320 Solved Assignment 2021-22 | NIOS Senior Secondary Solved Assignment 2021 - 22

 NIOS Senior Secondary Solved Assignment 2021 - 22

 Accoutancy 320 Solved Assignment 2021-22
Tutor Marked Assignment
Max Marks: 20


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

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

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

(a) Your friend anticipates that it may not be possible to collect Rs 47,000 from one of his debtors. Will he record this transaction in the books of accounts and if yes then at what value? (See Lesson 3)

Ans: Amount due from debtors which cannot be realized can be transferred to provision for bad debt account as per the convention of conservatism. In the given situation, amount of Rs. 47,000 due from debtor is to be transferred to provision for bad debt account. Journal entry passed to record such transaction is:

Bad debt account debited to Provision for bad debt account amount to be shown is Rs. 47,000.

(b) Dual aspect is the foundation or basic principle of accounting. Explain the dual aspect concept of accounting. (See Lesson 2)

Ans: Dual Aspect Concept: According to this basic concept of accounting, every transaction has a two-fold aspect, Viz.,

1. Giving certain benefits and

2. Receiving certain benefits.

The basic principle of double entry system is that every debit has a corresponding and equal amount of credit. This is the underlying assumption of this concept. The accounting equation viz., Assets = Capital + Liabilities or Capital = Assets – Liabilities, will further clarify this concept, i.e., at any point of time the total assets of the business unit are equal to its total liabilities.

लेखांकन (320) | Accountancy 320 NIOS Free Solved Assignment 2021 – 22 (Hindi Medium)

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

(a) Which branch of Accounting ascertains profit earned or loss incurred during a period. Explain that branch. (See Lesson-1)

Ans: Financial Accounting: It is the oldest original form of accounting. It is mainly concerned with the preparation of financial statements for the use of outsiders like creditors, debenture holders, investors and financial institutions. Financial accounting starts with journal entries and ends with preparation of financial statement and reports.

This accounting system is followed by maximum firm whether they are small or large. Financial accounting also forms a basis for other branches of accounting namely cost accounting and management accounting.

(b) Which Accounting concept states that all assets are recorded in the books of accounts at their cost price? Explain the concept. (See Lesson-2)

Ans: Historical Cost Concept: According to this concept, the all the assets acquired are recorded in the books of account with the respective amounts involved. For example, if an asset is purchases, it is entered in the accounting record at the price paid to acquire the same and that cost is considered to be the base for all future accounting. The historical cost concept is normally used for fixed assets.

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

(a)  Mr. Deepak is a businessman. He records all the receipts and payments in his notebook. At the end of the month, he wants to calculate the balance of cash in the notebook. His friend suggests him to maintain a separate book to record these items of receipts and payments. In this context, explain the concept of cash book. (See Lesson-7)

Ans: Cash Book: Cash Book is a sub-division of Journal recording transactions pertaining to cash receipts and payments. Firstly, all cash transactions are recorded in the Cash Book wherefrom they are posted subsequently to the respective ledger accounts. The Cash Book is maintained in the form of a ledger with the required explanation called as narration and hence, it plays a dual role of a journal as well as ledger.

All cash receipts are recorded on the debit side and all cash payments are recorded on the credit side. All cash transactions are recorded chronologically in the Cash Book. The Cash Book will always show a debit balance since payments cannot exceed the receipts at any time.

(b) What do you understand by adjusting entry? Give an example. (See Lesson-5)

Ans: Adjusting entries: Modification of the accounts at the end of an accounting period is called adjustments. If there be any event affecting the related period of accounts but left out of the books, the same should be incorporated in the books before the preparation of the final accounts. This is done by means of adjusting entries through the journal proper.

For example: Wages due to workers Rs. 50,000 but not paid.

Above wages for current year is not recorded in the books of account but this should be incorporated in the current year’s final account by passing an adjustment entry which is given below:

Wages Account Debited                                               Rs. 50,000

To Wages Outstanding Accounting           Rs. 50,000

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

(a) On December 31, 2020, the cash book of the M/s. Nadeem enterprises shows the credit balance Rs. 8,700. Cheques amounting to Rs. 2,500 deposited into the bank but were not collected by the bank. Firm issued cheques of Rs. 2,000 which were not presented for payment. There was a debit in the pass book of Rs. 350 for interest and Rs. 250 for bank charges. Prepare Bank Reconciliation Statement. (See Lesson-10)

Ans: Bank Reconciliation Statement of M/S. Nadeem Enterprises as on 31st Dec, 2020




Overdraft as per cash book


1. Cheques deposited but not collected by the bank

2. Bank interest debited in pass book

3. Bank charges debited in pass book












Less: Cheque issued but not presented for payment




Overdraft as per pass book



(b) Explain the insolvency of the acceptor. Also, discuss the entries relating to it in the books of drawer and drawee. (See Lesson 11)

Ans: Answer any one

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

(a) Rectify the following errors: (See Lesson 12)

(i) Goods purchased on credit for Rs. 10,200 not recorded in the Purchases Book.

(ii) Purchase Returns Book is overcast by Rs 1,500.

(iii) Sales to Reena for Rs. 4,400.

(iv) Cash received from Abhishek Rs. 2,000 was not entered in the books.


Journal Entries




Amount (Dr)

Amount (Cr)


Purchases Account                 Dr.

               To Creditors Account

(for goods purchased on credit not recorded in the purchases book, now rectified)






Purchases Return Account    Dr

               To Suspense Account

(For purchase return book overcast, now rectified)






Reena                                       Dr

               To Sales Account

(For goods sold to Reena)






Cash Account                         Dr

               To Abhishek

(For cash received from Abhishek not entered in the books, now rectified)  





(b) Your friend is interested in sourcing accounting software. Suggest him the factors that he should consider before sourcing accounting software. (See Lesson-13)

Ans: Answer any one

6. Prepare any one project out of the given below:             6

(a) Record the following transactions in a Simple Cash Book of M/s Akshit & Co. (See Lesson-7)




April. 01 Cash in Hand

April. 06 Received from Radhika (after allowing a discount 250)

April 08 Purchased goods for cash from Barkha

April. 10 Paid Advertising expense

April. 18 Sold Goods

April. 23 Paid Abhishek

April. 27 Purchased Machinery

April. 30 Paid Rent











Simple Cash Book










April 01

April 06

April 18



To Balance b/d

To Radhika

To Sales account







April 08

April 10

April 23

April 27

April 30

April 30


By Purchases account

By Advertising expenses

By Abhishek

By Machinery

By Rent

By Balance c/d

















May 1

To Balance c/d







(b) Mr Raj wants to check the accuracy of posting various transactions in the ledger. His friend suggested him to prepare the trial balance. What are the various steps he should keep in mind for preparing the trial balance? (See Lesson-9)

Ans: Steps in Preparing Trial balance: A Trial balance refers to a list of the ledger balances as on a particular date. It can be prepared in the following manner:

1.         Total Method: According to this method, debit total and credit total of each account of ledger are recorded in the Trial balance.

2.         Balance Method: According to this method, only balance of each account of ledger is recorded in Trial balance. Some accounts may have debit balance and the other may have credit balance. All these debit and credit balances are recorded in it. This method is widely used.

3.         Compound Method: This method presents both the balance and total method in the same trial balance. There are four columns for balances and totals.

While preparing the trial balance from the given list of ledger balances, following rules should be taken into care:

1.         The balances of all assets account, expenses and losses account, drawings, cash and bank balances are placed in the debit column of the trial balance.

2.         The balances of all liabilities account, incomes and gains account and Capital balances are placed in the credit column of the trial balance.

3.         If there is no error, both sides of trial balance will be tallied. But in case of errors and omission, there will be some difference in trial balance. The following steps must be taken to rectify the errors:

a)        Divide the difference by two and find out if some figure equal to that (half the difference) appears in the trial balance. It is possible that such item might have been recorded on the wrong side of mal balance, causing double the difference.

b)        If the mistake is not located, the difference should be divided by 9 and if difference is evenly divisible by 9 the error be due to transportation of figures, e.g. Rs. 590 wrongly recorded as 950, the difference is (950-590) 360 and it is evenly divisible by 9.

c)         The next step is to recheck the debit and credit totals of trial balance to satisfy that trial balance has been cast correctly.

d)        If mistake remains undetected, make sure that balances or totals of all the ledger accounts have been correctly shown in the trial balance. Special care should be taken to ensure that cash or bank balances have been duly incorporated in the mal balance.

e)        The next step should be to recheck that all the closing balances from preceding year's balance sheet were correctly carried forward and recorded in respective accounts in the ledger.

f)         Further the totaling and balancing of the ledger accounts should be redone so as to be sure that there is no mistake on that account.

g)        Check the totals of schedule of debtors and creditors and find out that the balances have been included in the list.

h)        If difference is round sum, it is advisable to check casting and carry forwards. But if the difference is odd sum the balancing should be checked minutely.

i)          Even then if error is not located, all the accounts should be checked thoroughly.


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