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    This document contains an accounting assignment with 6 multiple choice questions about key accounting concepts like defining accounting, depreciation methods, accounting principles, ratio analysis, and preparing a balance sheet. It also includes a case study discussing how capital invested by a business owner is treated as a liability for the business from an accounting perspective. The case asks 3 questions about identifying the two entities, limitations of the concept, and whether the money invested is a liability. Students are instructed to answer all questions in 200-300 words each.

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    Accounting for Manager

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    This document contains an accounting assignment with 6 multiple choice questions about key accounting concepts like defining accounting, depreciation methods, accounting principles, ratio analysis, and preparing a balance sheet. It also includes a case study discussing how capital invested by a business owner is treated as a liability for the business from an accounting perspective. The case asks 3 questions about identifying the two entities, limitations of the concept, and whether the money invested is a liability. Students are instructed to answer all questions in 200-300 words each.

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    10 views2 pages

    Accounting For Manager

    Uploaded by

    puri_divya
    This document contains an accounting assignment with 6 multiple choice questions about key accounting concepts like defining accounting, depreciation methods, accounting principles, ratio analysis, and preparing a balance sheet. It also includes a case study discussing how capital invested by a business owner is treated as a liability for the business from an accounting perspective. The case asks 3 questions about identifying the two entities, limitations of the concept, and whether the money invested is a liability. Students are instructed to answer all questions in 200-300 words each.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    of 2

    TECNIA INSTITUTE OF APPLIED STUDIES

    ASSIGNMENT -1

    Accounting for Manager

    PART-A

    Note: - Answer all Questions. Answer should be to the point and in 200-300
    words.
    (8 X 6 =
    48 Marks)

    Q-1 Define Accounting. What are its objectives and limitation?

    Q-2 What is depreciation? What is the need for providing depreciation? Describe two method of
    providing depreciation?

    Q-3 Explain Basic Accounting Principles (Conventions)?

    Q-4 What do you mean by ratio Analysis? Explain its Advantages and Limitation?

    Q-5 From the following details, prepare the balance sheet of X Ltd:

    Stack turnover ratio 6

    Capital turnover ratio 2

    Fixed assets turnover ratio 4

    Gross Profit 20%

    Debt collection ratio 2 month

    Creditor payment period 73 days

    The Gross profit was 60,000. Closing stock was Rs.5,000 in excess of opening stock.

    Q-6 If the machinery A/c shows a balance of Rs.100000 on 1st January, 1993 and Rs.1,50,000 on
    31stDecember,1993 and additional information given is that Machinery is depreciated by
    Rs.15000 during the year and one Machine whose original cost was Rs.12000(accumulated
    depreciated thereon being Rs.3,000) was sold for Rs. 5,000, find out the amount of machinery
    purchased during the year.
    PART-B

    CASE LET (12 Marks)

    Mr. Prakash, a sole proprietor, introduce some cash as his capital in the business. Here, Mr. Prakash and
    the business which he owns are treated as two separate entities. One entity (Mr.prakash) is giving money
    to another entity (Business).It is worth mentioning here that we should record the transactions in the
    books of accounts from the point of view of business. So in the business, the amount of capital is a
    liability because has to pay back the amount of capital invested by Mr. Prakash. On the other hand, the
    amount of cash invested by Mr. Prakash is an asset for the business. The business can use this amount for
    the purpose of business. This shows, how the money introduce by the owner is treated as a liability for the
    business despite the fact that the business is owned by Mr. Prakash himself.

    QUESTIONS

    1. Name of the two entities mention in this case?

    2. What is the limitation of this concept?

    3. Money invested by Mr. Prakash is a Liability of the business or not?

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