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Financial Accounting Assignment PDF
Financial Accounting Assignment PDF
Assignments
Program:
Semester 1
INSTRUCTIONS
a) Students are required to submit all three assignment sets.
Copyright@Amity University
Financial Accounting
ASSIGNMENT ‘A’
ASSIGNMENT ‘B’
Q 4 Case Study:
The following is the Trial Balance of Gupta as on 30th June, 2001
Trial Balance of Gupta for the year ending
30th June, 2001
Dr. Cr.
Particulars Rs. Particulars Rs.
1,76,580 1,76,580
Taking into account the following adjustments prepare the Trading, Profit and Loss account
as on 30th June, 2001.
1. Inventory on hand on 30th June, 2001 is Rs.6,800.
2. Machinery is to be depreciated at the rate of 10% and Patents at the rate of 20%.
3. Salaries for the month of June 2001amounting to Rs.1,500 were unpaid.
4. Insurance includes an annual premium of Rs.170 on a policy expiring on 31st
December, 2001.
5. Bad debts to be written off are Rs.725.
6. Rent receivable Rs.1,000.
In each of the following cases indicate the alternative which you consider to be correct:
Q2. Based on which of the following concepts, share capital account is shown on the liability
side of balance sheet?
(a) Business entity concept
(b) Money measurement concept
(c) Cost concept
(d) Going concern concept
(e) Conservatism concept.
Q5. From the books of Mr.Neelam, it was observed that cheques amounting to Rs.2,40,000
were deposited in the bank, out of which cheques worth Rs.20,000 were dishonored and
cheques worth Rs.40,000 are still in the process of collection. The treatment of this while
preparing Bank Reconciliation Statement is
(a) Deduct Rs.60,000 from bank balance as per pass book
(b) Add Rs.20,000 and deduct Rs.40,000 from overdraft balance as per cash book
(c) Deduct Rs.60,000 from overdraft balance as per pass book
(d) Add Rs.60,000 to overdraft balance as per pass book
(e) Deduct Rs.40,000 and add Rs.20,000 from overdraft balance as per pass book.
Q9. Which of the following accounts will invariably have a debit balance?
I. Accounts receivable.
II. Accounts payable.
III. Purchases account.
IV. Bank account.
V. Prepaid expenditure.
(a) Only (III) above
(b) Both (II) and (III) above
(c) Both (I) and (III) above
(d) (I), (III) and (V) above
(e) (I), (III), (IV) and (V) above.
Q11. The Accountant of a company is recording the transactions of the day in various Books of
Original Entry. Which
of the following transactions is recorded in the wrong book?
(a) Goods purchased on credit - Purchase Book
Q12. The impact on assets, profit and liabilities of a firm, on account of salary paid will be
Assets Profit Total Liabilities
(a) No effect Decreases Decreases
(b) Decreases No effect Decreases
(c) Decreases Decreases Decreases
(d) Increases No effect Increases
(e) Decreases Increases Decreases.
Q14. Total of sales day book at the end of the month indicates
(a) The total sales for the month
(b) The total credit sales for the month
(c) Total cash sales of the month
(d) Total amount due to suppliers
(e) Total amount receivable from credit sales.
Q16. Journal entry for receiving interest in cash from Mr. Prashant against the loan given to
him
(a) Interest on loan account Dr.
To Prashant account
(b) Prashant account Dr.
To Interest account
(c) Cash account Dr.
To Prashant account
(d) Cash account Dr.
To Interest on loan account
(e) Cash account Dr.
To Loan account.
Q 17. Which of the following entries recorded in the books of the drawee of a bill is false?
(a) When a bill is accepted, the account to be debited is drawer’s a/c
(b) When a bill is discharged, the account to be debited is bills payable a/c
(c) When a bill presented for payment by a bank is dishonored, the account to be debited is
bills
payable a/c
(d) When noting charges of a dishonored bill is paid by the endorsee ,the account to be debited
is
noting charges a/c
(e) At the time of retirement of a bill the account to be debited is the drawer’s a/c.
Q21. The provision for discount on debtors is calculated on the amount of debtors
(a) Before deducting the provision for doubtful debts
(b) Left after deducting the provision for doubtful debts
(c) Before deducting the actual bad debts
(d) After deducting the actual bad debts
(e) After deducting the actual bad debts and the provision for doubtful debts.
Q22. Consider the following information of Thumbs-up Company for the year 2006-2007:
Q23. At the time of preparation of final accounts, bad debts recovered account will be
transferred to
(a) Debtor’s account
(b) Profit & loss account
(c) Profit & loss adjustment account
(d) Profit & loss appropriation account
(e) Provision for discount on debtors account.
Q24. Which of the following is false about diminishing balance method of depreciation?
(a) Higher amount of depreciation is charged when the machine is more efficient
(b) It recognizes the risk of obsolescence by higher amount of depreciation in the early years
(c) The total amount of depreciation and repairs is almost uniformally distributed over the
useful
life
(d) It results in better cash flow through tax deferral as taxable income is lower in the initial
years
(e) Depreciation amount throughout the useful life will be uniform.
Q28. Entries passed for outstanding expenses, depreciation, interest on capital etc. are
(a) Opening entries
(b) Journal entries
(c) Adjustment entries
(d) Rectification entries
(e) Closing entries.
Q29. Which of following transactions does not change the total amount of liabilities in the
balance sheet?
(a) Purchase of office furniture on credit
(b) Payment of bank loan
(c) Issue of debentures
(d) Acceptance of bills from creditors
(e) Redemption of preference shares.
Q31. The expenses and incomes pertaining to full trading period are taken to the Profit and
Loss account of a business, irrespective of their actual payment or receipt. This is in
recognition of
(a) Time period concept
(b) Business entity concept
(c) Going concern concept
(d) Accrual concept
(e) Duality concept.
Q32. Which of the following statements can be used to assess the liquidity of a company?
(a) Balance sheet
(b) Profit and loss account
(c) Profit and loss appropriation account
(d) Bank reconciliation statement
(e) Manufacturing account.
Q33 . Which of the following state that “Anticipate no profit and provide for all possible
losses”?
Q35. RS Ltd., makes purchases on credit. If the purchases are not as per the specifications, the
company returns them to the suppliers. The book, that is used to record such returns is
(a) Returns inward book
(b) Returns outward book
(c) Cash book
(d) Journal proper
(e) Purchases day book.
Q36 . Which one of the following is not a reason for discrepancy in the balance as per cash
book and bank pass book of a company?
(a) Cheque issued to suppliers may not have been presented
(b) Cheque deposited in the account may not have been realized
(c) Bill discounted with bank is not due for payment
(d) Customers may have directly deposited money in the company’s account
(e) Bank charges not accounted.
Q37. The bank balance in the cash book of Mr.Avinash, a proprietor showed a credit balance
of Rs.10,500 on March 31, 2008. On comparing it with his pass book he discovered the
following discrepancies.
i. Cheque No. 51 for Rs.540 in favour of Mr.Raman has not yet been presented.
ii. A bill of Rs.1,000 was retired by the bank under a rebate for Rs.15, but the full amount of
the bill was credited to bank account in cash book.
The balance as per pass book is
(a) Rs.11,025 (Dr.)
(b) Rs. 9,945 (Dr.)
(c) Rs. 9,945 (Cr.)
(d) Rs. 9,975 (Dr.)
(e) Rs. 9,975 (Cr.).
Q38. The total cost of goods available for sale with a company during the current year is
Rs.12,00,000 and the total sales during the period are Rs.13,00,000. If the gross profit margin
of the company is 25% on sales, the closing inventory during the current year is
(a) Rs.4,00,000
(b) Rs.3,40,000
(c) Rs.2,25,000
(d) Rs.1,60,000
(e) Rs.1,00,000