BIKKUMALLA AKHIL

F20002

ASSIGNMENT -2

1)
A) yes, Mr. Abhinav need accountant to record all cash and credit transactions
 B) yes, he maintains enough books of accounts 
C) he needs to maintain pretty cashbook
      1) the purchase book will be overcast because this transaction will be recorded in proper journal. 
      2) yes, then only we can find out profit or loss 
D) money measurement concept, periodicity concept, matching principles, dual output concept

2)
A) no, I don’t agree because we have to charge depreciation, otherwise we cannot find profit or loss
B) the accountant hesitates because it will differ the profit or loss for the business.
C) double entry system is not followed if the accountant agrees to his owner suggestion. 
D) no, charging depreciation could not be only the reason for company’s loss.
3)
S.NO        PARTICULARS                                        L.F          Dr.            Cr.
   1.       Siva and company A/c             Dr.                     12,000      12,000
                  To Sam and CompanyA/c 
             (wrong debit now rectified)
  2.       Rent A/c                                     Dr.                        2,250         2,250
                      To suspense A/c
              (short debit in rent account now 
                   Rectified)
  3.        purchased A/c                           Dr.                        1,000         1,000
                        To suspense A/c
              (under casting of purchases book
                 Rectified)
  4.        suspense A/c                             Dr.                                    2,000             2,000
                  To sales A/c 
             (omitted entry recorded now)
 5.        stationery A/c                             Dr.                                      250                 250
                     To purchases A/c 
             (wrong debit now rectified)

4)  A) being a sole trader he wants to know about his profit and loss
 B) No, it is not convenient to record all the cash transactions in simple cash book.
 C) No, his personal bank account will not serve the purpose of his business transactions.
 D) business bank account, triple column cash book, profit and loss acount
 E) triple column cash book, petty cash book, sales book for credit sales, sales return book, purchases
return book, purchases book for credit purchases, business book account