Pawan Santhosh reddy

F20003

ACCOUNTING ASSIGNMENT 2

1.

A) yes, Mr. Abhinav needs a accountant

So that he can 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 on the point. 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 company A/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)
Pawan Santhosh reddy
F20003

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) He wants to know the profit or loss for himself only. He is a sole trader.

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) instead of personal bank account he can open business bank account, he can maintain triple
column cash book

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.