Unit 1

1)Classify the following transactions into different categories of accounts as per modern
classification
1) Business started with cash 100000
2) Furniture purchased. 12000
3) Goods purchased from Ashish 50000
4) Good sold to nishank 25000
5) Rent paid 5000
6) Interest received 1000
7) Withdraw for personal use 15000

Ans:-To classify the transactions into different categories of accounts as per modern
classification:
Business started with cash 100,000: This transaction involves an increase in cash, which falls
under the Asset category.Account: Cash (Asset)
Furniture purchased 12,000: This transaction involves the acquisition of furniture, which is
considered a Fixed Asset.Account: Furniture (Fixed Asset)
Goods purchased from Ashish 50,000: This transaction involves the acquisition of goods for
resale, which falls under the Inventory category.Account: Inventory (Asset)
Goods sold to Nishank 25,000: This transaction involves the sale of goods, which impacts
both Inventory and Revenue.Account: Inventory (Asset) - decreaseAccount: Sales (Revenue) -
increase
Rent paid 5,000: This transaction involves an expense related to the use of facilities or
property.Account: Rent Expense (Expense)
Interest received 1,000: This transaction involves the receipt of interest, which is a form of
revenue.Account: Interest Income (Revenue)
Withdraw for personal use 15,000: This transaction involves the withdrawal of funds by the
owner for personal use, which reduces the owner's equity.Account: Owner's Drawings (Equity)

2. Explain the various branches of accounting?

Ans:-

Regarding the branches of accounting:

Financial Accounting: Focuses on the preparation of financial statements for external users
like investors, creditors, and regulators. It involves recording, summarizing, and reporting
financial transactions of a business.

Managerial Accounting: Concerned with providing information to internal users (management)

to aid in decision-making, planning, and control within the organization. It includes budgeting,
cost analysis, performance evaluation, and forecasting.
Cost Accounting: Deals with the analysis, classification, and recording of costs for the purpose
of managerial decision-making. It involves determining the cost of products, services, or
activities within the organization.

Tax Accounting: Involves the preparation and filing of tax returns, ensuring compliance with tax
laws and regulations, and optimizing tax strategies to minimize tax liabilities.

Auditing: Involves the examination and verification of financial records to ensure accuracy,
reliability, and compliance with laws and regulations. Auditors provide independent opinions on
the fairness of financial statements.

These branches collectively provide a comprehensive framework for managing the financial
aspects of a business.

Unit 2

3.anylaze the data

Ans:- To analyze the transactions and update Roops Books for January 2006:
1.Goods sold for cash on Jan 1 for Rs. 10,000:
● Increase in Cash in Hand
● Increase in Sales Revenue
2. Purchased goods on credit from Ram Lal on Jan 4 for Rs. 5,000:
● Increase in Inventory (Stock)
● Increase in Amount due to Ram Lal
3.Paid to Ram Lal by cheque on Jan 7 for Rs. 5,000:
● Decrease in Cash at Bank
● Decrease in Amount due to Ram Lal
4.Cartage paid on Jan 10 for Rs. 250:
● Decrease in Cash in Hand
5.Deposited in a Bank on Jan 12 for Rs. 3,000:
● Increase in Cash at Bank
● Decrease in Cash in Hand.
6.Goods Sold to Bantoo on Jan 14 for Rs. 15,000:
● Increase in Accounts Receivable (Amount due from Debtors)
● Increase in Sales Revenue
7.Received cash from Bantoo on Jan 16 for Rs. 12,000:
● Decrease in Accounts Receivable
● Increase in Cash in Hand
8.Cash Sales on Jan 17 for Rs. 5,500:
● Increase in Cash in Hand
● Increase in Sales Revenue
9.Paid Cartage on Jan 18 for Rs. 275:
● Decrease in Cash in Hand
10.Paid Telephone Bills on Jan 20 for Rs. 380:
● Decrease in Cash in Hand
11.Received a cheque from Bantoo on Jan 21 for Rs. 2,900:
● Decrease in Accounts Receivable
● Increase in Cash at Bank
12.Goods sold to Raju on Jan 22 for Rs. 1,500:
● Increase in Accounts Receivable
● Increase in Sales Revenue
13.Received a cheque from Raju on Jan 24 for Rs. 1,500:
● Decrease in Accounts Receivable
● Increase in Cash at Bank
14.Purchased goods on credit from C. Lal & Sons on Jan 25 for Rs. 2,900:
● Increase in Inventory (Stock)
● Increase in Amount due to C. Lal & Sons
15.Issued a cheque to C. Lal & Sons on Jan 26 for Rs. 2,850:
● Decrease in Cash at Bank
● Decrease in Amount due to C. Lal & Sons
16.Goods sold for cash on Jan 29 for Rs. 5,000:
● Increase in Cash in Hand
● Increase in Sales Revenue
17.Paid salaries on Jan 31 for Rs. 2,500:
● Decrease in Cash in Hand
18.Purchased government Bonds on Jan 31 for Rs. 5,000:
● Decrease in Cash at Bank
● Increase in Investments (Government Bonds)
19.Insurance Premium paid by cheque on Jan 31 for Rs. 1,000:
● Decrease in Cash at Bank
● Increase in Insurance Expense

These transactions would be recorded in the respective accounts, updating the balances for
January 2006.

4) trial balance
 Unit-3

5) balance sheet
6) Prepare a table showing presentation of Balance Sheet items as per Companies Act.

Unit 4
7)
8)

Unit -5

9)Prepare a list of Indian Accounting Standards

Ans:- Here is a list of Indian Accounting Standards (Ind AS) as of my last update:
1. Ind AS 101: First-time Adoption of Indian Accounting Standards
2. Ind AS 102: Share-based Payment
3. Ind AS 103: Business Combinations
4. Ind AS 104: Insurance Contracts
5. Ind AS 105: Non-current Assets Held for Sale and Discontinued Operations
6. Ind AS 106: Exploration for and Evaluation of Mineral Resources
7. Ind AS 107: Financial Instruments: Disclosures
8. Ind AS 108: Operating Segments
9. Ind AS 109: Financial Instruments
10. Ind AS 110: Consolidated Financial Statements
 11. Ind AS 111: Joint Arrangements
12. Ind AS 112: Disclosure of Interests in Other Entities
13. Ind AS 113: Fair Value Measurement
14. Ind AS 114: Regulatory Deferral Accounts
15. Ind AS 115: Revenue from Contracts with Customers
16. Ind AS 116: Leases
17. Ind AS 117: Insurance Contracts (amended)
18. Ind AS 118: Revenue (amended)
19. Ind AS 119: Employee Benefits
20. Ind AS 120: Accounting for Government Grants and Disclosure of Government
Assistance
21. Ind AS 121: The Effects of Changes in Foreign Exchange Rates
22. Ind AS 122: Leases (amended)
23. Ind AS 123: Borrowing Costs
24. Ind AS 124: Related Party Disclosures
25. Ind AS 125: Corporate Social Responsibility
26. Ind AS 126: Intangible AssetsI
27. nd AS 127: Financial Instruments: Presentation
28. Ind AS 128: Investments in Associates and Joint Ventures
29. Ind AS 129: Financial Reporting of Interests in Joint Ventures
30. Ind AS 130: Property, Plant, and Equipment
31. Ind AS 131: Interests in Joint Ventures
32. Ind AS 132: Financial Instruments: Presentation
33. Ind AS 133: Earnings per Share
34. Ind AS 134: Interim Financial Reporting
35. Ind AS 135: Impairment of Assets
36. Ind AS 136: Investment Properties
37. Ind AS 137: Provisions, Contingent Liabilities, and Contingent Assets
38. Ind AS 138: Intangible Assets
39. Ind AS 139: Financial Instruments: Recognition and Measurement
40. Ind AS 140: Investment Property
41. Ind AS 141: Agriculture
42. Ind AS 142: Determination of Fair Value of Share-based Payment
43. Ind AS 143: Investment in Joint Ventures
44. Ind AS 144: Segment Reporting
45. Ind AS 145: Financial Instruments - Recognition and Measurement
46. Ind AS 146: Accounting for Real Estate TransactionsI
47. nd AS 147: Government Grants
48. Ind AS 148: Business Combination under Common Control
49. Ind AS 149: Leasehold Land
50. Ind AS 150: Income Taxes

10) Explain in details Indian Accounting Standard 38

Ans:- Indian Accounting Standard 38 (Ind AS 38) deals with the accounting treatment for
intangible assets. Intangible assets are non-monetary assets without physical substance that
are identifiable, controlled by an entity, and from which future economic benefits are expected to
flow to the entity. Examples include patents, trademarks, copyrights, software, customer lists,
and goodwill.

Here's a detailed explanation of the key aspects of Ind AS 38:

1.Recognition of Intangible Assets: According to Ind AS 38, an intangible asset should be

recognized if, and only if, it meets certain criteria. These criteria include:
Identifiability: The asset is identifiable, either being separable (capable of being separated or
divided from the entity and sold, transferred, licensed, rented, or exchanged) or arising from
contractual or legal rights.
Control: The entity has control over the asset, meaning it has the power to obtain future
economic benefits from it.Future Economic Benefits: It is probable that the expected future
economic benefits attributable to the asset will flow to the entity.

2.Measurement: Intangible assets can be initially measured at cost or at fair value, depending
on the circumstances of acquisition. After initial recognition, an entity can choose between the
cost model and the revaluation model. Under the cost model, the asset is carried at cost less
accumulated amortization and any accumulated impairment losses. Under the revaluation
model, the asset is carried at a revalued amount, which is its fair value at the date of revaluation
less any subsequent accumulated amortization and accumulated impairment losses.

3.Subsequent Expenditure: Expenditure on an intangible item after its recognition is capitalized

only if it meets certain criteria. Otherwise, it is expensed when incurred. For example,
subsequent expenditure on internally generated goodwill is generally recognized in profit or loss
as incurred.

4.Amortization: Intangible assets with finite useful lives should be systematically amortized over
their useful lives. The amortization method should reflect the pattern in which the asset's
economic benefits are expected to be consumed or otherwise used up. Intangible assets with
indefinite useful lives, such as goodwill, are not amortized but are subject to impairment testing
annually or more frequently if indicators of impairment exist.

5.Impairment: An intangible asset should be tested for impairment whenever there is an

indication that its carrying amount may not be recoverable. If the carrying amount of an
intangible asset exceeds its recoverable amount, the asset is considered impaired, and its
carrying amount should be written down to its recoverable amount.

6 Disclosure: Ind AS 38 requires entities to disclose information about their intangible assets,
including the nature, carrying amount, useful life, amortization methods, and restrictions on their
use.
Ind AS 38 aims to ensure that entities appropriately account for intangible assets, providing
useful information to users of financial statements regarding the entity's resources, financial
performance, and risk profile.