Assignment-I

Note- All Questions are compulsory.

Q1. Describe the basic concepts and key terms used in Financial Accounting.

Q2. Accounting equation remains intact under all circumstances. Justify the statement with the help of
an example.

Q3. What is cash book? Explain the types of cash book.

Q4. What are the different types of errors that are usually committed in recording
business transaction? Explain with Examples.
Q5. Differentiate between trade discount & cash discount
Q6. Distinguish between capital expenditures and Revenue Expenditures, Capital Receipts and
revenue receipts.

Q7. Journalise the following transactions of Mr. Rahul:

2019 ₹
Jan. 1 Rahul started business with cash 1,00,000
Jan. 2 Paid into bank 60,000
Jan. 3 Bought goods from M/s. Singh & Co. 20,000
Jan. 3 Paid cartage 300
Jan. 4 Purchased furniture 2,000
Placed an order for HP Printers for ₹ 15,000, amount
Jan. 4 5,000
advanced
Jan. 4 Purchased calculator 1,000
Jan. 4 Purchased computer through cheque 13,000
Jan. 6 Paid for postage 150
Jan.
Sold goods for cash 4,000
8
Jan. 9 Sold goods to M/s. Sharda & Co. 10,000
Jan. 9 Paid cartage 200
Jan.
Paid to M/s Singh & Co. on account 17,500
15
Jan.
Sold goods to M/s. Ray & Co. 5,600
25
Jan. Received cheque from M/s. Sharda & Co. in full settlement 9,750
27 of amount due from them
Jan.
Paid for electricity charges 1,000
31
Jan.
Paid salary 1,500
31
Jan. Paid rent of building by cheque, half of the building is used
5,000
31 by the proprietor for residential use
Jan. Drew for private use 3,500
31
Q8. What will be the effect of the following on the Accounting Equation?
(i) Harish started business with cash ₹ 1,80,000.
(ii) Purchased goods for cash ₹ 60,000 and on credit ₹ 30,000.
(iii) Sold goods for cash ₹ 40,000; costing ₹ 24,000.
(iv) Rent paid ₹ 5,000; and rent outstanding ₹ 2,000.
(v) Sold goods on credit ₹ 50,000 (costing ₹ 38,000).
(vi) Salary paid in advance ₹ 3,000.

Q9. From the following Ledger account balances extracted from the books of R.J. Gupta,
prepare a Trial Balance as on 31st March, 2019:

₹ ₹
Purchases 1,04,000 Drawings 7,950
Sundry Debtors 18,550 Sundry Creditors 8,300
Premises 62,000 Returns Inward 5,360
Sales 1,49,000 Furniture 15,600
Returns Outward 8,900 Cash in Hand 390
Rates and Taxes 780 Capital 85,000
Cash at Bank 1,560 Factory wages 5,830
Carriage Inwards 650 Carriage Outwards 260
Salaries 3,900 Rent Received 2,990
Stock (1st April, 2018) 25,000 Insurance 2,100
Input IGST A/c 5,000 Bad Debts 260
Input CGST A/c 2,500 Output IGST A/c 10,000
Input SGST A/c 2,500
Q10.