Accountancy Assignment

                                         Class 11

                                 Chapter: 1,2 and 4

Q:1 Which stakeholder group would be most interested in :

i)             VAT and other tax liabilities of the firm.

ii)            Potential for pay awards and bonus details.

iii)          The ethical and environmental activities of the firm.

iv)          Whether the firm has a long term future.

v)           Profitability and share performance.

vi)          The ability of the firm to carry on providing a service or producing a product.

Q:2 Which qualitative feature of accounting is reflected in the following cases:

i)             Unnecessary and irrelevant information is not included in financial statements.

ii)            Facilitates intra firm and inter firm comparisons.

iii)          Information is clearly presented.

iv)          Free from errors and bias.

Q:3 Book keeping has a wider scope as compared to Accounting. Defend or refute.

Q:4 Which qualitative characteristic of accounting information is reflected when accounting information is clearly represented?

Q;5 Accounting information should be verifiable and free from personal bias. Name the qualitative characteristic of accounting information denoted by this statement.

Q:6 Classify the following as Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure:

i)             Preliminary expenses

ii)            Purchase of furniture

iii)          Payment of salary

iv)          Underwriting commission

v)           Installation of machinery

vi)          Purchase of goods and services

Q: 7 Classify the following as Current and Non Current Assets

i)             Bank balance

ii)            Trademarks

iii)          Goodwill

iv)          Bill Receivable

v)           Land and Building

vi)          Debtors

Q:8 During the Accounting period 2014-15, the total sales of a firm were Rs 7,00,000, out of which cash sales were Rs 4,50,000. The total expenses for the year were Rs 5,00,000, out of which Rs 2,10,000 are still outstanding. Determine income of the firm for 2014-15 as per :

i)             Cash basis of accounting

ii)            Accrual basis of accounting

Q:9 Mr Sunrise started a business for buying and selling stationery with Rs 5,00,000 as an initial investment. Of which, he paid Rs 1,00,000 for furniture, Rs 2,00,000 for buying stationery. He employed a sales person and clerk. At the end of the month paid Rs 5,000 as their salaries. Out of the stationery bought, he sold some stationery for Rs 1,50,000 for cash and some other stationery for Rs 1,00,000 on credit basis to Mr Ravi . Subsequently, he bought stationery item of Rs 1,50,000 from Mr Peace. In the first week of the next month there was a fire accident and he lost Rs 30,000 worth of stationery. A part of the furniture, which cost Rs 40,000 was sold for Rs 45,000.

From the above, answer the following:

i)             What is the amount of capital with which the business is started?

ii)            What are the fixed assets?

iii)           What is the value of goods purchased?

iv)          Who is the creditor and state the amount payable to him.

v)           What are the expenses?

vi)          What is the gain he earned?

vii)        What is the loss he incurred?

viii)       Who is the debtor and what is the amount receivable from him?

ix)          What is the total amount of expenses and losses incurred?

x)           Determine if the following are assets , liabilities, revenues, expenses or none of these:                                                                                sales, debtors, creditors, salary to manager, discount to debtor, drawings by the owner.