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Brief Answer Questions:
[6 x 1 = 6]Write the meaning of accounting. Also, give one objective of accounting.
Explain in brief about the "accounting period" concept of accounting.
What is "debit note"?
The following transaction is provided to you:
Cheque worth Rs 144,000 is issued to creditors after deducting Rs 16,000 as discount.
Required: Journal entries
The following information is provided to you:
Furnitures Rs 80,000 Creditors Rs 60,000 Machinery Rs 120,000 Debtors Rs 90,000 Cash in hand Rs 40,000 Bank loan Rs 70,000
Required: Opening entries
The following information is provided:
Sales for the year is Rs 800,000.
Cost of goods sold is Rs 480,000.
Administrative and selling expenses is Rs 80,000.
Required: Net profit.
Descriptive Answer Questions:
[6 x 3 = 18]Explain in brief about the different parties interested to use accounting information.
Define "the accounting equation". Explain the rules for debit and credit for transactions based on accounting equation.
The following transactions are provided to you:
a. Commenced business with a bank balance of Rs 250,000.
b. Goods worth Rs 80,000 were purchased from Everest Company.
c. Goods worth Rs 40,000 were sold for Rs 48,000.
d. A cheque worth Rs 36,000 was issued to Everest Co. and a discount of Rs 4,000 was received.
Required: Accounting equation.
The following transactions related to sales are given:
Chaitra 5 Sold goods to XYZ Books and Stationery
25 Maths books @ Rs 200 each.
20 English books @ Rs 300 each.
(Trade discount: 10%)
Chaitra 10
Sold goods to Everest Pustak Bhandar
20 Nepali books @ Rs 500 each.
40 Marketing books @ Rs 250 each with trade discount 15%.
Required:
Sales book
The following information is extracted from the book of trading business:
Trial Balance
As on 30th Chaitra 2078
| Particulars | Debit (Rs.) | Credit (Rs.) |
|---|---|---|
| Trade debtors | 64,000 | |
| Bad debts | 8,000 | |
| Provision for doubtful debts | 10,000 |
Additional information:
➢ New bad debts: Rs 4,000.
➢ Create provision for doubtful debts: 5% of trade debtors.
Required:
Provision for doubtful debts account
The following accounting errors are identified before preparation of the trial balance.
a. A salary of Rs 25,000 was paid to Mr. Motiram which was debited to his personal account.
b. A computer purchase for office use of Rs 75,000 was debited to purchase account.
c. A credit purchase of goods worth Rs 90,000 from Hemanta was recorded in sales book.
Required:
Journal entries for rectification of accounting errors
Problem Solving Questions:
[4 × 6 = 24]Explain any two types of accounting errors disclosed by trial balance and other two types of accounting errors that are not disclosed by trial balance.
“Preparation of cash flow statement includes cash flow from operating, investing, and financing activities.” Explain with suitable example.
The following transactions are extracted from the books of business concern for the month of Falgun 2078.
Falgun 1
Cash balance of Rs 70,000 and bank balance of Rs 90,000
Falgun 5
Purchased goods worth Rs. 80,000 from ABC Ltd. and partial amount of Rs 30,000 paid in cash
Falgun 10
Sold goods worth Rs 50,000 to XYZ Ltd. and partial payment of Rs 20,000 received in cash
Falgun 15 Cheque of Rs 45,000 issued to ABC Ltd.; discount worth Rs 5,000 received
Falgun 25 Cheque of Rs 28,000 received from XYZ Ltd. in full settlement of debt
Falgun 28 Cash withdrawal of Rs 20,000 for personal use
Falgun 30 Rent of Rs 10,000 and salary of Rs 30,000 are paid
Required: Triple column cash book
A company had purchased a machinery worth Rs 250,000 on 1st Baisakh 2076. The company further purchased another machinery worth Rs 150,000 on 1st Kartik 2077. The machinery purchased on 1st Baisakh 2076 was sold for Rs 165,000 on 30th Ashwin 2078. On the same day, a new machine worth Rs 200,000 was purchased. Depreciation is charged using straight line method @12%. Accounts are closed on 30th Chaitra each year.
Required: Machinery account for 2076 to 2078 for three years
Comprehensive Answer Questions:
[1 × 12 = 12]An unadjusted trial balance of a company as on 30th Chaitra 2078 is provided below:
| Dr. | Particulars | Rs. | Cr. | Particulars | Rs. |
|---|---|---|---|---|---|
| Opening stock | 40,000 | Share capital | 200,000 | ||
| Purchases | 120,000 | 15% Bank loan | 120,000 | ||
| Carriage inward | 4,000 | Accounts payable | 70,000 | ||
| Salaries | 43,000 | Discount received | 10,000 | ||
| Insurance | 20,000 | Sales revenue | 250,000 | ||
| Cash and bank | 67,000 | ||||
| Accounts receivable | 40,000 | ||||
| Land and building | 230,000 | ||||
| Furnitures | 80,000 | ||||
| Discount allowed | 6,000 | ||||
| 650,000 | 650,000 |
Additional information:
➢ Closing stock: Rs 60,000.
➢ Depreciation charged on furniture: @ 25% p.a.
➢ Salary outstanding: Rs 5,000.
➢ Insurance prepaid: Rs 5,000.
a. Interest on bank loan is fully outstanding.
Required:
a. Income statement
b. Balance sheet
c. Current ratio, debt equity ratio, and inventory turnover ratio