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ASSIGNMENT Financial Accounting

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Shivani Bhoras
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ASSIGNMENT Financial Accounting

Uploaded by

Shivani Bhoras
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ASSIGNMENT Financial Accounting & Analysis

ANS1.

Assets = Capital (Shareholders Equity) + Liabilities


Bank
(i) 5,00,000 = 5,00,000
Bank + Stock = Capital (Shareholders Equity) + Creditor (Ms. Ritu)
5,00,000 = 5,00,000

(ii) 40,000 = 40,000


5,40,000 = 5,00,000 + 40,000
5,40,000 5,40,000
Bank + Stock +Salary =Capital (Shareholders Equity) + Creditor (Ms.
Ritu)
5,00,000 + 40,000 = 5,00,000 + 40,000

(iii) -10,000 +0+ 10,000


4,90,000 + 40,000 + 10,000 = 5,00,000 - 40,000
5,40,000 = 5,40,000

Bank+ Fixed Deposit+ Stock +Salary = Capital (S E) +Creditor (Ms. Ritu)


4,90,000 + 0+ 40,000 +10,000 +0 = 5,00,000 + 40,000

(iv)-2,00,000+ 2,00,000
2,90,000 + 2,00,000 40,000 + 10,000 = 5,00,000 + 40,000
5,40,000 = 5,40,000

Bank+ Fixed Deposit+ Stock +Salary = Capital (S E) +Credito r (Ms.


Ritu)
2,90,000 + 2,00,000 + 40,000 + 10,000 = 5,00,000 + 40,000

(v)-25000 = -25000
2,65,000 + 2,00,000 +40,000 + 10,000 = 4,75,000 + 40,000
5,15,000 5,15,000

Journal entry In the books of for the period


Date / Sr No Particulars JF Debit Credit
Rs. Rs.
i. Bank a/c Dr. 5,00,000
To Capital a/c 5,00,000
[Being owner introduced Capital through
a cheque]

ii. Purchases a/c Dr. 40,000


To Ms. Ritu a/c 40,000
[Being goods bought on credit from
Ms. Ritu]

iii. Salary a/c Dr. 10,000


To Bank a/c 10,000
[Being salary paid by cheque]

iv. Bank a/c Dr. 2,00,000


To Investment in FD a/c 2,00,000
[Being money invested in a Fixed Deposit
as an investment]

v. Drawings a/c Dr. 25,000


To Bank a/c 25,000
[Being school fees of the owner paid
from company Bank account]

ANS2.
Financial accounting is a branch of accounting that focuses on
describing, summarizing, and reporting financial transactions in a
corporation, as well as preparing financial statements for public
consumption. Accounting uses a variety of terminology, some of which
are listed here :

1. Accounts payable : Accounts payable is the money owed by a


company to its suppliers, vendors, or creditors for goods or
services purchased on credit. Accounts payable is a short-term
loan that must be paid back immediately to prevent default. It
appears on a company's balance sheet as a liability. When a
restaurant receives a meat order on credit from an outside source,
this is an example of accounts payable.

2. Accounts Receivable : Accounts receivable refers to the money


owing to a company by customers for goods or services rendered.
When a meat supplier delivers meat orders to a restaurant on
credit, this is an example of accounts receivable. While the
restaurant accounts payable for the transaction, the meat supplier
accounts receivable as a current asset on its financial sheet.

3. Dividends : Dividends are payments made by a corporation to its


shareholders in exchange for their investment in the firm's equity.
Dividends can be paid in cash or in the form of extra equity.
Dividends may be paid on a regular basis or on a one-time basis.
Mutual funds and exchange-traded funds both pay dividends.

4. Assets : Assets are economically valuable resources that


corporations intend to generate future advantages. These can help
firms cut costs, increase cash flow, and increase sales. On their
balance sheets, businesses record their assets. Fixed, current,
liquid, and prepaid expenses are examples of assets. Long-term
resources such as buildings and equipment are examples of
assets. All assets that a corporation expects to utilise or sell within
a year are considered current assets. In a short period of time,
liquid assets can simply be converted to cash. Prepaid expenses
are payments made in advance for goods or services that will be
used in the future.

5. Balance Sheet : Balance sheets are financial statements providing


snapshots of organizations' liabilities, assets, and shareholders'
equity at specific moments in time. Balance sheets represent one
type of financial statement used to evaluate companies' financial
health and worth. Accountants use the accounting equation to
create balance sheets; 'Assets = Liabilities + Equity.'

ANS 3
3A.
Total purchases = closing stock minus opening stock plus cost of items
sold.
70-40+580= 610
Credit purchases = creditor closing balance + cash paid- creditor
opening balance = 100+45-60= 85
Cost of items sold + growth in inventories + rise in accounts = payment
to creditor
580+ 30-40= 570

3B.
Net book value : The amount at which an organisation registers an asset
in its accounting records is known as net book value.
The depreciation of an asset up to a single point in its life is known as
accumulated depreciation.

Gain from sale=Cash proceeds (X)- cost- cumulative depreciation

NBV= 400-80= 320


50= X- 400-80
50= X- 320 X= 370

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