NIOS Free Solved Assignments (2020 - 2021) | ACCOUTANCY 224| ENGLISH MEDIUM TMA SECONDARY

Accountancy (224)
SECONDARY
Tutor Marked Assignment
Max. Marks: 20

Note:

(I) All questions are compulsary. The marks allotted for each question are given beside the questions.

(ii) Write your name enrollment numbers, AI name subject on the top of the first page of the answer sheet.

1. Answer any one of the following questions in about 40-60 words.      2

(a) Which problems you might face in using accounting? (See lesson 1)

Ans: Accounting is not fully perfect. We came across various problems of accounting some of which are listed below:

a)      According to records only those transactions which can be measured in monetary terms. There may be certain important non-monitory transaction but are not recorded.

b)      Effects of price level changes are not considered.

c)       Personal bias of accountant affects the accounting statement.

(b) Should accounting information be considered by investor at the time of investment? (See lesson 1)

Ans: Investors: The investors provide funds or capital for the organization. Investors, being businessmen, always keep an eye on the returns from the investment. Return on investment can be calculated with the help of accounting information. So, every investor must considered accounting information before making investment in the business.

Also Read:

1. Accountancy 224 (NIOS Free Solved Assignments (2019 - 2020)

2. Accountancy 224 (NIOS Free Solved Assignments (2020 - 2021)

3. Accountancy 224 (NIOS Free Solved Assignments (2021 - 2022)

 2. Answer any one out of the following questions in about 40 to 60 words.                         2

(a) You are running a business. Do you record the monetary and non-monetary transactions in accounting during business? Explain this concept with an example. (See lesson 2)

Ans: Money Measurement Concept: According to this concept, only those events and transactions are recorded in accounts which can be expressed in terms of money. Facts, events and transactions which cannot be expressed in monetary terms are not recorded in accounting. Hence, the accounting does not give a complete picture of all the transactions of a business unit. For example, if manager of the organisation is suffering from fever and cannot attend business for 3 days. This event cannot be recorded but due to absence of manager, a firm suffers a loss of Rs. 10,000. This loss is recorded in the books of account.

(b) It is necessary to have some assets to run a business. Explain the different forms of these assets with three examples each. (See lesson 3)

Ans: Assets: Any physical thing or right owned that has a money value is an asset. In other words, an asset is that expenditure which results in acquiring of some property or benefits of a lasting nature. Assets are necessary to run a business. Assets can be broadly classified into three types:

a)      Fixed Assets:  Fixed assets are further classified into three parts:

Tangible assets: For example, vehicle, plant and machinery, equipments.etc.

Intangible assets: For example, goodwill, trademark, patents, copyright etc.

Wasting assets or Depleting assets: For example, Oil well, coal mines, natural resources etc.

b)      Current Assets:  For example debtors (accounts receivable), bills receivable (notes receivable), stock (inventory) etc.

c)       Fictitious assets: For Example preliminary expenses, discount on issue of shares  and debentures etc.

3. Answer any one out of the following questions in about 40 to 60 words.                         2

(a) Explain the different forms of vouchers used in recording business transactions during accounting. (See lesson 5)

Voucher: A voucher is a written document in support of a transaction. It is a proof that a particular transaction has taken place for the value stated in the voucher. Voucher is necessary to audit the accounts. Vouchers can be classified as:

a) Cash Vouchers: Cash vouchers are documentary proof of cash receipts and payments. Cash vouchers are further classified as debit vouchers and credit vouchers.

Debit vouchers: These vouchers are prepared when cash payments are made to third parties.

Credit Vouchers: These vouchers are prepared when cash received by business.

b) Non Cash Vouchers: These vouchers are prepared to record credit and other non-cash transactions.

(b) Explain any four reasons behind the causes of difference in Cash Book of business and Bank Pass Book at the time of reconciliation. (See lesson 8)

Ans: The following are the causes of difference between balance as per cash book and pass book.

a)      Cheque issued but not yet presented for payment.

b)      Cheque deposited but not yet collected by the bank.

c)       Bank charges not entered in the cash book.

d)      Interest credited by bank but not debited in the cash book.

4. Answer any one out of the following questions in about 100 to 150 words.                     4

You are an accountant in a business. Journalise the following transactions. (See lesson 6)

(i) Started business with cash 30,000

(ii) Goods purchased in cash 12,000

(iii) Goods sold to Suresh 10,000

(iv) Stationary purchase 2,000

Journal Entries

In the Books of ____________

Date	Particulars	L.F.	Amount (Dr.)	Amount (Cr.)
(i)	Cash Account                                     Dr To Capital Account (For business started with cash)		30,000	30,000
(ii)	Purchases Account                            Dr To Cash Account (For goods purchased for cash)		12,000	12,000
(iii)	Cash Account                     Dr To Sales Account (For goods sold for cash)		10,000	10,000
(iv)	Stationery Account To Cash Account (For stationery purchase)		2,000	2,000

 

5. Answer any one out of the following questions in about 100 to 150 words      4

(a) Ramesh started business with cash of Rs 25,000. Prepare cash book from following transactions (See lesson 7)

(i) Goods purchased cash 7,000

(ii) Stationary purchased 1,200

(iii) Goods sold cash 5,000

(iv) Salaries paid 1,500

(v) Electric expenses paid 400

Simple Cash Book

In the Books of Ramesh

Date	Particulars	L.F.	Cash	Date	Particulars	L.F.	Cash
(a) (iii)	To Capital Account To Sales Account		25,000 5,000	(i) (ii) (iii) (iv)	By Purchases Account By Stationery Account By Salaries Account By Electric Expenses A/c By Balance C/d		7,000 1,200 1,500 400 19,900
			30,000				30,000

 

(b) You are sales manager in a firm. Prepare sales books mentioning the four imaginary transactions of sales made by you. (See lesson 9)

Ans: Write up Sales book from the following transactions of March, 2020:

Mar 1: Sold goods to Sitaram, Tinsukia – 60 metres silk @ Rs. 50 per metre less 10% trade discount. (Bill No.10)

Mar 10: Sold goods to Radheshyam, Dibrugarh – 30 metres silk @ Rs. 55 per metre less 10% trade discount. (Bill No.12)

Mar 20: Sold goods to Ramnarayan, Duliajan – 100 metres silk @ Rs. 45 per metre less 10% trade discount. (Bill No.17)

Mar 31: Sold goods to Brij Mohan, Makum – 100 metres silk @ Rs. 50 per metre less 10% trade discount. (Bill No.31)

Solution: 

Sales Day Book

Date	Particulars	Bill No.	L.F.	Details	Amount
2020 Mar 1	Sitaram, Tinsukia 60 metres silk @ Rs. 50 per metre Less: Trade Discount @ 10%	10     12     17     31		3,000 300	2,700     1,485     4,050     4,500
Mar 10	Radheshyam, Dibrugarh 30 metres silk @ Rs. 55 per metre Less: Trade Discount @ 10%			1,650 165
Mar 20	Ramnarayan, Duliajan 100 metres silk @ Rs. 45 per metre Less: Trade Discount @ 10%			4,500 450
Mar 31	Brij Mohan, Makum 100 metres silk @ Rs. 50 per metre Less: Trade Discount @ 10%			5,000 500
	Total of Sales Book				12,735

 6. Prepare a project on any one of the following.                             4

(a) Prepare a performa of bank reconciliation statement with imaginary figures. (See lesson 8)

Solution: Bank reconciliation statement is a statement which is prepared on a particular date to know the reasons for difference between bank balance shown as cash book and pass book. From the given below example, you can understand the process of preparation of bank reconciliation statement.

Prepare a Bank Reconciliation Statement as on 31.3.20 from the following Particulars:

(i) Bank Balance (Dr.) as on 31.3.2020 was Rs. 90,000 as per Cash Book.

(ii) Out of Rs. 30,000 paid to creditors by cheques, cheques amounting to Rs. 14,000 were encashed by him after 31.3.2020.

(iii) Cheques of Rs. 16,000 deposited into bank on 28.3.2020 but not collected by bank before 31.3.2020.

(iv) Bank charges of Rs. 1,000 and interest on deposits Rs. 2,000 were recorded in the Pass Book only.

(v) Dividend collected and credited by the bank but not recorded in the cash book Rs. 1,500.

(vi) A cheque of Rs. 850 deposited and credited by the bank was recorded in the cash book Rs. 580.

Bank Reconciliation Statement

As on 31^st March, 2020

Particulars	Amount	Amount
Balance as per Cash book Add: a) Cheques issued but not presented for payment b) Dividend Collected and credited by bank in pass book c) Bank Interest credited by bank d) A cheque of Rs. 850 deposited and credited by the bank was recorded in the cash book Rs. 580	14,000 1,500 2,000 270	90,000         17,770
Less: a) Cheques deposited but note entered in the pass book b) Bank charges debited by bank	16,000 1,000	1,07,770   17,000
Balance as per Pass Book		90,770

 (b) Prepare a performa of Bank column Cash Book with imaginary figures. (See lesson 7)

Solution: Prepare Bank Column cash Book of M/S Young Company from the following transactions for the month of September 2020.

Double column Cash Book

Date	Particulars	L.F.	Cash	Bank	Date	Particulars	L.F.	Cash	Bank
Sept. 1 Sept. 2 Sept. 15 Sept. 28	To Balance b/d To Sales A/c To Rajesh To Bank A/c	(c)	45,000 25,000   14,000	70,000   17,000	Sept. 19 Sept. 20 Sept. 25 Sept. 28 Sept. 29 Sept. 31 Sept. 31	By Furniture A/c By Drawings A/c By Rent A/c By Cash A/c By Salary A/c By Telephone Bill A/c By Balance C/d	(c)	12,000 14,000 8,000 3,000 47,000	22,000 16,000         49,000
			84,000	87,000				84,000	87,000