Scribd Logo
Upload

Welcome to Scribd!

  • 35 views

    Gradable Assignment (30 Marks) : Subject: MAA Marks: 30 Prof. Lakshmi Narasimhan

    Uploaded by

    Naveen Kumar
    The document describes a gradable assignment involving accounting concepts and principles. It provides 10 situations and requires stating the accounting assumption or principle that describes each. It also provides an incorrectly classified balance sheet that needs correcting. Finally, it provides 3 independent questions involving the accounting equation to calculate owners' equity, liabilities, and total assets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Gradable Assignment (30 Marks) : Subject: MAA Marks: 30 Prof. Lakshmi Narasimhan

    Uploaded by

    Naveen Kumar
    35 views4 pages
    The document describes a gradable assignment involving accounting concepts and principles. It provides 10 situations and requires stating the accounting assumption or principle that describes each. It also provides an incorrectly classified balance sheet that needs correcting. Finally, it provides 3 independent questions involving the accounting equation to calculate owners' equity, liabilities, and total assets.

    Original Description:

    MAA assignment

    Original Title

    MAA Assignment

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document describes a gradable assignment involving accounting concepts and principles. It provides 10 situations and requires stating the accounting assumption or principle that describes each. It also provides an incorrectly classified balance sheet that needs correcting. Finally, it provides 3 independent questions involving the accounting equation to calculate owners' equity, liabilities, and total assets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    35 views4 pages

    Gradable Assignment (30 Marks) : Subject: MAA Marks: 30 Prof. Lakshmi Narasimhan

    Uploaded by

    Naveen Kumar
    The document describes a gradable assignment involving accounting concepts and principles. It provides 10 situations and requires stating the accounting assumption or principle that describes each. It also provides an incorrectly classified balance sheet that needs correcting. Finally, it provides 3 independent questions involving the accounting equation to calculate owners' equity, liabilities, and total assets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 4

    Gradable Assignment (30 marks)

    Subject: MAA
    Marks: 30
    Prof. Lakshmi Narasimhan
    1. Given here are a few situations:
    a. Personal and business transactions are separately maintained.
    Economic entity concept
    b. Inventory is recorded at its purchase price.
    Cost concept
    c. The death of the chief executive officer of the company is not recorded in accounts.
    Money measurement concept
    d. In case of doubt, it is considered better to understate rather than overstate income.
    Prudence and conservative concept
    e. Assets are not stated at their liquidation value.
    Going concern concept
    f. Financial Statements are prepared on an annual basis.
    Periodicity concept
    g. Expenses are recognized in the same period as the related revenues.
    Matching concept
    h. Revenue is recognized when it is earned and expense is recognized when it is incurred.
    Prudence and conservative concept
    i. The accounting records only events that affect the financial position of the entity and at the
    same time can be reasonably determined in monetary terms.
    Money measurement concept
    j. Same treatment is given to comparable transactions from period to period.
    Consistency concept

    REQUIRED
    State the accounting assumption or principle that describes each of the given situations.

    2. The manager of a company who did not have proper accounting knowledge prepared the
    following balance sheet. He has wrongly classified the items under assets, liabilities and
    owners’ equity.
    Owner’s Equity and Rs Assets Rs
    Liabilities
    Share Capital 10,00,000 Retained Earnings 5,00,000

    Equipment 9,00,000 Land and Buildings 7,00,000


    Cash 2,00,000 Long – term loan 4,00,000
    Accounts Payable 2,00,000

    Accounts 3,00,000
    Receivables
    21,00,000 21,00,000

    Answer:
    Liabilities Rs Assets Rs
    Share Capital 10,00,000 Equipment 9,00,000

    Retained Earnings 5,00,000 Land and Buildings 7,00,000


    Long – term loan 4,00,000 Cash 2,00,000
    Accounts Payable 2,00,000 Accounts 3,00,000
    Receivables

    21,00,000 21,00,000

    REQUIED:
    Prepare the correct Balance sheet.
    3. Using Accounting Equation, Answer the following independent Questions.

    a) New Company’s assets are Rs 250 lakh and its external liabilities are of Rs 100 lakh,
    determine the amount of owner’s Equity.
    b) Royal Industries has total assets of Rs 100 lakh and owners’ Equity of Rs 70 lakh, Compute
    the amount of external liabilities.
    c) Small Enterprise has following amounts appearing in Balance Sheet as at 31 st December,
    2015:
    Capital Rs 50 lakh, Reserves and undistributed profits Rs 15 lakh, and total external
    liabilities Rs 35 lakh, Determine the amount of total assets.

    Answer:
    a) New Company assets – 250 lakhs
    External Liability – 100 lakhs
    Owners Equity – 150 lakhs
    b) Royal Industries assets – 100 lakhs
    Owners Equity – 70 lakhs
    Total External Liability – 30 lakhs
    c) Capital – 50 lakhs
    Reserves – 15 lakhs
    Liability – 35 lakhs
    Total assets – 100 lakhs

    4. Journalize the following transactions, Post them into ledger account and Prepare a Trial
    Balance
    2017
    March – 1 Commenced business with cash Rs.1,00,000
    March – 2 Purchased goods for cash Rs. 25,000
    March – 3 Purchased furniture for cash Rs. 6,000
    March – 5 Purchased goods from Suresh on credit Rs. 5,000
    March – 7 Sold goods for cash Rs. 30,000
    March – 10 Sold goods to Mahesh on credit Rs. 25,000
    March – 12 Returned goods to Suresh Rs. 500
    March – 13 Mahesh returned us goods worth Rs. 500
    March -15 Paid Rs. 4,450 to Suresh by cheque in full settlement of his account
    March – 20 Received a cheque of Rs. 24,450 from Mahesh and gave a discount of Rs. 50
    March – 25 Withdrew cash for personal use Rs. 2,500
    March – 28 Paid rent of Rs. 5,000 and Salary Rs. 6,000 by cheque
    MA Assignment.xlsx
    Answer:

    You might also like