ECO-02 Accountancy-1 Solved Assignment 2021-22

Description

1. What is Bank Reconciliation Statement? How is it prepared? Explain the advantages of preparing a Bank Reconciliation Statement.

2. Give journal entries for the following adjustments and also explain the accounting treatment of these adjustments while preparing the Final Accounts of an Enterprise?
(i) Prepaid Expenses Rs. 5000
(ii) Interest on Drawings Rs. 1000
(iii) Provision for doubtful debts Rs. 3000
(iv) Loss of Goods by theft Rs. 6,000
(v) Abnormal Loss of Stock Rs. 5000

3. (a) Names the items which are recorded at the invoice price in the consignment account. Give journal entries passed for the adjustment of loading in respect of each item.
(b) “Joint Venture is a temporary partnership”. Comment and explain how is it different from Partnership.

4. What do you mean by conversion method? Describe the steps that are required to convert the accounts kept under single entry system into double entry system.

5. Differentiate between the following:
(a) Receipts and Payments Account and Cash Book?
(b) Income & Expenditure Account and Profit & Loss Account