ECO-02 Accountancy-1 Solved Assignment 2022-23

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Q1. (a) “Ledger is said to be the principal book of entry and the transactions can even be directly entered into the ledger account.” Elaborate on the statement and explain why Joumal is necessary.
(b) What is the purpose of noting on the bill? Is it necessary in case of a promissory note?

Q2. Why is distinction between capital and revenue important? Give examples to show, how wrong classification can affect the ascertainment of profit.

Q3. X of Bangalore consigned 100 bags of cement for sale to his agent Y. Cost price of each bag is Rs. 120. ‘X’ immediately drew a 4 months bill for Rs. 5,090 on the latter and discounted it with bank at 6% per annum. ‘X’ paid Rs. 800 on packing
and Rs, 250 for carriage. ‘Y’ spent Rs. 300 as selling expenses. The consignee returned 5 bags. He realised 20 bags at Rs. 130 per bag and 50 bags on credit at Rs. 140 per bag and took the balance in his own stock at Rs. 135 per bag. Consignee is entitled to get commission of 3% and 2% del credre commission on credit sales. ‘Y’ recovered all money from debtors except Rs. 500. Prepare the necessary ledger accounts in the books of both parties.

Q4. What is Sectional Balancing? How does it differ from Self-balancing? Give proforma of a Total Debtors Account.

Q5. Differentiate between the following:
(a) Trading Account and Manufacturing Account
(b) Non-recurring and Recurring Expenses