Book ID- ( B1130 )
Assignment Set 1- (60 Marks) Note: Answer all the questions.
All Answers comming soon in future post.1. Accounting Principles are the rules based on which accounting takes place and these rules are universally accepted. Explain the principles of materiality and principles of full disclosure. Explain why these two principles are contradicting each other. Your answer should be substantiated with relevant examples. (10 Marks)
2. Journalize the below transactions, prepare relevant ledger accounts and finally trial balance. . ( 6+6+3 = 15 Marks)
M/s Ventak Enterprise Pvt Ltd. 01.01.2009
Started business with cash Rs. 2,00,000 Goods Rs. 1,00,000 Furniture Rs. 50,000
Opened Current Account with Rs. 1,00,000
Placed an order with Ritik for the supply of goods of the list price of Rs. 1, 00, 00.In this connection, we paid 9% of the list price as an advance by cheque.
Ritik supplied goods of the list price of Rs. 1, 00,000 less 12% trade discount. Packing and delivery charges Rs. 1,000.
Purchased goods from Murali of the list price of Rs. 1,00,000 less 12% trade discount and paid him by cheque under a cash discount of 5%
Received an order from Shyam for supply of goods of the list price of Rs. 1, 00,000 with an advance of 10% of list price.
Supplied the above goods at 10% trade discount. Packing and delivery charges Rs. 1000.
Goods costing Rs. 80,000 sold to Mr X at a profit of 20% on sales less 10% trade discount and 2% cash discount
Goods (cost Rs. 3,000, Sales Price Rs. 4,000) taken away by the proprietor for his personal use.
Shyam became insolvent and paid 80 paise in a rupee in full and final settlement
Paid Ritik 80% on account.
Goods (Cost Rs. 3,000 , Sales Price Rs. 4,000) stolen
Paid Life Insurance Premium Rs. 1,000.
Cash embezzled by an employee Rs. 1,000.