Ignou solved assignment for PCO-01
1. (a) What do you mean by business? Explain various types of business activities.
(b) Name the different parties interested in accounting information and explain why do they want it.
2. The following balances appeared in the books of Sh. Ashok Chakravarti as on Ist January, 2013.
Assets – Cash Rs. 20,000; Stock Rs. 45,000; Anil Brothers Rs. 15,600; Gopal Rs.22,000; Machinery Rs. 60,000.
Liabilites – Mohan Kapur Rs. 4,000.
Following transactions took place in January 2013: -
January 3 Sold goods for Cash Rs. 5,000 and on credit Rs. 8,000 to Anil Brothers.
5 Anil Brothers returned goods for Rs. 2,000.
7 Purchased goods from Mohan Kapur, list price of Rs. 6,000 Valued at Rs. 5,400.
8 Bought goods of the list price of Rs. 20,000 from Raghu Thakur, less 15% trade Discount and 5% cash discount and paid 60% price immediately.
15 Paid to Mohan Kapur Rs. 9,150 in full settlement of his account.
20 Received from Anil Brothers Rs. 20,000
28 Paid Rs. 800 for the Life Insurance Premium of the proprietor.
31 Paid for Rent Rs. 2,000
31 Received for commission Rs. 600.
Pass Journal Entries for the above transactions, post them into Ledger, balance the accounts and prepare a Trail Balance.
3. Prepare a Bank Reconciliation Statement as on 30th September, 2013 from the following particulars:
Rs.
(i) Bank balance as per the Pass-book 10,000
(ii) Cheque deposited into the bank, but no entry was passed in the Cash-book 500
(iii) Cheque received and entered in the Cash book but not sent to bank 1,200
(iv) Credit side of the bank column Cash book cast short 200
(v) Insurance Premium paid directly by the bank under the standing advice 600
(vi) Bank charges entered twice in the Cash book 20
(vii) Cheque issued, but not presented to the bank for payment 500
(viii) Cheque received entered twice in the Cash book 1,000
(ix) Bill discounted dishonoured not recorded in the Cash book 5,000
4. (a) How would you determine whether a particular expenditure is capital or revenue? Give five examples of each.
(b) Distinguish between cash basis and accrual basis of accounting with examples.
5. (a) What are one-sided errors? Give five examples. Explain the method of rectifying one- sided errors.?
(b) What is meant by provision for bad-debts? Explain the treatment of provision for bad- debts in final accounts.
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University: IGNOU Year: 2015