MB0041- Financial & Management Accounting - November Drive 2010(spring 2011)

Nov 2010

MBA- I semester

MB0041- Financial & Management Accounting – 4 Credits

Book ID- ( B1130 )

Assignment Set 1- (60 Marks)

Note: Answer all the questions.

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.


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