ECO-02 Solved Assignment 2019-20 (Accountancy-1) English Medium

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1. Define Accounting. What are its objectives? Briefly explain the accounting concepts which guide the accountant at the recording stage.
2. What are the various types of errors that are usually committed in the process of accounting? Explain with the help of examples.
3. Ram Das of Hyderabad consigned goods costing Rs. 72,000 to Prakash of Cochin at a pro-forma invoice price which is cost plus a profit of 1/6th on invoice price. The consignor paid Rs. 1,800 as insurance and other charges. Prakash received the goods and paid Rs. 3,000 for freight and other charges. He was allowed 3% commission on gross sales. 3/4th of the goods were sold at 33.33% profit on cost, half of which were credit sales. Half of the balance was stolen, but the stock being insured, a claim was lodged for Rs. 8,000 and was settled for Rs. 7,000. Balance of stock was valued at proforma invoice price. Write up the Consignment and the Abnormal Loss Accounts.
4. (a) Under what circumstances would you prepare Bills Receivable Account and Bills Payable Account while preparing final accounts from incomplete records? Explain
   (b) “Credit Sales can be ascertained either by preparing the total Debtors Account or with the help of Memorandum Trading Account.” Discuss.
5. (a) Describe the methods of recording depreciation in the books of account. How is the balance of the provisions for depreciation account shown in the Balance Sheet?
   (b) What is a secret reserve? Enumerate the method employed by a firm to create secret reserves. Critically evaluate the practice from the viewpoint of general investors and shareholders.