Mb0041-Financial and Management Accounting-4 Credits
Accounting concepts: Accounting is the talk of occupation.
Accounting advice has to be accordingly commemorative classified, summarised and offered. Accountants annex the subjoined concepts in chroniclesing of recitals 1. Occupation Entity concept The occupation individual is treated as a contrariant and definite from the men-folks who owe it.Hence occupation profitsings must be kept fully contrariant from the retired affairs of the owner this concept enables the owner top conestablished the reoffer of a occupation. 2. Going moment concept It is productive that the occupation conciliate hold for the advenient and profitsings are commemorative from this object of apprehension. A established is said to be a going moment when there is neither the sketch nor the indigence to wriggle up its action.
In other vote, it abides to action at its offer lamina in foreseeable advenient. 3. Coin Measurement Concept All profitsings are developed and interpreted in stipulations of coin.Accounting memorials barely those profitsing, which are substance developed in monetary stipulations through quantitative memorials are also kept. 4. Accounting duration concept A occupation is productive to abide indefinitely. In regulate to conestablished the detailize of affairs of the occupation at contrariant cessations we accept to elect the cessations for confirming the financial posture and actional remainders at each such cessation, which is understandn as recitaling duration.
5. Dual Phase concept Each profitsing has two phases. 1) Debit phase. 2) Praise phase. If a occupation has adventitious an asset it must accept remainder,There has been a gain redundant to an growth in the equality that the occupation owes to the owner Accounting Principles: The enfold minute regularity of recitaling is established on a set of faculty which is named generally accepted recitaling facultys. It incorporates the concord at a detail age as to: •Which economic resources and obligations should be commemorative as goods and liabilities by financial recitaling, •Which changes in goods and liabilities should be commemorative •When these changes are to be commemorative, •How the goods and liabilities and changes in them should be measured, •What advice should be public and Which financial detailizement should be prompt. Q .
2 Pass Journal entries for the subjoined profitsings. Solution: Journal DateParticulars LfDebitCredit Money A/C Dr To significanceant A/C (Being Madan invested in occupation) Escheatment A/c Dr To money A/C (Being praise escheatments) Drawing A/C Dr To money A/C (Being money minor for idiosyncratic use) Escheatment A/C Dr To money A/C (Being money escheatment)Wages A/C Dr To money A/C (Being remuneration remunerated)70000 14000 3000 12000 5000 70000 14000 3000 12000 5000 Q. 3Explain the multiform forms of blunders public by experiment et Ans: Those blunders that can be public by experiment et can largely be located. As quickly as the experiment et does not fit, the recitalant can profits to asundeniable out the spots where the blunders ability accept been committed. The sum equality of contrariety in the experiment et is temporarily epidemic to a “Suspense Recital “so that it can be subordinate as and when the bllower get rectified.Therefore the uncertainty recital get debited or praiseed as the condition may be on restitution of these forms of blunder. The subjoined are blunders: a) Posting a evil-doing equality; This reach may befall opportunity posting an minute from adjuvant magnitude to ledger.
b) Posting to the evil-doing policy of an recital: This bllower is committed opportunity posting entries from adjuvant magnitude to ledger. c) Evil-doing sumling: Both lower casting and et casting are detected by experiment et. if any recital is evil-doingly sumled, it gets reflected in the experiment et. ) Omitting to post an minute from adjuvant magnitude to ledger: If an minute made in the adjuvant magnitude does not get posted to ledger, the experiment et does not fit. e)Omission of an recital combined from substance I shown in experiment et. f) Posting an equality to a emend recital past than once; This remainder is imet in experiment et. g) Posting an part to the selfselfidentical policy of two contrariant ledger recitals: If two recitals are debited/credited for the selfselfidentical profitsing, this form of bllower befalls.
Q. 4 From the subjoined ets extracted from copy et, lay trading Account. Solution: The delaydrawal supply at the end of the duration is Rs. 6000 TRADING ACCOUNT FOR THE YEAR ENDING------ Dr Particulars Rs Cr Particulars Rs To supply on 1-1-200470700 To escheatment 102000 (-) Returns Outwards 3000 99000By sales 250000 (-)Returns Inwards 3000 247000 To mien inwards5000By delaydrawal supply56000 To significance duty6000 To purification charges7000 To Royalty10000 To Fire Insurance2000 To Wages8000 To Gas,electricity,water4000 To GROSS PROFIT91300 TOTAL303000TOTAL303000 Q. 5Differentiate Financial Accounting and skillful-treatment recitaling. Ans: S. NoBasis of contrarietyFinancial recitalingManagement Accounting 1.
. 3. 4. 5. 6. Object Nature Subject substance Compulsion Precision ReportingTo chronicles multiform profitsing in regulate to understand the financial posture. It is advantageous to portion-out holders, praiseors, bankers etc.
It is chiefly momented delay the literal postulates. It is momented delay assessing the remainders of the well occupation. It is well-founded in undeniable lowertakings Express figures are commemorative and there is no space for using border figures It is prompt to asundeniable out gainability and financial posture of the moment. It is advantageous for outsiders. To succor the skillful-treatment in formulating policies and plans.It deals delay the convexity of postulates for the advenient. It deals contrariantly delay contrariant individuals, Department and require centres.
It is not well-founded No employee is ardent to express figures. the border figures are past advantageous than the straight figures It is barely for inside use. Q. 6 Subjoined is the Et subterfuge of M/s Srinivas Ltd. you are required to lay a stock issue detailizement.