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Afb assignment
1. Q1. Examine the role of accounting concepts in the preparation of financial statements?
Q2. Define Accounting and also describe the need and objectives of accounting?
Q3. Write short note on:-
a) Entity Going Concern
b) Double Entry System
c) Accrual & Cash Basis of Accounting
Q4. Calculate the net present value for Machine X which initially costs Rs 100000 and generates year and
cash flows of Rs 40,000 , Rs 36000, Rs 32000, Rs 28000, Rs 24000 respectively for five years. The
discounting rate has been fixed 10% by the management. Is it a worthwhile project?
Q5. A debt of Rs 22000 with interest at j4 = 10% is amortized by the payments of Rs 5,000 at the end of
each quarter for as long as necessary. Make out an amortization schedule the distribution of payments
as the interest and the repayment of principle?
Q6. Write short note on:
a) Arbitrage
b) Forward Exchange Rate
c) Cross Rate
Q7. Prepare a Bank Reconciliation Statement as on 30 April, 2014 from the following particulars:
a) Overdraft balance as per the Pass Book, was Rs 12,000 as on 30 April, 2014
b) On 28 April cheques have been issued for Rs 7000 of which cheques of Rs 3000 only had been
encashed upto 30 April 2014.
c) Cheques amounting to Rs 3500 had been deposited into the bank for collection, but of these
only Rs 500 had been credited in the pass book.
d) Bank had charged an interest aon an overdraft of Rs 500, the intimation of which was received
only on 4 May.
e) Bank pass book shows a credit for Rs 1000 representing Rs 400 paid by a debtor directly into the
bank and Rs 600 collected by bank in respect of interest on investment. The trader received no
intimation of these.
f) Bank has debited Rs 1,200 because of life insurance premium of the trader the advice for the
same was issued by the bank of 6 May.
2. Q8. From the following information relating to Maharaja Club, prepare the income and expenditure
account for the year ended 31 March, 1998 and the balance sheet as on that date. The Cash book is
a s under:-
Receipts Rs. Payments Rs.
To membership
Subscription
5,000 By Unkeep of Field and
Pavillion
2,000
To Member,s
Admission Fess
300 By Tournment Exp 700
To Sale of Old Ball and
Bats
50 By Telephone 50
To Ground Rent 300 By Stationery 100
To Subscriptions for
Tournment
1000 By General Charges 50
To Bank Cash Drawn 4000 By Secretary
Honararium
170
To Donations 10000 By Grass Seeds 30
By Bats and Balls 700
By Bank lodgement 16650
TOTAL 20,650 TOTAL 20,650
Assets on 1 April 1997:
Cash at Bank Rs 3000
Stationary RS 300
Stock of Bats & Balls Rs 1500
Subscription Due Rs 500
Donations and surplus on account of tournament should be kept in reserve for a permanent pavilion.
Subscription due as on 31 March 1998 are Rs 750. Write off 50% of bats and balls and and 25% of
printing and stationery accounts.