Advertisements
Advertisements
प्रश्न
What is a Computer? Explain limitations of computerised accounting systems ?
उत्तर
A computer is an electronic device that is used to carry out a finite number of operations. It is an electronic machine that receives data, manipulates it and provides the useful information. Computers can be used for various accounting purposes as well. There are many software such as Tally, Busy, etc. which are installed in the computers to perform the accounting function.
Computerised accounting is a system that is based on the concept of database. It is an accounting information system that processes the financial transactions and events in accordance with the Generally Accepted Accounting Principles (GAAP) to produce reports as per the requirements of the users. Computerised accounting system maintains systematic and accurate records of financial information. It also saves cost and time.The following are the limitations of Computerised Accounting System:
1. Human errors: Although transactions recorded under computerised accounting system are more reliable and accurate, human errors may occur at the time of installation of a computer or at the time of entering data.
2. Cost of installation and maintenance: The cost of accounting software includes cost of installing the related components and hardware, maintenance and alteration costs, cost of training the staff and the cost involved in recovering data in case of data failure. Thus, computerised accounting system also involves huge costs.
3. Level of secrecy: The level of expected security is another limitation of this system. The software that is installed for this system should be able to prevent unauthorised access and manipulation of data.
4. Power failure: Most businesses have to cope with frequent power failures. Computerised accounting system is of no use without electricity. Power failure may also result in the loss of accounting information.
APPEARS IN
संबंधित प्रश्न
What is bad debts?
Shri Yashraj and Company, Kolhapur, purchased furniture for Rs 60,000 on 1.4.2007.On 1.10.2009 the company sold out a part of the furniture for Rs 6,000, the original cost of which on 1.4.2007 was Rs 12,000.
The company charges depreciation at the rate of 10% p.a. on Reducing Balance method. The financial year of the company ends on 31st March, every year.
Prepare: Furniture Account and Depreciation Account for the years 2007-08, 2008-09, 2009-10.
Answer in one sentence only.
What is the Balance Sheet?
Answer in one sentence only.
State the meaning of debit balance of Trading Account.
Answer in one sentence only.
What do you mean by carriage inward?
Give the word / term or phrase which can substitute the following statement.
The credit balance of Trading Account.
Select the most appropriate alternative from those given below and rewrite the statement.
All indirect expenses are debited to_________________ account.
Select the most appropriate alternative from those given below and rewrite the statement.
A statement showing financial position of the business is called as _________________.
Select the most appropriate alternative from those given below and rewrite the statement.
To find out net profit or net loss of the business _________________ account is prepared.
Select the most appropriate alternative from those given below and rewrite the statement.
Final accounts are prepared on the basis of _________________ and adjustments.
State whether the following statement is True or False.
All direct expenses are debited to Trading account.
State whether the following statement is True or False.
Partners must share profits and losses equally.
Give the word / term or phrase which can substitute the following statement.
An asset which can be converted into cash immidiately.
Answer in One Sentence:
Why Balance Sheet is prepared?
Answer in One Sentence:
What do you mean by Gross Profit?
Answer in One Sentence:
State the meaning of Accrued Income?
Balance sheet is ______.
Current assets does not include ______.
From the following Trial Balance of Sanjiv & Sons. Prepare Trading Account and Profit & Loss Account for the year ending on 31st March 2019 and a Balance Sheet as on that date.
| Particulars | Debit Amount (₹) | Credit Amount (₹) |
| Opening stock | 22,000 | |
| Purchases & Sales | 1,78,000 | 4,60,000 |
| Carriage Outward | 4,800 | |
| Plant and Machinery | 50,000 | |
| Debtors and Creditors | 44,000 | 76,000 |
| Returns | 2,000 | 4,000 |
| Buildings | 58,000 | |
| Motor Van | 40,000 | |
| Printing & Stationery | 3,000 | |
| Wages | 28,000 | |
| Reserved for Bad debts | 3,200 | |
| Commission | 2,400 | |
| Office expenses | 5,400 | |
| Carriage | 9,000 | |
| Furniture | 20,000 | |
| Premises | 81.000 | |
| Loose Tools | 20,400 | |
| Drawings | 24,700 | |
| Bank Overdraft | 22,000 | |
| Cash in hand | 71,000 | |
| Dividend | 3,300 | |
| Capital | 1,40,000 | |
| Salaries | 44,000 | |
| Bills Receivable & Bills Payable | 5,600 | 8,400 |
| Bad debts | 2,400 | |
| Advertisement (for 3 year) | 6,000 | |
| 7,19,300 | 7,19,300 |
Additional information:
- Closing stock on 31st March, 2019, was at cost ₹ 60,000 and Market Price ₹ 70,000.
- Outstanding expenses: Wages ₹ 4,000, Salary ₹ 2,400
- Provide depreciation at 10% on Motor Van and 5% on Furniture.
- Write off ₹ 2,000 for bad debts and create R.D.D. at 5% on debtors.
- Provide 10% p.a. interest on capital.
From the following Trial Balance of Nandini & Co. as of 31st March 2019. Prepare Final Accounts after considering the adjustments given below.
| Particulars | Debit Amount (₹) | Credit Amount (₹) |
| Loose Tools | 1,10,000 | |
| Furniture & Fixtures | 81,000 | |
| Bad debts | 1,400 | |
| Sundry Debtors | 81,600 | |
| Stock (31st March 2018) | 52,000 | |
| Purchases | 77,000 | |
| Sales Cash | 21,000 | |
| Sales Credit | 81,000 | |
| Returns | 400 | 600 |
| Advertisements | 4,800 | |
| Rate taxes & Insurances | 6,000 | |
| Repairs & maintenance | 1,200 | |
| Salaries (2/3rd for factory) | 18,000 | |
| Rent (Paid for 11 months) | 2,200 | |
| Machinery (Includes ₹ 24,000 | 84,000 | |
| purchased on 1st Oct. 2018) | ||
| Capital | 3,60,000 | |
| R.D.D. | 8,000 | |
| Sundry Creditors | 70,000 | |
| Drawings | 14,000 | |
| Interest | 1,200 | |
| Dividend | 2,800 | |
| Bank Balance | 40,000 | |
| Royalty | 6,000 | |
| 9% Bank loan (30th Sept 2018) | 40,000 | |
| Carriage Outwards | 4,000 | |
| Discount | 1,000 | |
| 5,84,600 | 5,84,600 |
Adjustments:
1. Closing stock valued at ₹ 1,00,000.
2. Write off ₹ 2,000 as bad debts and create a provision for doubtful debts @ 5% on Sundry Debtor.
3. Depreciate Machinery by 10% p.a. and Loose Tools is valued at ₹ 1,00,000.
4. Charge Interest on Capital @ 2% p.a.
Prepare Final accounts of Abdul Traders for the year ending 31st March 2019 with the help of the following Trial Balance and Adjustments.
Trial Balance as of 31st March 2019.
| Debit Balance | Amount (₹) | Credit Balance | Amount (₹) |
| Salaries | 10,000 | Interest Received | 2,400 |
| Purchases | 71,400 | Capital | 1,60,000 |
| Rent (11 months) | 2,200 | Sales | 85,000 |
| Machinery | 56,000 | Provision for Bad Debts | 2,000 |
| Advance against wages | 4,000 | Commissions Received | 1,600 |
| Opening stock | 20,000 | Bills Payable | 9,200 |
| Bad debts | 1,000 | Creditors | 56,000 |
| Prepaid Insurance | 2,400 | ||
| Wages | 2,600 | ||
| Loose Tools | 26,000 | ||
| Commission receivable | 400 | ||
| Sundry Debtors | 64,000 | ||
| Cash | 1,000 | ||
| Bank | 3,000 | ||
| Drawings | 7,600 | ||
| Freight Inward | 1,000 | ||
| Bills Receivable | 13,600 | ||
| Loan to Aruna | 30,000 | ||
| 3,16,200 | 3,16,200 |
Adjustments:
1. Closing stock valued at ₹ 89,600
2. Outstanding expenses Salaries ₹ 2,000, Wages ₹ 4,000
3. Charge depreciation on Machinery @ 10%
4. Bad debts are written off ₹ 2,000 and create a provision for bad and doubtful debts 5% on Sundry Debtors.
Following are the closing ledger balances of Deepak & Co. Prepare Trading Account and Profit & Loss Account for the year ended 31st March 2019 and Balance sheet as of that date.
Ledger Balances of Mr. Deepak and Co. as of 31st March, 2019
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| Bank | 30,000 | Capital | 1,20,000 |
| Bills Payable | 7,500 | Insurance Premium | 18,000 |
| Furniture | 19,500 | (1.1.2019 to 31.12.2019) | |
| Commission Received | 3,000 | Salaries | 30,000 |
| Stock (1.4.2018) | 27,000 | Bank loan | 30,000 |
| Building | 37,500 | Sundry expenses | 7,500 |
| Wages | 7,500 | Interest paid | 1,500 |
| Creditors | 37,500 | Machinery | 25,500 |
| Bad Debts | 4,500 | Sales | 96,000 |
| R.D.D. (old) | 3,000 | Purchases | 42,000 |
| Sales Returns | 1,500 | Debtors | 31,500 |
| Purchases returns | 3,000 | ||
| Cash in hand | 16,500 |
Adjustments:
1. Closing stock was valued at ₹ 60,000
2. An amount of ₹ 3,000 is still to be received on account of commission.
3. Provision for discount on debtors and Provision for discount on Creditors are to be created 2% and 3% respectively.
4. Amount of Furniture is to reduce by ₹ 4,500 and Building by 10%.
5. Outstanding expenses Salaries ₹ 4,500 and Wages ₹ 1,500.
From the following Trial Balance of Shradha Enterprises, you are required to prepare Final Accounts for the year ending on 31st March 2019.
Trial Balance as of 31st March 2019
| Debit balances | Amount (₹) | Credit Balances | Amount (₹) |
| Opening Stock | 2,40,000 | Capital | 13,00,000 |
| Purchases | 8,50,000 | Sundry Creditors | 1,20,000 |
| Returns Inward | 15,000 | Bills Payable | 60,000 |
| Wages | 29,000 | Sales | 25,00,000 |
| Power and Fuel | 21,800 | Return Outward | 8,000 |
| Travelling Expenses | 14,700 | Discount | 2,000 |
| Audit fees | 7,000 | Bank Overdraft | 1,54,000 |
| Royalty | 72,000 | Reserve for Bad and doubtful debts | 8,000 |
| Discount | 1,750 | ||
| Postage | 13,500 | ||
| Bad debts | 3,000 | ||
| Sundry Debtors | 5,20,000 | ||
| Furniture | 1,20,000 | ||
| Plant & Machinery | 15,00,000 | ||
| Freehold Premises | 7,02,000 | ||
| Rent, Rates and Insurance | 42,250 | ||
| 41,52,000 | 41,52,000 |
Adjustments:
1. Insurance is prepaid to the extent of ₹ 2,250
2. Closing stock is valued at ₹ 3,80,000 Cost price and ₹ 4,00,000 as Market price.
3. Outstanding Expenses are Wages ₹ 6,000 and Rent ₹ 5,000
4. Write off further had debts ₹ 1,500 and provide 5% Reserve for doubtful debts.
5. Depreciation on Furniture and Plant and Machinery at 10% p.a. and on Freehold Premises at 15% p.a.
From the following Trial Balance of John & Sons, you are required to prepare Trading Account, Profit and Loss Account for the year ending 31st March 2019 and Balance Sheet as of that date.
Trial Balance as of 31st March 2019
| Debit balances | Amount (₹) | Credit Balances | Amount (₹) |
| Drawings (1st July 2018) | 12,000 | Sundry Creditors | 40,000 |
| Cash in hand | 8,000 | Returns | 4,500 |
| Cash at Bank | 20,000 | Dividend | 100 |
| Bills Receivable | 15,000 | Rent | 200 |
| Wages | 1,800 | Sales | 53,200 |
| Discount | 700 | Bank Loan | 5,000 |
| Rent | 2,000 | Capital | 99,700 |
| Advertisement | 3,000 | ||
| Bad debts | 1,200 | ||
| Travelling Expenses | 800 | ||
| Purchases | 40,000 | ||
| Machinery | 15,000 | ||
| Motor Car | 18,000 | ||
| Returns | 1,200 | ||
| Stock (1st April 2018) | 10,000 | ||
| Sundry Debtors | 35,000 | ||
| Carriage outwards | 1,000 | ||
| 6% Investment | 18,000 | ||
| (1st Sept 2018) | |||
| 2,02,700 | 2,02,700 |
Adjustments:
1. Closing Stock ₹ 27,000
2. Charge Depreciation on Machinery and Motor car @ 10% and 5% respectively.
3. Create R.D.D. 5% on Sundry Debtors
4. Interest on Drawings @ 5% p.a.
5. Create Discount on Sundry Creditors 3%
6. Advertisement ₹ 1,000 is prepaid.
7. Outstanding Rent ₹ 1,500
