Assignment questios/Practice questions:

Discuss: Capital expenditure and revenue expenditure

Trade Discount and Cash discount

Write short notes on:

Error of commission and error of omission

Liquidity and Solvencyes

Money measurement concept

Matching concept

Business entity concept

Different types of accounts

Different liquidity ratio

1) Discuss Accounting cycle?

2) Distinguish between Calls in Arrears and Amount paid in advance
3) Discuss: Current Assets Vs Current Liabilities
4) Distinguish between Prepaid Expenses Vs Outstanding expenses
5) Distinguish between Carriage Inwards & Carriage Outwards
6) Distinguish between Profit & Loss account and Balance Sheet.
7) Discuss: Simple Journal Entries Vs Compound Journal Entries

8) Discuss advantages and limitations of ratio analysis.

9)Distinguish between Concepts and Conventions

(10) Distinguish between Journal and Ledger.

(11)Discuss the various users of Accounting information.

(12) Discuss: (i) Authorised Capital (ii) Issued Capital (iii) Subscribed Capital

(iv) Called up capital (v) Paid up capital (vi) Reserve capital

(13) Following is the Balance sheet of PQR Ltd. as on 31-03-2014: (7.5 Marks)

Liabilities Amount (Rs.) Assets Amount (Rs.)

Share capital 6,00,000 Fixed Assets 10,00,000
Reserves & Surplus 4,20,000 Current Assets:
Long term Loans 11,60,000 Stock 12,00,000
Bank OD 3,50,000 Debtors 5,00,000
Current Liabilities 4,70,000 Bank 3,00,000
Total 30,00,000 Total 30,00,000

Income Statement for the year ended 31-03-2014”

Particulars Amount (Rs.)

Net Sales (Credit) 40,00,000
Cost of Goods Sold 25,00,000
Gross Profit 15,00,000
Operating Expenses 9,20,000
Non Operating Profits 20,000
Operating Profit 5,80,000
EBIT 6,00,000
Interest 1,80,000
Profit Before Tax 4,20,000
Tax 2,20,000
Profit After Tax 2,00,000
Calculate the following ratios and give your interpretation:

1.Current Ratio

2. Acid Test ratio

3.Absolute Liquid ratio

4.Net working capital

5.Total Debt Equity Ratio

6.Average Collection Period

7.Total Assets Turnover

8.Gross Profit Margin

9. Net Profit Margin

Practical questions:

Why do you think there has to be a regulatory environment in the accounting perspective? What as an
entrepreneur would you look for from the regulatory environment?

What is the different kind of business forms or associations would you like to form as an entrepreneur.
What are the advantages that could accrue from your choice of business from that you would like to
register as.
What does a trial balance indicate and what further analysis needs to be made to make it
comprehensive.

What are the different kinds of accounting conventions and how would you personally classify them
with reference to the double entry principles with examples.

As an accounting professional what kind of a job skill do you think will help you grow in your chosen
field.

The company financials shows a current ratio of 1:1 and a quick ratio of 1:1. In your opinion comment
on the short term liquidity of this firm and suggest measures if any to improve the same.

Why a knowledge of accounting and finance is considered indispensable in the current market scenario.