Explain in brief, the limitations of financial accounting.

4

(a)

Explain the following:
(i) Matching concept
(ii) Duality concept (Dual aspect concept).

4

(a)

Mohit has following transactions. Prepare Accounting Equation:

	Particulars	Rs
(i)	Business started with cash	1,75,000
(ii)	Purchased goods from Rohit	50,000
(iii)	Sold goods on credit to Manish (costing 17,500)	20,000
(iv)	Purchased furniture for office use	10,000
(v)	Cash paid to Rohit in full settlement	48,000
(vi)	Cash received from Manish	20,000

4

(a)

State the rules of debit and credit according to the nature of accounts.

4

(a)

Describe how accounts are used to record information about the effects of transactions?

4

(a)

Prepare Bank Reconciliation Statement of Shri Bhandari as on December 31, 2014.
(i) The Payment of cheques for Rs 550 was recorded twice in the pass book.
(ii) Withdrawal column of the pass book under cast by Rs 200.
(iii) A Cheque of Rs 200 has been debited in the bank column of the Cash Book but it was not sent to bank at all.
(iv) A Cheque of Rs 300 debited to Bank account of the pass book had been omitted to be banked.
(v) Rs 500 in respect of dishonoured Cheque were entered in the pass book but not in the cash book. Overdraft as per pass book is Rs 20,000

4

(a)

How will you treat the balance of Suspense Account?

4

(a)

Rectify the following errors:
(i) Sales Book undercast by Rs 300.
(Ii) Purchases Book undercast by Rs 400.
(ill) Returns Inward Book undercast by Rs 200.
(iv) Returns Outward Book undercast by Rs 100.

4

(a)

Explain the concept of cost of goods sold?

4

(a)