Afb assignment
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This document contains 8 questions related to accounting concepts, financial statements, time value of money calculations, amortization schedules, and preparation of income statements and balance sheets from financial information provided. Specifically, it asks about the role of accounting concepts, defining accounting and its objectives, short notes on accounting principles like the entity concept and double entry system, calculating net present value of a project, making an amortization schedule for a loan, short notes on arbitrage, forward exchange rates and cross rates, preparing a bank reconciliation statement from transaction details, and using cash book information to prepare income statements and balance sheets for a club.
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.