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Free CBSE - Class 11 Accountancy - Theory Base of Accounting worksheets

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1.
Ruchica’s father is the sole proprietor of ‘Friends Gifts’, a firm engaged in the sale of gift items. In the process of preparing financial statements, the accountant of the firm Mr. Goyal fell ill and had to proceed on leave. Ruchica’s father was urgently in need of the statements as these had to be submitted to the bank, in pursuance of a loan of ₹ 5 lakh applied for the expansion of the business of the firm. Ruchica who is studying Accounting in her school, volunteered to complete the work. On scrutinising the accounts, the banker found that the value of building bought a few years back for ₹ 7 lakh has been shown in the books at ₹ 20 lakh, which is its present market value. Similarly, as compared to the last year, the method of valuation of stock was changed, resulting in value of goods to be about 15 per cent higher. Also, the whole amount of ₹ 70,000 spent on purchase of personal computer (expected life 5 years) during the year had been charged to the profits of the current year. The banker did not rely on the financial data provided by Ruchica. Advise Ruchica for the mistakes committed by her in the preparation of financial statements in the context of basic concepts in accounting.
2.
State how the GST rates will be applicable if \(CGST\) is 9%, \(SGST\) is 9% and \(IGST\) 18% in each of the following situations: Dealer B sell goods to Sunita in Gujarat worth ₹ 30,000.
3.
The realisation concept determines when goods sent on credit to customers are to be included in the sales figure for the purpose of computing the profit or loss for the accounting period. Which of the following tends to be used in practice to determine when to include a transaction in the sales figure for the period. When the goods have been: Give reasons for your answer.
1. dispatched 2. invoiced 3. delivered 4. paid for
4.
Complete the following worksheet: If a firm believes that some of its debtors may ‘default’, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ___________ concept.
5.
Complete the following worksheet: Everything a firm owns, it also owns out to somebody. This co-incidence is explained by the ___________ concept.
6.
Complete the following worksheet: The ___________ concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.
7.
Complete the following worksheet: A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of the ___________.
8.
Complete the following worksheet: If a firm receives an order for goods, it would not be included in the sales figure owing to the ___________.
9.
Complete the following worksheet: The management of a firm is remarkably incompetent, but the firms accountants can not take this into account while preparing book of accounts because of ___________ concept.
10.
During the life-time of an entity accounting produce financial statements in accordance with which basic accounting concept:
1. Conservation 2. Matching 3. Accounting period 4. None of the above
- OR -

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