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

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.

State how the GST rates will be applicable if \(CGST\) is 9%, \(SGST\) is 9% and \(IGST\) 18% in each of the following situations: Goods worth ₹ 10,000 is sold by a Manufacturer 1 in Maharashtra to a Dealer A in Maharastra.

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 A sell goods worth ₹ 25,000 to Dealer B in Gujarat.

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.

Why is it important to adopt a consistent basis for the preparation of financial statements? Explain.

Discuss the concept-based on the premise ‘do not anticipate profits but provide for all losses’.

What is matching concept? Why should a business concern follow this concept? Discuss.

What is the money measurement concept? Which one factor can make it difficult to compare the monetary values of one year with the monetary values of another year?

Why is it necessary for accountants to assume that business entity will remain a going concern?

When should revenue be recognised? Are there exceptions to the general rule?