DCM1108 FUNDAMENTALS OF ACCOUNTING-1 JAN FEB 2026

Description

SESSION	JAN-FEB 2026
PROGRAM	BACHELOR OF COMMERCE (B.COM)
SEMESTER	I
COURSE CODE & NAME	DCM1108 FUNDAMENTALS OF ACCOUNTING-1

 

 

Assignment Set – 1

 

Q.1. Explain the various current assets and current liabilities of a business organization. (5+5 = 10 Marks)

Ans 1.

Current Assets

These are the assets of a business organization that can be converted into cash or cash equivalents over the span of a few months, usually within one accounting year or operating cycle whichever is longer. These assets are liquid in way and they are crucial for satisfying the daily operational demands of the company. They appear on the assets side of the balance sheet and are listed according to the list of their liquidity beginning from the most liquid up to the most liquid.

Cash and cash equivalents are the most liquid form of cash assets. These include the physical

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JAN-FEB 2026

 

Q.2. Explain the four main Accounting Conventions. (10 Marks)

Ans 2.

Accounting conventions are generally accepted practices and guidelines which accountants adhere to when preparing financial statements. They aren’t legally binding however, they have developed over time to ensure an uniformity, consistency, and comparability in financial reports. They assist in giving truthful and accurate information of a business’s financial performance.

 

 

Q.3. Prepare a double-column Cash Book with cash and bank columns from the following transactions for the Month of March 2026. (10 Marks)

Date                  (March 2026)	Particulars	Amount in Rs
1st	Cash in hand	25,000
1st	Cash in Bank	30,000
3rd	Purchased goods for cash	6,000
5th	Deposited cash in bank	10,000
8th	Cash Sales	12,000
10th	Paid to Chandni  by Cheque	4,500
15th	Sold goods to Ashok Mehta on credit	4,000
16th	Received cheque from Mahesh and deposited into bank the same day	7,000
18th	Received cheque from Arun Kumar and deposited into bank	2,000
30th	Purchased goods from Mr. Chopra on credit.	5,000
31st	Bank charges for the month	400

 

Ans 3.

The Double Column Cash Book is an essential accounting record that records all transactions that are related to both cash and bank in a single book. It has two columns in each with one column for cash and another for bank making it easier to record receipts and payments efficiently. This type of cash book serves as both a journal and as a ledger. This reduces the

 

 

Assignment Set – 2

 

 

Ans 4.

1. a) Straight Line Method (SLM)

The Straight Line Method, also known as”the Fixed Instalment Method or Original Cost Method is among the most frequently used methods for calculating depreciation on stationary assets. Under this method, the same amount of depreciation will be charged each year over the duration of the asset so that the asset is totally written off by the date of the estimated life. The formula

 

 

Q.5. From the following information, Prepare the Trading and Profit and Loss Account of Supreme Soul & Sons for the year ended 31^st March 2025, in proper format, clearly mentioning the Gross profit and Net profit for the year ended 31^st March 2025.  Closing stock was valued at Rs 200,000.

Particulars	Amount	Particulars	Amount
Opening stock	100,000	Sales	7,20,000
General Expenses	20,000	Purchases Returns	5,000
Purchases	400,000	Creditors	50,000
Carriage outward	20,000	Capital	360,000
Wages	90,000	Carriage Inwards	5,000
Salaries	50,000	Drawings	40,000
Office Rent	50,000	Debtors	3,00,000
Sales returns	10,000	Advertising	20,000
Machinery	70,000	Cash	40,000

 

Ans 5.

The Trading and Profit and Loss Account is made to evaluate the financial performance of a business within a certain accounting period. It’s split in two sections of the trading Account as well as the Profit and Loss Account.

This Trading Account is prepared to determine the Gross Profit or Gross Loss. It covers all direct costs and revenues related to the principal business processes, such as purchase, opening stock of wages, transport inwards sales, closing inventory. Gross Profit can be defined as the amount of

 

 

Q.6. Explain the meaning and features of the Receipt and Payment account prepared by Not-for-Profit organisations and also explain how it is different from the Cash book. (6+4 = 10 Marks)

Ans 6.

Receipt and Payment Account

A Payment and Receipt Account is a summary of all cash and bank transactions of a Not-for-Profit Organisation for a specific accounting period. These organizations, such as clubs charitable trusts, hospitals, and educational institutions were established in order to supply services rather than making money. Thus, instead of making trading and Profit and Loss