PCO SOLVED ASSIGNMENT 2017

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TUTOR MARKED ASSIGNMENT
Course Code    :  PCO – 01 Course Title    :  Preparatory Course in Commerce  Assignment Code   :  PCO – 01/TMA/2017 Coverage    :  All Blocks  


Maximum Marks: 100
Q 1.   What do you mean by business? Explain various parties who assist in the flow of goods from producer to consumers. 
Q2.  What do you understand by ‘Double Entry System’? How is it different from ‘Single Entry System’? Discuss. 
Q3.  From the following transactions, determine the accounts affected, classify them and state whether it is to be debited or credited.                                  Rs. 
a Purchased typewriter for cash  10,000 b Purchased furniture form R & Co. on credit  55,000 c Interest received  5,00 d Paid wages 1,000 e Received cash from ‘A’ 15,00 f Additional capital introduced in to the business  5,00,000 g Paid cash to ‘B’ 2,000 h Paid carriage  5,00 i Purchased goods from F & Co. on credit  10,000 j Sold goods for cash  2,000

Q4. What is Trial Balance? How is it prepared? Explain.
Q5.  What are the advantages of maintaining a Petty Cash Book? Explain. 
Q6.  Explain the procedure of preparing a Bank Reconciliation Statement. State various reasons of disagreement between the balances shown by the Cash Book and the Pass Book. 
Q7. How would you determine whether a particular expenditure is capital or revenue? Give five examples of each. 
Q8. Differentiate between the following:
(a) Gross Profit and Net Profit 
(b)  Direct Expenses and Indirect Expenses 
Q9. What are one sided errors? Give any five examples. Explain the method of rectifying one-sided errors. 
Q10.  From the following Trial Balance of Sh Ved Vyas, prepare Trading and Profit & Loss Account for the year ended 31st December, 2015 and Balance Sheet as on that date:
 
 Dr. Rs. Cr. Rs. Purchases and Sales  2,75,000 5,20,000 Returns Inwards  15,000  Returns Outwards   9,000 Carriage  12,400  Wages and Salaries  58,600  Trade Expenses  2,200  Rent   13,000 Insurance  2,000  Audit Fees  1,200  Debtors and Creditors  1,10,000 62,100 B/R and B/P 3,300 2,200 Printing and Advertising  5,500  Commission   1,000 Opening Stock  36,000  Cash in hand  12,800  Cash at Bank  26,800  Bank Loan  20,000 Interest on Loan  1,500  Capital   2,50,000 Drawings  15,000  Fixed Assets  3,00,000   8,77,300 8,77,300   Adjustments:- 
1. Stock at the end Rs. 60,000
2. Depreciate Fixed Assets by 10%
3. Commission earned but not received amounts to Rs. 400
4. Rent received in advance Rs. 1,000
5. Allow 8% interest on Capital and charge Rs. 900 as interest on Drawings. 
 

PCO SOLVED ASSIGNMENT for DEC, 2017

IGNOU BPP

PCO-01 SOLVED ASSIGNMENT

contact 9612831908(Whatsapp)/ debrajib66@gmail.com(MAIL)

Assignment Code: PCO-01/TMA/2017

Course Code: PCO- 01

Assignment Code: PCO-01/TMA/2017

1.       What do you mean by business? Explain various parties who assist in the flow of goods from producer to consumers.

Answer: शब्द 'व्यवसाय' को माल और सेवाओं के उत्पादन के रूप में परिभाषित किया जा सकता है जो कि लाभ के मुकाबले किसी उपभोग के उपभोग या अंतिम उपयोग से माल के प्रवाह में शामिल हैं।
तो हम यह कह सकते हैं कि लाभ की मंशा के साथ की जाने वाली कोई भी गतिविधि व्यवसाय है।

विभिन्न प्रकार की व्यावसायिक गतिविधियों निम्नानुसार हैं:

1) एकल स्वामित्व
2) साझेदारी
3) कंपनी
निर्माता उपभोक्ता के लिए सामान का उत्पादन करता है। कभी-कभी दोनों के बीच कोई नहीं हो सकता है, लेकिन अक्सर निर्माता थोक विक्रेताओं और खुदरा विक्रेताओं जैसे बिचौलियों की मदद से उपभोक्ताओं को माल वितरित कर सकता है।

PCO 01 SOLVED ASSIGNMENT 2016/ IGNOU/BPP

Course Code: PCO- 01

Assignment Code: PCO-01/TMA/2016

1.      What do you mean by business? Explain various types of business activities. (10)

Answer: The term ‘Business’ can be defined as production of goods and services that are involved in flow of goods from the point of consumption or final use with a view to earn profit.

So we can say that any activity carried with profit motive is business.

The various types of business activities are as follows:

1) Sole proprietorship

2) Partnership

3) Company

These are explained in brief as follows:-

SOLE PROPRIETORSHIP:

The sole proprietorship is a form of business that is owned, managed and controlled by an individual. He has to arrange capital for the business and he alone is responsible for its management. He is therefore, entitled to the profits and has to bear the loss of business. This type of business organization is also called single ownership or single proprietorship. If the business primarily consists of trade, the organization is a sole trading organization. Small factories and shops are often found to be sole proprietorship organizations.

Features of Sole Proprietorship:

The important features of a sole-proprietary organization include the following:

(I) Individual Initiative: One person is the owner in sole proprietary forms of organization.

(ii) Risk Bearing: The proprietor is the sole beneficiary of profits in this form organization. If there is a loss he alone has to bear it. Thus the risks of business are borne by the proprietor himself.

(iii) Management and control: Management and control of this type of organization is the responsibility of the sole proprietor. He may, however, employ a manager or other people for the purpose.

PARTNERSHIP

Partnership is an association of persons who agree to combine their financial resources and managerial abilities to run a business and share profits in an agreed ratio. Since the resources of a sole proprietor to finance, and his capacity to manage a growing business are limited, he feels the need for a partnership firm. Partnership business, therefore, usually grows out of the need for expansion of business with more capital, better supervision and control, division of work and spreading of risks.

Features of Partnership:

The features of partnership are as follows:

(i) Existence of an agreement: Partnership is formed on the basis of an agreement between two or more persons to carry on business. The terms and conditions of partnership are laid down in a document known as Partnership Deed.

(ii) Engagement in business: A partnership can be formed only on the basis of a business activity. Its business may include any trade, industry or profession. Thus, a partnership can engage in any occupation – production and/or distribution of goods and services with a view to earning profits.

(iii) Sharing of profits and losses: In a partnership firm, partners are entitled to share in the profits and are also to bear the losses, if any.

COMPANY

A company is defined as a voluntary association of persons having separate legal existence, perpetual succession and a common seal. As per the definition, there must be a group of persons who voluntarily agree to form a company. Once formed the company becomes a separate legal entity with a distinct name of its own. Its existence is not affected by change of members. It must have a seal to be imprinted on documents whenever required. The capital of a company consists of transferable shares, and members have limited liability.

Features of a Company:

The following are the chief characteristics of the company form of organization:

(i) Registered body: A company comes into existence only after its registration. For that purpose, necessary legal formalities have to be completed as prescribed under the

Companies Act.

(ii) Distinct legal entity: A company is regarded as a legal entity separate from its members. Thus a company can carry on business in its own name, enter into contracts, sue, and be sued.

(iii) Artificial person: A company is the creation of law and has a distinct entity. It is therefore, regarded as an artificial person. The business is run in the name of the company. But because it is an artificial person, its functions are performed by the elected representatives of members, known as directors.

2.      Define Accounting. Explain its scope.(10)

Answer:

Accounting means the systematic recording, reporting, and analysis of financial transactions of a business. The person in charge of accounting is known as an accountant, and this individual is typically required to follow a set of rules and regulations, such as the Generally Accepted Accounting Principles.

The Committee on Terminology set up by the American Institute of Certified Public Accountants formulated the following definition of accounting in 1961:

“Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the result thereof.

Scope of Accounting:

Accounting has got a very wide scope and area of application. Its use is not confined to the business world alone, but spread over in all the spheres of the society and in all professions. Now-a-days, in any social institution or professional activity, whether that is profit earning or not, financial transactions must take place. So there arises the need for recording and summarizing these transactions when they occur and the necessity of finding out the net result of the same after the expiry of a certain fixed period. Besides, this is also the need for interpretation and communication of that information to the appropriate persons. Only accounting use can help overcome these problems.

1.    Business

Accounting is widely applicable in the business sector. Today, in the modern world, most of the people are engaged in business sector and all businessmen follow Generally Accepted Accounting Principle (GAAP) to find out profit, loss and financial position of business firm.

2.    Government organizations

Though, Government organizations do not follow Generally Accepted Accounting Principle (GAAP), its keep systematic records of all transactions in order to find the position of public fund.

3.    Non-Government organizations

Non-government and service organizations such as NGOS, INGOs, Red Cross Society, SOS etc which plays a vital role in the development of nation also uses accounting. The accounting system used in these organizations is called fund accounting.

4.    Individuals

Individuals also perform economic activities to earn their livelihood. They also perform some form of accounting to draw financial information for making personal economic decision.

3.     Solution:                                    In the Books of Sita Ram

                                                               Journal Entries                                                     Dr.                     Cr.

Date	Particulars	L/F	Amount(Rs.)	Amount(Rs.)
April-1 April-3 April-7 April-9 April-11 April-17 April-20 April-24	Cash A/c     Dr.       To Capital A/c (Being business started with cash Rs. 5,00,000) Purchase A/c   Dr.       To Cash  A/c (Being goods purchased for cash Rs. 2,00,000) Cash  A/c     Dr.     To Sales A/c (Being goods sold for cash Rs. 1,00,000) Machinery   A/c    Dr.     To   Anil A/c (Being machinery bought from Anil on credit) Cash   A/c   Dr.     To  Rent A/c (Being rent paid for Rs. 5,000) Cash   A/c   Dr.     To  Commission A/c ( Being commission received for Rs. 2,000) Ram   A/c   Dr.     To   Cash  A/c ( Being cash paid to Ram ) Cash    A/c   Dr.    To   Mahesh   A/c ( Being cash received from Mahesh for Rs. 10,000)		5,00,000 2,00,000 1,00,000    60,000     5,000    2,000   11,000   10,000	5,00,000 2,00,000 1,00,000    60,000     5,000     2,000   11,000 10,000