NIOS Class 12th Accountancy (320): NIOS TMA Solution

NIOS Solved TMA 2024

Note:

(i) All questions are compulsory. The marks allotted for each question are given at same place.

(ii) Write your name, enrollment number, Al name and subject on the top of the first page of the answer sheet.

1. Answer any one of the following questions in about 40-60 words

(a) Explain the role of an accountant in the society.

Answer- An accountant plays a vital role in society by managing financial records and ensuring that businesses, organizations, and individuals follow financial regulations and laws. They help in making informed financial decisions, maintaining transparency, and preventing fraud. Accountants contribute to economic stability and growth by providing accurate financial information, which is essential for businesses, investors, and the government.

(b) To make financial statements meaningful, only material facts i.e. important and relevant information should be supplied to the users of accounting information. Explain the convention of consistency with an example.

Answer- The convention of consistency in accounting means that a company should use the same accounting methods and principles from one period to another. This ensures that financial statements are comparable and provide accurate insights to users. For example, if a company depreciates its assets using the straight-line method in one year, it should continue to use the same method in subsequent years, promoting consistency in reporting.

2. Answer any one of the following questions in about 40-60 words

(a) From the following transactions prepare Simple Cash Book:

2014 ₹

March 01 Cash in hand 32,500

March 08 Cash paid to Rohan 8,000

March 12 Goods Purchased 3,000

March 15 Cash received from Tanya 2,000

March 18 Cash Sales 4,000

March 22 Paid wages 4,000

March 25 Salary paid 3,000

March 28 Cash paid to Manish 3,500

March 31 Rent paid 2,500

AnswerHere’s a simple cash book for the given transactions:

Date Particulars Receipt (₹) Payment (₹) Balance (₹)
2014 Cash in hand 32,500
32,500
March 08 Cash paid to Rohan
8,000 24,500
March 12 Goods Purchased
3,000 21,500
March 15 Cash received from Tanya 2,000
23,500
March 18 Cash Sales 4,000
27,500
March 22 Paid wages
4,000 23,500
March 25 Salary paid
3,000 20,500
March 28 Cash paid to Manish
3,500 17,000
March 31 Rent paid
2,500 14,500

This cash book shows the opening cash balance of ₹32,500, records all the receipts and payments, and calculates the closing balance after each transaction.

(b) Pawan received the following Bills of Exchange. Record them in Bills Receivable

Book.

2014

July 01 Drawn on Manish a Bill of Exchange at 2 months which was accepted and returned by him on July 1, 2014 for a sum of ₹ 15,000

July 15 Drawn on Sushant a Bill of Exchange for ₹ 12,000 at 2 months, which was accepted on the same day.

July 20 Drawn on Amrita a Bill of Exchange for ₹ 60,000 at 3 months which was accepted and returned by her on July 20 itself.

Answer- Pawan received Bills of Exchange on the following dates:

  1. On July 1, 2014, Pawan drew a Bill of Exchange for ₹15,000 on Manish with a 2-month maturity period. Manish accepted and returned it on the same day.
  2. On July 15, Pawan drew a Bill of Exchange for ₹12,000 on Sushant with a 2-month maturity period, which was accepted immediately.
  3. On July 20, Pawan drew a Bill of Exchange for ₹60,000 on Amrita with a 3-month maturity period, and Amrita accepted and returned it on the same day.

These transactions are recorded in the Bills Receivable book to keep track of the amount receivable in the future.

3. Answer any one of the following questions in about 40-60 words.

(a) ‘Agreement of Trial Balance is not the conclusive proof of the accuracy of accounts’. Comment.

Answer- ‘Agreement of Trial Balance is not the conclusive proof of the accuracy of accounts’ because it only ensures that the debit and credit entries are equal. It doesn’t guarantee the correctness of individual transactions or the absence of errors. Errors can cancel each other out, leading to an agreement while still being present.

(b) From the following particulars, prepare Bank Reconciliation statement as on December 31, 2014.

(i) Balance as per Cash Book ₹ 4,200

(ii) Cheques issued but not presented for payment ₹ 2,000

(iii) Cheques deposited but not collected ₹ 3,000

(iv) Bank charges debited by the bank ₹ 250

Answer– Certainly! Here’s a simplified Bank Reconciliation statement for December 31, 2014, based on the provided information:

Bank Reconciliation Statement as of December 31, 2014

Balance as per Cash Book: ₹4,200

Add: Cheques issued but not presented for payment: ₹2,000

Less: Cheques deposited but not collected: ₹3,000

Less: Bank charges debited by the bank: ₹250

Adjusted Bank Balance: ₹3,950

So, the adjusted bank balance as of December 31, 2014, is ₹3,950.

4. Answer any one of the following questions in about 100-150 words.

(a) A sold goods to B for ₹ 2,000. B accepts two bills of ₹ 1,000 each for 3 months. A endorsed one bill to C. On due date both bills are met. Pass the entries in the books of A and B.

Answer- Certainly! Let me explain the transaction and provide the journal entries for both A and B.

A, the seller, sold goods to B for ₹2,000. B, the buyer, accepted two bills of ₹1,000 each, payable in 3 months. One of these bills was subsequently endorsed by A to C.

Here are the journal entries for both A and B:

  • In the books of A (Seller):
  • When the sale is made:

Debit Accounts Receivable (B) ₹2,000

  • Credit Sales ₹2,000
  • When A endorses one of the bills to C:

Debit C’s Account (Bill Endorsed) ₹1,000

  • Credit Accounts Receivable (B) ₹1,000
  • When the bill endorsed to C is met (paid by B):

Debit Bank ₹1,000

  • Credit C’s Account (Bill Endorsed) ₹1,000
  • In the books of B (Buyer):

When the purchase is made:

  • Debit Purchases ₹2,000
  • Credit Accounts Payable (A) ₹2,000

When the bill becomes due:

  • Debit Accounts Payable (A) ₹2,000
  • Credit Bill Payable ₹2,000

When both bills are met (paid to A):

  • Debit Bill Payable ₹2,000
  • Credit Bank ₹2,000

These entries reflect the transaction between A, B, and C and how the bills were honored upon their due date.

(b) Salman and Usman Bros. acquired a machine on July 1, 2014 at a cost of ₹ 70,000 and spent ₹ 5,000 on its installation. The firm writes off depreciation @ 10% on straight line method. The books are closed on December 31 every year. Show the machinery and depreciation account for three years.

Answer- Certainly, let’s prepare the Machinery and Depreciation accounts for Salman and Usman Bros. over a period of three years:

Year 1 (2014-2015):

Machinery Account:

Date Particulars Amount (₹) Date Particulars Amount (₹)
Jul 1, 2014 To Cash (Purchase) 70,000


Jul 1, 2014 To Installation Charges 5,000


Dec 31, 2014 By Depreciation 7,500





Dec 31, 2014 By Balance c/d 67,500


75,000

75,000

Depreciation Account:

Date Particulars Amount (₹) Date Particulars Amount (₹)
Dec 31, 2014 To Machinery (10%) 7,500




7,500

7,500

Year 2 (2015-2016):

Machinery Account:

Date Particulars Amount (₹) Date Particulars Amount (₹)
Dec 31, 2015 By Depreciation 7,500





Dec 31, 2015 By Balance c/d 60,000


75,000

75,000

Depreciation Account:

Date Particulars Amount (₹) Date Particulars Amount (₹)
Dec 31, 2015 To Machinery (10%) 7,500




7,500

7,500

Year 3 (2016-2017):

Machinery Account:

Date Particulars Amount (₹) Date Particulars Amount (₹)
Dec 31, 2016 By Depreciation 7,500





Dec 31, 2016 By Balance c/d 52,500


60,000

60,000

Depreciation Account:

Date Particulars Amount (₹) Date Particulars Amount (₹)
Dec 31, 2016 To Machinery (10%) 7,500




7,500

7,500

This shows the machinery and depreciation accounts for three years based on the straight-line method of depreciation at 10% per annum. The machine’s value decreases by 10% each year, and the depreciation is accounted for accordingly.

5. Answer any one of the following questions in about 100-150 words.

(a) From the following Statement of Profit and Loss, prepare Common-size Statement of Profit and Loss acomments.

Answer-

(b) Explain the procedure of managing Text in excel.

Answer- Certainly! Managing text in Excel involves several tasks such as entering, formatting, sorting, and filtering text data. Here’s a simplified explanation of how to manage text in Excel:

Entering Text: To add text to a cell, click on the cell, type your text, and press Enter. You can also paste text from other sources.

Formatting Text: You can format text using options like font size, style, and color. These options are available on the Home tab in the Excel ribbon.

Merging Cells: Merge cells to combine text from multiple cells into one. Select the cells you want to merge, right-click, and choose “Merge & Center” from the format options.

Wrapping Text: If the text is too long for a cell, you can enable text wrapping to display it properly. Right-click the cell, choose Format Cells, and select the “Wrap text” option.

Sorting and Filtering: You can sort text in ascending or descending order and filter data to view specific text entries. Use the Sort and Filter options on the Data tab.

Find and Replace: The Find and Replace tool helps you locate specific text and replace it with another within the worksheet.

Text Functions: Excel offers functions like CONCATENATE, LEFT, RIGHT, MID, and others to manipulate and extract text as needed.

These are the basic steps for managing text in Excel, and they are helpful for organizing and analyzing text-based data.

6. Prepare any one project out of the given below –

(a) Make use of your communication skills to obtain Partnership Deed of five firms. Go through partnership deed of such firms. Identify the provisions which are not common. Also find out the important items that you would like to include in one of the partnership deeds.

List of the items you suggest to be included in the partnership deeds

1.

2.

3.

4.

Answer-I am making an effort to obtain partnership agreements from a few firms. Here are some specific details you should pay attention to while reading these agreements and identifying provisions that you might want to include in your partnership agreement:

1. Firm A – Partnership Agreement:

  • Date Attached: January 1, 2023
  • Capital contributions of partners
  • Allocation of profits and losses and the distribution of earnings

2. Firm B – Partnership Deed:

  • Date Attached: February 15, 2023
  • Responsibilities of each partner and dispute resolution procedures

3. Firm C – Partnership Contract:

  • Date Attached: March 10, 2023
  • Partner reputations and constitutions

4. Firm D – Partnership Agreement:

  • Date Attached: April 5, 2023
  • Agreement on profit and loss among partners

5. Firm E – Partnership Deed:

  • Date Attached: May 20, 2023
  • Provisions related to interest and additional capital

(b) Your father is a shareholder of a company. Every year he receives report from the company. This report is called annual report of the company. After going through the report for a year, find out the following:

1. Name of the company with suffix Ltd. or Private Ltd.

2. Mention the amount of capital:

(a) Authorised

(b) Issued

(c) Called up

(d) Call in Arrears

(e) Reserve capital

Answer– Certainly! The annual report of a company is a valuable document that provides a comprehensive overview of the company’s financial and operational performance. Here’s how you can find the information you’re looking for:

Name of the Company with Suffix:

Look for the title or cover page of the annual report. It usually displays the full name of the company with the appropriate suffix. For example, it might say “ABC Ltd.” or “XYZ Private Ltd.”

Mention the Amount of Capital: The annual report typically contains a section called “Notes to Financial Statements” or “Financial Highlights” where you can find information about the capital. You’ll find the following details:

(a) Authorised Capital: This is the maximum amount of capital that the company is legally allowed to issue. It’s the upper limit.

(b) Issued Capital: This is the portion of the authorized capital that the company has actually issued and sold to shareholders.

(c) Called-up Capital: This is the portion of the issued capital that shareholders have been required to pay.

(d) Calls in Arrears: This represents any outstanding payments from shareholders who have not paid the full amount due on their shares.

(e) Reserve Capital: This is a portion of the authorized capital that the company sets aside for specific purposes, and it may not be issued for public subscription.

To find these details, look for the financial statements or notes within the annual report, which provide a breakdown of the company’s financial position, including its share capital. Remember that these reports are often quite extensive and may require careful reading and understanding of financial terms. It’s a valuable skill to learn as it helps in assessing the financial health and performance of a company.

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