Ryan‌‌International‌‌School,‌‌Greater‌‌Noida‌‌ 

  ‌
Worksheet‌‌   ‌
 ‌ XI‌  ‌

Class‌‌   ‌

Subject‌‌   ‌ ACCOUNTANCY‌  ‌

Topic‌‌:  ‌‌ ‌ THEORY‌B
‌ ASE‌A
‌ CCOUNTING‌  ‌

LEARNING‌‌OUTCOME:‌‌On‌‌completing‌‌worksheet‌‌/‌‌Assignment‌‌students‌‌will‌‌be‌‌able‌‌to‌   ‌ ‌
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SKILLS‌‌LEARNT:‌‌UNDERSTANDING‌‌AND‌‌WRITING‌‌SKILLS‌  ‌

INSTRUCTIONS:‌‌1.‌‌The‌‌answers‌‌need‌‌to‌‌be‌‌written‌‌in‌‌the‌‌space‌‌provided‌‌on‌‌OS.‌‌   ‌
2.‌‌All‌‌assignments‌‌should‌‌be‌‌submitted‌‌on‌‌OS‌‌only.‌‌   ‌
3.Assignments‌‌submitted‌‌through‌‌WhatsApp/mail/google‌‌classroom‌‌will‌‌not‌‌be‌‌considered.‌  ‌

QUES1‌‌Shyam‌‌purchased‌‌a‌‌building‌‌for‌‌Rs.‌‌20‌‌lakh.‌‌After‌‌a‌‌period‌‌of‌‌five‌‌years,‌‌the‌‌depreciation‌‌
 
charged‌‌on‌‌the‌‌building‌‌amounted‌‌to‌‌Rs.‌‌3‌‌lakh.‌‌However,‌‌due‌‌to‌‌boom‌‌in‌‌the‌‌property‌‌market,‌‌the‌‌
 
current‌‌market‌‌value‌‌of‌‌the‌‌building‌‌is‌‌Rs.‌‌28‌‌lakh.‌‌State‌‌the‌‌value‌‌at‌‌which‌‌building‌‌should‌‌be‌‌
 
recorded‌‌in‌‌the‌‌books‌‌of‌‌accounts.‌‌Also,‌‌give‌‌reasons‌‌for‌‌the‌‌same‌‌
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QUES‌‌2‌K
‌ amal‌‌paid‌‌school‌‌fees‌‌of‌‌his‌‌son‌‌by‌‌issuing‌‌a‌‌cheque‌‌from‌‌the‌‌bank‌‌account‌‌of‌‌his‌‌business.‌‌
 
According‌‌to‌‌Kamal,‌‌such‌‌payment‌‌should‌‌be‌‌treated‌‌as‌‌an‌‌expense‌‌of‌‌the‌‌business.‌‌Whether‌‌Kamal’s‌‌  
approach‌‌is‌‌correct‌‌in‌‌treating‌‌the‌‌school‌‌fees‌‌as‌‌an‌‌expense‌‌of‌‌the‌‌business?‌  ‌
ANSWERS‌  ‌
1. 7‌‌Lakh‌‌Because‌‌the‌‌value‌‌of‌‌building‌‌according‌‌to‌‌cost‌‌concept‌‌is‌‌measured‌ ‌as‌‌a‌‌particular‌‌
 
amount‌‌concerning‌‌the‌‌asset‌‌is‌‌paid‌‌on‌‌the‌‌date‌‌of‌‌purchase‌‌and‌‌does‌‌not‌‌change‌‌year‌‌after‌‌
 
year‌‌only‌‌depreciation‌‌can‌‌be‌‌deducted‌‌from‌‌it‌‌due‌‌normal‌‌wear‌‌and‌‌tear‌  ‌
2. ‌No,‌‌kamels‌‌approach‌‌is‌‌not‌‌correct‌‌in‌‌treating‌‌the‌‌school‌‌fees‌‌as‌‌an‌‌expense‌‌of‌‌the‌‌business‌  ‌

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 1‌  ‌

Ryan‌‌International‌‌School,‌‌Greater‌‌Noida‌‌   ‌
Worksheet‌‌   ‌

Accounting‌‌can‌‌also‌‌be‌‌considered‌‌a‌‌science‌‌because‌‌it‌‌is‌‌a‌‌body‌‌of‌‌knowledge,‌‌but‌‌since‌‌the‌‌rules‌‌
 
and‌‌principles‌‌are‌‌constantly‌‌changing‌‌and‌‌improving,‌‌it‌‌is‌‌not‌‌considered‌‌an‌‌exact‌‌science.‌  ‌

3‌‌The‌‌purpose‌‌of‌‌accounting‌‌is‌‌to‌‌accumulate‌‌and‌‌report‌‌on‌‌financial‌‌information‌‌about‌‌the‌‌performance,‌‌
 
financial‌‌position‌,‌‌and‌‌c‌ ash‌‌flows‌‌‌of‌‌a‌‌business.‌  ‌

4.‌‌
   ‌
BOOKKEEPING‌  ‌
1.‌Bookkeeping‌i‌s‌m
‌ ainly‌r‌ elated‌t‌o‌i‌dentifying,‌m
‌ easuring,‌a
‌ nd‌r‌ ecording,‌f‌inancial‌t‌ransactions‌  ‌

Accounting‌i‌s‌t‌he‌p
‌ rocess‌o
‌ f‌s‌ ummarizing,‌i‌nterpreting,‌a
‌ nd‌c‌ ommunicating‌f‌inancial‌t‌ransactions‌w
‌ hich‌w
‌ ere‌‌
 
classified‌i‌n‌t‌he‌l‌edger‌a
‌ ccount‌  ‌

2.‌Management‌‌can't‌‌take‌‌a‌‌decision‌‌based‌‌on‌‌the‌‌data‌‌provided‌‌by‌‌bookkeeping‌  ‌
Depending‌‌on‌‌the‌‌data‌‌provided‌‌by‌‌the‌‌accountants,‌‌the‌‌management‌‌can‌‌take‌‌critical‌‌business‌‌decisions‌  ‌
3.‌The‌o
‌ bjective‌o
‌ f‌b
‌ ookkeeping‌i‌s‌t‌o‌k‌ eep‌t‌he‌r‌ ecords‌o
‌ f‌a
‌ ll‌f‌inancial‌t‌ransactions‌p
‌ roper‌a
‌ nd‌s‌ ystematic‌  ‌

The‌o
‌ bjective‌o
‌ f‌a
‌ ccounting‌i‌s‌t‌o‌g
‌ auge‌t‌he‌f‌inancial‌s‌ ituation‌a
‌ nd‌f‌urther‌c‌ ommunicate‌t‌he‌i‌nformation‌t‌o‌t‌he‌r‌ elevant‌‌
 
authorities‌  ‌

4.‌Financial‌‌statements‌‌are‌‌not‌‌prepared‌‌as‌‌a‌‌part‌‌of‌‌this‌‌process‌  ‌
5.‌‌B
‌ ookkeeping‌d‌ oesn't‌r‌ equire‌a
‌ ny‌s‌ pecial‌s‌ kill‌s‌ ets‌  ‌
Accounting‌r‌ equires‌s‌ pecial‌s‌ kills‌d
‌ ue‌t‌o‌i‌ts‌a
‌ nalytical‌a
‌ nd‌c‌ omplex‌n
‌ ature‌  ‌

6.‌.T
‌ he‌‌process‌‌of‌‌bookkeeping‌‌does‌‌not‌‌require‌‌any‌‌analysis‌‌Accounting‌‌uses‌‌bookkeeping‌‌information‌‌to‌‌
 
analyze‌‌and‌‌interpret‌‌the‌‌data‌‌and‌‌then‌‌compiles‌‌it‌‌into‌‌reports‌ 

7.‌Basically‌t‌here‌a
‌ re‌t‌wo‌t‌ypes‌o
‌ f‌b
‌ ookkeeping‌-‌ ‌S
‌ ingle‌e
‌ ntry‌a
‌ nd‌d
‌ ouble‌e
‌ ntry‌b
‌ ookkeeping‌  ‌

8.‌Bookkeepers‌‌are‌‌required‌‌to‌‌be‌‌accurate‌‌in‌‌their‌‌work‌‌and‌‌knowledgeable‌‌about‌‌financial‌‌topics.‌‌ 
Bookkeepers‌‌work‌‌is‌‌usually‌‌overseen‌‌by‌‌an‌‌accountant‌  ‌
Accountants‌‌with‌‌sufficient‌‌experience‌‌and‌‌education‌‌can‌‌obtain‌‌the‌‌title‌‌of‌‌Certified‌‌Public‌‌Accountant‌‌
   ‌
(CPA)‌‌
   ‌
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Ryan‌‌International‌‌School,‌‌Greater‌‌Noida‌‌   ‌
Worksheet‌‌   ‌
 ‌
Accounting‌  ‌
1. Accounting‌i‌s‌t‌he‌p‌ rocess‌o‌ f‌s‌ ummarizing,‌i‌nterpreting,‌a‌ nd‌c‌ ommunicating‌f‌inancial‌t‌ransactions‌w
‌ hich‌‌
 
were‌c‌ lassified‌i‌n‌t‌he‌l‌edger‌a
‌ ccount‌  ‌
2. Depending‌‌on‌‌the‌‌data‌‌provided‌‌by‌‌the‌‌accountants,‌‌the‌‌management‌‌can‌‌take‌‌critical‌‌business‌‌  
decisions‌  ‌
3. The‌o‌ bjective‌o‌ f‌a‌ ccounting‌i‌s‌t‌o‌g‌ auge‌t‌he‌f‌inancial‌s‌ ituation‌a‌ nd‌f‌urther‌c‌ ommunicate‌t‌he‌i‌nformation‌t‌o‌t‌he‌‌ 
relevant‌a
‌ uthorities‌  ‌
4. Financial‌‌statements‌‌are‌‌prepared‌‌during‌‌the‌‌accounting‌‌process‌  ‌
5. Accounting‌r‌ equires‌s‌ pecial‌s‌ kills‌d‌ ue‌t‌o‌i‌ts‌a‌ nalytical‌a‌ nd‌c‌ omplex‌n‌ ature‌  ‌
6. Accounting‌‌uses‌‌bookkeeping‌‌information‌‌to‌‌analyze‌‌and‌‌interpret‌‌the‌‌data‌‌and‌‌then‌‌compiles‌‌it‌‌  
into‌‌reports‌  ‌
7. The‌a‌ ccounting‌d‌ epartment‌d‌ oes‌p‌ reparations‌o‌ f‌a‌ ‌c‌ ompany's‌b‌ udgets‌a‌ nd‌p‌ lans‌l‌oan‌p‌ roposals‌  ‌
8. Accountants‌‌with‌‌sufficient‌‌experience‌‌and‌‌education‌‌can‌‌obtain‌‌the‌‌title‌‌of‌‌Certified‌‌Public‌‌
 
Accountant‌‌(CPA)‌  ‌
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2‌  ‌