DMBA104 – FINANCIAL AND MANAGEMENT ACCOUNTING | My Assignment Tutor

SEMESTER I COURSE CODE & NAME DMBA104 – FINANCIAL AND MANAGEMENT ACCOUNTING Question 1 Briefly explain the concepts of accounting. (Anyfive) Briefly explain the users of accounting information. (Anyfive) Answer 1. Concepts of accounting There are five basic concepts of accounting, namely – business entity concept, (separate entity concept), going concern concept, money measurement concept, periodicity concept, and accrual concept. Business separate entity concept Question 2. Differentiate between: (With examples) Cash discount & tradediscountTangible assets & intangibleassetsAccounting &book-keepingErrors of omission & errors ofcommission e)Accrued income & income received inadvance Answer2.a) Differences between trade discount and cash discount are: 1. Trade discount is a reduction granted by a supplier on the catalogue price. Cash discount is a reduction granted on the invoice price, considering immediate payment or payment within a stipulated period. d)Errors of omission & errors ofcommission 1. Introduction Errors Of Omission: A kind of accounting error in which financial transaction is not recorded in the books of accounts either partially or whole. Errors Of Commission: A kind of accounting error in which financial transaction is misrecorded (incorrect record) in the books of accounts. Question 3. John started his own delivery service. The following transactions took place in June 2020: S.noDateParticulars101-06-2020John as a stockholder has invested $25,000 cash in business202-06-2020John purchased a used van for $ 13000 for deliveries. He paid $ 2,000 cash and signed a note payable for the remaining balance.303-06-2020He paid $ 900 for office rent for the month.405-06-2020Services worth $ 3,000 were performed on account.512-06-2020Purchased supplies for $ 400 on account615-06-2020Received a cash payment of $ 750 for services provided on June 5.717-06-2020Purchased gasoline for $ 350 on account820-06-2020Received a cash payment of $ 350 on account for services provided on June 5.923-06-2020Received a cash payment of $ 1900 on account for services provided on June 5.1026-06-2020Paid $450 for utilities1129-06-2020Paid for the gasoline purchased on account on June 171230-06-2020Paid $ 600 for employee salaries Prepare the following: a An income statement for the month of June2020. b A balance sheet as at 30 June2020. Answer-

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