| SESSION | JULY – AUGUST 2026 |
| PROGRAM | BACHELOR OF COMMERCE (B.COM) |
| SEMESTER | I |
| COURSE CODE & NAME | DCM1108 FUNDAMENTALS OF ACCOUNTING-1 |
Set – 1
Q.1. Elaborate on the accounting process; from identification of transactions to communication of accounting results to users. (10 Marks)
Ans 1.
Accounting is best understood not as a single task but as a connected process that converts raw business activity into information that people can actually use to make decisions. The process begins the moment a transaction occurs and ends only once that transaction’s effect has been reported to the people who need to know about it, and it moves through several distinct stages along the way.
The first stage is identification. Not every event that happens in a business is an accounting transaction; only events that have
Its Half solved only
Buy Complete from our online store
https://smuassignment.in/online-store/
MUJ Fully solved assignment available for session Jul-Aug 2026.
Lowest price guarantee with quality.
Charges INR 198 only per assignment. For more information you can get via mail or Whats app also
Mail id is aapkieducation@gmail.com
Our website www.smuassignment.in
After mail, we will reply you instant or maximum
1 hour.
Otherwise you can also contact on our
whatsapp no 8791490301.
Q.2. Explain the accounting concepts of business entity, going concern, money measurement and the accounting convention of conservatism. (2.5×4 = 10 Marks)
Ans 2.
Accounting concepts are the basic assumptions that accountants rely on when recording and presenting financial information, and they exist so that financial statements prepared by different businesses, or by the same business over different years, remain comparable and meaningful. Four of these concepts are explained below.
The business entity concept treats
Q.3. Prepare a double- column Cash book, with cash and bank columns, from the following transactions for the Month of March 2026 of ABC enterprises- (10 Marks)
| Date (March 2026) | Particulars | Amount in Rs |
| 1st | Cash in hand | 25,000 |
| 3rd | Purchased goods for cash | 6,000 |
| 5th | Deposited cash in bank | 15,000 |
| 8th | Cash Sales | 10,000 |
| 10th | Paid to Chander by Cheque | 4,500 |
| 15th | Sold goods to Ashok Mehta on credit | 4,000 |
| 16th | Received cheque from Mohan and deposited into bank the same day | 7,000 |
| 18th | Received cheque from Ashok Mehta and deposited into bank | 2,000 |
| 30th | Purchased goods from Mr. Chander on credit | 5,000 |
| 31st | Bank charges for the month | 200 |
Ans 3.
A cash book is a book of original entry that records all transactions involving cash and bank together, combining the function of a cash account and a bank account into a single record instead of maintaining them separately in the ledger. Because every cash and bank transaction is recorded directly in the cash book as it happens, it also effectively acts as a ledger account for cash and bank, so these two accounts are not opened again separately in the ledger.
A double column cash book has two amount columns on each side, one for cash and one for bank, which lets both types
Set – 2
Q.4. Explain the terms capital expenditure and revenue expenditure with relevant examples. Also explain the meaning of the term contingent liability. (7+3 Marks)
Ans 4.
Expenditure incurred by a business falls into two broad categories, capital expenditure and revenue expenditure, and the distinction between them affects how an item is treated in the financial statements, specifically whether it appears in the balance sheet or in the profit and loss account.
Capital expenditure is money
Q.5. Differentiate between the SLM and WDV methods of providing depreciation. (10 Marks)
Ans 5.
Depreciation is the systematic allocation of the cost of a fixed asset over its useful life, reflecting the fact that an asset’s value is used up gradually as it helps generate revenue year after year, rather than being consumed entirely in the year it is purchased. Two of the most commonly used methods for calculating depreciation are the Straight Line Method, often called SLM, and the Written
Q.6. Prepare the Trading and Profit and Loss Account of Santoshi Enterprises for the year ended 31st March 2026, in proper format, clearly mentioning the Gross profit and Net profit for the year ended 31st March 2026. Closing stock was valued at Rs 250,000. (10 Marks)
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
| Opening stock | 1,00,000 | Sales | 9,20,000 |
| General Expenses | 20,000 | Purchases Returns | 5,000 |
| Purchases | 4,00,000 | Creditors | 50,000 |
| Carriage outward | 20,000 | Capital | 3,60,000 |
| Wages | 1,00,000 | Carriage Inwards | 5,000 |
| Salaries | 60,000 | 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 6.
Theory
A trading account is prepared to determine the gross profit or gross loss earned by a business from its core buying and selling activity during an accounting period, by comparing the net sales revenue earned with the direct cost of the goods actually sold to generate that revenue. It includes the opening stock, net