FMA Assignment

SUBJECT CODE – MB0041
SUBJECT NAME – FINANCIAL AND MANAGEMENT ACCOUNTING
Ques. 1- Analyze the following transaction under traditional approach. a. 18.1.2011 Received a cheque from a customer, Sanjay at 5 p.m. Rs.20, 000 b. 19.1.2011 Paid Ramu by cheque Rs.1, 50,000 c. 20.1.2011 Paid salary Rs. 30,000 d. 20.1.2011 Paid rent by cheque Rs. 8,000 e. 21.1.2011 Goods withdrawn for personal use Rs. 5,000 f. 25.1.2011 Paid an advance to suppliers of goods Rs. 1,00,000 g. 26.1.2011 Received an advance from customers Rs. 3,00,000 h. 31.1.2011 Paid interest on loan Rs. 5,000 i. 31.1.2011 Paid installment of loan Rs. 25,000 j. 31.1.2011 Interest allowed by bank Rs. 8,000
Ans. 1- Analysis of Transaction under traditional Approach
S. No.
Accounts Involved
Nature of Account
Affects
Debit / Credit a Cash A/c
Sanjay A/c
Real
Personal
Cash (Cheque) is coming in
Sanjay is the giver
Debit
Credit b Ramu A/c
Bank A/c
Personal
Personal
Ramu is the receiver
Bank is the giver
Debit
Credit c Salary A/c
Cash A/c
Nominal
Real
Salary is an expense
Cash is going out
Debit
Credit d Rent A/c
Bank A/c
Nominal
Personal
Rent is an expense
Bank is the giver
Debit
Credit e Drawings A/c
Purchase A/c
Personal
Nominal
Owner is the receiver
Decrease in Stock
Debit
Credit f Advance to Supplier A/c
Cash A/c
Personal
Real
Suppliers are the receiver
Cash is going out
Debit
Credit g Cash A/c
Advance from Customers A/c
Real
Personal
Cash is coming in
Customers are the givers
Debit
Credit h Interest on Loan A/c
Cash A/c
Nominal
Real
Interest is an expense
Cash is going out
Debit
Credit

S. No.
Accounts Involved
Nature of Account
Affects
Debit / Credit i Loan A/c
Cash A/c
Personal
Real
Lender is the receiver
Cash is going out
Debit
Credit j Bank A/c
Bank Interest A/c
Personal
Nominal
Bank is the receiver
Bank interest is income
Debit
Credit

Ques. 2- The trial balance of Nilgiris Co Ltd., as taken on 31st December, 2002 did not tally and the difference was carried to suspense account. The following