ANSWERS TO THE CLASS 11 ASSESSMENT 1

23/04/2020

Day 3 
11A & B

Dear students,

 It was your first experience to have the accountancy online assessment test.
 There were mixed feelings- satisfaction, eagerness, turbulence, anxiety, restlessness, contentment, happiness, disappointment and so much more. 

My reaction is - those who participated wholeheartedly have done a good job. 

Cultivate passion and interest for this scoring and important subject.

ANSWERS TO CLASS ASSESSMENT - 1

(CHAPTER 2) BASIC ACCOUNTING TERMS

Mr Earlyriser started a business for buying and selling of stationery with Rs. 500000 as an initial investment. Of which, he paid Rs. 100000 for furniture, Rs. 200000 for buying stationery items. He employed a sales person and clerk. At the end of the month he paid rupees 5000 as their salaries.
Out of the stationary bought, he sold some stationary for Rs 150000 for cash and some other stationery for Rs. 100000 one credit basis to Mr Ravi. 
Subsequently, he bought stationery items of Rs 150000 from Mr. Peace.
In the first week of next month, there was a fire accident and he lost Rs. 30000 worth of stationary.
A part of the furniture, which cost Rs. 40000 was sold for Rs 45000.

From the above, answer the following:

1. What is the amount of capital with which Mr Earlyriser started business.
500000
2. What are the fixed assets he bought? 
furniture
3. What is the value of the goods purchased?

350000
4.  Who is the creditor?
Peace
5.  State the amount payable to the creditor.
150000
6.  What are the expenses?
5000
7.  What is the gain he earned?
5000
8.What is the loss he incurred?
30000
9. Who is the debtor?
Ravi
10.  What is the amount receivable from his debtor?
100000
11. Determine if the following are assets, liabilities, revenues, expenses or losses : Sales
Revenue
12.Determine if the following are assets, liabilities, revenues, expenses or losses : Debtors
Asset
13.Determine if the following are assets, liabilities, revenues, expenses or losses : Creditors
Liability
14. Determine if the following are assets, liabilities, revenues, expenses or losses : Salary to manager
Expense
15.Determine if the following are assets, liabilities, revenues, expenses or losses : Discount to debtors
Expense
16.Determine if the following are assets, liabilities, revenues, expenses or losses : Capital of the owner
Liability
17. Determine if the following are assets, liabilities, revenues, expenses or losses : Cash
Asset
18.Determine if the following are assets, liabilities, revenues, expenses or losses : Stationary
Expense
19. Determine if the following are assets, liabilities, revenues, expenses or losses : Loss by fire
Loss
20.Determine if the following are assets, liabilities, revenues, expenses or losses : Purchases
Expense

Thank You.