Question
Mention three limitations of the CAS (Computerised Accounting System).
✓
Answer
Despite many advantages offered by a computerised accounting system it is not free from limitations. Various limitations of a computerised accounting system are as follows:
- Staff Opposition: Introduction of computers lead to a lot of retrenchrnent as well as complication of activities which result in resistance of the staff.
- High Cost of Training: The sophisticated computerised accounting packages generally require specialised staff personnel, which leads to heavy amount of cost of training
- Adverse effects on health: The excessive use of computers may lead to various health problems like eye strains, back aches, muscular pains etc.
- Security Problems: Fraud and embezzlements are usually committed on a computerised accounting system through alteration of data. People responsible for tampering of data cannot be located in a computerised set up whereas the same can be easily done in case of manual records.
- System Problems: System failure due to hardware failures, attack by viruses, system down etc. are the usual problems faced by a computerised system.
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From the following particulars, prepare Balance Sheet as at $31^{st}$ March, $2019$:
→Calculate Total Sales from the following information:
| ₹ | |
| Bills Receivables as on 1st April, 2017 | 7,800 |
| Debtors as on 1st April, 2017 | 30,800 |
| Cash received on maturity of Bills Receivable during the year | 20,900 |
| Cash received from Debtors | 70,000 |
| Bad Debts written off | 4,800 |
| Returns Inward | 8,700 |
| Bills Receivable dishonoured | 1,800 |
| Bills Receivable on 31st March, 2018 | 6,000 |
| Debtors as on 31st March, 2018 | 25,500 |
| Cash Sales during the year | 15,900 |
Rectify the following errors:
- Sale of old furniture worth ₹ 3,000 treated as sales of goods.
- Sales Book added ₹ 5,000 short.
- Rent of proprietor’s residence, ₹ 6,500 debited to Rent Account.
- Goods worth ₹ 11,970 returned by Manav posted to his debit as ₹ 11,790.
Give rectifying entries for the following:
- ₹ 5,400 received from Mr. A was posted to the debit of his account.
- The total of Sales Return Book overcasted by ₹ 800.
- ₹ 2,740 paid for repairs to motor car was debited to Motor Car Account as ₹ 1,740.
- Returned goods to Shyam ₹ 1,500 were passed through Returns Inward Book.
From the following information ascertain the opening balance of sundry debtors and closing balance of sundry creditors
The rate of gross profit is 25% on selling price and out of the total sales ₹ 85,000 was for cash sales.
Total sales $=4,00,000=3,00,000\times\frac{100}{75}$
→| ₹ | |
| Opening stock, | 30,000 |
| Closing stock, | 25,000 |
| Opening creditors, | 50,000 |
| Closing debtors, | 75,000 |
| Discount allowed by creditors, | 15,00 |
| Discount allowed to customers, | 2,500 |
| Cash paid to creditors, | 1,35,000 |
| Bills payable accepted during the period, | 30,000 |
| Bills receivable received during the period, | 75,000 |
| Cash received from customers, | 2,20,000 |
| Bills receivable dishonoured, | 3,500 |
| Purchases, | 2,95,000 |
Total sales $=4,00,000=3,00,000\times\frac{100}{75}$
Following balances appear in the Trial Balance of a firm as on $31^{st}$ March, $2019$:
Prepare Trading Account of the firm.
→|
|
|
₹
|
|
Opening Stock:
|
Raw Material
|
80,000
|
|
|
Finished Goods
|
1,40,000
|
|
Purchases
|
|
3,60,000
|
|
Sales
|
|
7,00,000
|
|
Returns:
|
Purchases
|
10,000
|
|
|
Sales
|
6,000
|
|
Wages
|
|
1,30,000
|
|
Factory Expenses
|
|
90,000
|
|
Freight:
|
Inwards
|
20,000
|
|
|
Outwards
|
30,000
|
|
At the end of the accounting period, stock was:
|
|
|
|
Raw Materials
|
|
70,000
|
|
Work-in-Process
|
|
20,000
|
|
Finished Goods
|
|
1,10,000
|
In the following Machinery Account, determine the missing values, if depreciation is to be charged @ 10% p.a. on the Original Cost. On 1st October, 2018, the machinery was sold for ₹ 1,20,000.
Explain the method of posting a Petty Cash Book.
Define a Trial Balance. Why is it prepared?
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