Question
Write a note on types of Assets with one example of each.
✓
Answer
Assets in the Balance Sheet are divided into two parts as follows:
- Fixed Assets: Fixed Assets are those assets that are acquired for continued use and not for resale. They may be tangible assets like land, building, plant and machinery, furniture and fixtures, etc., or intangible assets like goodwill, patents, etc.
- Tangible Fixed Assets are those fixed assets which can be seen and touched, e.g., Land and Building, Plant and Machinery, Furniture, etc.
- Intangible Fixed Assets are those fixed assets which are not in a physical form, i.e., they can neither be seen nor touched, e.g, goodwill of a firm or the know-how which it possesses, patents, trademarks, coputer software, etc.
- Current Assets: Thssets: These are the assets of business which are held for reslae or for converting into cash. These are the assets which are likely to be realised within a period of one year or during the period of normal operating cycle. A business earns profit by sale of these assets but not by keeping them in hand. Examples are unsold goods, debtors, bills receivalbe, bank balance, cash in hand, etc. These assets are temporary in nature and may change from time to time. These are sometimes referred to as floating or circulating assets.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
Extract of a Trial Balance as at March 31, 2017 is as follows:
Additional information: A debtor of ₹ 2,000 could not be recovered. It is decided to maintain Provision for Doubtful Debtors @ 5% on Debtors and Provision for Discount at @ 2%. How these adjustments will be shown in Financial Statements?
|
Sundry Debtors
|
₹ 1,02,000
|
|
Bad Debts
|
₹ 1,400
|
|
Provision for doubtful debts
|
₹ 3,400
|
What do you understand by relationship type? How is it different from relationship instance and relationship set?
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 |
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
|
A boiler was purchased from abroad for ₹ 10,000. Shipping and forwarding charges ₹ 2,000, Import duty ₹ 7,000 and expenses of installation amounted to ₹ 1,000.
Calculate the Depreciation for the first three years (separately for each year) @ 10% p.a. on Diminishing Balance Method.
Calculate the Depreciation for the first three years (separately for each year) @ 10% p.a. on Diminishing Balance Method.
What do you understand by Grouping of Accounts?
From the following, prepare Profit and Loss Account of Sohan Lal as it would appear in the $1^{\text {st }}$ year that ended $31^{\text {st }}$ March, 2019:
The Gross Profit was $45\%$ of sales, which amounted to ₹ $6,50,000.$
Also, pass the Journal entries.
→The Gross Profit was $45\%$ of sales, which amounted to ₹ $6,50,000.$
Also, pass the Journal entries.
Following errors are discovered in the books of Sh. Ram Lal. Make the necessary entries to rectify them:
- Purchases Journal was undercasted by ₹ 2,150.
- ₹ 500 received from K. Krishna was debited to his account.
- An amount of ₹ 3,000 withdrawn by the proprietor of the firm for his personal use was posted to the Travelling Expenses Account.
- An amount of ₹ 175 for a credit sale to R. Gopalan correctly entered in the Sales Book, has been debited to his account as ₹ 157.
Extract of a Trial Balance as at March 31, 2017 is as follows:
Additional information: A debtor of ₹ 2,000 could not be recovered. It is decided to maintain Provision for Doubtful Debtors @ 5% on Debtors and Provision for Discount at @ 2%. How these adjustments will be shown in Financial Statements?
|
Sundry Debtors
|
₹ 1,02,000
|
|
Bad Debts
|
₹ 1,400
|
|
Provision for doubtful debts
|
₹ 3,400
|
From the following information, prepare Trading Account for the year ended $31^{st}$ March, $2019$:
Net Realisable Value (Market Value) of stock as on $31^{st}$ March, $2019$ was ₹ $1,20,000$. [Hint: Closing Stock is shown at Net Realisable Value, i.e., Market Value (₹ $1,20,000$) since Market Value is less the Cost of Stock.]
→Net Realisable Value (Market Value) of stock as on $31^{st}$ March, $2019$ was ₹ $1,20,000$. [Hint: Closing Stock is shown at Net Realisable Value, i.e., Market Value (₹ $1,20,000$) since Market Value is less the Cost of Stock.]