Question

Delhi Public School Bulandshahr Class-1 Sub- Accountancy Ch: 1 INTRODUCTION TO ACCOUNTING Andenment-2 Consider the following hypothetical case and answer the questions that follow: Q.I Ms. Zaina starts a busmess of manufacturing and selling bedsheets but does not maintain any books of accounts. However, whatever she manufactures gets sold out. After 4 years, she becomes insolvent What went wrong? After analyzing her cost and revenue position, it came to light that the double- bedsheets which cost her 550 each was sold for 500 each and the single-bedsheets which cost 250 each was sold for 180 cach Resultantly, she became insolvent. Had she identified, measured, recorded. interpreted and communicated all the information related to her business, she would have correctly fixed the selling price for the bedsheets and would have never become insolvent a) Identify and explain the process not followed by Ms. Zaira b) Which steps of the above mentioned process are not mentioned in the given para? Define those c) Which books of accounts statements are prepared in the steps pointed out in point (b) above? d) State two objectives of business mentioned in the process identified in point (a) e) What is the result' per unit in case of Ms. Zaina's business? State any two internal and two external users of account ting information,
​

Answer 1

Answer:

a) process of accounting not followed by Ms. Zara

b) Classifying

C) Ledgers

d) objective of Accounting

1. systematic recording of all transactions

2. To calculate actual profit or loss of business

e)Loss per unit on sale if double bed sheet

50 per unit

loss on sale of single bed sheet 70 per unit

f) I ternal users

1. Management

2. proprietor

External users

1.investor

2. creditors