BCOC 131 Solved Assignment 2022 – 23 [IGNOU BCOMG]

BCOC 131 Solved Assignment 2022 – 23

IGNOU BCOMG – 1st Semester

COURSE CODE: BCOC 131 Financial Accounting



Maximum Marks: 100


In this post you will get BCOC 131 Solved Assignment 2022 – 23. Subject Title is Financial Accounting which is an important subject of IGNOU BCOMG 1st Semester. All the IGNOU BCOMG solved assignment are free. Visit our blog regularly for more solved assignment.


Attempt all the questions. Each question carries 10 marks.                         (5 x 10=50)

1. Define Computerized Accounting and distinguish between manual and computerized accounting system.    (10)

Ans: The term computerised accounting implies that when various stages of accounting process: recording, classification and summarizing are done with the help of computers, it is known as computerized accounting.

In case of computerized accounting, manual system is completely replaced with computerized system of book-keeping with the help of certain accounting packages. Through such packages, the computer is instructed to do the routine book-keeping and to produce financial statements by calculations and balances.

Difference between Manual Accounting System and Computerized Accounting

(1) Recording of data: The recording of financial transactions in manual system is through books of original entries whole the data content of such transactions is stored in well-designed database with the help of certain machines e.g., optical scanner, terminals etc.

(2) Classification and processing of data: In a manual accounting system, transactions recorded in the books of original entry are further classified by posting into ledger accounts. This results in transactions data duplicity. In computerized accounts, no such data duplication is made to cause classification of transactions. In order to produce ledger accounts, the stored transaction data is processed to appear as classified so that the same is presented in the form of a report.

(3) Summarizing and updating of data: The transactions are summarized to produce trial balance in manual accounting system by ascertaining the balances of various accounts. As a result, preparation of ledger accounts becomes a pre-requisite for preparing the trial balance. However, in computerized accounting, the originally stored transaction data are processed to churn out the list of balances of various items to be finally shown in the trial balance report. The generation of ledger accounts is not a necessary condition for producing trial balance in a computerized accounting system.

(4) Adjusting entries: In a manual accounting system, entries are made to the principle of cost matching revenue. These entries are passed to match the expenses of the accounting period with the revenues generated by them. Some other adjusting entries may be made as part of errors and rectification.

However, in computerized accounting, journal vouchers are prepared and stored to follow the principle of cost matching revenue, but there is nothing like passing adjusting entries for errors and rectification, except for rectifying an error of principle by having passed a wrong voucher, such as using payment voucher for a receipt transaction.

(5) Cost of reporting: Since with a manual system, the cost of preparing reports other than the basic financial statements is high, most reports are of broad, general-purpose nature, and identical reports are distributed to many different managers in the organization.

On the other hand, the cost of preparing specialized management reports in computerized systems is usually quite low. This often leads to a larger number of different reports oriented toward specific managers and their responsibilities.

2. Journalise the following transactions:       (10)




June 1

June 2

June 2

June 3

June 4

June 4

June 8

Cash sale of Ashok.

Bought goods from Vinod.

Paid cartage on the goods bought.

Old newspapers sold.

Paid Municipal taxes by cheque.

Paid for repairs to machinery.

Received commission by cheque.








Ans: Coming Soon

3. From the following transactions of M/s. Joshi & Sons, prepare Cash Book.     (10)




Aug. 1

Aug. 5

Aug. 7

Aug. 10

Aug. 12

Aug. 14

Aug. 16

Aug. 18

Aug. 20

Aug. 24

 Aug. 30

Aug. 30

Cash in hand

Purchased and old typewriter for

Received cash from Singh & Co. Rs. 1,980 and allowed discount of

Cash Sales

Paid to Ram Narain Rs. 2,970 and he allowed a discount of

Sold old newspapers for Rs. 60.

Received from Prasad Rs. 985 in full settlement of his account for

Purchased goods worth from Sanjeev Bros. at a trade discount of 10% and paid cash.

Sold goods worth for cash at a trade discount of 5%.

Settled the account of Tiwari of by paying the necessary amount after deducting a discount of 3%.

Paid rent

Deposited in the bank the cash in excess of













Ans: Coming Soon

4. Easy Payment Ltd. Sells goods on hire purchase basis at a profit of 50% on cost, The following particulars are given for the year ending December 31, 2018. Prepare the Hire Purchase Trading Account.            (10)



Hire purchase Stock (opening)

Instalments due, customers paying (opening)

Goods sold on hire purchase during the year (at hire purchase price)

Cash received from customers

Goods repossessed valued at (instalments due Rs. 6,000)

Hire Purchase Stock at the end

Instalments due (at the end), customers paying










Ans: Coming Soon

5. On January 1, 2018 Universal Sports, Delhi consigned 180 cases of sports goods costing Rs. 360 each to Gemini Sports, Mumbai. They paid Rs 360 for insurance and Rs. 1,800 for freight. Gemini Sports are entitled to a commission of 10% on gross sales. Gemini Sports received the consignment on January 15 and sent a 60 days bill for Rs 10,000 to Universal Sport. The Bill was discounted for Rs. 9,000.

On opening the cases, the Consignee found 10 cases of wrong description and returned them, paying return freight of Rs. 400. Gemini Sports sold 120 cases @ Rs 600 each for cash and 20 cases @ Rs. 700 each on credit. Gemini Sports spent Rs. 720 on clearing charges and Rs. 600 on carriage outwards. They incurred bad debts amounting to Rs 400. The accounts were settled on June 30, and the balance remitted by cheque. Show necessary ledger accounts in the books of both the parties.

Ans: Coming Soon

BCOC 131 Solved Assignment 2022 – 23


Attempt all the questions. Each question carries 5 marks.            (6 x 5=30)

6. Briefly discuss the functions of accounting.           (5)

Ans: Accounting is the analysis and interpretation of book-keeping records. It includes not only maintains of accounting records but also the preparation of financial statements which helps in analysis and interpretation of business transactions and events.

According to the American institute of certified public accounts” The arts of recordings, classifying and summarizing in a significant manner and in terms of money transaction and events which in parts, at least of a financial charter and interpreting the result there of”.

Functions of accounting:

a) Record Keeping Function: The primary function of accounting relates to recording, classification and summary of financial transactions-Journalisation, posting, and preparation of final statements. These facilitate to know operating results and financial positions.

b) Managerial Function: Decision making programme is greatly assisted by accounting. The managerial function and decision making programmes, without accounting, may mislead.

c) Legal Requirement function: Auditing is compulsory in case of registered firms. Auditing is not possible without accounting. Thus accounting becomes compulsory to comply with legal requirements.

d) Language of Business: Accounting is the language of business. Various transactions are communicated through accounting. There are many parties-owners, creditors, government, employees etc., who are interested in knowing the results of the firm and this can be communicated only through accounting.

7. Write about the Business Entity Concept.         (5)

Ans: According to this concept, the task of measuring income and wealth is undertaken by accounting, for an identifiable unit or entity. The unit or entity so identified is treated different and distinct from its owners. In law, the distinction between owners and the business is drawn only in case of joint stock companies but in accounting this distinction is made in the case of sole proprietor and partnership firm as well.

For example, goods used from the stock of the business for business purposes are treated as business expenditure but similar goods used by the proprietor i.e. owner for his personal use are treated as his drawings. Such distinction between the owner and the business unit has helped accounting in reporting profitability more objectively and fairly. It has also lead to the development of “responsibility accounting” which enables us to find out the profitability of even the different sub-units of the main business.

Implication of the above concept is that the owner and business are treated as two different and distinct entities and we record the transactions from the view point of business. This explains why capital contributed by the owner is shown as a liability in the balance sheet of the business.

8. What do you mean by double entry system?         (5)

Ans: Double Entry System: Double Entry is an accounting system that records the effects of transactions and other events in at least two accounts with equal debits and credits. Under this system all accounts i.e., Personal, real and nominal accounts are maintained. It is a complete system of recording business transactions.Double entry system starts with recording of transactions in journal and ends with preparation of final accounts.

Advantages of Double Entry System

a) Scientific system: This system is the only scientific system of recording business transactions. It helps to attain the objectives of accounting.

b) Complete record of transactions: This system maintains a complete record of all business transactions.

c) A check on the accuracy of accounts: By the use of this system the accuracy of accounting book can be established through Trail balance.

d) Ascertainment of profit or loss by the preparation of Profit and Loss Account.

e) Knowledge of the financial position of the business through the preparation of balance sheet.

Disadvantages of Double Entry System

a) It requires expert knowledge: Book-keeping requires specialized knowledge, so it cannot be prepared by a layman.

b) It is a very lengthy process: As it records transactions in two stage viz. journalizing and ledger posting, it requires a larger number of books.

c) It is expensive: It is expensive because an expert is to be employed for this Purpose. It, therefore, involves additional expense.

d) Errors of omission: If a transaction is omitted to be recorded in the books of accounts, it cannot be detected by double entry system because they do not affect a trial balance.

9. What is a compound journal entry? Give examples.      (5)

Ans: In most of the cases, journal entry has one account to be debited and one account to be credited. It is called a simple journal entry. When two or more transactions of similar nature occur on the same date, then instead of passing a separate entry for each transaction, a combined entry may be passed for all such transactions. Such combined entry is called ‘compound entry’. Compound entries are passed only when the following conditions are satisfied:

(a) Transactions take place on the same day;

(b) at least one aspect (debit or credit) of these transactions is common; and

(c) number of accounts involved are more than two.

Compound entries may assume any one of the following forms:

(1) One account credit and two or more accounts debit.

(2) One account debit and two or more accounts credit.

(3) Two or more than two accounts debit and credit.

Journalize the following transactions:




April 15

April 18

April 20

Salaries paid

Wages paid

Interest paid

Goods purchased for cash

Stamps purchased

Machinery purchased

Rent received

Dividend received















Amount (Rs.)


Amount (Rs.)


April 15

Salaries A/c                                                      Dr.

Wages A/c                                                         Dr.

Interest A/c                                                       Dr.

To Cash A/c

(Being Salaries, wages and interest paid)





April 18

Purchase A/c                                                       Dr.

Stamps A/c                                                           Dr.

Machinery A/c                                                     Dr.

To Cash A/c

(Being goods, stamps and machinery purchased for cash)





April 20

Cash A/c                                                                 Dr.

To Rent A/c

To Dividend A/c

(Being cash received for rent and dividend)







10. What are the characteristics of a hire purchase agreement?         (5)

Ans: Features and Characteristics of Hire Purchase agreement

The characteristics of hire-purchase system are as under

a)    Hire-purchase is a system of credit sale.

b)   The price under hire-purchase system is paid in installments.

c)    The goods are delivered in the possession of the purchaser at the time of commencement of the agreement.

d)   Hire vendor continues to be the owner of the goods till the payment of last installment.

e)   The hire purchaser has a right to use the goods as a bailer.

f)     The hire purchaser has a right to terminate the agreement at any time in the capacity of a hirer.

g)    The hire purchaser becomes the owner of the goods after the payment of all installments as per the agreement.

h)  If there is a default in the payment of any installment, the hire vendor will take away the goods from the possession of the purchaser without refunding him any amount.

11. What are post-dated vouchers? Explain its use.         (5)

Ans: Uses of post-dated vouchers: Voucher means the document prepared for the purpose of recording business transactions in the books of accounts. Normally vouchers are prepared after the happening of transactions. But there are certain transactions which are regular in nature and paid monthly such as loan EMI, rent etc. For such transactions, there is a specific feature in Tally ERP 9 known as post-dated vouchers.

Post-dated vouchers are those which are entered today in tally but will be updated in the ledger on the specified date. For example, if I enter a transaction on 1-4-2020 and voucher date is 15-4-2020, then the voucher will be updated in ledger on 15-4-2020. This feature is very useful for recording fixed monthly payment type transactions and also prevents to some extent errors of omission.

BCOC 131 Solved Assignment 2022 – 23


Attempt all the questions. Each question carries 10 marks.     (2 x 10=20)

12. What are the qualitative characteristics of accounting information?         (10)

Ans: Qualitative Characteristics of Accounting Information

There is always a grave misconception that accounting involves financial figures only. Financial figures on profitability and financial position offer little information and may sometimes be misleading to the users of financial statements. The fundamental feature of the financial statements is to provide true and fair view of the state of affairs and profit or loss for the period.

Qualitative information simplifies and expands on the financial figures to ensure easy understanding and comparability of results. Outlined below are the qualitative characteristics that make the information content of the financial statements useful to its users:

1. Reliability: Reliability is said to comprise representational faithfulness, verifiability, and neutrality, with an overlay of completeness, freedom from bias, precision and uncertainty. Financial statements are not neutral if, by the selection or presentation of information, they are influenced in the making of a decision or judgement in order to achieve pre-determined result or income.

In order to be relied upon, the financial information requires the following attributes:

(a) Faithful presentation of information.

(b) Neutrality.

(c) Substance over form i.e., accounting should be based on financial reality and not merely on legal form.

(d) Prudence.

(e) Completeness.

2. Relevance: Relevance is a quality emphasized in every accounting framework. The International Accounting Standards Board (IASB) says that information is relevant “when it influences the economic decisions of users by helping them evaluate past, present or future events or confirming, or correcting their past evaluations.”

To be relevant, accounting information must be capable of making a difference in a decision by helping users to form predictions about the outcomes of past, present and future events. The relevance of information is affected by its nature and materiality. If an item or event is material, it is probably relevant to the users of financial statements.

3. Understandability: In addition to relevance, the users of financial statements will be able to make informed and better decision if they can be able to interpret the contents of financial statements. Understandability is about communicating an intended meaning. This depends on both the accountant and the decision maker.

Accounts should produce financial information and present it in a form which can be easily understood and interpreted by their intended users. Whether reported information is sufficiently understandable depends on who is using it. The information, in general purpose external financial reports, should be understandable to financial statement users who have a reasonable knowledge of business, economic activities and accounting but a willingness to study the information with reasonable diligence.

4. Comparability: Another important character of accounting information is comparability. Users should be able to compare financial statements on an enterprise through time in order to assess the trend in performance and financial position.

The financial information should be presented together with the corresponding information of the preceding periods for easy comparison (i.e. intra firm comparison) or the accounting information of an enterprise should be compared with other enterprise (i.e. inter-firm comparison).

13. State the salient features of joint venture. Distinguish it from consignment.      (10)

Ans: A joint venture is the combination of two or more persons into a specific single activity. It is a form of partnership which is limited to a specific venture. It is exactly the same as partnership, with the exception that it is one of a business that is to be terminated after completion of venture for which it is started. Since the business is to be terminated after completion of the venture, a firm name is not generally used.

Thus the joint venture is like a temporary partnership with or without a firm name. It can also be said a particular partnership or partnership for a particular object.

Features of a Joint Venture:

a)   It is a partnership for specific purpose only.

b)  The business is dissolved after the completion of venture.

c)   Going concern concept is not applicable in case of joint venture.

d)  Provisions of Indian Partnership Act are also applicable in case of joint venture.

e)  It does not use a firm name generally.

Difference between Consignment and Joint Venture

Basis of Difference


Joint Venture


There are two parties i.e. the principal and the agent.

The numbers of parties are two or more and all the parties are known as co-ventures.



The relationship between consignor and consignee is principal and the agent.

Co-ventures are principal as well as agent.


Term (Period):

Consignment is not confined to any specific term or period.

Joint venture is confined only to a specific venture.



The ownership of consignment is always with consignor and the agent has no right of ownership in the goods.

In case of joint venture, all the co-ventures are the joint owner.

Sharing of Profit or Loss

The profit on the consignment belongs to the principal (Consignor).

The profit or loss is shared equally by all the concerned parties, unless otherwise decided.

Account Sale

Account sale is prepared.

No need to prepare account sale.


Finally, you reached at the end of the post. Hope you are satisfied with BCOC 131 Solved Assignment 2022 – 23.  Visit official website of IGNOU to download IGNOU BCOM assignment papers.

Leave a Comment

error: Content is protected !!