Define the term Accounting. Explain in brief any four objectives of Accounting.

Explain any three of the following:
(i) Full Disclosure Principle
(ii) Money Measurement Principle
(iii) Materiality Principle
(iv) Accounting Period Principle

Prepare the accounting equation on the basis of the following transactions:
(i) Commenced business with cash Rs.40,000 and building Rs.90,000
(ii) Purchased goods for cash Rs.15,000 and credit Rs.20,000
(iii) Sold goods to Vijay for Rs.50,000 (costing Rs.20,000)
(iv) Bought office furniture Rs.10,000.

Describe how account are used to record transactions and about the effects of transaction.

Journalizing the following transactions:

The following trial balance extracted from the books of a Merchant Mr. J. Rao on 31.3.2014 :

Adjustments :
(i) Stock in hand on 31.03.2014 Rs 3,250.
(ii) Depreciate Buildings @ 5% p.a.; Furniture @ 10% p.a.; Motor Vehicles @ 20% p.a.
(iii) Rs 85 is due for interest on Bank Overdraft.
(iv) Salaries Rs 300 and Taxes Rs 200 are outstanding.
(v) Insurance Premium amounting Rs 100 are prepaid.
(vi) 1/3 of the commission received is in respect of work to be done next year.
(vii) Write off a further sum of Rs 100 as bad debts from Debtors and create Provision for Doubtful Debts @ 5% on debtors.
Prepare a Trading and Profit & Loss Account and the Balance Sheet.

From the following balances of M/s Jyoti Exports, prepare trading and profit and loss account for the year ended March 31, 2014 and balance sheet as on this date.

Closing stock 10,000.
Adjustments:
(i) The provision for bad debts is to be maintained at 5% on sundry debtor
(ii) Wages amounting to 500 and salary amounting to 350 are outstanding.
(iii) Factory rent prepaid 100.
(iv) Depreciation charged on Plant and Machinery @ 5% and Building @ 10%.
(v) Outstanding insurance 100.

Briefly explain the various components of a Computer Hardware.