ASSIGNMENT ASSIGNMENT ASSIGNMENT ASSIGNMENT

BBA BBA BBA BBA FIRST SEMESTER FIRST SEMESTER FIRST SEMESTER FIRST SEMESTER
SUBJECT CODE BB 0006 SUBJECT CODE BB 0006 SUBJECT CODE BB 0006 SUBJECT CODE BB 0006
(4 CREDITS) (4 CREDITS) (4 CREDITS) (4 CREDITS) 60 MARKS 60 MARKS 60 MARKS 60 MARKS
SET I SET I SET I SET I

SUBJECT: FINANCIAL ACCOUNTING SUBJECT: FINANCIAL ACCOUNTING SUBJECT: FINANCIAL ACCOUNTING SUBJECT: FINANCIAL ACCOUNTING AN INTRODUCTION AN INTRODUCTION AN INTRODUCTION AN INTRODUCTION

NOTE: Each question carries TEN marks NOTE: Each question carries TEN marks NOTE: Each question carries TEN marks NOTE: Each question carries TEN marks


1. What are the three branches of accounting and briefly describe the various kinds of
accounting activities. 10 Marks

2. a) Why is a bank reconciliation statement prepared? 3 marks


b) Cash balance as per pass book is Rs.32000 on 31-05-2006. On the
same date, cash balance as per the cash book is different and
therefore a scrutiny of the various transactions reveals that:

i) Cheques deposited in bank on 27
th
March, 2006 were not collected
before 31
st
May Rs.9,800
ii) Cheques issued on 30
th
May, 2006, were cleared by the bank only on 4
th

June, 2006.
iii) Cash deposited by customers directly to our business account in the bank
Rs 6300, not yet recorded in the cash book.
iv) Cheques which were sent for collection, subsequently got dishonored on
31
st
May, 2006 Rs.4,800, not yet recorded in the cash book.
v) The bank has debited our account as bank charges Rs.70, not yet
recorded in cash book.
Prepare Bank Reconciliation Statement and show the balance as per cash
book. 7 marks

3. Write journal entries for the following transactions and prepare ledger accounts.
10 marks
1. Kishor commenced business with cash Rs. 1,00,000
2. Purchased goods on credit 64000
3. Withdrew for private use 3000
4. Goods purchased for cash 12000
5. Paid wages 5000
6. Paid to creditors 40000
7. Sold goods on credit 92000
8. Sold goods for cash (Cost price Rs.3000) 6000
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9. Purchased furniture for cash 5000
10. Received from debtors 31000

4. a) Briefly state the particulars of Accounting Standard 10. 4 marks
b) Compare fixed installment and reducing balance method of depreciation
accounting. Which is a better system and why? 6 marks

5. a) What do you mean by secondary books of account? (2 Marks)
b) Record the following transactions in the personal account of Mr. Somanath and
balance the account at the end of each month. The opening debit balance of
Somanath on 1
st
September 2003 is Rs. 5,600. Find out the closing balance for the
month.of September and October.
(8 Marks)









Date Particulars Amount
Rs.
2003
September 1
4
4
15
18
October 1
3
21

31

Sold goods to Somanath
Received from Somanath
Allowed him a discount
Somanath bought goods
Received from Somanath cash on account
Balance from last month
Sold goods to Somanath
Received from Somanath cash
Allowed him discount
Received cash in full settlement of account

54250
51538
2712
60000
20000
?
10000
3960
40
?
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6. a) The following Trial balance was extracted from the books Chetan, a small
businessman. Do you think that it is correct? If not, rewrite it in the correct form.
Debits Rs. Credits Rs.
Stock
Purchases
Returns outwards
Discount received
Wages and salaries
Rent and rates
Sundry debtors
Bank Overdraft
8250
12750
700
800
2500
1850
7600
2450
Capital
Sales
Returns inwards
Discount allowed
Scooty
Carriage charges
Sundry Creditors
Bills payable
10000
15900
1590
800
1750
700
7250
690

6 marks

b) What do you mean by electronic data processing centres? 4 marks.































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ASSIGNMENT
BBA FIRST SEMESTER
SUBJECT CODE BB 0006
(4 CREDITS) 60 MARKS
SET II
SUBJECT: FINANCIAL ACCOUNTING AN INTRODUCTION

NOTE: Each question carries TEN marks

1.What statements of accounts are regarded as final financial statements? Explain the
objectives of each financial statement.

2 a) Explain and illustrate errors that can be disclosed by trial balance. (5 Marks)
b) An accountant finds that the trial balance of his client did not tally and it (5 Marks)
He transferred it to a suspense account and later discovered the following errors.
a) Rs.1,456 paid to Anand has been credited to his account as Rs 1546.
b) A purchase of Rs.2749 has been posted as Rs 7294 to the purchases account
c) An expenditure of Rs.546 on repairs has been credited to the Buildings account
d) Rs.80 was allowed by B as discount which has not been entered in the books.
e) A sum of Rs.3895 realized on the sale of old furniture has been posted to the sales
account. Give journal entries to rectify the errors and show the suspense account as
it would appear after adjustments. ( 5 Marks )

3. Journalise the following transactions and open only the personal accounts in the
ledger.
2004-
July 1
Gopichand started business with the following
assets:
Cash
Goods
Furniture
Amount Rs.
40,000
30,000
5,000
July 5 Sold goods to Muni
Sold goods for cash to Ganesh
15,000
13,000
July 9 Received from Muni on account 13,000
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July 12 Purchased goods from Mani 49,000
July 15 Paid Mani 25,000
July 20 Paid interest to Mani 500
July 30 Paid stationery charges
Paid Salaries
Paid rent
1600
1250
1160

4. Enter the following transactions in the cash book with discount, cash and bank
columns and find out the closing balances.
May, 2004
1
st
.Balance of cash in hand Rs. 24000; cash at bank Rs.23,500.
4
th
Invested further capital Rs.20000 out of which Rs.16000 was deposited in the
bank.
6
th
Sold goods for cash Rs. 30000
6
th
Collected from debtors Rs.80000; Discount allowed to them Rs. 2000.
10
th
Purchased goods for cash Rs. 45,000
11
th
Paid Ram, our creditor Rs. 25,000; discount allowed by him Rs.1650
13
th
Commission paid to our agent Rs. 5,300
14
th
Office furniture sold for cash Rs. 2,000, the cost of which was Rs.3500
14
th
Rent paid Rs 2400; electricity charges paid Rs. 1,000
14
th
Drew cheque for personal use Rs. 7,000
17
th
Cash sales Rs. 35,000
18
th
Collection from Atul Rs.30,000, deposited in the bank on 19
th
May.
19
th
Drew from the bank for office use Rs.15000
22
nd
Drew cheque for petty expenses Rs.3,500
24
th
Dividend received by cheque Rs.7500, deposited in the bank on the same day.
25
th
Commission received by cheque Rs.2,300, de[posited in the bank on 28
th
May
29
th
Drew from the bank for salary of the office staff Rs15,000
30
th
Deposited cash in the bank Rs.12,000.

5. Mr. X has sold goods worth Rs.15,000 on credit on 4
th
Jan, 2008 to Mr. Y. Y paid Rs.
5,000 and for the remaining balance, he accepted a bill of exchange for three months
period on the same day. X endorsed the bill to Mr. A, who got it discounted at Rs.9500
from bank. On the date of maturity, the bill was dishonored and the bank charged extra
collection charges Rs.200. Draw journal entries in the books of X, Y and A.
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6. On 31
st
Dec, 2006, the following trial balance was prepared from the books of Rajiv.
Debits Rs Credits RS.
Sundry debtors 50600 Sundry creditors 10000
Bills receivable 5000 Capital 70000
Plant and machinery 75000 Bad debts reserve 1000
Purchases 90000 Bills payable 5000
Freehold Premises 50000 Reserve 20000
Salaries 11000 Sales 231700
Wages 14400
Postage and stationery 750
Carriage inwards 750
Carriage outwards 1000
Bad debts 950
General charges 1500
Cash at bank 5300
Cash in hand 800
Closing stock 29000
Total 337500 Total 337500

The following adjustments are required:
1. Rajiv gets a salary of Rs.9000 per annum
2. Allow 5% interest on capital
3. Bad debts provision to be adjusted to 2.5% on Sundry debtors
4. 5% of net profits should be credited to reserve
5. It was discovered that stock on 31st Dec, 2006 was overcast by Rs.1000.
6. You are required to prepare Trading, Profit and Loss account and Balance Sheet.
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