Assignment Semester: Ii COURSE NAME: Financial Accounting Course Code: Bba (A) 202
Assignment Semester: Ii COURSE NAME: Financial Accounting Course Code: Bba (A) 202
Assignment Semester: Ii COURSE NAME: Financial Accounting Course Code: Bba (A) 202
SEMESTER: II
COURSE NAME: Financial Accounting
COURSE CODE: BBA (A) 202
Q. Question Marks
No
1 a. Describe the double-entry system of accounting and why it is important in 15
maintaining accurate financial records. (5Marks)
b. Discuss the difference between cash basis accounting and accrual basis
accounting. Provide examples of when each method would be appropriate.
(5Marks)
c. Discuss the role of accounting standards (such as GAAP or IFRS) in
ensuring consistency and transparency in financial reporting. (5Marks)
2 Prepare Single Column Cash Book of Vinod from the following transactions: 15
b. A Ltd. purchased a machine on 1st July,2019 at a cost of Rs. 14, 00,000 and
spent Rs. 1, 00,000 on its installation. The firm writes off depreciation at10%
p.a.of the original cost every year. The books are closed on 31st March every
year. You are required to: Show the Machinery Account and Depreciation
Account for the year 2019 and 2020. ----- (5Marks)
5 Prepare the trading and profit and loss account and a balance sheet of M/s 15
Shine Ltd. from the following particulars.
Account Title Amt.(Rs) Account title Amt.(Rs)
Sundry Debtors 1,00,000 Bills Payable 85,550
Bad Debts 3,000 Sundry Creditors 25,000
Provision for Bad
Trade Expenses 2,500 Debts 1,500
Printing and
Stationery 5,000 Return Outwards 4,500
Rent, Rates and Taxes 3,450 Capital 2,50,000
Freight 2,250 Discount Received 3,500
Sales Return 6,000 Interest Received 11,260
Motor Car 25,000 Sales 1,00,000
Opening Stock 75,550
Furniture and Fixture 15,500
Purchase 75,000
Drawings 13,560
Investments 65,500
Cash in Hand 36,000
Cash at Bank 53,000
4, 81,310 4, 81,310
Adjustments
1. Closing stock was valued Rs. 35,000.
2. Depreciation charged on furniture and fixture @ 5%.
3. Further bad debts Rs. 1,000. Make a provision for bad debts @ 5% on
sundry debtors.
4. Depreciation charged on motor car @ 10%.
5. Interest on drawings @ 6%.
6. Rent, rates and taxes was outstanding Rs. 200.
7. Discount on debtors 2%.
6 Record the journal entries for forfeiture and reissue of shares in the following 15
cases:
(i) Basak Ltd. forfeited 20 shares of ₹ 10 each, ₹ 7 called-up on which the
shareholder had paid application and allotment money of ₹ 5 per share. Out of
these, 15 shares were reissued to Naresh as ₹ 7 per share paid-up for ₹ 8 per
share.
(ii) Y Ltd. forfeited 90 shares of ₹ 10 each, ₹ 8 called-up issued at a premium
of ₹ 2 per share to 'R' for non-payment of allotment money of ₹ 5 per share
(including premium). Out of these, 80 shares were reissued to Sanjay as ₹ 8
called-up for ₹ 10 per share.
7 a. Amit, Babita and Sona form a partnership firm, sharing profits in the ratio 15
of 3:2:1, subject to the following ----------- (7 Marks)
(i) Sona's share in the profits, guaranteed to be not less than Rs 15,000 in any
year.
(ii) Babita gives guarantee to the effect that gross fee earned by her for the
firm shall be equal to her average gross fee of the proceeding five years,
when she was carrying on profession alone (which is Rs 25,000). The net
profit for the year ended March 31, 2007 is Rs 75,000. The gross fee earned
by Babita for the firm was Rs 16,000.
You are required to show profit and loss appropriation account (after giving
effect to the alone).
Note: All of you are requested to submit your assignment as per the scheduled date without
failure.