Assignment Semester: Ii COURSE NAME: Financial Accounting Course Code: Bba (A) 202

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ASSIGNMENT

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

Aug.1 Business started with cash Rs.10,000.


Aug.2 Purchased goods for cash Rs.6,000.
Aug.5: Purchased furniture for office use for Rs.1,000.
Aug.7 Goods sold for cash Rs.4,000.
Aug.9 Goods purchases from Ram on credit Rs.4,000.
Aug.10 Commission received Rs.500.
Aug.15 Paid to Ram Rs.2,000.
Aug.18 Goods sold to Hari on credit Rs.5,000.
Aug.24 Received from Hari Rs.4,000.
Aug.28 Stationery purchased Rs.300.
Aug.31 Rent paid Rs.700 and withdrew for personal use Rs.2,800.

3 From the following transactions prepare necessary ledger accounts and 15


balance them.
2021 1 Sachin started Business with Cash Rs 10,000 and Machinery
Jan. Rs 15,000
1 Purchased goods for cash Rs 3,000.
3 Sold goods for cash Rs 4,000.
5 Purchased furniture on credit from Poona Traders Rs 7,000.
8 Purchased goods on credit from Mr. Dilip Rs 2,000 at 10%
T.D.
10 Sold goods on credit to Mr. Mahendra Rs 8,000 at 12.5% T.D.
15 Paid Rent Rs 600.
28 Withdraw cash for personal use Rs 1,000.
20 Paid cash to Mr. Dilip Rs 1,800.
25 Received cash from Mr. Mahendra Rs 6,800.
31 Paid to Miss Sunita Rs 400 for salaries
4 a. Prepare an accounting equation from the following: (5Marks) 15
(i) Kunal started business with cash Rs 2,50,000
(ii) He purchased furniture for cash Rs 35,000
(iii) He paid commission Rs 2,000
(iv) He purchased goods on credit Rs 40,000
(v) He sold goods (costing 20,000) for cash Rs 26,000

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)

c. A Ltd. depreciates its equipment at 10% p.a. on straight line method. On


1/4/2019/ the balance in Equipment account was Rs. 8,50,000 (Original Cost
Rs. 12,00,000). On 1/7/2019 new equipment was purchased for Rs. 25,000.
On 31/12/2019 an old equipment having WDV of Rs. 40,000 on 1/4/2019
(Original cost Rs. 60,000) was sold for Rs. 30,000. Show the Equipment
Account for the year ended 31.03.2020 ------- (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).

b. Three Chartered Accountants A, B and C form a partnership, profits


being shared in the ratio of 3 : 2 : 1 subject to the following:
(a) C's share of profit guaranteed to be not less than ₹ 15,000 p.a.
(b) B gives a guarantee to the effect that gross fee earned by him for the firm
shall be equal to his average gross fee of the preceeding five years when he
was carrying on profession alone, which on an average works out at ₹
25,000. The profit for the first year of the partnership are ₹ 75,000. The gross
fee earned by B for the firm is ₹ 16,000. You are required to show Profit and
Loss Appropriation Account after giving effect to the above. ------ (8 Marks)
8 Prepare Bank Reconciliation Statement from the following particulars and 15
show balance as per Cash Book:
(i) Balance as per Pass Book on 31st March, 2019 overdrawn ₹ 10,000.
(ii) Cheques drawn in the last week of March, 2019 but not cleared till 3rd
April, 2019 ₹ 20,000.
(iii) Interest on bank overdraft not entered in the Cash Book ₹ 1,500.
(iv) Cheques of ₹ 20,000 deposited in the bank in March, 2019 but not
collected and credited till 3rd April, 2019.
(v) ₹ 100 Insurance Premium paid by the bank under a standing order has not
been entered in the Cash Book.
(iv) A draft of ₹ 10,000 favouring Atul & Co. was issued by the bank charging
commission of ₹ 200. However, in the Cash Book entry was passed by ₹
10,000.

Note: All of you are requested to submit your assignment as per the scheduled date without
failure.

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