Financial accounting QUESTION BANK (BBA)

1. Define accounting?

2. What is book keeping?

3. What is double entry system?

4. State the rules of accounting?

5. What is cost concept?

6. What is financial accounting?

7. What is cost accounting?

8. Explain the benefit of book keeping?

9. State the objectives of book keeping?

10. Explain the advantage of double entry system of book keeping?

11. What are the functions of financial accounting?

12. What are the objectives of accounting?

13. Explain the advantages of accounting?

14. Explain the different types of account and accounting rules?

15. Explain the accounting concept and convention?

16. Distinguish between book keeping and accounting?

(UNIT-2)

1. What is journal?

2. What is ledger?

3. Explain the characteristics of ledger?

4. Explain the rules for journalizing transaction?

5. From the following transaction give journal entries.

Business started with cash Rs.2,50,000

Bought good for cash Rs.25,000

Sold goods for cash Rs.50,000

Cash withdrawn from bank Rs.50,000

Paid salaries Rs.15,000

6. Journalize the following transaction Rs

Commenced business with cash 180000

Deposited into bank 55000

Bought good from swaminathan 22000

Sold goods to vivek 10000

Purchased furniture for cash 4000

Paid wages 1800

Salary received 2000

Withdrew cash for private expenses 1480

Paid cash for stationery 150

Cash sales 15000

7. Journalize the following in the books of Praveen

2003

Dec1 commenced business with cash 2000

Goods 13000

Furniture 5000

2 sold goods to chandru 3000

5 purchased furniture 3200

7 paid wages 1200

9 sold machinery for cash 8000

 13 received interest 300

14 rent paid 1500

8. On the 1.3.2001 a caterer started business with a capital in cash of Rs50000 during March his
tranasaction were as follow

DATE PARTICULAR Rs

2001

March 2 paid quarterly rent 2500

4 purchased furniture for cash 5000

6 bought equipment from Altd 3000

8 paid wages 500

11 bought provision from B ltd 1000

14 sold meals for cash 750

18 paid wages 600

22 sold meals for cash 450

26 paid wages 650

29 paid A ltd 1000

31 sold meals for cash 300

Enter the transaction in the caterer ledger..

9. Journalizing the following transaction and post them into the ledger of shri.srinivasan

2009

Jan 1 srinivasan started business with a capital 700000

8 cash sales 280000

14 goods purchased from sathya 472500

15 cash purchase 210000

16 sold goods to raghu 350000

17 paid cash to vetri 199500

22 cash received from raghu 203000

28 paid salaries 87500

29 paid telephone charges 19530

30 paid rent 56000

 (UNIT-3)

1. From the following balance prepare trial balance

PARTICULAR Rs

Capital 9000

Plant and machinery 120000

Purchase 8000

Sales 12000

Sundry creditors 8000

Bank loan 22000

Rent outstanding 1000

Opening stock 2000

Sales return 4000

Investment 14000

Debtor 12000

2. Prepare the trail balance as on 31.3.08 in the book of vali

PARTICULAR Rs

Capital 249000

General expenses 97000

Machinery 118680

Wages 14400

Bad debts 1100

Sales 330720

Commission 5500

Bills payable 7700

Banko/d 28600

Discount 1210

Drawing 24000

Building 78000

Stock (1.4.07) 132400

Insurance 2610

Creditors 5000

Loan (cr) 75000

Purchase 210800

Reserve fund 15000

Cash in hand 25320

3. Prepare trail balance from the following ledger balance for the year ending 31.12.99

PARTICULAR Rs

Capital 50000

Sales 177000

Return outward 50

Stock (1.1.99) 30000

Discount (CR) 800

Debtors 45000

Salaries 6800

Wages 10000

Bad debts provision 525

Advertisement 2000

Plant &machinery 80000

Purchase 60000

Return inward 1000

Discount (DR) 350

Bank charges 75

Creditors 25000

Carriage inward 750

Carriage outward 1200

Rent and taxes 10000

Cash in hand 900

Cash at bank 6000

4. What do you mean by rectification of errors?

5. What are the errors disclosed by trail balance?

6. Explain the term suspense account?

7. Explain the errors which are not disclosed by trail balance?

8. Explain different types of errors.

9. Rectify the following errors.

Rs 250 received in respect of a sales of goods was wrongly posted to furniture account
Rs 400 paid as salary to Mr.X. debited to his personal account
Purchase book overcast byRs 1000

10. Rectify the following errors

Sales to lakshman Rs 1800 has been recorded as Rs 1300

Wages paid Rs1225 has been recorded as Rs 1205

11. Rectify the following errors

Purchase day book under cast by Rs200

Sales day book is over cast byRs150
Purchase return book is totaled more by Rs25
 Sales return book has been under cast byRs100
Sales book has been under cast byRs 500

12. The following errors were delected in the account of Mr.raja give journal entries to correct
these errors

A builder bill for Rs 2700 for the erection of a small shed was debited to repairs account
A cheque for RS.300 received from rahim was dishonoured and debited to allowances
account
Good worth Rs 150 returned by kumar were included in stock but no entry was made
Repairs to plant amounting to Rs 567 had been charged to plant &machinery account
A cheque for Rs75 received from ram was creditor to the account of deenan and debited
to cash account
A sum ofRs100 drawn by the proprieter for personal use was debited to travelling
expenses ccount
Typewriter sold to karuna for Rs 750 passed though sales book.

13. Calculate gross profit from the following data

PARTICULAR

Rs
Sales
Sales return 10000
300000
Purchase 100000

Closing stock 50000

Opening stock 20000

14. Calculate gross profit from the following data

PARTICULAR Rs

Sales 420000

Return inward 10000

Sales 420000

Return inward 10000

Return outward 20000

Purchase 110000

Closing stock 30000

Opening stock 20000

Wages and expenses 200000

15. From the following calculate gross profit

PARTICULAR Rs

Opening stock 14000

Purchase 36000

Sales 92000

Sales return 2000

Purchase return 3000

Closing stock 15000

16. Prepare profit and loss account for the year ending on 31.03.2004

PARTICULAR Rs
Gross profit 25000
Salaries 5600
Insurance 200
Discount al allowed 400
Discount received 300
Commission earned 100
Advertisement 450
Taxes 150
Priting charges 375
Travelling charges 500
Stationery 75
Rent 650
Interest on loan 225
Repairs 125
Office 55
expenses 875
General expenses 175
postage

17. from the following balance taken from the books of ved &co. prepare trading and profit and
loss account for the year ending 30th june 2002. And balance sheet as on that date.

Particulars Rs

Capital 35000

Building 18750

Machinery 9250

Debtor 7000

General expenses 800

Rent paid 3710

Drawing 650

Electric charges 190

Carriage inward 850

Cash at bank 3000

Return inward 450

Return outward 110

Salaries 1100

Discount allowed 200

Stock (1-7-2001) 16500

Bills payable 5000

Sales 63500

Purchase 46850

Wages 2500

Cash in hand 1800

Sundry creditors 10000

18. From the following balance of Kumar as on 31.12.94 prepare final account

PARTICULAR Rs

Capital 20000

Interest(DR) 750

Rent 325

Tax,insurance 75

Machinery 10000

Debtors 20000

Loan on mortgage 15000

Wages 15300

Stock(1.1.1994) 4500

Salaries 3600
Bills payable 2000

Loose tools 500

Bank balance(cr) 3450

Bills receivable 1500

Creditors 10000

Business premises 20000

Purchase 21000

Cash in hand 500

Office expenses 350

Sales 48200

Stationery 250

Closing stock 4000

(UNIT-3)

1. What do you understand by SUBSIDIARY BOOK?

2. What are the objectives of subsidiary book?
3. What is sales book?
4. What is cash book? What are the characteristics?
5. Explain the different kinds of cash book and their specific
uses?
6. What is petty cash book?
7. What is cash book?
8. What is contra entry?
9. Record the following transaction In the purchase book of kishore and post them into
ledger
DATE PARTICULAR Rs
2013
Aug 1 purchased goods from naveen 1000
5 purchased goods from raghu varma 1500
6 purchased goods from vikram 2000
8 purchase from sulaiman 1800
9 purchase from manoharlal 1200
11 purchases machinery from ranadheer 7000
14 purchases from pramod 1400
17 purchase from siva sai enterprises 1200
22 purchases from noolkamal 1300
31 purchase from ram Prasad 700

10. Enter the following transaction in the proper subsidiary books of sri.Ramalingam
stores post them to the ledger..
2014
Jan 1 bought goods from bharathiRs3000
2 elango supplied goods to us Rs600
4 saradha bought goods from us Rs600
7 sold goods to vanidhasan Rs 6000
9 velan sold goods to us Rs1000
14 returned goods to velan Rs100
17 saradha returned goods Rs300
29 cash sales Rs 300

11.enter the following transaction in the sales

book 2007
May 6 sold to sundar
100 pieces long cloth @Rs80
100 pieces shirting @Rs45
Packing and delivery Rs.120
10 sold goods to saravanan
15 pieces coat clothing @Rs200
15 sold to sowndar
120 blanket @Rs85
110 blanket
@Rs90
12. From the following particular prepare a two column cash book

2013

Jan 1 cash in hand 14000

1 cash at bank 12000

2 cash paid into bank 2500

3 cash sales 5200

5 credit sales to mother 4000

8 goods purchased for cash and cheque issued 6000

10 cash withdrawn from bank 1500

15 rent paid through cheque 900

20 goods sold to kannan received a cheque 2000

24 cash with drawn from bank for personal use 1100

31 machinery 2600

13. Prepare a three column cash book from the following particular

2008

Jan 1 cash in hand Rs1600 and bank overdraftRs1000

7 discounted a bill for Rs 5000 at1% through bank

9 paid into bank Rs1000

11 Ganesh who owed as Rs 200 become bankrupt and Ganesh paid us 50 paise in the rupee 20

withdrew from bank for private expenses 100

20 received repayment of loan Rs 3000 and deposited out of it Rs 2000 in the bank…
14. Enter the following transaction in the cash book with cash, bank and discount columns;

01.6.2007 cash in hand Rs 30000

Overdraft at bankRs40000

16.6.2007 received a cheque of Rs 980 from Mr.prem and allowed him discount
Rs20

17.6.2007 deposited Mr.prem cheque in bank

26.6.2007 the cheque received from prem on 16.6.2007 was dishonored

15.Enter the following transaction in the cash book with

cash Bank and discount columns

1.6.2006 cash in hand Rs18000

Overdraft at bank Rs4000

16.06.2006 received a cheque of Rs 780 from

Mr.Peter and allowed him discount Rs 20

17.06.2006 deposited Mr Peter cheque in the bank

29.06.2006 the cheque received from peter on 16.06.2006

was dishonored

16. Prepare a petty cash book and show the ledger account
1996also

Jan 1 cash received from the cashier 300

2 paid for stationery 20

Office expenses 15

Paid for postage 10

5 paid for papers and in 10

Paid for telephone bill 30

6 Paid for the staff tiffin 8

Paid for postage 15

Paid for office expenses 10

 (UNIT-5)

1. What is bank reconciliation statement?

2. When can bank reconciliation statement is prepared?

3. List out any three reason for different between pass book and cash book

4. Bring down the causes for difference between balance shows by the cash book and pass book

5.The cash bookof anbu showed a balance of Rs 2500 on 23rd september1993 this did not
agree with the pass book from the following particular ascertain the balance as per pass book

(a) cheque paid in but not cleared by bank before23.9.1993 Rs 500

(b)cheque issued in favour of customer but not presented prior to 23.9.1993 Rs

675 (C)Commission charged by bank not entered in cash book Rs25

(d) Interest on government securities collected and credited by bank not yet entered in cash book
Rs400

6.Prepare bank reconciliation statement on 31st December 2008 of Mr.gopal from the
following particular

(a) Bank overdraft as per cash book Rs 5400

(b)cheques issued but not presented for payment during the yearRs3300

(c)cheques deposited but not collected and credited by bank during the year Rs2000

(d) Bank charges not recorded in the cash book Rs100

(e) Interest charged by the bank not recorded in the cash book Rs 600

7.The cash book balance of Mr.ram showed Rs 1500 on 20th September 2014 on the
comparison with the pass book the following were noted

(a) cheques issued for Rs 185,Rs100and Rs175 has not been presented for payment

(b)cheque deposited of Rs410 into the bank has not been cleared.

Prepare the bank reconciliation statement to show balance as per pass book.
8. From the following balance prepare bank reconciliation statement

(a) Balance as per cash book Rs12500

(b)cheque issued but not presented for payment Rs900

(c)cheque deposited in bank but not collectedRs1200

(d) Bank paid insurance premium Rs500

(e) Direct deposit by customerRs800

(f) Interest on investment collected by bank Rs200

(g) Bank charges Rs50

9.Prepare bank reconciliation statement from the following details as on

31.3.2011 Balance as per pass book Rs18500

Cheque deposited but not credited by the bankers Rs5500

Insurance premium recorded in the pass bookRs500

Cheque issued but not presentedRs2000

Bank commission recorded in the pass bookRs50

Interest on securities directly collected by the

blankets Rs250

10.from the following information prepare a bank reconciliation statement as on 30th

September 2010

(a) Over draft as per cash book Rs12000

(b)Cheque for Rs40000 were sent to the bank for collection but cheque for Rs25000 only
had been collected and credited

(c)cheques worth Rs30000 were issued but cheques for rs 18000 only were presented
for payment

(d) Bills discount with bank for Rs30000has honored

(e) A customer paid Rs28000 directly into the bank account

(f) Bank charged interest Rs250 on overdraft

(g)a cheque for Rs5000from a customer correctly /recorded In the cash book but was omitted
to be sent to the bank for collection
(h) Fire insurance premium paid by bank under instruction Rs2000 not recorded in cash book.

11. Prepare a bank reconciliation statement from the following data on 30.11.2002

(a) Balance as per bank pass book overdraft Rs9204

(b) cheques drawn on 30.11.02 but not cleared till December 2002Rs3225,Rs745and Rs926

(c) Bank overdraft interest charged on 28.11.2002 not entered in the cash book Rs1610

(d) cheques received amounting to Rs35 entered in cash book twice

(e)cheques received on 29.11.2002 entered in cash book but not deposited into
bank Rs11322andRs1730

(f) a periodic payment by bank for Rs80 understanding instruction not entered in the
cash book

(g) cheque deposited on 30.11.02 discount but the entry was not made in the cash
book Rs1890