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ASSIGNMENT
| PROGRAM | Bachelor of Business Administration-BBA |
| SEMESTER | 2 |
| SUBJECT CODE & NAME | BBA203 & FINANCIAL ACCOUNTING |
| CREDIT | 4 |
| BK ID | B1520 |
| MAX.MARKS | 60 |
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.
Q.1 Explain the objectives for accounting. Write about the limitations of accounting.
Answer: – Objectives for accounting:-
- To maintain the cash accounts through the Cash Book and to find out the Cash balance on any particular day.
- To maintain various other Journals for recording day-to –day non –cash transactions.
- To maintain various Ledger Accounts to find out the exact amounts of incomes and expenses or gain and losses or receivables and payables.
- To furnish information regarding
Q.2 What is Petty Cash Book? Solve the below given problem.
On 1st Jan 2009, Ramanathan opened a Bank Account by depositing Rs.6,000/- in cash. All remittances are to be paid into bank on the same day on which they are received and all payments are made by cheques. Enter the following transactions in three columnar cash book.
Jan 2 – Goods sold to Mohan for cash Rs.250
Jan 5 – Settled Hari’s account of Rs.200 at a discount of 5%
Jan 7 – Received from Shyam a cheque for Rs.725. Discount allowed Rs.25.
Jan 10 – Purchased a calculator for Rs.200.Spent Rs.50 on the cover.
Jan 12 – Shyam’s cheque was returned dishonoured.
Jan 15 – Received a money order for Rs. 25 from Hari.
Jan 20 – Shyam settled his account by means of a cheque for Rs.755,Rs.5 being for interest charged
Jan 27- Purchased machinery from Rajiv for Rs.5000 and paid him by means of a bank draft purchased from bank for Rs.5005.
Answer : (A)Meaning of petty cash solving the problem
Answer: – It is another Cash Book which is maintained, generally, in large business concerns to reduce the burden of ‘Main Cash Book’, in which numerous transactions involving petty (small) amounts are recorded. For this purpose, a Petty Cashier is appointed by the Chief Cashier. The Chief Cashier advances a sum of money to the Petty Cashier to enable him to meet petty expenses for a fixed period. The Petty Cashier will record this amount on the Debit Side of the Petty Cash Book while the Chief Cashier will record the same amount on the Credit Side of the Main Cash Book.
The fundamental
Q.3 What are Errors in Accounting? Explain the classifications of Errors. Write any two examples of one sided errors.
Answer: – Errors in accounting:-
A Trial Balance is said to be a statement of proof done arithmetically to prove that proper double was observed in making accounting entries. The assumption is that the Trial balance totals will not agree whenever there is an accounting error. There are several errors in fact which will not affect the agreement of the trial balance totals. This means that there are two basic types of accounting errors:
- Errors which do not affect the Trial balance totals
- Errors which do affect the trial balance totals
- The correction of all accounting errors must be journalized by way of the General Journal.
Accounting errors not detected by the
4. From the following Trial Balance, prepare trading and profit and loss account for the year ended 31st Dec 2009 and balance sheet on that date.
| Dr. (Rs.) | Cr. (Rs.) | |
| Drawings | 10000 | |
| Stock on 1-1-2009 | 46000 | |
| Purchase & purchase return | 150200 | 600 |
| Cash in hand | 3400 | |
| Bank balance | 22660 | |
| Freehold premises | 38600 | |
| Trade expenses | 840 | |
| Printing, stationery & advertising | 1640 | |
| Professional charges | 280 | |
| Commission received | 3300 | |
| Investments as on 1st Jan @ 10 % | 4000 | |
| Interest on above | 200 | |
| Sundry debtors and creditors | 36000 | 29000 |
| Wages | 25000 | |
| Salaries | 14000 | |
| Capital | 114000 | |
| Income tax | 1600 | |
| Discount allowed and received | 6300 | |
| Sales return and sales | 550 | |
| B/R an B/P | 3200 | 10000 |
| Office furniture | 3050 | |
| Rent, rates and insurance | 4000 | |
| Provision for bad debts | 670 | |
| Total | 371320 | 371320 |
Adjustments:
a) Provide for wages Rs.5000/-
b) Write off 5 % depreciation on freehold premises and 10 % on office furniture
c) Insurance to the extent of Rs.200/- relates to 1993
d) Stock on 31-12-2009 is Rs.52000/-
e) Charge interest on capital 5 % and on drawings Rs. 300/-
f) Further bad debts are Rs.1000/-
g) Provide for doubtful debts @ 5 % on sundry debtors
h) Make provision for discount on debtors and reserve for discount on creditors @ 2 %
A Preparation of trading account
Preparation of P/L a/c
B/S
Answer : Solution :
Q.5. 5 Give the meaning and importance of bank reconciliation statements. From the following particulars of Neha and Co. prepare Bank Reconciliation Statement on March 31, 2008.
Overdraft as per pass book 16,500
Interest on overdraft 1,600
Insurance premium paid by the bank 800
Cheques deposited but not yet credited 5,500
Cheques issued but not present for payment 6,000
Wrong credit to firm account by the bank 1,000
Answer: – Meaning of Bank Reconciliation Statement: – A form that allows individuals to compare their personal bank account records to the bank’s records of the individual’s account balance in order to uncover any possible discrepancies.
Investopedia explains ‘Bank Reconciliation Statement’:- Since there are timing differences between when data is entered in the banks systems and when data is entered in the individual’s system, there is sometimes a normal discrepancy between account balances. The goal of reconciliation is to determine if the discrepancy is due to error rather than timing.
Q.6 . Explain on endorsement of a bill. Solve the given problem.
Black sells goods worth Rs.2,000 to Brown on 1st October, 2004 and draws a bill on him for the amount for 2 months. On the same day, the bill is endorsed by him to his creditor, White. The bill is duly paid on maturity. Pass journal entries in the books of all the parties.(drawer, endorsee, acceptor)
Answer:- Solution :
| Brown A/c. Dr. | 2000 |
| To Sales | 2000 |
Dear students get fully solved SMU BBA Spring 2014 assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601