BBA203 – FINANCIAL ACCOUNTING

 

 

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ASSIGNMENT

 

DRIVE	SUMMER 2014
PROGRAM	BBA
SUBJECT CODE & NAME	BBA203 – FINANCIAL ACCOUNTING
SEMESTER	2
BK ID	B1520
CREDITS	4
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. Accounting concept refers to the basic assumptions and rules and principles which work as the basis of recording of business transactions and preparing accounts. Explain any 5 concepts of

accounting with example

 

Ans : Concepts of accounting with example:

 

1. Business Entity:

 

This principle treats the company as a separate entity from its owners. Personal accounts of owners/partners should be kept separate from profits and expenses of the company. So, the accounting reports are prepared from the viewpoint of business purposes and not from the owner’s outlook. The business and its owner(s) are two separate existence entity  Any private and personal incomes and expenses of the owner(s) should not be

 

 

Q.2 Differentiate between trade discount and cash discount. 

Enter the following transactions in Sadhana’s simple cash book.

2010 April  1st April Balance of cash in hand Rs.1500

                   8th April Purchased goods for cash from X for Rs.320

                  15th April  Sold goods for Rs. 480 to Y for cash   

                  20th April Received commission Rs.65

                  22nd April Paid Commission Rs.55

                 28th April  Paid to Reena on account Rs.715

                 30th April Paid salary to the office clerk Rs.100 and office rent Rs.60   

 

Ans :  Differences between trade discount and cash discount  :

 

1. Meaning:

 

Trade Discount is a discount allowed by the seller to the buyer in case of bulk purchases made by him.

Cash Discount is a reduction in the net amount payable by the buyer when prompt payment is made by the buyer.

 

2. When Allowed?

 

 

 

Q.3 Final Accounts are prepared at the end of the accounting year with various adjustments. Explain the features and objectives of final accounts 

 

Ans : Explanation of objectives of final accounts :

Explanation of features of final accounts  :

 

 

 

Q.4 Prepare Trading and Profit and Loss Account and Balance Sheet from the following

particulars as at 31st March 2012.

Trial Balance

Particulars

Dr. (Rs)

Cr. (Rs)

Capital / Drawings 

1,400

10,000

Cash in hand

1,500

–

Bank overdraft @ 5%

–

2,000

Purchase and Sales

12,000

15,000

Returns 

1,000

2,000

Establishments charges 

2,500

–

Taxes and Insurance 

500

–

Provision for Doubtful Debts

–

1,000

Bad Debts 

500

–

Sundry Debtors and Creditors

5,000

1,850

Commission

–

500

Investments

4,000

–

Stock on 1 April 2010

3,000

–

Furniture 

600

–

Bills Receivable & Bills payable

3,000

2,500

Collected Sales Tax

–

150

Total

35,000

35,000

 

Further, you are required to take into consideration the following information: 

1. a) Salary Rs.100 and taxes Rs.400 are outstanding but insurance Rs.50 prepaid
2. b) Commission amounting to Rs.100 has been received in advance for work to be done

next year.

1. c) Interest accrued on investments Rs.210
2. d) Provision for doubtful Debts is to be maintained at 20%
3. e) Depreciation on furniture is to be charged at 10% p.a.
4. f) Stock on 31st March 2012 was valued at Rs.4,500
5. g) A fire occurred on 25th March 2012 in the godown and stock of the value of Rs.1,000

was destroyed. It was fully insured and the insurance company admitted the claim in

full.

 

 

A

 

Calculation of Trading and P/L a/c 

Preparation of balance sheet 

 

 

5

5

 

10

Q.5  ABC Ltd.’s cashbook showed a bank overdraft of Rs.12,000 as on 30th June 2004. The bank

statement as on that date also showed an overdraft but the figure is different. The following are

the causes.

1. Cheques deposited but not yet collected Rs.1,500
2. Cheques issued but not yet presented for payment Rs.2,000

 

3. A cheque of Rs.1,500 deposited on 15th May, 2004 was dishonoured on 19th June, 2004 but

not intimated by the bank till 30th June, 2004

4. Bank charges not recorded in the cash book Rs.1,000
5. Interest on overdraft not intimated Rs.1,200

 

A

Preparation of Bank reconciliation statement

 

 

 10

 

Q.6 Mayur, Veer and Prakash are partners sharing profit and losses in the ratio of 2:1:1.

Their Balance Sheet was as follows:

Balance Sheet of Mayur, Veer  and Prakash as on December 31, 2008

Liabilities

Amount

Assets

Amount

Creditors

10,000 Cash in Hand

7,000

Bills payable

7,000 Machinery

13,000

 

 Stock

26,000

Capitals:

Mayur                        40,000

Veer                          30,000

Prakash                     20,000

 

 

 

90,000

Debtors

Investment

Building

26,000

15,000

20,000

Total

1,07,000 Total

1,07,000

 

Prakash has expired on 01.01.2009 and as a result the assets are revalued and

liabilities reassessed as follows:

1. i) Create a Provision for doubtful debt on debtors at Rs.800.
2. ii) Building and investment are appreciated by 10%.

iii) Machinery is depreciated at 5%

1. iv) Creditors were overestimated by Rs.500.
2. v) Goodwill of the firm valued at Rs.27,000

The balance due to Prakash will be transferred to his executor’s loan account which

carries an interest of 10% p.a. Prepare necessary ledger accounts and show the

balance sheet of new firm after adjustments.

 

A

Preparation of ledger accounts

Preparation of balance sheet

 

 

5

5

 

 

Dear students get fully solved assignments

call us at : 08263069601 ,  or

Send your semester & Specialization name to our mail id :

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