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ASSIGNMENT
| DRIVE FALL | 2013 |
| 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:
a) Salary Rs.100 and taxes Rs.400 are outstanding but insurance Rs.50 prepaid
b) Commission amounting to Rs.100 has been received in advance for work to be done
next year.
c) Interest accrued on investments Rs.210
d) Provision for doubtful Debts is to be maintained at 20%
e) Depreciation on furniture is to be charged at 10% p.a.
f) Stock on 31st March 2012 was valued at Rs.4,500
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:
i) Create a Provision for doubtful debt on debtors at Rs.800.
ii) Building and investment are appreciated by 10%.
iii) Machinery is depreciated at 5%
iv) Creditors were overestimated by Rs.500.
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 :
“ help.mbaassignments@gmail.com ”
(E-mail conversation is better . Don’t call again & again)