No. of Printed Pages: 3 I BFR-002 I
B.Sc. (RETAIL AND FASHION MERCHANDISE) (BSCRFM) Term-End Examination

December, 2016
BFR-002 BASIC OF ACCOUNTS AND
MANAGERIAL ECONOMICS

Time Iwurs Maximum Marks 70
Note: Attempt any seven questions. All the questions carry equal marks.

1. Shyam Consultant India Ltd. was incorporated on January 1st, 2010. The following transactions occurred during June, 2010. Prepare an Accounting Equation of the following:

1st June Business was started with capital of Rs 5,00,000.

4th June Machinery was rented and paid Rs 50,000 for it.

8th June Stationery purchased on credit of Rs 25,000.

15th June The company charged Rs 80,000 as consulting fees from customer.

20th June General Expense of Rs 15,000 was paid.

29th June Salaries of Rs 18,000 for the month were paid.

30th June Purchased goods for cash of Rs 50,000 and on credit for Rs 80,000.

31st June Land was purchased by borrowing Rs 5,00,000 from Bank.

2. From the following Balance Sheet of MIs. H.M.R. Ltd. calculate the

Current Ratio

Quick Ratio

Information

Cash Rs 40,000
Debtors Rs 1,20,000
Stock Rs 2,10,000
Outstanding wages Rs 50,000
Creditors Rs 80,000
Short-term loan Rs 60,000

3. Pass the Journal Entries and transfer into Ledger A/C.

Ram Commenced Business with cash Rs 20,000.
Paid into Bank Rs 4,000.
Purchased Machinery of Rs 3,000.
Furniture purchased from Shyam worth Rs 1,000
Commission received Rs 500.
Paid Salary of Rs 1,000.
Charged interest on capital of Rs 500.
Depreciation charged on Building Rs 400.
Rent from tenants Rs 800.
Withdrew Rs 1,500 from Bank.
Withdrew for his personal use Rs 1,000.

4. Rectify the following Errors:

Purchase Account is overcased by Rs 500.

Discount of Rs 1,000 received was posted to the Debit of discount AIc.

Sales book was undercast by Rs 1,000.

Rs 1,200 paid to Ram wrongly credited to his Account.

Rs 15,000 Received from Gobind was credited to Har Gobind Account.

Rs 2,000 being Purchase Return were Posted to Purchase Account.

Sale of Rs 1,000 passed in Purchase Account.

Purchased a Car for office use worth Rs 5,00,000 was entered in Purchase Account.

Sales Return book was overcast by Rs 2,000.

Charged Depreciation of Rs 500 on machine but debited to Machine A/C.

5. Define Demand. What are the factors affecting demand? Why the demand curve slopes downward direction? What are the exceptions of law of demand

6. Explain and illustrate with graph the variable Return's to factors.

7. Distinguish between perfect competition and monopolistic competition. How to determine the price under monopoly market in short run

8. Describe the following in terms of short run cost's with the help of a graph.

Total cost

Average fixed cost

Average variable cost

Average cost

Marginal cost