B.B.A. (Three Year) DEGREE EXAMINATION, MARCH/APRIL 2017.
End-Semester Examination
Second Semester
Part II
ACCOUNTING FOR MANAGERS
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Time 3 Hours Max. Marks 70
PART — A
Answer any FIVE of the following questions. 4 20 Marks)
1. Advantages uses of Accounting.
2. Types of accounts, give examples of each.
3. Trade discount and cash discount.
4. Causes for difference in cash book and pass book.
5. Suspense account.
6. Methods of providing depreciation.
7. Advantages of computerized accounting.
8. Causes for depreciation.
PART — B
Answer ALL the following questions. 10 50 Marks)
9. Discuss the concepts of Accounting.
Or
Enter the following transactions in the Journal of Nivas
2017
March 1 Nivas commenced business with cash 60,000
2 Purchased furniture for cash 10,000
4 Purchased goods for cash 25,000

2017
March 5 Bought goods from Kamlesh 15,000
6 Sold goods for cash 36,000
8 Sold goods to Hari 30,000
10 Paid cash to Kamlesh 15,000
14 Received cash from Hari 18,000
16 Purchased goods from Sohan 6,000
18 Purchased goods from Sohan for cash 8,000
20 Paid rent for the office 1,000
26 Received Commission 750
27 Paid salary to Gopal 1,200
28 Received cash from Hari 12,000
29 Withdrew cash from office for personal use 4,000
30 Wages paid 7,200
31 Bought machinery for cash 8,000
10. Following transactions were recorded in the books of Sh. Dharsha Kumar
2017
March 1 Sold to Chandra Light House
50 tubelights 60 each less 20%
20 heaters 120 each less 25%
5 Purchased from Charat Ram Electric Co.,
25 table fans 600 each
20 ceiling fans 800 each
Turn Over
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3
2017
March 10 Chaudhry and Sons purchased from us
80 Dozen Bulbs 90 per dozen
12 Purchased from Ramlal and sons one Typewriter for 6,000
on credit, for office use
16 Sri Ram and Sons sold to us
10 Electric Irons 180 each less 10%
20 Chandra light house returned
5 tube lights sold on March 1
22 Sold good to Jai Bhagwan and Co for cash 10,000
25 Returned to Sri Ram and Sons
2 Electric irons purchased on March 16
You are required to prepare Purchase book Sales book Purchase
return book and sales returns book.
Or
From the following information compile a three column cash book
2017
January 1 Cash in hand 2,780 bank overdraft 3,125
2 Cheques worth 400 issued to the petty cashier
5 350 was paid to Hari and sons for the supply of stationary
7 Received a cheque worth 600 from Pramod against sale of goods
10 Received 1,200 for sale of goods
11 The cheque received from Pramod on 7th December, was endorsed in
favour of Morgan together with 1,400 in cash.
15 Received 950 from Sheila.
23 Muralilal paid 2,000 in cash and 3,000 in cheque after receiving a
discount of 200 for goods sold to him in Feb. 2017. the cheque was
immediately deposited into the bank
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26 Bought goods worth 1,700 from Rustom and paid by cheque after
receiving a discount of 170
30 Interest on overdraft 50 was charged by the bank
31 Cash in excess of 1,000 was deposited into the Bank
11. From the following, prepare bank reconciliation statement as on 31st March
2016.
Cash book (bank column)
Date Particulars Amount Date Particulars Amount
2016 2016
March 1 To balance b/d 3,900 March 3 By Interest 400
8 To Mahesh Jindal 5,500 6 By Shanbhu Dayal 7,200
15 To Raghuvir 14,000 12 By Drawings 6,000
26 To Sunder Lal 7,700 15 By Sultan Chand 2,900
30 To Bhushan 3,300 18 By R. Sachdeva 5,400
31 To Salim 1,500 25 By Ashok 4,500
30 By Anil 1,800
31 By Balance c/d 7,700
35,900 35,900
Bank pass book
Date Particulars Withdrawals Deposits Dr/Cr Balance
2016
April 1 By balance b/d Cr 9,200
1 To cash 13,400 Dr 4,200
2 To Ashok 4,500 Dr 8,700
4 By Bhushan 3,300 Dr 5,400
5 By Giridhar Lal 8,200 Cr 2,800
7 By Salim 1,500 Cr 4,300
Turn Over
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Date Particulars Withdrawals Deposits Dr/Cr Balance
2016
April 10 To Siya Ram 14,300 Dr 10,000
12 To Anil 1,800 Dr 11,800
13 By Cash 6,000 Dr 5,800
15 By Vishnu and Co 2,700 Dr 3,100
Or
On 30th June 2014, the bank column of Mohan Kapoor's cash book showed a
debit balance of 12,000, on checkign the cash book with bank statement you
find that
Cheques paid into bank 8,000, but out of these only cheques of
6,500 were cleared and credited by the bankers upto 30th June.
Cheques of 9,200 were issued but out of these only cheques of 7,000
were presented for payment upto 30th June.
The receipt column of the cash book has been undercast by 200.
The pass book shows a credit of 330 as interest on investments
collected by bankers and debit of 60 for bank charges.
On 29th June a customer deposited 3,000 direct in the bank account
but it was entered only in the pass book.
Prepare a bank reconciliation statement.
12. From the following balances for the year ending 31st March 2017 and
additional information, prepare trading and profit and loss account and
balance sheet of Messrs quality traders
Capital 80,000
Purchases 82,000
Sales 1,10,000
Purchase returns 1,000
Buildings 45,000
Opening stock 15,000
Sundry debtors 20,100
Sundry creditors 28,000
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Furniture 7,000
Carriage Inwards 200
Wages 1,800
Rent 5,100
Commission 1,500
Insurance 600
Salaries 12,500
Bad debts 200
Provision for bad debts 500
Cash in hand 5,000
Cash at bank 25,000
Sales tax paid 5,000
Bills payable 3,500
Additional information
Closing stock was valued at 20,000
Provide depreciation on buildings and on furniture 10%.
Outstanding salaries 1,000
Further bad debts 100
Make a provision for bad debts
Make a provision for discount on debtors and creditors 2%.
Or
The following is the Trial Balance of Shri Sunil Thakur as on 30th November
2016.
Dr Cr
Stock as on 1st January 2016 1,50,000
Cash and bank balance 18,000
Purchases and sales 24,00,000 42,00,000
Returns 1,80,000 70,000
Debtors and creditors 4,70,000 1,62,000
Capital 7,00,000
Drawings 20,000
Salaries 2,10,000
Turn Over
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Dr Cr
Rent 1,80,000
General expenses 4,000
Fixed assets 15,00,000
51,32,000 51,32,000
The following transactions were recovered during the month of December,
2016.
Credit purchases of goods 2,20,000
Credit sales of goods 3,75,000
Purchases returns 15,000
Sales returns 10,000
You are required to prepare the Trial Balance as on 31st December 2016.
13. A company has bought machinery for 1,00,000 including therein a boiler
worth 10,000. Depreciation was charged on reducing balance method at the
rate of 10% p.a for first five years and machinery account was credited
accordingly. During the fifth year, the boiler because useless on account of
damages to some of its vital parts. The damaged boiler is sold for 2,000.
Prepare the machinery account for five years.
Or
What is depreciation? What is the need for providing depreciation? Also state
the merits of providing depreciation.
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