B.B.A. (Three Year) DEGREE EXAMINATION, MARCH/APRIL 2018.
End-Semester Examination
Second Semester
Part II
(Regular/Supplementary)
ACCOUNTING FOR MANAGERS
2 C-2401
Time 3 Hours Max. Marks 70
PART — A
Answer any FIVE of the following questions. 4 20 Marks)
1. Features of Double Entry Book Keeping System.
2. Rules of Personal Accounts and Nominal Accounts.
3. Cash Discount.
4. Need for preparation of Bank Reconciliation Statement.
5. Types of subsidiary books.
6. Rationality of computerized Accounting.
7. Accounting Conventions.
8. Define the term journal and explain its present day use.
PART — B
Answer ALL the following questions. 10 50 Marks)
9. What is meant by the term generally accepted accounting principles. Also list
several sources of GAAP.
Or
Journalise the following transactions in the books of Ravi
2015
Jan. 1
Rs.
Started business with cash 1,00,000
" 1 Paid into Bank 50,000
" 2 Goods purchased for cash 30,000

2015
Jan. 1
Rs.
" 3 Purchase of furniture and payment by cheque 10,000
" 5 Sold goods for cash 20,000
" 8 Sold goods to Ramesh 10,000
" 10 Goods purchased from Ajay 15,000
" 12 Goods returned to Ajay 1,000
" 15 Goods returned by Ramesh 500
" 18 Cash received from Ramesh Rs. 9,300 and
discount allowed to him Rs. 200
" 21 Withdrew from bank for personal use 2,000
Withdrew from bank for use in business use 12,000
" 25 Paid telephone rent for one year 1,200
" 28 Cash paid to Ajay in fill settlement of his account 13,700
" 31 Paid for stationery Rs. 4,400, rent Rs. 2,000
and salaries to staff Rs. 5,000
10. Enter the following transactions for the month of March, 2015 in the relevant
Subsidiary Books.
Rs.
March 1 Bought goods from Mill 6,500
" 3 Sold goods to Bharath 1,000
" 4 Allowance claimed from Anil for Shortage 50
" 5 Sold goods to Chandra 1,500
" 6 Sold goods to Devendra 500
" 9 Bought goods from Eshwar 1,000
" 10 Allowance granted to Devendra for shortage 40
" 11 Sold goods to Faustin 800
" 12 Allowance granted to Chandra for overcharge 20
" 15 Sold goods to Ganesh 700
" 18 Sold goods to Harish 600
" 20 Faustin Returned goods 50
" 22 Ganesh Returned goods 40
" 23 Returned goods to Eshwar 100
" 24 Purchased goods from Denish 800
" 25 Sold goods to Gurudas 500
" 26 Allowed Harish for damaged goods 50
Turn Over
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Rs.
" 27 Received goods Returned by Gurudas 20
" 28 Bought goods from Arjun less 400
" 31 Sold goods to Manohar less 100
" 31 Delivery and carriage 10
Or
Enter the following transactions in a three column cash book.
Rs.
2008 Jan
1
Cash in hand
410
Cash balance at bank 8,920
" 2 Cash sales 4,500
" 3 Paid into bank 4,000
" 5 Purchased stationary 100
" 8 Paid Mahesh by cheque
Discount received
280
20
" 12 Gave a cheque for cash purchase 1,500
" 15 Draw for personal use 500
" 18 Received from Suresh, a cheque for 1970
in full settlement of account for 2,000
" 20 Draw from bank 1,000
" 21 Paid wages 100
" 25 Bank returns cheque of Suresh dishonored
" 31 Bank charges as per pass book 10
11. On 31st March.2015 your Bank Pass Book showed a balance of Rs. 12,000 to
your credit. Before that date you issued cheques of Rs. 1,600 to your
customers but they have not presented them for payment. You had also
received a cheque for Rs. 320 which although entered by you in the bank
column of the Cash Book was omitted to be paid into bank. On 31st March, a
cheque of Rs. 500 received by you was paid into the bank but the same was
omitted to be entered into the Cash Book. There was a credit of Rs. 170 for
interest on Current Account and a debt of Rs. 20 for bank charges. Draw up a
Reconciliation Statement showing adjustment between your Cash Book and
Bank Pass Book.
Or
On checking Surendra's Cash Book with the Bank Statement of his account
for the month of March, 2015 you find the following
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Cash Book showed on overdraft of Rs. 4,500.
The payment side of the Cash Book has been under cast by Rs. 150.
A cheque for Rs. 750 drawn on his savings deposit above has been
shown as drawn on current account.
Under instructions from Surendra the Bank had transferred interest
Rs. 900 from his deposit account to his current account on 3rd April,
2015. This amount had, however, been taken in the Cash Book before
31st March, 2015.
Cheques amounting Rs. 7,500 drawn and entered in the Cash Book had
been presented.
Cheques amounting Rs. 6,000 sent to the Bank for collection, though
entered in Cash Book had not been credited by the Bank.
Bank charges of Rs. 75 as per Bank Statement of account had not been
taken in the Cash Book.
(viii) Dividends of the amount of Rs. 3,000 had been paid direct to the Bank
not entered in the Cash Book.
A cheque issued to Rafiq for Rs. 200 was replaced when out of date. But
it was entered in the Cash Book again and no other entry having been
recorded. Both cheques were also included in the total of cheques issued
but not presented as shown above.
You are required to arrive at the Balance as it would appear in the
Bank Statement as March, 2015.
12. Following is the Trail Balance of M/s Kasturi Agencies as on 31st March,
2015. Prepare Trading and profit Loss Account for the year ended
31st March, 20 15 and a Balance Sheet on that date
Dr. Cr.
Rs. Rs.
Capital 1,00,000
Drawings 18,000
Buildings 15,000
Furniture Fillings 7,500
Motor Van 25,000
Loan from Hari 12% interest 15,000
Interest paid on above 900
Sales 1,00,000
Dr. Cr.
Rs. Rs.
Purchases 75,000
Turn Over
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Opening Stock 25,000
Establishment Expenses 15,000
Wages 2,000
Insurance 1,000
Commission received 4,500
Sundry Debtors 28,100
Bank Balance 20,000
Sundry Creditors 10,000
Interest 3,000
2,32,500 2,32,500
Adjustments
The value of stock on 31st March, 2015 was Rs. 32,000. Outstanding
Wages Rs. 500. Prepaid Insurance Rs. 300. Commission received in
advance Rs. 1,300. Allow interest on capital 10%. Depreciate:
Building 2 2
1 Furniture and Fittings Motor Van 10%. Charge
interest on thawing Rs. 500. (viii) Accrued interest Rs. 500.
Or
Re-write the following Trial Balance to correct the same.
Debit Rs. Credit Rs.
Wages 2,680 Capital 10,000
Purchases 12,490 Sales 31,080
Salaries 520Rent Paid 500
Carriage 50 Discount Received 120
Building 12,010 Light Charges 160
Band Overdraft 470 Suppliers 800
Cash in Hand 60 Opening Stock 9,260
Customers 1,490 Furnitures 3,250
29,770 55,170
13. Manohar purchased a machinery costing 98,000 on 1.7.2014 and spent
2,000 for its establishment. On 1.4.2015 he purchased another machinery
for 60,000 on 1.1.2016 additionally he purchased another machinery for
40,000. On 1.4.2016 he sold the machinery for 74,000, which he was
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bought on 1.7.2014. Show machinery account for first 4 years charging
depreciation 10% p.a. on straight line method.
Or
State various objectives for providing depreciation. Also state facts affecting
depreciation.
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