B.B.A. (Semester (CBCS) Examination Nov/Dec-2018
FINANCIAL ACCOUNTING
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Use of calculator is allowed.
Q.1 Choose correct alternatives: 14
Depreciation is calculated on the basis of
Cost price Market price
Least of Cost or market price Replacement cost
A person who supplies goods to the firm is known
A Debtor A Creditor
Proprietor None of these
Mathura Refineries is a
Personal A/c Real A/c
Nominal A/c None of these
The amount spent on purchase of a plant should be debited to
Purchases A/c Plant A/c
Sales A/c None of these
Goods worth Rs. 2000 given away as charity should be credited to
Sales A/c Purchases A/c
Charity A/c None of these
The sales day book records
All Sales Credit Sales
Cash Sales Sale of Assets
The balance of cash account is generally
debit credit
negative None of these
A person who brings capital in the business is called
A Debtor A Creditor
Proprietor None of these
Amount of depreciation, if charged on the basis of straight line method,
Increases every year Remains constant
Decreases every year Can't say
10) Depreciation A/c is a
Personal A/c Real A/c
Nominal A/c None of these
11) Amount of depreciation, if charged on the basis of written down value
method,
Increases every year Remains constant
Decreases every year Can't Say
12) Goods A/c is a
Personal A/c Real A/c
Nominal A/c None of these
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13) discount is recorded in the books of business.
Cash Trade
Both No
14) The purchase return book records
Return of goods to the firm Return of goods to supplier
Return of assets to the supplier Return of goods by customer
Q.2 Answer the following.
Define Accounting and State the objectives of accounting. 07
Mr. Prasad purchased a machine on 1st April 2010 for Rs. 40000. It is
depreciated 10% per annum on the original cost of machine. On 30th
September 2012 it is sold for Rs. 25000. Prepare machinery account for the
year 2010, 2011 and 2012 assuming that the books are closed on 31st
December every year.
07
Q.3 Answer the following.
The following balances are extracted from the books of Mr. Girish as on 31st
December 2017
07
Particulars Amount Rs. Particulars Amount Rs.
Land and Building 250000 Capital 250000
Bank overdraft 20000 Stock in trade 50000
Cash in hand 7500 Creditors 50000
Debtors 100000 General Expenses 10000
Rent and Taxes 4000 Insurance 5000
Purchases 200000 Sales 300000
Interest Received 10000 Advertisement 3500
Prepare a Trial Balance
Prepare a Simple Cash book showing the closing cash balance of June. 07
June 1 Cash in hand Rs. 18000
June 5 Cash purchases Rs. 6300
June 7 Cash sales Rs. 10000
June 15 Wages paid in cash Rs. 2500
June 20 Cash received from Mohan Rs. 2260
June 25 Rent paid Rs. 1500
Q.4 Answer any one of the following 14
Journalise the following transactions in the books of Mr. Rakesh Kumar.
Date Particulars Amount Rs.
July 1 Started business with a capital of 50000
July 2 Purchased goods on credit from Sanjay 10000
July 4 Paid to Sanjay 5000
July 5 Deposited in bank 20000
July 7 Rent paid 2000
July 10 Sold goods for cash 4000
July 12 Sold goods to Mukesh on credit 5000
July 15 Electricity bill paid 1000
July 20 Salary paid 4000
July 22 Cash sales 5000
July 25 Purchased Government bonds 2000
July 26 Issued a cheque to Sanjay 5000
July 28 Withdrew from bank for personal use 4000
July 30 Received a cheque from Mukesh 5000
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OR
What is depreciation? Explain its causes. Also discuss the Straight line
method and Written down value method of depreciation.
Q.5 Attempt any one of the following. 14
Prepare Trading and Profit and Loss Account for the year ended 31.03.2018
and Balance Sheet as on that date after considering the following
adjustments:
Stock in hand on 31st March 2018 was valued at Rs. 200000
Write off depreciation on Furniture Rs. 12600
Allow interest on capital at per annum
Prepaid insurance Rs. 7000
Particulars Rs. Particulars Rs.
Bad Debts 8000 Purchases 1100000
Carriage on Purchase 18000 Rent from tenants 10000
Commission Paid 22000 Debtors 180000
Salaries 130000 Stock on 1.4.2017 220000
Taxes and insurance 20000 Creditors 133000
Discount allowed 16000 Bank overdraft 42000
Discount received 20000 Furniture 126000
Sales 1480000 Kabir's Capital 300000
Land 95000 Kabir's drawing 50000
OR
What is Cash Book? Discuss its types and uses.