B.B.A. DEGREE EXAMINATION, NOVEMBER 2017
First Semester
Business Administration
FINANCIAL ACCOUNTING
(CBCS 2014 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 x 2 20)
Answer all questions.
1. What do you mean by Double Entry System?
2. What is Business Entity concept?
3. What is Current Liability?
4. What is Profit and Loss account?
5. What is Real Account?
6. What is Single Entry System?
7. What is Non-Profit organization?
8. What is Income and Expenditure account?
9. What is Depreciation?
10. What is Fixed Installment Method of Depreciation?
Sub. Code
4BBA1C2
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Part B x 5 25)
Answer all questions by choosing either or
11. Define Accounting. Bring out its limitations.
Or
Explain the accounting concepts and conventions.
12. What are the main characteristics of final accounts?
Or
From the information given below, prepare Trading
Account.
Opening Stock Rs.1,00,000
Purchases Rs.1,50,000
Purchase Returns Rs. 25,000
Direct Expenses Rs. 10,000
Carriage inwards Rs. 5,000
Sales Rs. 4,00,000
Closing Stock Rs. 50,000.
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13. Distinguish between Single entry system and
Double entry system.
Or
Mr.Anish books on single entry system give you the
following information:
1st Jan. 2000 31st Dec. 2000
Rs. Rs.
Stock in trade 36,000 38,000
Cash in hand 5,000 6,000
Cash at bank 2,000 3,000
Furniture 5,000 7,000
Sundry debtors 31,000 40,000
Creditors 7,000 9,000
He has taken Rs. 8,000 to meet his personal expenses.
Calculate the profit or loss for the year 2000.
14. Distinguish between trading and non-trading
concerns.
Or
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From the following information prepare Receipts and
Payments Account.
Rs.
Business expenses 22,000
Fire Insurance 13,500
Furniture purchased 14, 000
Salaries payable 32, 000
Advertising Expenses 14,000
Paid to creditors 40, 000
Wages paid 26,000
Rent received 14,200
Entrance fees received 32,000
Investment purchased 28,000
Cash balance at close 12,800
15. ABC Co. purchased a machine for Rs.30,000 on
1st Jan 2006. They spent Rs. 5,000 on its
installation. Depreciation is written off p.a on
original cost. Prepare machine account. Assume
that accounts are closed on 31st December every
year.
Or
What are the merits and demerits of Diminishing
Balance Method of Depreciation?
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Part C x10 30)
Answer any three questions.
16. Explain various Concepts and Conventions of Accounting.
17. Prepare Trading and Profit Loss a/c for the year ending
31.12.2007 and Balance Sheet as on that date:
Particulars Dr. Cr.
Capital 1,50,000
Drawings 10,000
Salaries 10,000
Sales 2,50,000
Cash in hand 50,000
Wages 20,000
Purchases 70,000
Opening Stock 10,000
Sundry Creditors 25,000
Machinery 2,00,000
Sundry Debtors 55,000
Rent 5,000
Commission 3,000
Interest 2,000
4,30,000 4,30,000
Adjustments:-
Closing stock Rs.20,000
Interest on capital at Rs.10,000
Interest on Drawings Rs.500
Salaries outstanding Rs.2,000
Rent prepaid Rs.l,000
Depreciate Machinery 10%
Commission accrued Rs.3,000
Interest received in advance Rs.1,000
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18. Distinguish between Statement of Affairs and Balance
Sheet.
19. Calculate Debtor's balance at the end.
Open debtors Rs.40,000, Total Sales Rs.1,60,000, Cash
Sales Rs.20,000, Cash received from customers Rs.60,000,
Bad debts Rs.4,000, Return inward Rs.1,000, Bills
received from customers Rs. 18,000.
20. A machine lease worth Rs.90,000 is to be depreciated by
Annuity system, the unwritten balance of the asset
bearing interest at 6%. The annual amount to be written
off as shown by the Annuity table is Rs.6,929.24. Prepare
lease account by using Annuity method of depreciation
for five years.
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