B.B.A. (Semester (CBCS) Examination Oct/Nov-2017
FINANCIAL ACCOUNTING
Day Date: Tuesday, 14-11-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Use of Calculator is allowed.
Q.1 Select correct alternative: 07
Depreciation arises because of
Fall in the market value of asset
Fall in value of money
Physical wear and tear
None of them
Under straight line method, depreciation is calculated on
Original cost On scrap value
On balance amount None of them
Process of becoming out of date is termed as
Physical deterioration Obsolescence
Depletion Amortization
Patents, Copyrights and Trademarks are
Current Assets Intangible Assets
Fixed Assets Investment
The sales income (Credit and Cash) of a business during a given period
is called
Transactions Turnover
Sales returns Purchase returns
Any written evidence in support of a business transaction is called

Journal Subsidiary Books
Ledger Voucher
The accounts that record expenses, gains and losses are
Personal Accounts Nominal Accounts
Real Accounts None of the above
Q.1 Fill in the blanks. 07
Book account is a account.
The process of transferring information from journal to ledger is called

In Purchase Day Book, all purchases of goods are recorded.
When commission is received, account is credited.
stock is valued at cost or market price whichever is less.
The irrecoverable debts are known as
Rule of personal account is debit the receiver, credit the
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Q.2 Attempt any two questions:
Following balance are extracted from the ledger of Sumita for the year
ending on 31st March 2016. Prepare Trial Balance as on that date.
Amount Amount
Motor Car 10,000 Discount Allowed 600
Drawings 5,000 Loan from Ravi 8,000
Electricity 3,000 Capital 40,000
Carriage 3,000 Furniture 4,300
Stock (1.4.2015) 9,000 Wages 4,000
Sales 26,500 Interest Received 800
Purchases 20,400 Cash at Bank 16,000
07
Explain the various subsidiary books. 07
Write a note on 07
Causes of Depreciation
Q.3 Attempt any two questions:
State the functions of Accounting. 07
Explain the golden rules of accounting. 07
A firm purchased a machinery for Rs. 20,00,000 on 1st April, 2010. The firm
decides to provide depreciation 10% p.a. using straight line method. A
second machinery was purchased on 1st October 2010 for Rs. 5,00,000.
Later on 1st October 2011, this 2nd machinery was sold for Rs. 3,00,000.
Prepare Machinery A/c for financial year 2010-11 and 2011-12 assuming
the firm closes its books on 31st March every year.
07
Q.4 Attempt any one Question.
Journalise the following transactions in the Books of Rama and Sons. 14
Date Details Rs. Date Details Rs.
July July
3rd Cash deposited into bank 60,000 4th Loan given to Bhuvan 20,000
4th Paid cash to Veeru 20,000 5th Paid to Veeru by cheque 15,000
5th Cash received from
Tarun
12,000 5th Took Loan from Anush 15,000
6th Cheque received from
Pranav
15,000 6th Paid to Intel Computers by
cheque
17,000
6th Withdrew from bank 5,000 7th Withdrew from bank for
office use
8,000
7th Cash received from
Bhuvan on loan a/c
10,000 8th Withdrew from bank for
personal use
1,000
8th Cash taken by proprietor
for personal use
3,000 9th Bought Furniture and paid
cheque
15,000
OR
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SLR-CB-03
Record the following transactions in the Bank Column Cash Book for the
month of May.
14
Date Details Rs. Date Details Rs.
May May
01 Bank Balance 32,500 17 Purchased stationery by
cheque
1,000
01 Cash Balance 12,300 20 Cash deposited into bank 10,000
03 Purchased goods by
cheque
15,300 22 Paid for transportation 500
08 Goods sold for cash 90,500 24 Cheque given to Shrikant 7,000
10 Purchased Computer by
cheque
50,400 28 Rent paid 9,000
15 Sold goods and received
cheque (Deposited on the
same day)
70,900 30 Paid salary 10,500
Q.5 Attempt any one question. 14
The Trial balance of Mr. Pushkar shows the following balances on 31st
March 2015. Prepare final accounts.
Particulars Debit Rs. Particulars Credit Rs.
Purchases 7,00,000 Sales 15,00,000
Freight outwards 4,600 Sundry Creditors 75,000
Rent, rates and taxes 25,000 Capital 6,00,000
Cash in hand 1,000 Purchases Return 14,000
Bank Commission 1,500 Loan 20,000
Salaries 75,000
Freight inwards 5,000
Opening Stock 24,500
Advertising 16,000
Plant and Machinery 2,50,000
Sundry Debtors 6,00,000
Cash at Bank 70,000
Land and building 4,36,400
22,09,000 22,09,000
Closing stock on 31st March 2015 was Rs. 30,500.
Outstanding salaries Rs. 4,500.
Prepaid taxes Rs. 5,000.
Provide depreciation on Plant and Machinery 10% p.a.
OR
Explain the accounting concepts and conventions in detail. 14