B.B.M./B.B.A. (I.B.) (Sem. EXAMINATION, 2018
BUSINESS ACCOUNTING
(2013 PATTERN)
Time Three Hours Maximum Marks 80
N.B. All questions are compulsory.
(ii Figures to the right indicate full marks.
(iii Use of calculator is allowed.
1. State whether the following statements are True or False. If
False, give correct statement (any five)
Rule of Real Account is Debit the receiver and Credit
the giver.
Advertisement expenses are recorded on the debit side
of Trading Account.
Carriage inward refers to goods sold.
Trade discount is an incentive for prompt payment.
Depreciation can be charged even if there is no profit
to the business.
Accounting Standards in India are issued by Indian
Accounting Association.
Drawings made by proprietor decreases capital balance.
P.T.O.
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Answer in brief (any five)
What is a Trial Balance
Explain the term Current Liability.
What do you mean by Dual Aspect
What do you mean by Contra Entry
What do you mean by Capital Income
Explain the term Intangible Asset.
Write two examples of Revenue Expenses.
2. Journalize the following transactions in the books of Mr. Shantanu
Date January 2018
1 Mr. Shantanu started business with Cash Rs. 3,00,000.
3 Purchased goods on credit from Mr. Santosh Rs. 1,00,000.
8 Opened an account in Bank of India and deposited cash
Rs. 1,50,000.
11 Sold goods to Ms. Sunita on credit Rs. 40,000.
14 Purchased on cash Computer Rs. 35,000 and Printer Rs. 11,000.
17 Paid to Mr. Santosh Rs. 1,00,000 by cheque.
22 Goods distributed as free sample Rs. 1,000.
31 Salary paid to Ms. Sujata Rs. 10,000.
Or
Enter the following transactions in Cash Book with Cash and Bank
Column of Mr. Kushal for the month of March 2018
Date 1 Cash in hand Rs. 90,200 and at Bank Rs, 1,39,400.
2 Sold goods for cash Rs. 28,310.
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4 Paid salary for the month of February to staff Rs. 9,000.
6 Purchased furniture from Ms. Kajol for Rs. 9,485 and
paid by cheque.
9 Purchased goods on cash Rs. 12,460.
12 Paid for advertisement Rs. 2,600.
15 Cash withdrawn from the bank Rs. 45,000.
17 Shop rent paid Rs. 12,500.
19 Proprietor's house rent paid Rs. 8,500.
22 Issued cheque to Mr. Kedar Rs. 7,510.
23 Received commission from Mr. Kartik Rs. 5,980.
25 Bank credited interest Rs. 294 and debited bank charges
Rs. 52.
25 Sold old computer to Mr. Kishor and received Rs. 7,600.
3. From the following Trial Balance of M/s Ninad Traders, you are
required to prepare Trading, Profit Loss Account for the year
ended 31st March, 2018 and the Balance Sheet as on that date
Trial Balance as on 31st March, 2018
Particulars Debit Rs. Credit Rs.
Salaries 1,50,000 —
Insurance 5,500 —
Postage and Telegram 8,000 —
Wages 65,000 —
Opening Stock 1,00,000 —
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Carriage inward 20,000 —
Plant and Machinery 1,25,000 —
Buildings 500,000 —
Drawings 10,000 —
Office Rent 8,000 —
Bad Debts 2,000 —
Purchase and Sales 5,25,000 8,10,000
Returns 15,000 25,000
Discount 3,000 4,000
Debtors and Creditors 2,32,000 1,50,000
Cash in Hand 4,500 —
Capital — 4,00,000
10% Bank Loan (Taken on 1st Oct. 2017) — 3,50,000
R.D.D. — 9,000
Bank Overdraft — 25,000
Total 17,73,000 17,73,000
Adjustments
Stock on 31st March 2018 was valued at Rs. 1,72,000.
(ii Depreciate Plant and Machinery at 10% p.a., Building at
p.a.
(iii Wages include Rs. 10,000 paid to worker as advance.
Salary Rs. 15,000 and Office Rent Rs. 2,000 were outstanding.
Create R.D.D. on debtors Rs. 10,000.
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4. From the following ledger balances of Mr. John, you are required
to prepare Trial Balance as on 31st March, 2018
Particulars Rs. Particulars Rs.
Capital 5,00,000 Purchases 4,80,000
Drawings 25,000 Sales 8,20,000
Opening Stock 1,50,000 Sales Return 25,000
Salaries 1,02,000 Debtors 2,50,000
Creditors 1,30,000 Furniture 85,000
Rent and Taxes 96,000 Insurance 8,000
Discount Received 8,000 Cash in Hand 22,000
Machinery 2,00,000 Printing Stationery 15,000
Cash Book of Mr. Bhole showed the balance of Rs. 18,000
on 31st March, 2018.
On the same date Passbook showed different balances. On
comparing a Cash Book with a Passbook the following points
of difference were noted. You are required to prepare Bank
Reconciliation Statement as on 31st March, 2018
Cheque issued but not presented for payment Rs. 4,800.
Mr. Pujari has directly deposited Rs. 10,000 into bank
account but information of the same was received in the
month of April 2018.
Cheque deposited into bank but not collected Rs. 7,000.
Bank has debited passbook for bank charges Rs. 400 but
it was not recorded in Cash Book.
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Cheque for Rs. 5,400 issued to Mr. Prakash and encashed
by him but wrongly recorded in the Cash Book as
Rs. 4,500.
Amount of Rs. 10,000 transferred from Current Account
to Fixed Deposit Account recorded in the Passbook but
not yet recorded in the Cash Book.
5. Explain in brief the provisions of Companies Act in respect of Final
Accounts of a limited company.
Or
Write short notes on (any two)
Consistency Concept
Accounting Standards Board
Features of Computerised Accounting Software
Difference between Book-keeping and Accounting.