Bba203 financial accounting


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Bba203 financial accounting

  1. 1. Dear students get fully solved assignments call us at : 08263069601 , or Send your semester & Specialization name to our mail id : “ ” (E-mail conversation is better . Don’t call again & again) ASSIGNMENT DRIVE FALL PROGRAM SUBJECT CODE & NAME SEMESTER BK ID CREDITS MARKS 2013 BBA BBA203 - FINANCIAL ACCOUNTING 2 B1520 4 60 Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme. Q.1. Accounting concept refers to the basic assumptions and rules and principles which work as the basis of recording of business transactions and preparing accounts. Explain any 5 concepts of accounting with example Ans : Concepts of accounting with example: 1. Business Entity: This principle treats the company as a separate entity from its owners. Personal accounts of owners/partners should be kept separate from profits and expenses of the company. So, the accounting reports are prepared from the viewpoint of business purposes and not from the owner's outlook. The business and its owner(s) are two separate existence entity  Any private and personal incomes and expenses of the owner(s) should not be Q.2 Differentiate between trade discount and cash discount. Enter the following transactions in Sadhana’s simple cash book. 2010 April 1st April Balance of cash in hand Rs.1500 8th April Purchased goods for cash from X for Rs.320 15th April Sold goods for Rs. 480 to Y for cash 20th April Received commission Rs.65 22nd April Paid Commission Rs.55
  2. 2. 28th April Paid to Reena on account Rs.715 30th April Paid salary to the office clerk Rs.100 and office rent Rs.60 Ans : Differences between trade discount and cash discount : 1. Meaning: Trade Discount is a discount allowed by the seller to the buyer in case of bulk purchases made by him. Cash Discount is a reduction in the net amount payable by the buyer when prompt payment is made by the buyer. 2. When Allowed? Q.3 Final Accounts are prepared at the end of the accounting year with various adjustments. Explain the features and objectives of final accounts Ans : Explanation of objectives of final accounts : Explanation of features of final accounts : Q.4 Prepare Trading and Profit and Loss Account and Balance Sheet from the following particulars as at 31st March 2012. Trial Balance Particulars Dr. (Rs) Cr. (Rs) Capital / Drawings 1,400 10,000 Cash in hand 1,500 Bank overdraft @ 5% 2,000 Purchase and Sales 12,000 15,000 Returns 1,000 2,000 Establishments charges 2,500 Taxes and Insurance 500 -
  3. 3. Provision for Doubtful Debts 1,000 Bad Debts 500 Sundry Debtors and Creditors 5,000 1,850 Commission 500 Investments 4,000 Stock on 1 April 2010 3,000 Furniture 600 Bills Receivable & Bills payable 3,000 2,500 Collected Sales Tax 150 Total 35,000 35,000 Further, you are required to take into consideration the following information: a) Salary Rs.100 and taxes Rs.400 are outstanding but insurance Rs.50 prepaid b) Commission amounting to Rs.100 has been received in advance for work to be done next year. c) Interest accrued on investments Rs.210 d) Provision for doubtful Debts is to be maintained at 20% e) Depreciation on furniture is to be charged at 10% p.a. f) Stock on 31st March 2012 was valued at Rs.4,500 g) A fire occurred on 25th March 2012 in the godown and stock of the value of Rs.1,000 was destroyed. It was fully insured and the insurance company admitted the claim in full. A Calculation of Trading and P/L a/c Preparation of balance sheet 5
  4. 4. 5 10 Q.5 ABC Ltd.’s cashbook showed a bank overdraft of Rs.12,000 as on 30th June 2004. The bank statement as on that date also showed an overdraft but the figure is different. The following are the causes. 1. Cheques deposited but not yet collected Rs.1,500 2. Cheques issued but not yet presented for payment Rs.2,000 3. A cheque of Rs.1,500 deposited on 15th May, 2004 was dishonoured on 19th June, 2004 but not intimated by the bank till 30th June, 2004 4. Bank charges not recorded in the cash book Rs.1,000 5. Interest on overdraft not intimated Rs.1,200 A Preparation of Bank reconciliation statement 10 Q.6 Mayur, Veer and Prakash are partners sharing profit and losses in the ratio of 2:1:1. Their Balance Sheet was as follows: Balance Sheet of Mayur, Veer and Prakash as on December 31, 2008 Liabilities Amount Assets Amount Creditors 10,000 Cash in Hand 7,000 Bills payable 7,000 Machinery 13,000 Stock 26,000 Capitals: Mayur Veer Prakash 90,000 Debtors Investment Building 26,000 15,000 20,000 Total 40,000 30,000 20,000
  5. 5. 1,07,000 Total 1,07,000 Prakash has expired on 01.01.2009 and as a result the assets are revalued and liabilities reassessed as follows: i) Create a Provision for doubtful debt on debtors at Rs.800. ii) Building and investment are appreciated by 10%. iii) Machinery is depreciated at 5% iv) Creditors were overestimated by Rs.500. v) Goodwill of the firm valued at Rs.27,000 The balance due to Prakash will be transferred to his executor’s loan account which carries an interest of 10% p.a. Prepare necessary ledger accounts and show the balance sheet of new firm after adjustments. A Preparation of ledger accounts Preparation of balance sheet 5 5 Dear students get fully solved assignments call us at : 08263069601 , or Send your semester & Specialization name to our mail id : “ ” (E-mail conversation is better . Don’t call again & again)