This document contains an examination paper for a Fundamentals of Accounting course. It includes 3 sections with multiple choice and long answer questions. Section A contains 10 very short answer questions asking students to define accounting terms in 50 words such as fundamental error, accounting cycle, balance sheet, depreciation, and inventory valuation methods. Section B contains 6 short answer questions requiring 200 word responses, examples include discussing fundamental accounting assumptions and trial balance preparation. Section C contains 2 long answer questions requiring 500 word responses, examples include journalizing business transactions and explaining the objectives of ledgers. The document tests students' understanding of key accounting concepts.

1. K (Printed Pages 7)
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M.B.A. (First Semester) F & C
Examination, 2021
Paper: F.c. 102
Fundamental of Accounting
Time:ThreeHours [Maximum Marks: 75
Note: Attempt questions from all sections as
per instructions.
Section-A
(Very Short Answer Type Questions)
Note: Attempt all parts of this question. Give
answer of each part in about 50 words.
1/2x10=15
1. (i) What do you mean by fundamental er-
ror in Accounting?
P.T.O.

2. (2)
(ii) What is accounting cycle?
iii) Define balance sheet in accOunting
(iv) Differentiate between profit & loss and
profit & loss appropriation account.
(V) Explain the meaning of DEPRECIA-
TION.
(vi) Explain FIFO' method of valuation of
inventory.
(vii) What do you mean by wasting Assets?
(vii) What do you mean by Trade Mark?
(ix) Explain various uses of Accounting
Information."
(x) What do you mean by Accounting
Standard?
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3. (3)
Section - B
(Short Answer Type Questions)
Note Attempt all questions. Give answer of
each question in about 200 words.
6x5-30
Discuss the Fundamental Accounting AS
2
sumption.
OR
What is BANK RECONCILIATION STATE-
MENT. Explain why it is prepared.
3. What do you mean by TRIAL BALANCE?
3.
Describe the methods of preparing TRIAL
BALANCE.
OR
What do you understand by PROFIT & LOSS
Account? How is it prepared.
P.T.O.
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4. (4)
What do you
mean by
G O O D W I L ? Explain
A
how it is valucd
OR
Write short note on:
(i) COPYRIGHT
(i) PATENT
5. Explain various methods of charging depre-
ciation.
OR
Discuss how inventories are valued under
WEIGHTED AVERAGE METHOD.
6. Explain the provisions of ACCOUNTING
6
STANDARD-1, "Disclosure of Accounting
Policies"
OR
Briefly explain the objectives of Accounting
standards.
Section - C
(Long Answer Type Questions)
Note Attempt any two questions. Give an-
swer of each question in about 500
words.
15x2 30
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5. (5)
Journalise the following transactions in the
books of Mr. Kohli.
Date Particulars Amount
1/5/2020 Business started 1,00,000
with cash
7.5.2020 Purchased Goods 50,000
for cash
9.5.2020 Sold goods to 25,000
Rohit on Credit
11.5.2020 Purchased furniture 30,000
for cash
13.5.2020 Cash received 23,000
from Rohit in full
& final settlement
17.5.2020 Rent Paid 10,000
(50% for shop)
20.5.2020 Salary paidto 12,000
staff
25.5.2020 Deposited into 10,000
bank
27.5.2020 Commission paid 5,000
30.5.2020 Depreciation 2,000
charged on
furniture
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6. (6)
8 What do you mean by LEDGER? Enumerate
the objectives of LEDGER & also explain the
rules of posting in ledger.
From the following information, calculate
9
the value of GOODWILL:-
()
() Average capital employed in the Busi-
ness 6,00,000
Net Profit of the firm for past three
years were 1,07,600; R90,700 &
1,12,500.
(ii) The rate of interest expected from cap-
ital having regard to the risk involved
is 12%.
(iv) Fair renumeration to the partners for
their services 12,000 per annum not
charged to profit & loss A/c.
(v) Goodwill is valued on the basic of 5
years purchases of the super profit.
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7. (7)
10. On 01.04.2017, X Ltd purchased a machine
for1,90,000 &spent 10,000 on its in-
stallation. On the date of purchase, it was
estimated that the scrap value of the ma-
chine would be R50,000 at the end of 6th
year. Prepare machinery account and De-
preciation account in the books of X Ltd.
for 4 years after providing depreciation by
fixed Installment method. The bookS are
closed on 31 March every year.
11. "Accounting standards ensure the consis-
tency and comparability of Financial state-
ments." Discuss.
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