This document contains an assignment for a Financial Accounting course with 6 questions. Question 1 asks to journalize transactions, Question 2 explains accounting objectives and user categories, Question 3 defines goodwill and provides a journal entry problem, Question 4 differentiates trade and cash discounts and includes a cash book exercise, Question 5 explains final accounts features and objectives, and Question 6 prepares financial statements from a trial balance with additional information.

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ASSIGNMENT
DRIVE FALL 2014
PROGRAM BBA
SEMESTER 2
SUBJECT CODE &
NAME
BBA 203 &
FINANCIAL ACCOUNTING
BK ID B1520
CREDITS 4
MARKS 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.No Questions Marks Total
Marks
1
Journalize the following transactions in the books of Balu.
2004 Rs.
Jan. 1 Commenced business 25,000
Jan. 2 Goods purchased for cash 15,000
Jan. 3 Paid freight 500
Jan. 7 Goods sold to Raj Kumar on credit 5,000
Jan. 8 Paid for stationery 2,000
Jan.10 Paid for Rent 1,000
Jan.13 Cash received from Mohan Das 15,400
Allowed him discount 600
Jan.15 Paid Premium 4,000
Jan.20 Paid to postage 1,000
Jan.25 Paid for salaries 500
Jan.30 Commission received 1,000

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Preparation of all the journal entries with the correct amount
Narration
8
2
10
2 Accountancy refers to a systematic knowledge of accounting. It explains ‘why to do’
and ‘how to do’ of various aspects of accounting. Explain the objectives of accounting
and explain the categories of users.
Explanation of accounting objectives
Explanation of categories of users
5
5
10
3 What do you understand by good will? Explain the accounting treatment of goodwill
at the time of admission. Give journal entry for the below problem:
T and S are partners in a firm sharing profit in the ratio 5:3. They admitted G as a
new partner for 1/4th share in the profit. G brings Rs.45,000 for her share of goodwill
and Rs.1,20,000 for capital. They have withdrawn the goodwill from the firm. Make
journal entries in the books of the firm after the admission of G. The new profit
sharing ratio will be 2:1:1.
Meaning of good will with the formula
2
10
Accounting treatment of good will at the time of admission
4
Journal entry in the books of T,S and G
4
4 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
28th April Paid to Reena on account Rs.715
30th April Paid salary to the office clerk Rs.100 and office rent Rs.60
Differences between trade discount and cash discount
Preparation of cash book
5
5
10
5 Final Accounts are prepared at the end of accounting year with various adjustments.
Explain the features and objectives of final accounts.
Explanation of objectives of final accounts
Explanation of features of final accounts
3
7
10

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6
Prepare Trading, 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 -
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.

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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.
Calculation of Trading and P/L a/c
Preparation of balance sheet
5
5
10