Bangalore University 2006 B.B.M Fundamentals of Accounting - Question Paper

I Semester B.B.M. Examination, December 2006
(Semester Scheme)
BUSINESS MANAGEMENT
1.4: Fundamentals of Accounting

Time : three Hours Max. Marks : 90

Instructions : 1) Answers should be written in English.
2) Workings should be provided wherever necessary.

part - A

ans any 10 of the subsequent sub-questions. every ques. carries two marks. (2x10=20)

1. a) What do you mean by narration ?
b) What is a Ledger ?
c) Why Bank Reconciliation statement is prepared ?
d) provide the meaning of nominal account.
e) Who is a Creditor ?
f) What do you mean by GAAP ?
g) Mention 2 objectives of Trial Balance ?
h) What is a compensating fault ?
i) provide the meaning of Deferred Revenue Expenditure.
j) What is the purpose of preparing Balance Sheet ?
k) How do you treat outstanding wages in Final Account ?
l) Who is an Insolvent ?

part - B

ans any five ques.. every ques. carries five marks. (5x5=25)

2. Distinguish ranging from Journal and Ledger.

3. Breifly discuss the classification of accounts and their corresponding rules.

4. Is the subsequent correctly prepared ? If not prepare it correctly.

Cash Account

Particulars Rs. Particulars Rs.

To Furniture (Cash purchased) 2,500 By Balance b/d 15,700
To Drawings 3,500 By Shyam Sundar (Sale of
goods on credit) 300
To Cash sales 13,700 By Salaries 13,200
To Depreciation 2,000 By Interest (received) 4,000
To Commission (received) 10,000 By Payment of commission 3,100
To Credit sales 10,000 By Discount allowed 200
To Balance c/d 6,400 By Bad Debts 200
By Stationery 400
By Bank (amount withdrawn
from bank for office use) 5,000

Earning:   Approval pending.