Punjab Technical University 2011-1st Sem M.B.A ,, Basic Accounting , , - Question Paper

Time : 03 Hours
Maximum Marks : 60

Instruction to Candidates:
1) part - A is Compulsory.
2) Attempt any 4 ques. from part - B.

part – A [Marks : 10×2=20]

Q1)a) Book Keeping.

b) Journal.

c) Closing Entry.

d) Rules regarding issuance of shares at discount.

e) Real Accounts.

f) Convertible Debentures.

g) Petty Cash Book.

h) Paid up Share Capital.

i) Calls in arrear.

j) Computerized Accounting System.

part – B (4 × 10 = 40)

Q2) discuss in detail the concepts and conventions of accounting.

Q3) Prepare 2 column cash book from the subsequent transactions:
2011
Jan one Balances brought dawn - bank Rs. 5,000 and cash Rs. 450
3 Withdraw Rs. 2,000 from bank
5 Bought goods for Rs.1,500 paying by cheque
8 Purchased stationery by cash Rs.50
11 Paid electricity bill Rs.100 by cheque
15 Sold goods for Rs.2,000 and received cheque
20 Paid into bank Rs.150

Q4) Jamnadas furnishes you with the subsequent trial balance as on 31st May, 2001 :
Dr. Cr.
Rs. Rs.
Stock on 31.5.2000 (at cost) 35,000 _
Depreciation 5,000 _
Provision for depreciation _ 40,000
Fixed assets (at cost) 50,000 _
Profit/loss on sale of fixed assets 8,000 _
Investments at cost 1,25,000 _
Profit/loss on sale of investments _ 80,000
Sale (at 20% gross profit margin) _ 8,00,000
Purchases 7,50,000 _
Balances in customers accounts 1,00,000 20,000
Balances in suppliers accounts 5,000 60,000
Expenses 42,000 _
Discount 18,000 12,000
Commission 50,000 80,000
Amounts due to principals _ 8,000
Amounts due from consignees 75,000 _
Deposits with consignors 1,00,000 _
Deposits from consignees _ 1,50,000
Cash 7,000 _
Income on investments _ 5,000
Interest on deposits:
With consignors _ 12,000
From consigness 18,000 _
Prepaid /outstanding expenses:
as on 31.5.2000 7,000 13,000
as on 31.5.2001 9,000 6,000
Fixed deposits with bank 2,00,000 _
Interest on bank fixed deposit _ 20,000
Drawing/Capital 60,000 3,00,000
Bank _ 58,000
Total 16,64,000 16,64,000
You obtain that the cost of fixed assets sold was Rs. 30,000, the accumulated depreciation up to
the date of sale was Rs. 9,000. You are needed to prepare.
(a) Trading and Profit and Loss account
(b) Balance sheet as on 31st May, 2001.

Q5) ABC Limited offered for public subscription 2,000 Equity shares of Rs. 100 every at a premium
of Rs. 20 per share on the subsequent terms
(a) Applications money to be paid on 30th June, 2000 Rs. 40 per share.
(b) Allotment money to be paid on 20th September, 2000 Rs. 50 per share including Rs.
20 premium.
(c) 1st and final call money to be paid on 31st December, 2000 Rs. 30 per share.
Applications for 4,000 shares were received, the Company decided to:
(i) Allot in full 200 shares to four applicants who had applied for the identical.
(ii) Reject the application for 1,400 shares applied for by persons suspected to be agents
of a rival company
(iii) Allot the balance number of shares proportionately, to the remaining applicants,
and to apply the excess money paid towards the allotment money dues.
Ravi who had applied for 100 shares and who was allotted all the shares applied for could
not pay allotment money. Ruby who was allotted 60 shares on the proportion basis could
Not pay the final call. After due notices all such shares were forfeited and reissued at a
discount of 20% of the face value of the share of Mr. Reddy.
Pass the necessary journal entries to record the above transactions in the books of the
Company.

Q6) What is management accounting? discuss the limitations of management accounting.

Q7) "Computerized Accounting has increased the frequency of frauds in business enterprises".
Comment on this statement.

Earning:   Approval pending.