Deemed University 2011 B.B.A University: Lingayas University Term: I Title of the : Accounting for Managers-I - Question Paper
Roll No. ..
Lingayas University
BBA-MBA (Integrated) 1st Year (Term II)
Examination Feb 2011
Accounting for Managers-I (BA - 1103)
[Time: 3 Hours] [Max. Marks: 100]
Before
answering the question, candidate should ensure that they have been supplied
the correct and complete question paper. No complaint in this regard, will be
entertained after examination.
Note: Attempt five questions in all. All questions carry equal marks. Select two questions from Section A and two questions from Section B. Question no. 8 (Section C) is compulsory.
Section A
Q-1. State with reason on brief, whether the following statement are true or false: [10x2=20]
(i) In accounting all business transactions are recorded as having a dual aspect.
(ii) Repairs incurred before using a second-hand purchased recently is revenue expenditure.
(iii) The objective of charging amount of depreciation in the profit and loss account is to spread the cost of an asset over its useful life.
(iv) Accounting is only an art and not a science.
(v) Manufacturing account is prepared to find gross profit.
(vi) A contra entry is made in the cash book when the owner introduces additional capital.
(vii) Cash book is both book of prime entry and a ledger account.
(viii) Goodwill is a fictitious asset.
(ix) In purchase book, all purchases are recorded.
(x) Real account always show debit balance.
Q-2. (a) What are the accounting principles? Explain any two of the following:
(i) The Going concern principle
(ii) Separate Entity principle
(iii) Convention of Consistency [10]
(b) Discuss the meaning and function of accounting. [10]
Q-3. Pass necessary journal entries for the following transactions:
(i) Good worth Rs 4000 were withdrawn for personal use.
(ii) Received cash Rs. 8000 of a bad debt written off last year for Shri Amit.
(iii) Received a first and final dividend of 60 paisa in a rupee from the official received of Mr. Shankar who owed Rs. 2000.
(iv) A fire occurred in the factory and stock worth Rs. 52,000 was destroyed. The insurance company accepted a claim of Rs. 45000.
(v) Charged depreciation of Rs. 500 on machinery and Rs. 200 on typewriter.
(vi) Goods costing Rs. 1000 issued as samples.
(vii) Exchanged old machinery for a new one. The old machinery was valued at Rs. 50,000 the price of new one is 3, 80,000. The balance is paid in cash.
[20]
Section B
Q-4. (a) Distinguish between journal and ledger.
(b) Give two example each of real and nominal accounts.
(c) Enter the following transactions in sales Day book and post them to ledger: 2004
March 1 Sold to R house: 10 pieces of F.M radio transaction @ 900 each, less trade discount l5%
March 12 Sold to G Electrical: 5 ceiling fans @ Rs.800 each less 7% trade discount
March 15 Sold to traders: 5 refrigerators @, Rs.5,500 each; trade discount 25%. [20]
Q-5. (a) What are various causes that lead to depreciation of an asset?
tt)@) .A' corirpany purchased mach{nery worth Rs. 2, 00.000 ipcigding a bgiler worth Rs. 20,000.
./
Cost of boiler is included in cost of nrachinery. 'fhe machinery aecoullr lad bsen credited for
depreciation on the reducing balance method for the past four years at the rate of l1vo. Dwing
the beginning of the fifth year, the boiler became useless on account of damage to some of its
vital parts. The damaged boiler is sold for Rs. 4,000. Write up the machinery account for past
q6 6I Disguise between capital expenditure and revenue expenditure. What type of expenditure is
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considered as deferred revenue? Give two examples each of capital, revenue and deferred revenue
expenditures.
(b)"Measureme@s
(c) Disti'cti"' b;;;"ffi J. ,lffi, ;::;: :;:X',TJry
Question Paper
CONTINUATION SIMET
balance sheet of the firm.
Particulars Dr. Amount
Purchases 30,000
Sundry debtors 40,000
Interest Received on investment
It Salaries
Sales
Return Outward 4,000
Wages 3,000
Rent and rules 2,000
Bad debts 1,400 .
Sundry creditors
Capitals
Drar,vings 4,800
Provision for bad and doubtful debts'
Printing and stationary 1,600
Insurance 2,400
Opening Stock 10,000
Administration expenses 2,400
Furniture and fixtures 4,000
Provision for Depreciation
Total 1,11,600
Confidential
Cr. Amount
800
64,200
1,000
24,000
20,000
r,204
4000
1,11,600
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