Deemed University 2010 B.B.A University: Lingayas University Term: I Title of the : Accounting for Managers-I - Question Paper

Roll No. ..

 

Lingayas University, Faridabad

BBA-MBA (Integrated) 1^st Year (Term I)

Examination Nov 2010

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: Question 8 is compulsory. Attempt any two questions from section A, & any two from section B. All questions carry 20 marks each

Section A

Q-1. What are the accounting concepts and conventions? Name them and explain any two accounting concepts in detail? (20)

Q-2. What is trial balance? Explain its objectives. (20)

Q-3. Explain different types of errors with suitable example and how do they affect trial balance. (20)

Section B

Q-4. The cash book of Mr. Gadbadwala shows 8,364 as balance at bank as on 31^st Dec. 2005, but you find that this does not agree with the balance as per the Bank Pass Book. On security you find the following discrepancies.

(i) On 15 Dec. 2005, the payments side of Cash Book was undercast by Rs. 100.

(ii) A cheque for Rs. 131 issued on 25^th Dec, 2005 was taken in cash column.

(iii) A deposit of Rs. 150 was recorded in the Cash Book as if there is no Bank Column.

(iv) On 18^th. Dec. 2005, the debit balance of Rs. 1526 as on the previous day was brought forward as credit balance.

(v) Out of the total cheques amounting to Rs. 11,514 drawn in the last cheque of Dec, 2005 Cheques aggregating Rs. 7815 were enchashed in Dec.

(vi) Dividends of Rs. 250 collected by the bank and subscription of Rs. 100 paid by it were not reached in the cash book.

(vii) A cheque used for Rs. 350 was recorded twice in the cash book.

Prepare Bank Reconciliation System assuming books are to be closed on 31 Dec. (20)

Q-5. Following is the trial balance of Shri Om Shri Om on 31 March 2004. You are requested to prepare the trading & profit & loss, Balance Sheet.

Particulars	Debit (Amt.)	Credit (Amt.)
Sundry Debtors	5, 00, 000	-----
Sundry Credetors	--------	2,00,000
Outstanding Liability for expenses	55,000
Usages	1,00,000
Carrage outwards	1,10,000
Carrage inwards	50,000
General Expenses	70,000
Cash Discount	20,000
Bad debits	10,000
Motor Car	2,40,000
Printing & Stationary	15,000
Furniture and Fittings	1,10,000
Advertisement	85,000
Insurance	45,000
Salesmans Commission	87,500
Pertage & Telephone	57, 500
Salaries	1,60,000
Rates & Taries	25000
Drawings	20,000
Capital Account	---	14,43,000
Purchase	15,50,000
Sales	--	19,87500
Stock on 1.4.2003		2,50,000
Cash at Bank	60,000	----
Cash in Hand	10,500	-----
	36, 30, 500	36, 30, 500

 

Adjustments

(i)             Stock on 31 March 2004 was valued at Rs. 7,25,000

(ii)            Depreciation furniture & fittings by 10% & Motor Car by 20%

(iii)           Shri own withdrawn goods worth Rs. 25,000

(iv)          Purchases include purchase of furniture worth Rs.50,000

(v)           Debtors include 25000 bad debits. (20)

Q-6. Journalise the following transactions.

(i) Purchase goods worth Rs. 5000 for cash less 20% trade discount and 5% cash discount.

(ii) Purchased goods from Bharat Rs. 5000

(iii) Paid salary to Ratan Rs. 2000

(iv) Paid to Bablu interest on loan Rs. 500

(v) Sold goods for cash Rs. 500

(vi) Withdraw goods from business for personal use Rs. 200

(vii) Sold goods to Rahim on credit.

(viii) Rahim become insolvent and could pay only 50 Paise in a rupee. (20)

Q-7. What is final account? What purpose do they serve? Explain with example. (20)

Section C

Q-8. A firm purchased on 1^st Jan. 2004, certain machinery for Rs. 58,200 and spent 1800 on its creation. On 1^st July 2004 additional machinery costing Rs. 20,000 was purchased. On 1^st . July 2006 the machinery purchased on 1^st. Jan 2004 having become obsolete was auctioned for

Rs. 28,600 and on the same date fresh machinery was purchased at a cost of Rs. 40,000.

Depreciation was provided for annually on 31^st. December at the rate of 10% on WDV. In 2007 the firm changed this method of providing depreciation on the original cost of the machinery.

Give Machinery account from 2004 to 2007. (20)