Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2009 B.B.A BB 0006 - FINANCIAL ACCOUNTING –AN INTRODUCTION - Assignments for spring session - Question Paper

Sundry debtors
Bank Overdraft
8250
12750
700
800
2500
1850
7600
2450
Capital
Sales
Returns inwards
Discount allowed
Scooty
Carriage charges
Sundry Creditors
Bills payable
10000
15900
1590
800
1750
700
7250
690

6 marks

b) What do you mean by electronic data processing centres? 4 marks.



































ASSIGNMENT
BBA 1st SEMESTER
SUBJECT CODE BB 0006
(4 CREDITS) 60 MARKS
SET II
SUBJECT: FINANCIAL ACCOUNTING –AN INTRODUCTION

NOTE: every ques. carries TEN marks

1.What statements of accounts are regarded as final financial statements? discuss the objectives of every financial statement.

two a) discuss and illustrate errors that can be disclosed by trial balance. (5 Marks) b) An accountant obtains that the trial balance of his client did not tally and it (5 Marks) He transferred it to a suspense account and later discovered the subsequent errors.
a)Rs.1,456 paid to Anand has been credited to his account as Rs 1546.
b)A purchase of Rs.2749 has been posted as Rs 7294 to the purchases account
c)An expenditure of Rs.546 on repairs has been credited to the Buildings account
d)Rs.80 was allowed by B as discount which has not been entered in the books.
e)A sum of Rs.3895 realized on the sale of old furniture has been posted to the sales account. provide journal entries to rectify the errors and show the suspense account as it would appear after adjustments. ( five Marks )

3. Journalise the subsequent transactions and open only the personal accounts in the ledger.
2004-
July 1
Gopichand started business with the subsequent assets:
Cash
Goods
Furniture
Amount Rs.
40,000
30,000
5,000
July five
Sold goods to Muni
Sold goods for cash to Ganesh
15,000
13,000
July 9
Received from Muni on account
13,000
July 12
Purchased goods from Mani
49,000
July 15
Paid Mani
25,000
July 20
Paid interest to Mani
500
July 30
Paid stationery charges
Paid Salaries
Paid rent
1600
1250
1160

4. Enter the subsequent transactions in the cash book with discount, cash and bank columns and obtain out the closing balances.
May, 2004
1st .Balance of cash in hand Rs. 24000; cash at bank Rs.23,500.
4th Invested further capital Rs.20000 out of which Rs.16000 was deposited in the bank.
6th Sold goods for cash Rs. 30000
6th Collected from debtors Rs.80000; Discount allowed to them Rs. 2000.
10th Purchased goods for cash Rs. 45,000
11th Paid Ram, our creditor Rs. 25,000; discount allowed by him Rs.1650
13th Commission paid to our agent Rs. 5,300
14th Office furniture sold for cash Rs. 2,000, the cost of which was Rs.3500
14th Rent paid Rs 2400; electricity charges paid Rs. 1,000
14th Drew cheque for personal use Rs. 7,000
17th Cash sales Rs. 35,000
18th Collection from Atul Rs.30,000, deposited in the bank on 19th May.
19th Drew from the bank for office use Rs.15000
22nd Drew cheque for petty expenses Rs.3,500
24th Dividend received by cheque Rs.7500, deposited in the bank on the identical day.
25th Commission received by cheque Rs.2,300, de[posited in the bank on 28th May
29th Drew from the bank for salary of the office staff Rs15,000
30th Deposited cash in the bank Rs.12,000.

5. Mr. X has sold goods worth Rs.15,000 on credit on fourth Jan, 2008 to Mr. Y. Y paid Rs. 5,000 and for the remaining balance, he accepted a bill of exchange for 3 months period on the identical day. X endorsed the bill to Mr. A, who got it discounted at Rs.9500 from bank. On the date of maturity, the bill was dishonored and the bank charged extra collection charges Rs.200. Draw journal entries in the books of X, Y and A.




6. On 31st Dec, 2006, the subsequent trial balance was prepared from the books of Rajiv.
Debits
Rs
Credits
RS.
Sundry debtors
50600
Sundry creditors
10000
Bills receivable
5000
Capital
70000
Plant and machinery
75000
Bad debts reserve
1000
Purchases
90000
Bills payable
5000
Freehold Premises
50000
Reserve
20000
Salaries
11000
Sales
231700
Wages
14400


Postage and stationery
750


Carriage inwards
750


Carriage outwards
1000


Bad debts
950


General charges
1500


Cash at bank
5300


Cash in hand
800


Closing stock
29000


Total
337500
Total
337500

The subsequent adjustments are required:
1.Rajiv gets a salary of Rs.9000 per annum
2.Allow 5% interest on capital
3.Bad debts provision to be adjusted to 2.5% on Sundry debtors
4.5% of net profits should be credited to reserve
5.It was discovered that stock on 31st Dec, 2006 was overcast by Rs.1000.
6.You are needed to prepare Trading, Profit and Loss account and Balance Sheet.

Earning:   Approval pending.