Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2009 B.B.A BB0006-Financial Accounting - 4 Credits - Assignments for fall session - Question Paper

BBA – I Semester
BB0006- Financial Accounting - four Credits
(Book ID: B0429)
Assignment Set- one (60 Marks)

Note: ans all the ques..

1. Under cash basis of accounting, revenue and expense recognition would occur when cash is received and disbursed. Contrast cash basis of accounting with accrual basis. provide suitable examples. (10 Marks)
2. Compliance with GAAP helps maintain creditability with creditors and stockholders because it reassures outsiders that the firms’ financial reports accurately portray its financial position. In this situation discuss what is GAAP and what is the structure of GAAP? (10 Marks)
3. Rajaram quit his job and started Woodcraft Company (service firm). The transactions of the business for September are as follows: (20 Marks)
20XX
Sept one Began business by investing cash Rs10000 in exchange for 1,000 shares
four Paid 2 months’ rent in advance for a shop Rs.2,000
five Bought equipment for cash Rs.1,200
seven Bought supplies on credit Rs.700
10 Received for remodelling a kitchen Rs.8,600 (revenue from services)
14 Paid for an advertisement that appeared in the local newsprint Rs.1,400
17 Received for furnishing an office room Rs.11,200 (revenue from services)
23 Billed customers for work done other than on cash terms Rs13,100
25 Paid wages to assistant Rs.1,500
28 Paid electricity charges Rs.240
29 Received part payment from customers billed on Sept 23, Rs.4,800
30 Declared and paid a dividend Rs.2,500
Required:
a. Prepare journal entries for the above transactions
b. Post the journal entries to the ledger
c. Prepare trial balance
4. There are different reasons why bank balance as per the cash book does not tally with the bank statement. what are the reasons for difference. (10 Marks)
5. Distinguish ranging from the term ‘dishonour’ & ‘discounting’ of Bills of Exchange (10 Marks)



BBA – I Semester
BB0006-Financial Accounting - four Credits
(Book ID: B0429)
Assignment Set- two (60 Marks)

Note: ans all the ques.
1. Bill of Exchange is a written order for payment issued by the creditor to his debtor. discuss the parties to a Bill of Exchange and what is meant by acceptance of a bill. . (10 Marks)
2. Write short notes on: (10 Marks)
a. Intangible assets
b. Fictitious assets and Wasting assets

3. From the subsequent info of Jansons Ltd on 31st March 2003, you are needed to prepare the Trading, Profit and Loss a/c and Balance Sheet: (20 Marks)

Rs Rs

Opening Stock 5,000 Capital 89,500
Bills Receivable 22,500 Commission (Cr.) 2,000
Purchases 1,95,000 Return Outward 2,500
Wages 14,000 Trade expenses 1,000
Insurance 5,500 Office Fixtures 5,000
Sundry Debtors 1,50,000 Cash in Hand 2,500
Carriage Inwards 4,000 Cash at Bank 23,750
Commission (Dr) 4,000 Rent and Rates 5,500
Interest on Capital 3,500 Carriage outward 7,250
Creditors 98,250 Sales 2,50,000
Stationery 2,250 Bill Payable 15,000
Return Inward 6,500 Closing Stock 12,500


4. Explain the role of computers in Accounting (10 Marks)

5. On first June 2007, Mr. Ram drew a bill of exchange for two months for Rs 2,00,000 on Mr. Rahim. After acceptance the bill was endorsed over to Mr. Xavier. On the date, the bill was met. Show the journal entries in the books of all the parties. (10 Marks)

Earning:   Approval pending.