Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2009 B.Sc Fashion Design BF0017 - FINANCIAL AND MANAGEMENT ACCOUNTING - Assignments for fall session - Question Pa

BF0017-1
Marks – 60
FINANCIAL AND MANAGEMENT ACCOUNTING

1.The end product of the financial accounting is a set of reports that are called financial statements. discuss those principal financial statements with suitable examples. (10 Marks)
2.What is GAAP? discuss the structure of GAAP. (10 Marks)
3.State whether the subsequent classification is accurate or not. provide the accurate classification if necessary: (10 Marks)
a.Machinery Account
Nominal Account
b.Conveyance Account
Real Account
c.Bank Account
Real Account
d.Goods Account
Nominal Account
e.Building Account
Real Account
f.Capital Account
Personal Account
g.Drawing Account
Real Account
h.Loan Account
Real Account
i.Alpha Stores Account
Nominal Account

4.Prove that accounting formula is satisfied in all the subsequent transactions of Mr.X. (10 Marks)
1.Commenced business with cash – Rs.80,000
2.Purchased goods for cash – Rs.40,000 and on credit Rs.30,000
3.Sold goods for cash – Rs.40,000 costing Rs.25,000
4.Paid salary – Rs.2,000 and salary outstanding Rs.1,000
5.Bought scooter for personal use for cash at Rs.20,000
5 .Prepare a trial balance from the following: (10 Marks)
Particulars
Amount
Rs.
Particulars
Amount
Rs.
Purchases
8,225
Premium on lease
1,200
Wages
1,025
Loan on mortgage
2,500
Sales
12,450
Plant and machinery
2,000
Arun’s capital
13,500
Provision for doubtful debts
300
Stock on 1-1-98
1,500
Sundry debtors
16,550
Salary
410
Trade charges
200
Rent and taxes
162
Bad debts
200


Sundry creditors
2,572

6.The bank statement of Arthur & Co showed an overdraft of Rs.5,600 as on 30th September 2008. The cash book, however, showed a positive balance of Rs.2700 as on the identical date. The accountant of Arthur & Co obtained that the difference in the balance is due to the following:
(10 Marks)
1.Cheques issued to supplier not yet presented Rs.1,500
2.Cheques deposited in the bank not yet credited Rs.3,000
3.A cheque received from a customer and deposited into the bank has been wrongly credited by the bank in Mohandas & Co account Rs2,000
4.Dividend received by the bank not yet intimated Rs1,000
5.Bank charges not yet recorded in the cash book Rs.400



BF0017-2
Marks – 60
FINANCIAL AND MANAGEMENT ACCOUNTING

Accounting conventions refers to customs, traditions, usages or practices followed by accountants as a guide in the preparation of financial statements. discuss. (10 Marks)
1.“Anticipates no profits but give for all possible losses” belongs to which kind of convention? what are. (10 Marks)
2.On first April 2008, Vishnu sold goods to Surendra for Rs.50,000 and received a 2 months’ bill for the amount. The bill was duly paid on maturity. Pass Journal entries in the books of both the parties.
(10 Marks)
3.Write short notes on: (10 Marks)
a.Errors of Omission
b.Compensating fault
4.The subsequent balances are extracted from the books of Kiran Trading Co on 31st March 2000. You are needed to prepare trading and profit and loss account and a balance sheet as on that date: (10 Marks)
Opening Stock
5,000
Commission received
2,000
B/R
22,500
Return Outward
2,500
Purchases
1,95,000
Trade Expenses
1,000
Wages
14,000
Office furniture
5,000
Insurance
5,500
Cash in hand
2,500
Sundry Debtors
1,50,000
Cash at bank
23,750
Carriage Inwards
4,000
Rent and Taxes
5,500
Commission Paid
4,000
Carriage Outward
7,250
Interest on Capital
3,500
Sales
2,50,000
Stationery
2,250
Bills Payable
15,000
Return Inwards
6,500
Creditors
98,250


Capital
89,500
The closing stock was valued at Rs.1,25,000
5.Explain the term ‘acceptance of the bill’. (10 Marks)

Earning:   Approval pending.