FUNDAMENTAL OF ACCOUNTING
Content
University of Rajasthan
B.B.A (Pt.I ) 104 B.B.A. (Sem.I) EXAMINATION DECEMBER 2012
( Faculty of Commerce)
P.IV
(Three-Year Scheme of 10+2+3 Pattern) FUNDAMENTAL OF ACCOUNTING Fourth Paper TIME ALLOWED: THREE HOURS Maximum Marks—
(1) No supplementary answer-book will be given to any candidate. Hence the candidates should write their answers precisely in the main answer-book only. (2) All the parts of one question should be answered at one place in the answerbook. One complete question should not be answered at different place in the answer book. 1. Attempt any five questions in all. Question Nos. I and 2 are compulsory All questions carry equal marks each.( Answer limit upto 50 words each) (a) Define accounting principle. (b) Give four examples of uses of convention of conservation. (c) Distinguish between trade discount and cash discount. (d) What is the use of Petty Cash Book? (e) Post the following journal entry into ledger:Rs. Rs. A’s A/c Dr. 10,000 Neha’s A/c Dr. 12,000 To Sales A/c 22,000 (Being goods sold to customers) (f) Distinguish between provision and reserve. (g) Manager is to be given 10% commission on the net profit (after charging such commission) The net profit before charging commission is Rs.55,000. Give adjustment entry for the same. (h) In the trial balance of a trader creditors are Rs. 35,000. The reserve for discount on creditors is @3%. Give journal entry for making reserve.
(i) (j)
What is TPS in computer accounting? Name any four ready to use software’s
2. Answer all Five questions. All question carry equal marks.(Answer limit upto 100 words) (a) (b) (c) (d) (e) 3. 4. Explain accounting cycle. Distinguish between single entry system and double entry system. State the causes of difference between balance of cash book and pass book. Distinguish between Trail Balance and Balance Sheet. Explain limitations of Computerized Accounting System.
What is meant by accounting conventions? Explain briefly some important conventions. Enter the following transactions in a simple cash book of Shri Harishit & Sons :2010 Rs. March 1 Cash in hand 5,600 March 3 Received cash from Hari 3,000 March 5 Goods purchased in cash from X 2,000 March 8 Paid to Govind 1,600 March 13 Cash sales 1,600 March 17 Bought furniture from Julie Furniture 2,000 March 22 Goods purchased from Bhanu in cash 2,400 March 25 Sold goods in Bhargava in Cash 2,500 March 27 Paid salaries to a clerk 1,000 March 31 Paid rent to landlord 500 st The following is the Trial Balance of Mr. X on 31 March ,2011:-
5.
Particular X’s Capital a/c Stock on 1st April ,2010 Sales Return Inwards Purchases Return outwards Freight and Carriage Rent and taxes Salaries and Wages Sundry Debtors Sundry Creditors Bank loan @6% pa. Bank Interest Printing and Stationary
Debit (Rs) 46,800
Credit(Rs) 86,690 3,89,600
8,600 3,21,700 5,800 18,600 5,700 9,300 24,000 14,800 20,000 900 14,600
Misc. Income Cash at Bank Discount earned Furniture Discount Allowed General Expenses Insurance Postage of Telegram Travelling Exp. Drawing
250 8,000 4,190
5,000 1,800 11,450 1,300 380 870 40,000 5,21,330 The following adjustments should be made :-
5,21,330
(a) Including amongst the debtors is Rs.3,000 due from K. Abraham and included among the creditors is Rs. 1,000 due to him. (b) Provision for Bad and Doubtful Debts be created at 5% and Reserve for Discount @ 2% on Sundry Debtors. (c) Depreciation on furniture and fittings @10% shall be written off. (d) Personal purchases amounting to Rs. 600 have been included in the Purchase book. (e) Interest on Bank Loan shall be provided for whole year. (f) A quarter of the amount of Printing and Advertisting is to be carried forward to the next year. (g) Closing Stock Rs. 78,600 (h) Omitted to be recorded invoices of Rs. 400 Prepare Trading and Profit & Loss Account and Balance Sheet. 6. X.Co. Ltd. Purchased a plant for Rs. 2,00,000 on January 1,2008. It was charging depreciation at 10% p.a. according to the Fixed Installment Method. At the end of 2011, the company decided to change the method of depreciation from the fixed installment method to diminishing balance method w.e.f. 1-1-2008, the rate of depreciation was to be 12% p.a. What do you mean by “Accounting Package” ? What are the main functions of accounting package?
7.
B.B.A (Pt.I ) 104 B.B.A. (Sem.I) EXAMINATION DECEMBER 2012
( Faculty of Commerce)
P.IV
(Three-Year Scheme of 10+2+3 Pattern) FUNDAMENTAL OF ACCOUNTING Fourth Paper TIME ALLOWED: THREE HOURS Maximum Marks—
(1) No supplementary answer-book will be given to any candidate. Hence the candidates should write their answers precisely in the main answer-book only. (2) All the parts of one question should be answered at one place in the answerbook. One complete question should not be answered at different place in the answer book. 1. Attempt any five questions in all. Question Nos. I and 2 are compulsory All questions carry equal marks each.( Answer limit upto 50 words each) (a) Define accounting principle. (b) Give four examples of uses of convention of conservation. (c) Distinguish between trade discount and cash discount. (d) What is the use of Petty Cash Book? (e) Post the following journal entry into ledger:Rs. Rs. A’s A/c Dr. 10,000 Neha’s A/c Dr. 12,000 To Sales A/c 22,000 (Being goods sold to customers) (f) Distinguish between provision and reserve. (g) Manager is to be given 10% commission on the net profit (after charging such commission) The net profit before charging commission is Rs.55,000. Give adjustment entry for the same. (h) In the trial balance of a trader creditors are Rs. 35,000. The reserve for discount on creditors is @3%. Give journal entry for making reserve.
(i) (j)
What is TPS in computer accounting? Name any four ready to use software’s
2. Answer all Five questions. All question carry equal marks.(Answer limit upto 100 words) (a) (b) (c) (d) (e) 3. 4. Explain accounting cycle. Distinguish between single entry system and double entry system. State the causes of difference between balance of cash book and pass book. Distinguish between Trail Balance and Balance Sheet. Explain limitations of Computerized Accounting System.
What is meant by accounting conventions? Explain briefly some important conventions. Enter the following transactions in a simple cash book of Shri Harishit & Sons :2010 Rs. March 1 Cash in hand 5,600 March 3 Received cash from Hari 3,000 March 5 Goods purchased in cash from X 2,000 March 8 Paid to Govind 1,600 March 13 Cash sales 1,600 March 17 Bought furniture from Julie Furniture 2,000 March 22 Goods purchased from Bhanu in cash 2,400 March 25 Sold goods in Bhargava in Cash 2,500 March 27 Paid salaries to a clerk 1,000 March 31 Paid rent to landlord 500 st The following is the Trial Balance of Mr. X on 31 March ,2011:-
5.
Particular X’s Capital a/c Stock on 1st April ,2010 Sales Return Inwards Purchases Return outwards Freight and Carriage Rent and taxes Salaries and Wages Sundry Debtors Sundry Creditors Bank loan @6% pa. Bank Interest Printing and Stationary
Debit (Rs) 46,800
Credit(Rs) 86,690 3,89,600
8,600 3,21,700 5,800 18,600 5,700 9,300 24,000 14,800 20,000 900 14,600
Misc. Income Cash at Bank Discount earned Furniture Discount Allowed General Expenses Insurance Postage of Telegram Travelling Exp. Drawing
250 8,000 4,190
5,000 1,800 11,450 1,300 380 870 40,000 5,21,330 The following adjustments should be made :-
5,21,330
(a) Including amongst the debtors is Rs.3,000 due from K. Abraham and included among the creditors is Rs. 1,000 due to him. (b) Provision for Bad and Doubtful Debts be created at 5% and Reserve for Discount @ 2% on Sundry Debtors. (c) Depreciation on furniture and fittings @10% shall be written off. (d) Personal purchases amounting to Rs. 600 have been included in the Purchase book. (e) Interest on Bank Loan shall be provided for whole year. (f) A quarter of the amount of Printing and Advertisting is to be carried forward to the next year. (g) Closing Stock Rs. 78,600 (h) Omitted to be recorded invoices of Rs. 400 Prepare Trading and Profit & Loss Account and Balance Sheet. 6. X.Co. Ltd. Purchased a plant for Rs. 2,00,000 on January 1,2008. It was charging depreciation at 10% p.a. according to the Fixed Installment Method. At the end of 2011, the company decided to change the method of depreciation from the fixed installment method to diminishing balance method w.e.f. 1-1-2008, the rate of depreciation was to be 12% p.a. What do you mean by “Accounting Package” ? What are the main functions of accounting package?
7.
