BBA (Sem. - 2nd) FINANCIAL ACCOUNTING SUBJECT CODE : BB - 201 Paper ID: [C0207]

punjabtechnicaluniversity.blogspot.in

Roll No.......................                     

Total No. of Questions : 07]                                                                                        [Total No. of Pages : 03

BBA (Sem. - 2^nd) FINANCIAL ACCOUNTING SUBJECT CODE : BB - 201 Paper ID: [C0207]

[Note : Please fill subject code and paper ID on OMR]

Time : 03 Hours                                                                                                       Maximum Marks : 60

Instruction to Candidates:

1)            Section - A is Compulsory.

2)            Attempt any Four questions from Section - B.

Section - A

^Q1                                                                                                                                                               (10,2 =

a)            Ledger. b)           Bookkeeping vs. Accounting.

c)    Current Assests.

d)         Net worth.

e)              Marshaling.

f)               Realization concept.

g)              Going concern concept.

h)         Bank reconciliation statement.

i)          Errors of omission.
j)          Depreciation.

J-27318,29,                                                                                                                                                                _RTa

Section - B

(4x 10 = 40)

Q2)   Discuss in detail nature, scope and limitations of financial accounting.

Q3)   (a)   What is the need to journalize the business transactions? (b)  Explain the classification of different types of accounts.

Q4)   What are the different types of errors that creep into while preparing trial balance?

Q5)   Prepare Trading and profit and loss account of M/S Konark Enterprises for the year ended 31^st

                      

Balance	Rs.	Credit Balance	Rs.
Equipment	10000	Accumulated     depreciation (furniture)	1800
Furniture	12000	Accumulated      depreciation (equipment)	1500
Opening stock	29560	Creditors	2380
Office supplies	2180	Share capital	30000
Debtors	3400	Retained earnings	1710
Cash	2740	Sales	88950
Prepaid insurance	2400	Purchase returns	970
		and allowance
Prepaid advertisement	1900	P                 urchase discounts	190
Sales returns and allowance	1300
Sales discount	750
Purchases	37910
Freight in	2950
Office salary	2400
Sales salary	8100
Delivery expenses	500
Telephone expenses	910
Store rent	3300
Office rent	2200
Dividend	3000
	127500		127500

Ramesh construction company purchased equipment for Rs. 20 lacs in 2001. The equipment was expected to useful for seven years or 15000 hours, with an estimated residual value of Rs. 2 lacs at the end of that time. The equipment logged 2000 hours in the first year, 1000 hours in second year and 3000 hours in second year. Depreciation rate may be taken at 14%. You are required to compute the depreciation expense for the first year under each of the following methods :

(a)         Written down value.

(b)         Straight line method.

From the following information, prepare a Bank Reconciliation Statement as on 31^st March, 2008 for M/S New Steel Ltd :

(a)         Bank overdraft as per cash book Rs. 25,000.

(b)         Interest debited by the bank on 26^th March but not no advice received Rs. 3,000.

(c)         Cheques i ssued before 31^st March but not presented to bank for payment Rs. 7,000.

(d)         Transport subsidy received from government directly by the bank but not advised to the company Rs. 4,000.

(e)         Draft deposited in the bank but not credited till 31^st March Rs. 1,500.

(f)          Bills for collection credited by the bank till 31^st March but no advice received by the company Rs. 9,000.

(g)         Amount wrongly debited to company by the bank for which no details are available Rs. 800,