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I Semester B.B.M. Examination, October/November(Semester Scheme) (Repeaters)

(Prior to 201 1-2012)BUSINESS MANAGEMENT

Paper - 1.4 : Fundamentals of Accounting

Time : 3 Hours

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2012

Max. Marks : 90

(10x2=20)

lnstruetion : Answer should be written in English only. Working notesshould be given wherever n'ecessary.

SECTION _ A

Answer any ten of the following. Each question carries two marks.

1. a) What is petty cash book ?

b) What is Person al Nc ?

c) What is Ledger ?

d) Who is a Debtor ?

e) What is compensating error ?

f) What are errors of duplication ?

g) Why Bank Reconciliation statement is prepared ?

h) What is Journal Proper ?

i) State any two differences between Statement of Affairs and Balance Sheet.

j) What is credit note ?

k) What is sales returns book ?

l) Differentiate between concepts and conventions.

P.T.O.

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SECTION _ B

Answer any five questions. Each question carries five marks. (5x5=25)

2. Distinguish between single entry and double entry system of accounting. .

3. How are accounts classified ? Briefly exptain the rules of accounts.

4. Pass rectification entries for the following :

Rs. 24,000 withdrawn for personal expenses debited to office expenses

Rs. 12,000 paid towards repairs of building debited to building A/c

Rs. 10,000 on account of sales to Raja has been completely omitted

Rs. 4,000 paid as carriage is posted twice to Carriage Nc

Rs. 20,000 paid to cashier Rajesh debited to his personalAlc

5. Pass Journal entries for the following transactions :

a) Capital introduced into the business Rs. 10,000

b) Machinery purchased for cash Rs. 8,000

c) Goods sold for cash Rs. 15,000

d) Wages outstanding Rs. 500

e) Rent prepaid Rs. 800

6. Guru, the business man entered into the following transaction with Gopi, on thefollowing dates. Draft the Ledger Account of Gopi and balance the same.2012

July 1 Opening debt of Gopito Guru Rs. 10,000

July 3 Sold goods to Gopi at10% discount Rs.1,00,000

July 8 Gopi return goods Rs. 10,000

July 14 sold goods to Gopiand received a billfrom him Rs. 50,000

July 28 Gopi become insolvent and Guru realised his assets Rs. 80,000

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7. Prepare a Trial Balance from the following LedgerAccount Balances

Patent Rs. 20,000 Bank overdraft

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General Expenses Rs.40,000 Bills payable

Sales ' Rs. 2,00,000 Capital

Return outwards Rs. 20,000 Purchases

Outstanding wages Rs. 10,000 Debtors

Rs. 30,000

Rs.,20,000

' Rs. 1,20,000

Rs.3,00,000

Rs.40,000

8. From the following details, prepare two-column cash bookof Ramya.

Feb.201 1

1 Opening balance Rs.2,50,000

5 Drew from bank for personal use Rs. 50,000

8 Paid to Baba Rs. 1,89,000 and received discount Rs, 1,000

14 Drew from bank for office use Rs. 1,00,000

2 Cash deposited into bank from the office Rs.80,000

9. Prepare bank reconciliation statement from the following particulars :

Bank balance as per pass book Rs. 68,000

Bank charges debited in pass book but not entered in cash book Rs. 600

Cheques issued to suppliers but not presented for payment Rs. 34,000

Cheques from customers deposited into bank but not yet cleared Rs. 32,000

Credit note issued by bank not entered in cash book Rs. 500.

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SECTION _ C

Answer any three questions. Each question carries fifteen marks. (3x15=45)

10. Journalise the following transactions in the books of Prasanna Enterprises andprepare the following accounts

Cash A/c

lnvestment A/c

Patents A/c

Machinery A/c

Stock A/c

October 2011

1 Prasanna commenced business with the following :

Cash Rs. 5,200; Investment Rs. 35,000; Stock of goods Rs. 30,000; PatentRs. 15,000; Machinery Rs. 40,000; Bills payable Rs. 5,500

Following f urther transactions took place in the month of October 2A11

I Borrowed Rs. 30,000 from Ananth and Rs. 50,000 from Mrs. Prasanna

14 Purchased building Rs. 75,000 and patent Rs. 5,000

n Sold good forcash Rs. 1,00,000 and deposited cash into bank Rs. 30,000

28 Spent on extension of building Rs.45,000 and paid wages to workersRs. 23,500, paid for purchase of stationery Rs. 1,000

11, Prepare Trading and Profit and Loss A/c and Balance Sheet of Kamath from thefollowing Trail Balance and additional information

Trail Balance as at 31st March 2012

Particulars Dr. (Rs.) Cr. (Rs.)

Kamath's Capital 1,50,000

Kamath's Drawings 25,000

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Fumiture 13.000

Bank overdraft 21,000Debtors and Creditors gg,000 66,500Business premises. 1,00,000

Stock on1-4-2011 1,10,000

Rentfrom tenants 5,000Purchases and sales S,ZO,OOO 7,50,000Returns 10,000 10,000Discount g,000

Taxes and Insurance 1O,OO0

Safaries 45,000

Carriage on purchases 9,000

Generalexpenses j 1,000

Provision fordoubtfuldebts 1-4-2011 3,000Bad debts written off 4,000

Commission 2,500

Total 10,0g,000 10,0g,000Additional information :1) Stock on 31 -g-2012Rs. 1,00,0002) Rent Rs. 1,500 is still due from tenants3) Outstanding salary Rs. 3,7504) Depreciate Business premises by Rs. 1,S005) Depreciate furniture by 10a/o6) Make a provision of 5% on debtors for doubtfur debts.

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12. The following transactions are to be entered into proper subsidiary boolcs, the

subsidiary books are to be closed on March 31, and post them into Ledger Nc -

1 Purchased goods from Mahender of Rs. 40,000 less 1O% Trade discount

5 Sold goods to Motifor Rs. 10,000

6 Return goods to Mahender, list price of Rs. 5,000

7 Shyam Singh sent goods for Rs. 30,000

I Sold goods to Harish tor Rs.12,000

'19 Sent goods to Motifor,Rs. 6,000

n Sold goods to Mahesh for Rs. 8,000

13. Enter the following transaction in a analytical Petty cash book on'the lmprest

system

2}1zApril 1 received a cheque for Rs. 1,000 to begin with

2 spent for postage

3 paid for office cleaning

7 paid travelling expenses of Manager

8 paid to Sudharshan & Co.

I paid wages

12 paid fortelegram

15 tea exPenses of customers

16 paid for cartage

21 purchased stationery articles

31 bought postage stamPs

&

Rs.,50

Rs.100

Rs.100

Rs.80

Rs. 140

Rs.20

Rs.84

Rs. 80

Rs. 140

Rs.80

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Particulars

Bank overdraft

Land and buildings .

Creditors

Furniture and fittings

Debtors

Bills Receivable

Bills payable

1-4-11 (Rs.) 31-3-12 (Rs.)

20,000

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14. Nayak maintains his books of accounts undersingle entry system. me totlowinginformation is available from his books of accounts

7,50,000

1,20,000

5,00,000

2,40,000

80,000

1,00,000

7,50,000

1,60,000

. 5,00,000

3,00,000

90,000

90,000

96,000Cash in hand and at Bank 75.000

During the year Nayak has withdrawn Rs. 50,000 for his personal use andintroduced additional capital Rs. 1,00,000.

You are required to prepare

a) Statement of Affairs

b) Statement of Profit and Loss and

c) Revised Statement of Affairs considering the following adjustments.'1) Depreciate Land and Building and Furniture and Fittings @ 5% P.A and

10/o P.A respectively.

2) Provide interest on opening capital at12.Ea/oP.A.3) Create reserve for doubtful debts @ S%4) Salary outstanding Rs. 6,0005) Commission receivable Rs. 2,000