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Tuesday, May 10, 2016

Roll No. ......................
Total No. of Questions: 07]                                       

BBA (Sem. – 2 )
Paper ID: [C0207]

Time: 03 Hours
Instruction to Candidates:

1)     Section - A is Compulsory .
2)     Attempt any Four questions from Section - B.

                                                              Section - A                          
 Q1)   a) Explain Cost concept.
b) What are Representative Personal Accounts? Give two examples.
c) What are Current Assets? Give two examples.
d) Write three rules of Double Entry System.
 e)What are Errors of Omission?
f) What are Net profits?
g)What are Outstanding Expenses?
 h) Is capital a liability?
i) Define capital.
j) What is Marshalling of balance Sheet?

Section - B

Q2)    Define Financial Accounting. What are its objectives? Discuss its merits and

Q3)    What is the purpose of preparing journal and ledger accounts? Discuss the
rules of preparing a journal. Illustrate your answer.

Q4)    Discuss the reasons of charging depreciation? Evaluate different methods of
charging depreciation.

Q5)    There was a difference in the Trial balance of Mr D C Gupta as on 31 st
March 2010 and the difference in books (excess debit of Rs. 1200) was carried to a Suspense Accountant the books were closed. On going through the books after 1 st April 2010, it was found that:

a) Rs. 500 received from C Gupta was posted to the debit of his account.

b) Rs. 100 being purchases returns were posted to the debit of
     purchases Account.

c) Discount Rs. 200 received, entered in the cash book, was not posted in
the ledger.

d) Rs. 574 paid for repairs to Motor car was debited to Motor Car Account as
Rs. 174.

e) A Sale of Rs 350 to Agarwal was entered in the Sales Book as Rs. 530.

f) While carrying forward total of one page in Ram’s Account, the amount of Rs.
250 was written on the credit side instead of debit side.

Q6)    Prepare a Bank Reconciliation Statement from the following information:
On 31 st December 2010 the cash Book of Mr. Singh showed a bank overdraft of Rs. 3894. On checking the books the following differences were noted between the two set of books.

a)     Bank charges of Rs. 45 and interest on overdraft of Rs. 225 appear in the   Bank Pass Book but not in the Cash Book.

b)    Cheques for Rs. 2250 were deposited in the bank but not collected.
          Rs. 4500 being the proceeds of a bill collected appear in the Pass Book but not in the Cash Book.

c)     A cheque for Rs. 450 received from Sachin and deposited in the bank was dishonoured but the advice of non payment was received from the bank on Jan. 1, 2011.

e) Cheques drawn for Rs. 1800 were entered in the cash book but were not
presented at the bank till first week of Jan. 2011.

Q7) The following Trial balance is extracted from the books of Murli Manohar.
        Prepare Trading and Profit and Loss Account for the year ended on 31 st March             2010 and a Balance Sheet as on that date:
        Particulars Dr. Balance (Rs.) Cr. Balance (Rs.)
        Drawings Buildings
        Debtors and Creditors Purchases and sales
        Sales returns and Purchases returns Discount Insurance Cash
        Opening stock Bad Debts
        Bad debt Reserve Carriage Wages
        Machinery Furniture Salaries
        Bank Charges

Bills receivable & Bills payable Trade Charges Capital

3,500 6,000 5,000 30,000

350 710 300 3,000 1,200


--- 630 2,770 20,000

6,000 3,300

200 6,000


8,000 46,500





Total 90,290                 90,290 Adjustments:

a) Depreciation – Buildings – 5%, Machinery-10% p.a.

b) Trade expenses Rs. 250 and wages Rs. 350 have not been paid. c) Allow interest on capital at 10% p.a.

d) Make provision for doubtful debts at 5%.

e) Machinery includes Rs. 5000 of a machine installed on 31 st December 2010.
Wages include Rs. 1000 spent on the installation of the machine.

f) Stock as on 31 st March 2011, Rs 5000.


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