Essentials of Accounting Past Paper PDF 2019

CHRIST DEEMED TO BE UNIVERSITY,BENGALURU - 560029 End Semester Examination September/October - 20 19 Bachelor of Business Administration - Honors I SEMESTER Code: BBBH133 Max.Marks: 50 Course: ESSENTIALS OF ACCOUNTING...

CHRIST DEEMED TO BE UNIVERSITY,BENGALURU - 560029 End Semester Examination September/October - 20 19 Bachelor of Business Administration - Honors I SEMESTER Code: BBBH133 Max.Marks: 50 Course: ESSENTIALS OF ACCOUNTING Duration: 2Hrs SECTION A Answer any five questions. Each question carries TWO 5X2=10 marks. 1 What do you mean by accrual basis of accounting? 2 Describe the various types of accounts. 3 What is a contra entry? 4 Give four examples of one sided errors. 5 What are the advantages of bank reconciliation statement? 6 What do you mean by prepaid expenses? Give an example. 7 Explain the concept of limited liability partnership. SECTION B Answer any Four questions. Each question carries FIVE 4X5=20 marks. 8 Differentiate between fixed and fluctuating capital system 9 On 31st March 2018, the cash book of Rajan showed a bank balance of Rs 5000. A comparison of his cash book with pass book showed as follows 1. Out of the cheques is s ued for Rs 1400 a cheque of Rs 300 had been cas hed while other cheques were not pres ented. 2. Bills receivable for Rs 1000 and Rs 500 s ent for collection had been realis ed but only bills receivable of Rs 500 entered in the cas h book while other bills receivable of Rs 1000 was not entered. 3. Out of the cheques Rs 2500 paid into bank. There was credit in the pas s book for Rs 1200 only. 4. Bank had debited pas s book with Rs 200 as bank charges , not recorded in cas h book. 10 How is a Balance sheet different from a Trial Balance? 11 A ledger keeper of Acharya & Co. could not agree the trial balance. He transferred an amount of Rs 296 being the debit side total of Suspense account. The following errors were subsequently discovered. 1. Sales book was overcas t by Rs. 300. 2. Purchas e of Furniture worth Rs. 615 was pas s ed through the Purchas es book. 3. An amount of Rs. 55 received from M/s. Shah & Co., was pos ted to their account as Rs 550. 4. Purchas es returns book total on a folio was carried forward as Rs. 221 ins tead of Rs. 112. 5. A cas h s ale of Rs. 1,435 though duly entered in the cas h book was pos ted to Sales account as Rs. 235. Pass necessary Journal Entries and prepare the suspense account in the books of Acharya and Co. 12 Enter the following transactions in proper Subsidiary Books of Ram: Particulars Rs. 2006 January 1 Sold goods to Ramesh on credit 525  1 Bought of Hari Ram on credit 780 2 Ramesh returned goods 75 2 Sold to Dina N ath on credit 550 2 Purchased goods form Mangal on credit 700 4 Returned foods to Mangal 100 4 Bought of Devi Dayal on credit 325 4 Sold to Z akir Husain on credit 350 5 Z akir Husain returned goods 45 6 Sold to Ram Saran 500 6 Sold to Ghanshyam 300 7 Ram Saran returned goods 50 7 Bought of Devi Dayal on credit 700 8 Returned goods to Devi Dayal 75 Purchased goods from Raghunath subject to 9 1,000 a trade discount of 10% Sold to Raja Ram goods subject to trade 10 500 discount of 5% SECTION C Answer any one question. Each question carries TEN 1X10 =10 marks. 13 A book-keeper while balancing his books found that there were differences in the trial balance. Being required to prepare the final accounts he placed this difference to a newly opened suspense account which was carried forward to the next year when the following errors were discovered. 1. A dis honoured bill receivable for Rs 400 returned by the bank had been credited to the Bank account and debited to Bills receivable account. 2. Sundry items of plant s old for Rs 500 had been entered in the Sales book, the total of which had been pos ted to the Sales account. 3. Rs 100 dis count received from a creditor had been duly entered in his account but not pos ted to Dis count account. 4. Goods worth Rs 200 returned by Gawas kar were recorded in the Sales book and were pos ted accordingly. 5. Goods purchas ed from a merchant for Rs 545 had been pos ted to the credit of his account Rs 454. 6. An item of Rs 100 entered in the Sales returns book had been pos ted to the debit of the cus tomer who returned the goods. 7. An entry of Rs 145 repres enting the s elling price of goods returned to Gauri had been made in Returns Outwards book and pos ted. The amount s hould have been Rs 130 – the invoice value of the goods in ques tion. 8. Goods worth Rs 250 taken by the proprietor had been omitted to be recorded in the books. 9. Amount of Rs 420 received from Des ai which was written off as bad debt las t year has been credited to his account. 10. On s crutinizing the accounts of a defaulting cas hier it was dis covered that he had received Rs 2000 from cus tomers and Rs 1000 from cas h s ales and had paid Rs 480 to a creditor (after deducting Rs 20 for dis count) but none of thes e trans actions were  recorded in the books of account. Give journal entries to correct the errors. Ascertain the total amount of difference in Trial Balance. 14 From the following Trial Balance of Mr. Sanjay, prepare Trading and Profit and Loss account and Balance Sheet as on 31st March 2016. Particulars Debit(Rs.) Credit(Rs.) Dutta's capital 2,93,000 Dutta's drawings 50,000 Stock on 1st April 2015 1,23,000 Purchases 4,00,000 Carriage Inwards 2,000 Carriage outwards 3,000 Purchases returns 10,000 Sundry expenses 4,000 Rent 4,000 Bad debts 3,000 Sales 6,00,000 Printing and Stationery 1,500 Postage 500 Wages 10,000 Sales returns 5,000 Bill receivable and Bills payable 10,000 20,000 Discounts 8,000 3,000 Land and Buildings 1,50,000 Plant and Machinery 60,000 Insurance 5,000 Debtors and Creditors 1,02,000 80,000 Salaries 13,000 Investments 30,000 Cash in hand 2,000 Cash at bank 5,000 Fuel and power 3,000 Commission received 3,000 Furniture 15,000 10,09,000 10,09,000 Adjustments 1. Clos ing s tock was valued at Rs 1,00,000, Market price Rs 1,50,000. 2. Outs tanding wages Rs 3,000. Outs tanding s alaries Rs 5,000. 3. Prepaid rent Rs 500; Prepaid ins urance Rs 800. 4. Interes t on inves tments outs tanding Rs 2,000. 5. Write off further Rs 2,000 as Bad debts ; create 5% Res erve for bad debts , 3% Res erve for dis count on debtors and 2% Res erve for dis count on creditors. 6. Depreciate machinery by 10% and Furniture by 4%.  7. Allow interes t on capital at 5% and interes t on drawings Rs 1,000. SECTION D Case Study. Compulsory Question for Ten Marks 1X10 =10 15 From the following balance extracted from the books of M/s Rajendra Kumar Gupta & Co., prepare a Trading and Profit and Loss Account and a Balance Sheet. Particulars Rs. Particulars Rs. Opening Stock 1,250 Plant and Machinary 6,230 Sales 11,800 Returns Onwards 1,380 Depreciation 667 Cash in hand 895 Commission (Cr.) 211 Salaries 750 Insurance 380 Debtors 1,905 Carriage Inwards 300 Discount (Dr.) 328 Furniture 670 Bills Receivable 2,730 Printing Charges 481 Wages 1,589 Carriage Outwards 200 Returns Inwards 1,659 Capital 9,228 Bank Overdraft 4,000 Creditors 1,780 Purchases 8,679 Bills Payable 541 Petty Cash in hand 47 Bad Debts 180 The Value of stock on 31st December, 2018 was Rs.3,700.