Accounting Fundamentals Past Paper PDF - Sample QP

Sample Question Paper set – ACCT102 ACCT102 Accounting Fundamentals (BBA 1st Sem.) Mapped Subjects: [Max Marks: 70] Note: Attempt Questions from all sections as directed. Section A - Attempt any Two questions...

Sample Question Paper set – ACCT102 ACCT102 Accounting Fundamentals (BBA 1st Sem.) Mapped Subjects: [Max Marks: 70] Note: Attempt Questions from all sections as directed. Section A - Attempt any Two questions out of Four. Each question carries 7.50 marks. [15 Marks] Question No: 1 What is the significance of Ratio analysis? Explain Liquidity Ratio and Profitability Ratios. Question No: 2 What is the significance of cash flow statement? Explain in brief. Question No: 3 Journalize the following transactions in the books of Mr. Gaurav, for June 2018 : 2018 June- June 1: Gaurav started business with Rs. 10,00,000 of which 25% amount was borrowed from wife. June 4: Purchased goods from Aniket worth Rs. 40,000 at 20% Trade Discount and 1/5th amount paid in cash June 7: Cash purchases Rs. 25,000. June 10: Sold goods to Vishakha Rs. 30,000 at 30% TD and received 30% amount in cash. June 12: Deposited cash into bank Rs. 20,000. June 15: Uninsured goods destroyed by fire Rs. 5,500. June 19: Received commission Rs. 3,500. June 22: Paid to Aniket Rs. 25,500 in full settlement of A/c. June 25: Cash stolen from cash box Rs. 1,000 June 27: Received from Vishakha Rs. 14,500 and discount allowed Rs. 200. June 30: Interest received Rs. 2,400 directly added in our bank account.  Rs. = INR Question No: 4 From the following Trial Balance of Mr. Johnson, prepare the Trading, Profit and Loss Account and Balance Sheet for the year ended 31-3-2014: Particulars Amount Particulars Amount Rs. Rs. Cash in hand 6,000 Sales 1,32,000 Cash at Bank Capital 95,000 Purchases 12,500 Purchase 1,000 Sales Returns 78500 Returns 900 Wages 2000 Interest 10,000 Salaries Creditors 11,500 Advertisement 8,000 Bills Payable 2,000 Insurance 12,500 Discount 2,52,400 Furniture 3,000 Opening Stock Machinery 1,100 Debtors 12,000 Carriage 40,000 Inwards Carriage 35,000 outwards 23,000 Rent & Taxes 1,000 Drawings Bills 1,500 Receivable 2,500 4,800 9,000 2,52,400 Adjustments: 1) Value of Stock as on 31-3-2014 is Rs. 37000. 2) Outstanding Wages Rs. 1,200; Salaries Rs. 2,900 3) Prepaid Insurance Rs. 450 4) Depreciate Furniture by 5%; Machinery by 10% 5) Write off Bad debts Rs. 2,000 and provide Bad debts reserve 5%. Section B - Compulsory Questions. Each question carries 7.50 marks. [15 Marks] The following information of Beta Company as on December 31st 2017 is given as below: ASSETS (amount in INR.) Current Assets 1,00,000 Fixed Assets 1,50,000 Total 2,50,000 LIABILITIES AND EQUITY (amount in INR.) Current Liabilities 1,00,000 Long Term Liabilities 75,000 Total Liabilities 1,75,000 Shareholder’s Funds 75,000 Total 2,50,000 Net Sales 3,75,000 Interest Expense 4,000 Net Profit 22,500 On December 31st 2016, Total Assets were Rs. 2,00,000 and the tax rate is 35%. Calculate the following ratios of Beta Company as on December 31st 2017. Question No: 1 Calculate the following ratios (a) Long Term Debt to Total Assets Ratio (b) Net Profit Ratio Question No: 2 Calculate the following ratios (c) Return on Total Assets (d) Return on Equity Section C - Compulsory Questions. Each question carries 2.00 marks. [40 Marks] Question No: 1 Personal and cash accounts are kept in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ system a) Pure single entry system b) Quasi single entry system c) Simple single entry system  d) None of these Question No: 2 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a un systematic, un scientific and incomplete system a) Single entry system b) Double entry system c) Nominal entry d) None of these. Question No: 3 Profit is only an estimate in this system a) Nominal system b) Double entry system c) Single entry system d) None of these. Question No: 4 Expand GAAP (a) Generally accepted accounting principles (b) Generally accepted account programmers (c) General acceptable assumption practices (d) None of these Question No: 5 Accounting concepts include certain basic ‐‐‐‐‐‐‐‐‐‐‐‐ a) Account b) Transactions c) Assumptions d) None of these Question No: 6 The comparison of one accounting period with that of the past is possible when one of the concepts given is followed a) Cost b) Consistency c) Going concern d) Matching Question No: 7 Contingent liabilities are shown as a foot note in the balance sheet as per ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ accounting principle a) Full disclosure b) Objectivity  c) Materiality d) Consistency Question No: 8 State the principle:‐ which assumed the business will last fore a long time a) Going concern b) Materiality c) Consistency d) Matching Question No: 9 When a company issues shares to vendors of assets for consideration other than cash these are issued a) At par b) At a discount c) At a premium d) Any of these Question No: 10 "Proposed dividends" is shown in the Balance Sheet of a company under the head: a) Provisions b) Reserves and Surplus c) Current Liabilities d) Other Liabilities Question No: 11 Share Allotment Account is a: a) Real Account b) Nominal Account c) Personal Account d) Company Account Question No: 12 When shares are forfeited, the Called Up Amount on shares is debited to - a) Shares Forfeited Account b) Capital Reserve Account c) General Reserve Account d) Capital Account Question No: 13 That portion of Share Capital which can be called up only on the winding up of the Company is a) Authorised Capital b) Issued Capital c) Subscribed Capital d) Reserve Capital Question No: 14 Dividends are usually paid as a percentage of __________ a) Authorized share capital b) Net profit c) Paid - up Capital d) Called - up capita Question No: 15 While preparing cash flow statement, conversion of debt to equity (a) Should be shown as a financing activity. (b) Should be shown as an investing activity. (c) Should not be shown as it is a non-cash transaction. (d) None of the above Question No: 16 Which of the following would be considered a ‘cash-flow item from an “investing” activity’? (a) Cash outflow to the government for taxes. (b) Cash outflow to purchase bonds issued by another company. (c) Cash outflow to shareholders as dividends. (d) None of the above Question No: 17 On January 1, Sohan paid rent of ` 5,000. This can be classified as (a) An event. (b) A transaction. (c) A transaction as well as an event. (d) None of the above Question No: 18 On March 31, 2015 after sale of goods worth ` 2,000, he is left with the closing inventory of ` 10,000. This is (a) An event. (b) A transaction. (c) A transaction as well as an event. (d) None of the above Question No: 19 Lenders are interested in __________ to judge the fi rm’s ability to pay off current interest and instalments a) Debt Ratio b) Debt Service Coverage Ratio c) Debt-Equity Ratio d) None of the above Question No: 20 The ratio, which indicates the proportion of owner’s fund to total fund invested in the business a) Debt Ratio b) Debt Service Coverage Ratio c) Debt-Equity Ratio d) Equity Ratio