BBA 203 - FINANCIAL ACCOUNTING

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DRIVE
WINTER 2015
PROGRAM
BBA
SEMESTER
II
SUBJECT CODE & NAME
BBA 203 - FINANCIAL ACCOUNTING
BK ID
B1520
CERDIT
4
MARKS
60
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or
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ASSIGNMENT


Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.  
Question1 - 1 X, Y & Z were partners sharing profits and losses as 3:2:1. Their Balance Sheet as on 31.03.2015 were as under :
Liabilities
Rs.
Assets
Rs.
Capital
A      1,00,000
B        70,000
C        40,000
1,80,000
Freehold Premises
Building
Machinery

1,60,000
60,000
90,000
Reserves
90,000
Investments
20,000
Cash Credit
30,000
Inventories
30,000
Creditors
20,000
Receivables
30,000
Bill Payable
20,000
Cash
10,000

3,40,000

3,40,000

C expired on 1st April 2015. So, the assets are revalued and liabilities re-assessed as follows :
i) Create a provision for doubtful debt Rs. 1,000. ii) Building is to be depreciated by 5 %. iii) Machinery is to be depreciated by 10 %. iv) Goodwill of the firm is to be valued at Rs. 30,000. 
The balance due to C will be transferred to his executor’s loan account which will carry an interest of 10 % p.a. Prepare Revaluation Account, Capital Accounts and the Balance Sheet of new firm after adjustments.  
Based on above, prepare :
a) Revaluation Account
b) Capital Accounts  and
c) Balance Sheet as on 1st April 2015
Answer1-
Revaluation A/c
Dr
          Particulars

Amount
Cr
Particulars

Amount



Question2- The Cash Book of Exception Ltd. furnishes the following balances on 25th  October 2015. Cash in hand  4,200;   Cash at Bank 7,650;  Discount Allowed total  420  and  Discount  Received total Rs. 950.

The following transactions occurred during last week of October 2015 :

April 26  : General expenses Rs. 920 paid in cash          
26  : Cash Sales Rs. 9,200        
27  :  A cheque Rs. 3,040 received from a debtor, K. Ball in full settlement of Rs. 3,200.       
27  :  A cheque sent to supplier, Baker Ltd. in settlement of dues Rs. 14,000 less 5 %  Discount.     
28 :  Bank notified that a cheque Rs. 2,210 received from Mc Dermot returned dishonoured.      
30 :  An old delivery van was sold for Rs. 71,000 and a cheque received.     
30  : A cheque sent to a supplier, Ford Ltd. in immediate payment of an invoice, list price Rs. 8,000, less 25 % Trade discount and 5 % Cash discount. 

Prepare a Triple Column Cash Book in the books of Exception Ltd.  


Answer2 –


Date

Particular

Discount

Cash


Bank

Date

Particular

Discount

Cash

Bank




Question3 - What do you understand by goodwill? Explain the accounting treatment of goodwill at the  time of admission.  Give journal entry for the below problem: T and S are partners in a firm sharing profit in the ratio 5:3. They admitted G as a new partner for 1/4th share in the profit.  G brings Rs.45,000 for her share of goodwill and Rs.1,20,000 for capital. They have withdrawn the goodwill from the firm. Make journal entries in the books of the firm after the admission of G. The new profit sharing ratio will be 2:1:1.  

Answer3 –

Goodwill :-Goodwill is the present value of firms anticipated excess earning.

Treatment of Goodwill on the admission of new partners

1. Goodwill brought by new partner in cash –

        I.            Bank              A/c              Dr
                                To Goodwill

      II.            Goodwill     A/c                Dr
                                To old



Question4- Accounting refers to a systematic knowledge of accounting. It explains ‘why to do’ and ‘how to do’ of various aspects of accounting. Explain the objectives of accounting and explain the categories of users.  

Answer4 –
Accounting operates within a broad socio-economic environment, and so, the knowledge required of the accountant cannot be sharply compartmentalized.It is therefore, difficult to discuss one area without relating to other areas of knowledge. We place a great emphasis on the conceptual knowledge. The accountant should not only know but he should understand.
Objectives of Accounting



Question5 - Prepare Trading , Profit and Loss Account and Balance Sheet from the following particulars as at 31st March 2015.

Particulars
Dr (Rs.)
Cr (Rs.)
Capital/Drawings
1400
10000
Cash in Hand
1500
-
Bank overdraft @ 5%
-
2000
Purchase and Sales
12000
15000
Returns
1000
2000
Establishment Charges
2500
-
Taxes and Insurance
500
-
Provision for Doubtful Debts
-
1000
Bad Debts
500
-
Sundry Debtors & Creditors
5000
1850
Commission
-
500
Investments
4000
-
Stock on 1st April 2014
3000
-
Furniture
600
-
Bill receivables & payable
3000
2500
Collected Sales Tax
-
150

35000
35000

Further, you are required to take into consideration the following information: 
a) Salary Rs.100 and taxes Rs.400 are outstanding but insurance Rs.50 prepaid 
b) Commission amounting to Rs.100 has been received in advance for work to be done next year.
c) Interest accrued on investments Rs.210
d) Provision for doubtful Debts is to be maintained at 20%
 e) Depreciation on furniture is to be charged at 10% p.a.
 f) Stock on 31st March 2015 was valued at Rs.4,500
g) A fire occurred on 25th March 2015 in the godown and stock of the value of Rs.1,000 was destroyed. It was fully insured and the insurance company admitted the claim in full.

Answer5-

                                                               Trading and Profit and Loss A/c
Particular
Amount
Particular
Amount



Question6-  From the ledger balances as on 31st March 2015 show treatments in Profit and Loss Account  and in Balance Sheet.
Debtors : 50,000;  Bad Debts : 3,000;  Discount Allowed : 2,000; Creditors: 30,000; Provision  for Discount on Creditors : 400; Discount Received 300.
Adjustments :
 i) Create a provision for Bad Debts @ 10 % on Debtors
 ii) Create a provision for Discount on Debtors @ 5 %
iii) Additional discount given to Debtors Rs. 1,000
iv) Create a provision for discount on Creditors @ 2 %.

Answer6 –
                                                                             Profit and Loss A/c


Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
DRIVE
WINTER 2015
PROGRAM
BBA
SEMESTER
II
SUBJECT CODE & NAME
BBA 203 - FINANCIAL ACCOUNTING
BK ID
B1520
CERDIT
4
MARKS
60
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601


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