B.B.A. (Business Leadership) DEGREE EXAMINATION 2012

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B.B.A. (Business Leadership) DEGREE EXAMINATION – 2012 (FIRST SEMESTER) (PAPER-III) 141. FUNDAMENTALS OF ACCOUNTING December) Maximum: 75 Marks (Time: 3 Hours SECTION-A Answer ALL Questions (5×3=15) 1. Define Accounting. 2. What do you mean by JF and LF? 3. What do you mean by Balancing of an Account? 4. What is Suspense Account? 5. What is Capital Expenditure? 6. What s Depreciation? 7. What are the Errors disclosed by Trial Balance? 8. Find out profit from the following data: ` Capital at the beginning of the year 8,00,000 Drawings during the year 1,80,000 Capital at the end of the year 9,00,000 Capital introduced during the year 50,000 9. What is trial balance? 10 What is a ‘provision’? . SECTION-B Answer any THREE Questions (3×10=30) 11. What are the differences between receipts and payments account and income and expenditure account? 12. Prepare Trading and Profit and Loss Account from the following information given below: ` ` Opening stock 3600 Rent (factory) 500 Purchases 18260 Rent (office) 500 Wages 3620 Sales returns 700 Closing stock 4420 Purchase returns 900 Sales 32000 General Expenses 900 Carriage on purchases 500 Discount to customers 360 Carriage on sales 400 Interest from Bank 200 13. A second hand machine was purchased on 1.1.2000 for `.30,000 repair charges amounted to `.6000. It was installed at a cost of `.4000. On 1st July 2001, another machine was purchased for `. 26000. On 1st July 2002 the first machine was sold for `.30000. On the same day, one more machine was bought on 2 for `.25000. On 31.12.2002 the machine bought on 1st July 2001 was sold for `.23000. Accounts are closed every year on 31st December. Depreciation is written off at 15% per annum. Prepare machinery account for 3 years ending 31.12.2002. 14. Correct the following Errors found in the books of Mr. Srikanth. The Trial Balance was out by `.986, excess credit. The difference has been posted to a suspense account. i) A sale of `.400 Arun & Co was wrongly credited to their account. ii) A purchase for `.134 has been posted to creditors account as `.120. iii) The total of returns inward book for December had been cost `.200 short iv) A cheque for `.400 received from Santhosh has been dishonoured and was posted to the debit of ‘Allowance Account’ 15. What are the defects of Single Entry system? 16. A fire occurred on 1.9.93 in the godown of Mr. Arun. From the following particulars find out the claim to be lodged. ` Stock on 1.1.93 25300 Purchases from 1.1.93 to date of fire 50400 Sales from 1.1.93 to date of fire 156000 Manufacturing expenses and wages 60000 Goods taken by Arun at cost 2500 The rate of gross profit on cost is 30% Value of salvaged stock 3600 SECTION-C Answer any TWO Questions (2×15=30) 17 Explain various accounting concepts briefly . 18 From the following balances as on 31.12.1994 of a Trader, prepare Trading and Profit and Loss . Account for the year 1994 and a Balance Sheet as on that date. ` ` Salaries 550 Creditors 9500 Rent 1300 Sales 32000 Cash 1000 Capital 30000 Debtors 40000 Loans 10000 Trade Expenses 600 Purchases 25000 Advances 2500 Bank Balance 5600 81500 81500 Adjustments: i) The closing stock amounted `.900 ii) One month’s salary is outstanding iii) One month’s rent has been paid in advance iv) Provide 5% for doubtful debts. 19 On 1.194 a machine was purchased for `.80,000. On 1.1.95 additions were made to the amount of . `.40,000. On 31.3.96, machine purchased on 1.1.95 costing `.12000 was sold for `.11000 and on 3 30.6.96, machinery purchased on 1.194 costing `.32000 was sold for `.26,700. On 1.10.96 additions were made to the amount of `.20,000. Depreciation was provided at 10% p.a. On the diminishing balance method. Show the machinery account for three years from 1994 to 1996 (Books closed on 31st December every year) 20 Prepare to Balance sheet as on 31.12.1991 from the following accounts. . Income and Expenditure Account for the year ended 31.12.1991 ` ` To Salaries 1500 By Entrance Fees 10500 To Printing Stationary 2200 By Subscriptions 15600 To Advertising 1600 By Rent 4000 To Audit fees 500 To Fire Insurance 1000 To Depreciation on Sports Equipments 9000 To Surplus (excess of income over expenditure) 14300 30100 30100 Receipts and Payments Account for the year ended 31.12.1991 ` ` To Balance b/d 4200 By Salaries 1000 To Entrance fees 10500 By Printing Stationary 2600 To Subscriptions By Advertising 1600 1990 600 By Fire Insurance 1200 1991 15000 By Investments 20000 1992 400 By Balance c/d 7800 To Rent Received 3500 34200 34200 The assets on 1st Jan 1991 included club grounds and pavilion `.44,000. Sports Equipments `.25,000 and Furniture and Fixtures `.4000. Subscriptions in arrears on that date were `.800 ------