BBA (First Semester)

Examination 2013
BOOK KEEPING and BASIC ACCOUNTING
Section A ( Short Questions)
1. (A) Distinguish between book-keeping and accounting.
(B) Give pro forma of a page of journal with four imaginary journal
entries.
(C) Classify the following accounts into personal real and nominal:
(i) Kolkata Tramway Company Account
(ii) Drawings Accounts
(iii) Bad Debts Account
(iv) Returns Debts Accounts
(D) Explain “Conservatism concept of Accounting”
(E) Distinguish between shares and debentures
(F) What are the rules of debit and credit relating to various types
of accounts?
(G) Give pro forma of Bank Reconiciliation Statement.
(H) Explain First-in-First out and Last-in-First out methods of
inventory valuation.
(I) Goods of the list price of 80,000 are sold by Mr. Mahesh to Mr.
Jagmohan. Trade discount is 9% and cash discount 5%, 6% payment
is made in cash. Give journal entries in the books of MR.Mahesh and
mr. Jagmohan.
(J) In a business net profits before charging Manager’s commission is
76,80 manager’s commission is @ 20% on net profits of the
business. Calculate manager’s commission.
 Section B (Long Question)
2. “Accounting is the language of the business through which normally
a business house communicates with Balance Sheet as on that date
after making necessary adjustments:
Trial Balance
(As on 31 march , 2017)

K Kartik’s Drawings 1,20,000

Furniture and Fixtures 40,000
Plant and Machinery 3,00,000
Stock (1-4-2016) 2,00,000
Purchases 8,00,000
Salaries and wages 2,24,000
Debtors 2,04,000
Return inwards 50,000
Postage and Telephone 15,000
Rent Rates and Taxes 36,000
Bad debts 4,000
Trade Expenses 5,000
Interest on loan from Mr manoj mehta 1,500
Insurance 8,000
Travelling Expenses 5,000
Sundry Expenses 3,000
Cash in hand 30,500
Cash at Bank 1,03,000
Elucidate this statement and discuss the objectives and advantages
of accounting.
3. What are the generally accepted accounting principles concepts and
conventions ? explain
or
 From the following particulars of Shri B Chakroborty prepare a Cash
Book with Cash and Bank column for the month of October 2017:

Balance in hand 40,000

Balance in bank 1,00,000
Deposited cash into bank 10,000
Withdrew cash from bank 30,000
Received a cheque from Mr Debashish Mukherjee 10,000
The above cheque was deposted into bank ------
Withdrew cash from bank for office use 10,000
Deposited all cash in excess of 50,000 into the bank
Cashed for mr Ganeshan and deposited into bank 5,000
Withdrew all cash from bank in excess 60,000
4. Prepare a Bank Reconciliation Statement as on 31st March 2017 from
the following particulars made available to you by M/s PTC Industries
Ltd, Lucknow:
(i) Bank Overdraft as per cash book 1,20,000
(ii) Cheques deposited as per bank statement but not recorded
in cash book 4,500
(iii) Cheques received in cash book but not sent to bank 15,000
(iv) Credit side of the bank column cast short 1,500
(v) Insurance premium paid by bank on standing advice
(vi) Bank charges recorded twice in cash book 150
(vii) Customer’s cheque returned as per Bank Statement 6,000
(viii) Cheque issued but dishonoured on technical ground 4,500
(ix) Bil collected by bank directly 30,000
(x) Cheque for 75,000 deposited but collection as per bank
statement 74,970
(xi) Cheque received entered twice in cash book 7,500
Or
Mr. Rahim for mutual accommodation draws a bill 30,000 on Mr.Ratan Mr
Rahim discounted it for 29,250 Mr Rahim remits 9,750 to Mr Ratan On
the due date Mr Rahim is unable to remit his dues to Mr. Ratan to enable
him to meet the bill.He however accepts a bill for 37,500 which Mr Ratan
discounts for 36,250 Mr Rata sends 1,750 to Mr Rahim becomes insolvent
and a dividend pf 80 paise in the rupee is received from his estate.
Pass the necessary journal entries in the books of both the parties.
5. The following errors were located in the books of Mr kapil after the
same were closed for the year ended 31st March 2017 and the balance
sheet was prepared on that date by showing the difference in suspense
Account:
(a) The balance of furniture Account on 1st April 2016 was carried forward
from previous year as 35,000 instead of 53,000 A depreciation of 15% per
annum was charged on written down value.
(b) A credit sale of 40,000 to Mr Patil was correctly recorded on sales Day
Book but was posted to the credit of Mr patil A reverse for bad and
Doubtful Debts @ 5% was raised in the books.