Seat No: ______________ Enrollment No:______________

PARUL UNIVERSITY
FACULTY OF MANAGEMENT STUDIES
BBA/BBA Hons/Int.DBA-BBA Winter 2023 - 24 Examination
Semester: 01/05 Date: 10/01/2024
Subject Code: 06010101DS01 Time: 2:00pm to 4:30pm
Subject Name: Fundamentals of Accounting Total Marks: 60
Instructions
1. All questions are compulsory.
2. Figures to the right indicate full marks.
3. Make suitable assumptions wherever necessary.
4. Start new question on new page.
Q.1 Do as Directed. CO PO Bloom’s
Taxonomy
A). Multiple choice type questions/Fill in the blanks. (Each of 1 mark) (05)
1. The process of entering all transactions from the journal to the ledger is 1 2 1
called _______.
a) Accounting c) Entry
b) Posting d) None of the above
2 Which of the options is not an intangible asset? 1 2 1
a) Land c) Goodwill
b) Patents d) Franchise rights
3. Heavy amount spent on advertisement is_____ 2 1 1
a) Capital Expenditure c) Revenue Expenditure
b) Deferred Revenue Expenditure d) None of the above
4. The value of a fixed asset after deducting depreciation from the historical 1 1 1
cost is called_______________.
a) Book Value c) Market Value
b) Fair Value d) Net realizable Value
5. Which of the following is a source of funds? 1 2 1
a) Sale of building only c) Term loan borrowed only
b) Issue of shares only d) All of the above
B). Define the following. (Each of 1 mark) (05)
1. IAS. 1 1 2
2. Accounting Convention 1 2 2
3. Conservatism Concept 2 1 1
4. Accounting Cycle 1 2 2
5. Financial Statement Analysis 2 1 2
C). Direct questions. (Each of 1 mark) (05)
1. Write two examples of Revenue income. 1 2 1
2. Explain rules of Accounting. 3 1 2
3. Cash withdrawal from business by the proprietor for personal use 2 1 2
should be debited to which account?
4. Write different methods of depreciation 1 3 2
5. What are Bills of exchange? 1 2 1

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Q.2 Answer the following questions.
A). Write GAAP concepts in detail with examples. (07) 2 1 2
B). (08) 3 2 4
The following trial balance was extracted from the books of Ravi as on 31 /12/2022.
Dr. Cr.
Particulars Amount Rs. Particulars Amount Rs.
Plant and Machinery 20,000 Capital account 80,000
Manufacturing Wages 34,500 Sundry creditors 44,560
Salaries 15,850 Bank Loan 15,000
Furniture 10,000 Purchase returns 1,740
Freight on Purchase 1,860 Sales 2,50,850
Freight on sales 2,140 Reserve for bad debts 2,000
Building 24,000
Manufacturing expenses 9,500
Insurance and Tax 4,250
Goodwill 25,000
General Expenses 8,200
Factory fuel and power 1,280
Sundry debtors 78,200
Factory lighting 9,50
Stock (1st Jan.2022) 34,200
Motor Car 12,000
Purchases 1,02,000
Sales returns 3,100
Bad debts 1,400
Interest and bank charges 4,00
Cash at bank 4,200
Cash in hand 1,120
3,94,150 3,94,150
st
Prepare the trading and profit and loss accounts for the year ended 31 Dec.2022 and the
balance sheet as on that date taking into consideration the following information:
1) Stock in hand on 31st Dec 2022 was valued at Rs.30, 500.
2) Depreciation plant and machinery by 10%, Furniture by 5% and motorcar by Rs.1,
000.
3) Create reserve for bad debts at 5% on sundry debtors.
4) A commission of 1% on the gross profit is to be provided to works Manager.
5) General Manager is to be allowed a commission @ 2% on net profit after charging
Works Manager’s and before charging General Manager’s Commission.

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Q.3 Write Journal Entries in the books of Joy ltd.
A). Particulars: 2 3 5
1st January: Mr. Joy started his business with Rs.50000 which he brought
as his capital in cash.
10th January: He purchased goods worth Rs.30000 in cash and Rs.20000
on credit.
12th January: He paid Rs.500 as wages for sorting and packing the goods.
(07)
15th January: He sold goods originally purchased at Rs.35000 for
Rs.20000 in cash and Rs.25000 on credit to several customers.
16th January: He paid Rs.8000 in cash to his suppliers for goods purchased
earlier on credit.
20th January: He received Rs.15000 from his debtors for goods sold.
31st January: He paid Rs.1000 in cash towards rent.
B). Write difference between SLM and WDV methods of depreciation. (08) 2 2 2
Q.4 Attempt any two questions. (Each of 7.5 mark) (15)
1.Write short note on: 2 1 2
(a) Significance of Accounting
(b) Difference between concept of Capital and Revenue
2. Prepare a final accounts format with imaginary figures. 1 1 1
3 3 4,5
3. A Ltd. purchased on 1st April, 2019 a machinery for Rs. 2, 91,000
and incurred Rs. 9000 for installation. On 1st October another
machinery for Rs. 1, 00,000 was purchased. On 1st October 2020 the
machinery purchased on 01/04/2019 having become useless was
sold for Rs. 1, 93,000 and on that day a new machinery was
purchased for Rs. 2,00,000.
Depreciation was provided on 31st March each year @ 10 percent
p.a on written Down Value. You are required to prepare machinery
account.
4. What is Ratio analysis? Explain Financial Analysis in detail. 2 1 3,4

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