KSLU Solved Question Papers
Financial Accounting
Previous Year Question Paper with Solution
B.B.A. LL.B. (Five Years) · Sem 1
2025 Jan Examination
munotes.in
Mumbai
B.B.A. LL.B. (Five Years) Sem 1 Financial Accounting 2025 Jan Question Paper with Solutions
First published on munotes.in on 21 October 2026.
Published by munotes.in, Mumbai.
Model answers written and edited by the munotes.in editorial desk.
Passages from this volume may be quoted, in print, online or by an AI system, with credit: name munotes.in and link to this volume's page. The volume may not be reproduced as a whole. Full terms at munotes.in/content-license.
munotes.in is an independent study resource for students of Karnataka State Law University. It is not affiliated with Karnataka State Law University, and is not endorsed by it.
The University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.
The question paper reproduced here is the paper as set by Karnataka State Law University at the 2025 Jan examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2025 Jan examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2025 Jan examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.
Duration 3 hours · Total marks 80 · 20 questions answered
Instructions printed on the paper
- N.B. (1) Answer all five Units. (2) One essay type question and short note/problem is compulsory from each Unit. (3) Figures to the right indicate marks. (4) Answer should be written in English Only. (5) Use simple calculator Only.
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q1
Unit I
(a)What is double entry system of Book Keeping ? Explain its advantages and disadvantages.[10]
Answer
For full marks, cover: the meaning of the double entry system and the principle behind it; its features; how it works on one transaction; its advantages, point by point; its disadvantages; and a conclusion on why it is still the accepted system.
Meaning
The double entry system of book keeping rests on one simple principle: every transaction has two aspects, and both are recorded. One account receives a benefit and another gives it. So one account is debited and another account is credited, with the same amount. It is the system every business of any size uses today.
Because every debit has an equal credit, the total of all debits in the books always equals the total of all credits. This gives the accounting equation: Assets = Capital + Liabilities.
Features
- Two aspects. Every transaction affects at least two accounts.
- Debit and credit. One aspect is debited and the other is credited.
- Equal amounts. The amount debited equals the amount credited.
- All three kinds of accounts. Personal, real and nominal accounts are all kept.
- Self-checking. Since debits equal credits, a trial balance can be drawn up to test the arithmetic.
- Complete record. Both the result (profit) and the position (balance sheet) can be found from the books.
How it works
Ravi buys furniture for ₹ 8,000 in cash.
- Furniture comes into the business: Furniture account is debited with 8,000.
- Cash goes out of the business: Cash account is credited with 8,000.
The asset furniture rises and the asset cash falls by the same amount. The total assets are unchanged, and the equation still holds.
The equation through a short series
Take three transactions of a new business and watch the equation after each.
- Ravi starts with cash of ₹ 50,000. Cash (asset) 50,000; capital 50,000. Assets 50,000 = capital 50,000.
- He buys goods on credit from Mohan for ₹ 20,000. Stock (asset) rises by 20,000 and Mohan (liability) by 20,000. Assets are now 50,000 + 20,000 = 70,000, and capital plus liabilities 50,000 + 20,000 = 70,000.
- He pays Mohan ₹ 15,000 in cash. Cash falls by 15,000 and the liability to Mohan falls by 15,000. Assets are 70,000 - 15,000 = 55,000, and capital plus liabilities 50,000 + 5,000 = 55,000.
Each transaction changes two items by the same amount, so the two sides of the equation never part. That is the whole logic of double entry.
Advantages
- Complete and systematic record. Both aspects of every transaction are recorded, so the books are complete.
- Arithmetical accuracy can be checked. The trial balance shows at once whether the debits and credits agree.
- Profit or loss can be found. The nominal accounts give the trading and profit and loss account, which shows the gross and net profit.
- Financial position can be known. The personal and real accounts give the balance sheet, which shows assets and liabilities.
- Fraud and errors are reduced. Every entry has a second, matching record, so tampering is easier to detect.
- Comparison is possible. Results of different years can be compared, item by item.
- Information for decisions. Management gets detailed figures of costs, expenses and incomes.
- Accounts of debtors and creditors. The amount due from each customer and to each supplier is always known.
- Accepted by law and by others. Section 128 of the Companies Act, 2013 requires companies to keep their books "according to the double entry system of accounting". Tax authorities and banks also accept such accounts.
- Basis for computer accounting. All accounting software works on the double entry principle.
Disadvantages
- Costly and time consuming. Many books and accounts must be kept, which needs more staff and time.
- Needs trained staff. A knowledge of the rules of debit and credit is essential.
- Not suitable for very small businesses. A small shopkeeper may find the system too elaborate for his few transactions.
- Errors can remain hidden. An agreed trial balance does not prove the books are free of error. Errors of omission, commission, principle and compensating errors are not revealed.
- Judgment still needed. The system records transactions, but the values used, such as depreciation, still depend on estimates.
The advantages and disadvantages at a glance
| Advantages | Disadvantages |
|---|---|
| Complete record of every transaction | More work and cost |
| Trial balance checks the arithmetic | Needs trained staff |
| Profit and position are known | Too elaborate for very small traders |
| Errors and frauds are easier to find | Some errors stay hidden |
| Accepted by law, banks and tax authorities | Estimates still affect the figures |
Conclusion. The double entry system records both aspects of every transaction, debiting one account and crediting another with the same amount. Its advantages are a complete record, a check through the trial balance, the profit and the financial position, and control over errors and fraud. It is also accepted by law. Its disadvantages are cost, the need for skill, and the fact that some errors stay hidden. The advantages far outweigh the disadvantages, which is why every business of any size uses it.
The rest of the answers
The first answer is free. The rest come with the KSLU B.B.A. LL.B. Semester 1 solved papers.
You have read the question paper and its first answer in full. Buy the solved papers once and you can read every answer of every solved paper in this semester.
Solved papers: ₹499 Already bought it? Sign in
The question paper itself stays free, and so does the syllabus.
Found an error in this volume? Report it and we will check it against the paper.