Bachelor Of Management Studies (BMS) SEM I 2016 2017 March 2017 INTRO TO FINANCIAL ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

• Please check whether you have got the right question paper

1. Q1 A) State whether the following statements are True of False. (any eight) 8 marks
   • 1. Recording business transaction in the journal is known as casting
   • 2. The cash book is used for recording the credit transaction of the business 3, Prepaid expenses is a liability
   • 4. The Balance Sheet is the most important account in the ledger
   • 5. Nominal A/c is an account of expenses and income, losses and gains
   • 6. Ledger is book where individual accounts are recorded
   • 7. Personal A/c is credited when the person gives something to business
   • 8. The expenditure incurred on installation of machinery is capital expenditure 9, Under fixed installation method, depreciation amount remains constant
   • 10. Wrong balancing of an account will affect the Trial Balance
   • B) Match the following : A Fixed assets which has limited 7
   • 2._| Net Profit
   • 4. | Depreciable asset Calculated as % on original cost Debit balance of Profit and Loss A/c Deals with recognition of revenue
   • 6. | Interest A/c 6. | Real A/c One error removes the effect of another error on both the sides of cash book Personal a/c of the proprietor
   • Q.P. Code :00123
2. Q2 A) Journalise the following transactions in the books of Ms. Rekha: Ms. Rekha started his business with cash 60,000 Deposited in to bank 40,000 Bought goods on credit from Mr. Yartin 5,000 Returned goods to Mr. Yatin 1,000 Sold goods for cash to Ms. A Drew from bank for personal use 4,000 Paid to Mr. Yatin in full settlement by cheque 3,800 Withdrew goods for personal use 8 marks
   • 8) Prepare Personal Account of Soham from the following transactions, Debit balance on Soham’s a/c Sold goods on credit to Soham Received from Soham Soham bought goods on credit Received cash from Soham Purchased goods on credit from soham Returned goods to Soham 140 Paid Soham in full settlement of her account 7
   • Q.P. Code :00123 tke following transactions in a three column cash book: (15) Purchased goods by cheque
3. Q3 A) Prepare a Bank Reconciliation Statement of Kelvinator as on 30" April, 2016 from the following Balance as per Debit in pass book on 30" April for dishonored cheques not 100 Cheques issued on 25" April and cashed on 27" April was 150 Bank interest credited in pass book but not debited in cash 15 Bank charges debited in Pass book on 30" April credited in 5 Balance as per Cash 8 marks
   • B) Rohini Cement Ltd. Purchased on January 2013 a plant for Rs.80, 000/-. On April 2014 it purchased additional plant costing Rs.48, 000/-. On September 2015 the plant 1* January 2013 was sold off for Rs.42, 000/- and same date fresh plant was purchased at the cost Rs.75, 000/-. Depreciation is to be provided at 10% p.a. on the Diminishing Balance Method every year on 31* March, Show the Plant Account for 3 year 7
   • Q.P. Code :00123
4. Q3 State which of the following are capital, revenue and deferred revenue. Explain with reasons: (15 1, Legal expenses incurred in connection with issue of capital
   • 2. Sold 4% Government securities (Investment) for Rs.1, 40,000,
   • 3. Cost of replacement of a defective part of the machinery
   • 4. Expenditure incurred in preparing a project report
   • 5. Expenditure for training employees for better running of machinery
   • 6. Expenditure incurred for repairing cinema screen
   • 7. Paid 10,000 underwriting commission on issue of shares
5. Q4 A) The trial balance of a Trader had a difference, which was transferred to Suspense Account. Later on the following errors were discovered: 1, Goods worth Rs.400/- were purchased from Z Ltd. But the same was entered in the Sales Book However, the account of Z Ltd. Was correctly credited 2, The total of credit side of Meena’s A/c was overcast by Rs.400/ 8 marks
   • 3. Purchase Book was under cast by Rs.400/ 4, The total of Returns Inward Book amounting to Rs.800/- was not posted to ledger
   • 5. Goods amounting to Rs.2480/- sold to S & Co. were correctly entered in the Cash Book but wrongly credited to Z & co's A/c
   • 6. A credit balance of Rs.2940/- of Rent Receivable account was shown as Rs.2280/
   • B) Mr. Prakash has prepared the following Trail balance on March 2016. Kindly verify it and preparea
   • Q.P. Code :00123
6. Q4 Trial Balance was extracted from the books of M/s ABC on March 2016. fequired to prepared Trading and Profit and Loss Account for the year ending on March 2016 and a Balance as on the date : Bills Receivable and 6,000 2,000 li) Depreciation on Land and Building @2.5% and on Motor Vehicle @20% per annum 15 marks
   • v) Provision for bad debts is to be maintained at 5% on debtors
   • Q.P. Code :00123
7. Q5 A) What is IFRS? Give any two needs of IFRS. 8 marks
   • B) What do you mean by computerized accounting system? Explain the advantages. 7
8. Q5 Short notes on any three: 1, Straight Line Method of Depreciation
   • 2.1AS-2 15
   • 3.As-10 (Fixed Asset)
   • 4. Need for Book-keeping
   • 5. Scope of Accounting

Read from the scan above, so a character or two may differ. The scan is the original.