DRIVE

PROGRAM
SEMESTER
SUBJECT CODE &
NAME
BK ID
CREDIT
MARKS

ASSIGNMENT
SPRING 2016
BBA
II
BBA 203
FINANCIAL ACCOUNTING
B1520
4
60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Q.No
Question
Marks
Total Marks
1
P, Q & R are partners sharing profits and losses as 3 : 2 : 1. Their Balance Sheet as on
31.12.2015 is as under :
Liabilities
Rs.
Assets
Rs.
Capital:
1,00,000 Freehold Premises
50,000
P 50,000
Building
40,000
Q 30,000
Machinery
40,000
R 20,000
Reserves
50,000 Investments
10,000
Overdraft
20,000 Inventories
20,000
Creditors
20,000 Receivables
30,000
Bills Payable
10,000 Cash
10,000
2,00,000
2,00,000
R expired on 1st January 2016. So, the assets are revalued and liabilities re-assessed as follows :
i)
ii)
iii)
iv)

Create a provision for doubtful debt Rs. 500.

Building and investment are to be appreciated by 10 %.
Machinery is to be depreciated by 5 %.
Goodwill of the firm is to be valued at Rs. 20,000.

The balance due to R will be transferred to her executors loan account which will carry
an interest of 10 % p.a. Prepare Revaluation Account, Capital Accounts and the Balance
Sheet of new firm after adjustments.

Based on above, prepare :

a) Revaluation Account
b) Capital Accounts and
c) Balance Sheet as on 1st April 2015

3
3
4

10

Classify the accounts under Modern Approach Method.

Differentiate between Trade discount and Cash discount.

Classification of Accounts under Modern Approach

Method
Differentiate between Trade discount & cash discount

5
10
5

Explain the Depreciation Accounting procedure and concept taking AS-6 into consideration.

Explain the Depreciation Accounting procedure and

concept taking AS-6 into consideration.
10

10

Explain Bill of exchange and the procedure for recording bills in the books of drawer and
accepter when the bill is : Accepted and discharged.
i)
ii)
iii)

Explain bill of exchange

Journal entries in the books of drawer
Journal entries in the books of acceptor

Write notes on :
i)
Issue of shares at Premium and Discount
ii)
Buy back of shares and Treasury Stock

Write notes on :
i)
Issue of shares at Premium and Discount
ii)
Buy back of shares and Treasury Stock

4
3
3

5
5

10

10

From the ledger balances as on 31st March 2015 show treatments in Profit and Loss Account
and in Balance Sheet.
Debtors : 50,000; Bad Debts : 3,000; Discount Allowed : 2,000; Creditors: 30,000; Provision
for Discount on Creditors : 400; Discount Received 300.
Adjustments :
i)
Create a provision for Bad Debts @ 10 % on Debtors
ii)
Create a provision for Discount on Debtors @ 5 %
iii)
Additional discount given to Debtors Rs. 1,000
iv)
Create a provision for discount on Creditors @ 2 %.

From the ledger balances and adjustments as above, 5

show treatments in :
Profit and Loss Account and
5
Balance Sheet.

10