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Financial Accounting
BBA-1.4
Full Marks: 50 Time: 1½ Hours.
Group-A
Answer any Seven Questions:
(7 x 2)
i. Why ‘Contingent Liabilities’ are written in the Annual Report and not the
Contingent Assets?
ii. What is Wasting Asset? Give an example.
iii. Distinction between Capital Expenditure and Revenue Expenditure.
iv. Distinction between Cash Basis and Accrual Basis of Accounting.
v. Why two sides of a Trial balance must tally?
vi. What is Contra Transaction?
vii. What is Suspense Account?
viii. What is Deferred Revenue Expenditure? Give an example.
ix. State the principle of Double entry system.
Group-B
Answer any Three Questions: (3 x 12)
1. (i) What do you mean by GAAP (Generally Accepted Accounting Principles)? (5)
(ii) Identify the following errors are not detected by the Trial Balance: (7)
a. Machinery purchased by Rs. 30,000 but wrongly recorded in the Purchase Account.
b. A Sale of Rs. 1,000 was posted in the ledger as Rs.100.
c. Discount allowed to customer for Rs.500 was posted to the Discount Received Account.
d. A Debtor’s balance of Rs.8000 was not included in Debtors list.
e. Goods purchased from Mr. Sen for Rs.1, 900 were wrongly debited to his Account.
(ii) From the following ledger balances of B. C. Enterprises, prepare a Trial Balance
as on 31.12.2010: (8)
ii. Prepare a Bank Reconciliation Statement of R. Mitra & Co. as on 31 st December, 2010:
(8)
(a) Overdraft balance as per Pass Book as on 31. 12. 2010, was Rs. 10, 000
(b) Out of the total cheques amounting to Rs. 20,000 drawn, cheques aggregating Rs. 7,000 were
encashed in December, cheques aggregating Rs. 6, 000 were encashed in January and the rest have
not been presented at all.
(c) Out of the total cheques amounting to Rs. 15,000 deposited, cheques aggregating Rs. 3,500 were
credited in December, cheques aggregating Rs. 4,000 were credited in January and the rest have not
been collected at all.
(d) The bank has debited Rs. 1,500 on account of interest on overdraft and Rs. 500 as bank charges.
(e) The bank has credited Rs.1,700 on account of interest collected on securities.
(ii) From the following transactions of M/S P.K.Bros., prepare suitable Cash
Book for the month of December, 2010:
(8)
1 Cash in hand Rs. 6,400 and Bank Overdraft Rs. 20, 000.
2 Paid Mr. Roy by cheque Rs. 3,500.
4 Received a cheque from Mr. Ghar for Rs. 1, 780 less cash discount Rs. 80.
5 Issued an order to the bank for stopping payment of the
cheque which was issued to Mr. Roy.
7 Mr. Ghar’s cheque was dishonored.
10 Cashed the cheque and deposited in to bank Rs. 6,000.
23 Received a bearer cheque of Rs. 2,400 from Mr. D.K. Dutta
in full settlement of his account for Rs. 2.460 and dishonored
The cheque on the next day over the bank counter.
25 Bought goods from S. Das for Rs.5, 000 less
trade discount @ 5 % and cash discount @ 10 % and paid in cash.
26 Settled by cheque Mr. Chatterjee for Rs. 4,000 less cash
Discount @ 12 %.
(i) Distinction between Accounting Concept and Convention. (ii) Distinction between Proprietory Concept and
Entity Concept. (iii) What is Conservatism Convention? (iv) What is Matching Concept? (v) What is Money
Measurement Concept? (vi) What is Going Concern Concept? (vii) What is Consistency Convention? (viii)
Distinction between Internal and External Liabilities. (ix) Distinction between Capital and Revenue Receipt.
(x) What is Fictitious Asset? Give two example.