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Printed Pages: I NMBA.OIS
{FoElowing Paper ID u:d Rolt No" to be filled in your
*IBA
(sEM. f) THEORY EXAMINATIGN, 2015-16
BUSINESS ACCOUNTING
[Time:3 hours] [Total Marks:1001
Note : Attempt all questions.
SECTION-A
l. Atternpt all parts. All parts carry equal marks.
(2x10:20)
(a) "The rule of consen/atism is essentially a rule of
caution." Do you agree?
{bY Opening stock 2000, Closing stock tr000, Purchase
/ 1000, I)irect Expense 100, Sales 10000,.Selling
& Di$tribmion Expense 200S, Deprecatio* 1000
C alculate Operating Profit "
(c) Whatwhouldyou prefer as afrnancial manager low
i gearing or high gearing capital to run your
organization.
35500 (1) [P.T.O"]
{d} Trial Belan*:.judge arithmeti*al &sc,urasy nf
ac*ounts. Eludicate.
(e) Compare and conffastFund florry and halan*e s}:*et.
{f} Explain the difference hefwsencash and Opsrating
cycle?
{g} Stats the treatrnent of Provisi*n fur'Iax if treat*d
statem$nt.
inAS2?
ln a*coun{ing:
{i} Tmwhictr thm* is anincrease i* one asset and
decr#ese in anntlter.
(ii) In r,vhich there is inerease in casli and
decreese in stock.
fi) 'oFinancial Negatiation is maj*r function ofrnodern
finaneial rnanaget'', Hlaborate with an sxample.
SffiCYT&ru*B
Attempt any five questions *fthe fiollowing:
{5x10:50)
2. What are the generatly accepted accountingprinciples
35s00 (2) NhdBA-0l3
\-,-.
? Ff*rvdothey berrefit fflafiagsfflentsf:ryhat pr*blems do
they create for it.
Statethe dlff,erelrce hetween Cemparative And CoruIrnsm
sizestatement wifh imaginary exemple ofyour choice.
Whet are the recent changes made in Balamce sheet
acc*rding ta Companies Act 2013?
Explainthejournal entries and adjustments affccting the
preparation of a balance sheet related to :
{a) Outstanding Expenses of Rsz0SCIS end Prepaid
Expenses of Rs 10000.
(b) Outstanding income rrf Rs 30000 and klcomes
received in advance ofRs400$0.
D i scuss Accounting policy for ammtizati on s t- intangib tre
assets. Should Goodwill be amortized. Give arggments.
fcllowing datarelate to some inrq*ffiamt iterns r:f a
T?,re
colnpany Cisclasing its development during last f,ve
years:
z0s9 E8A4
\rVcrking Capital 2,33,5 3,0 LO 3,S2,5#,S55
Plant & Eguipment 99,78,420 i Z]LLJ,S&qE_
Long te r"m Debt 7 2,80,000 3.,4S,S#,ff-fi{},
Net taneibf e Asset 2,80,80,23CI 4,$S,76"*S0
35500 {3} [P"T.0.]
r
weakness of
{Jsing trmd ratios caiculate soundness/
5 monttrs,
g. Debtorsvelocwz.5 rnonths, stcckvelociry
cuffient year is 9000sCI. closing
stock 30000 more than
and BiP is 30000'
opening stock. B/R aryountR*: 50000
g* outfxow of {tnds and
state sorne oxamples of inflow and
state the calculation of
cash in _vour orgunization. Also
indirect method of cash
operating activities via direst and
Ftrow Statement"
SECTTON{
( I 5 *2:30)
AtternPt anY twtl Parts:
The foltrowing Trial balance is of
shri om, as on 3Ist
Iq^
prepare Trading and
March 200g, you are rf,qllesteel to
profit & Loss Account fsr ths,){ear ended 3lst march
2008 and make necessary adjustments:
Dr. Cr'
Sundry Debtors 5,00,000 - z5un-{
2,00,000
Sr"rndry Creditors
Outstanding Liabilities 55,000
for ExPenses
W'ages 1 ,00"000
1 ,10,000
Carriage Outwards
5 0,000
Carriage Xnwords
(4) NMBA.OI3
35500
General ExPenses 7Br0S0-" "' ' ' '"'-" ':'r
Cash Discount 2A,000
Bad Debtsr k- 10,000
,Motor Car L-'t'
2,40,000
Printing and Stationery 15,000
1,10.000
Witure and Fittings lor 5,000 . :
Advertisement 8
Insurance 45,000
Salesman's
Commission
Postage and TelePhone 57,500
Salaries 1,60,000
Rates and taxes 25,000
Drawings 2A,000
Capital Account 14 "43,000
Purchases i, 1 5,5 0,000
Salos , t 9,8?,500
Stock 0n L-4-2007 2,50,000
Cash at Bank 60,000 :
Cash in hand 10,500
ry 36.3p.-500
The following adjustment are to be made
ff,30"50q
:
(a) Stock on 3lst March, 2008 rvas values at Rs.
7,25,000. 09 ' -
lD A provision for Bad and Doubtfutr Debts are to.be
o/o onsundry Debtors-
created to the extent of 5
(c) Depreciate Furniture and Fitting by rc%Motor car
35500 (s) [P.T.O.]
F"
tr
t.
Lry 2 *nh
{d} Shri Orn had withdrawm gasds w*rth Rs, 25,S0*
during the year.
(e) Sales include goods worth Rs .75,000 sent out to
Sudhir & cc on apFrotr al.
The cast of the goods sent were Rs"S*,S*S"
(il The SalesffiIan \&'&s entitles to coffilmission of 5rolo
on total s&les.
tg) Dehtors include Rs .25.S0fi had debts.
(h) Printing and Stationary
4'
expsnses of Rs. 55,00{}
relating to 2007 -20S8 had not been providpd in
that year but was paid in year by debiting
outstanding liabilities during this ysar.
{i) Purlhases inc}ude purchase *fFurqiture w*rth R$.
5S,0SS,
lls C)ffiIst April 2*02 & ftew plant was purehfrseel-f*r Rs
4SS0S *nd a further sum ot- Rs 20t]{} w&s spent $n its
instaltation " On t st Octoher 2004 another plants r.vas
purchased for Rs 25S*0, Due to ail &ccident *n 311/ft5,
firstplant was destrcy*d and reffirlarxs wsre t{ql *S* q:nly.
On 7111l$6 a secilnd plants was pur$hassd f*r RsSCSSS
and erection etiarges are Rs5{}0*. *epre**ti*r: is to be
provided I0?,o olr SLivI. [t was a practice to charHe
355#* {s}
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sepre*ation for full ysar irrespective
*f pur*,tia$e e&d
sale of asset. Accounts atrc clased
on 3lut Mar*}t cvery
r. It
Year" n()W deciel*d
is now
lt IS fiGLri to chang* th* nrrettrod of
mrthoc @ 15Y*
dqpre*ation from straight tc diminishing
retrospe*tive effe**t
and make necess wadjustrnent with
*n cxisting plants. prepare plant &nd a$oulriulated
B*pre*iatign Accaunt f*r all ths ysers
balan*e she$
,,t8",,,,, s{*tu},f}m fotlorming srr tlae cormparati-v,e
*f Gupta & co., YsB ars required to pr#pare
Func
ta) schedut* *f crtang*s inw*rking capital {b)
Fl*w Stat**rsnt tc.) Fund Fr*tlt {ip*ratitnn'
Ba*affi*# $fut*t
ffi14 ffi3# x#l#
ffi3S Assefs
Lf*listres ff$', m. ffi, m$-,
Share fic**sili I 17,#{3Ut i{.-l,L}w
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fx6*tal s0,ililO1 I
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General I I
14oilol
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lnur**u I
19,5tr0!
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{\44rftir€ry 3?,ilo*i :asm
lpront & Loss
3c..$ocl ze+m
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for Stock In
Inroulsion e
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14Offi I
|Taxatir:n Dehtor zG.ooGl
"l zzlm
l5undry tt
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lcredtors Cash at Ba* 6,60S1 15,2m
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!gittr Payable 6,zffi E
*
I r
lProvision feir lnvest"nents 3.o,oo*[ aauco
lnehmrs
1gfr
3"s56ml 3ssm0 lss,buul 355,5w
(7) [p.'r"o.]
35500
Ad ditiomn I Imforrn ation ;
*epreciati*n ,;trlergr:cl *m h,'fachineqy wes Rs. 46lfi*
on builefing
Rs. 4000.
Interim Dividend paid e$uring 2014 was Rs " 7 5630.
Provision of Rs. 5000 was made for taxation during the 2014.
35s00 (8) I{MBA-013
