A-3505 First Year B. B. A. (Sem. I) (CBCS) Examination March / April - 2015 Financial Accounting - I Time : Hours] [Total Marks : 50 Instruction : Ta alia @. Raa Rod Saad we wate a Seat No Fillup striety tha details of @ signs on your answer book Nome ofthe Exarination [FIRST YEAR B. B. A. (SEM. 1) (CBCS) Name ofthe Subject ‘+ [FINANCIAL ACCOUNTING - 1 e-SuibjoctCodeno.:| 3 ]] § |] 0 |}s }e-Seetion No. (1,2...) [NIL arene 1 Answer the following (2) Define financial accounting. 10 @) Explain the accounting concept suggested for the following: @ Business will not dissolve in near future. Gi) Expenses have to be matched with incomes of same period. (8) Give journal entry: Debtor "H" who owes Rs.20000 was declared insolvent & only 30 paise in a rupee is received from his estate. (4) The following information of material is given below: Opening stock: 4000 kgs @ Rs.51 11! April receipt of 3000kgs @ Rs.53 18'h April receipt of 6000 kgs @ R: 29'» April receipt of 4000 Kgs @ Rs.55 & Issue on 14th April 3000kgs Issue on 24th April 6000 kgs. What would be the value of the issue on 14th April by LIFO method? (5) State the causes of depreciation. A-3505] 1 [Contd...Purchase & sales of certain product during May 2014 are given below: Purchases : On April 3, 200 units @ Rs.5 On April 10, 400 units @ Rs.4, On April 18, 200 units On April 23, 200 units Issue On 6 April, 100 units On 15 April, 400 units On 25 April, 200 units ‘There was no opening inventory. ‘The stock verifier found shortage of 40 units on 27!" April. You are required to compute the value of stock under the following methods: (a) Weighted Average Method (b) LIFO Method. OR A firm purchased certain machineries on 1-4-2010 for Rs.92000 on which ‘the cost of carriage and installation charges was paid Rs. 10000. the firm charges depreciation @ 10% p.a. on reducing balance method & closes its books every year on 31° March. On 1-10-2012, one-fourth of machinery was sold at 25 % more than the book value. And another machine costing Rs.40000 was purchased on same date. On 1-4-2013 One fourth of the machinery purchased on 1-4-2010 was sold at 10 % loss at its depreciated value. The firm purchased another machine on 1-10-2013 at Rs. 50000. From the above information, you are required to prepare machinery account in the books of the firm for four years. Journalise the following transaction in the books of Ms. Mira. 2014 May 1. Ms. Mira started business with cash 100,000, furniture Rs.40,000 & stock Rs.20,000. 2. Opened bank account by depositing Rs.60,000. 3. Purchased goods worth Rs.20,000 @), 2% trade discount from Star ltd, 13 13 13 505) 2 [Contd...Cash sales to Ms. Meena Rs. 16,000 Credit sales of Rs. 12000 to Suresh ltd. Goods worth Rs.400 were returned back to Star Ltd. Invested Rs. 6000 in shares of Reliance ltd. 0. Purchased furniture costing Rs. 30000 of which furniture worth Rs. 10000 was for personal use. 12. Distributed goods of Rs.5000 for flood relief fund. 14. Received Rs. 11600 in full settlement from Suresh Itd. 16. Purchased goods worth Rs. 13000 @ 5% cash discount. Out of which half payment was done’ by. cheque. 20. Payment made to Star Itd, 25. Paid salaries Rs.10000 by by cheque to Ajay & Vijay respectively. OR Pass book of star shows a debit balance of Rs. 13000 as on the following cause of difference. Prepare a bank reconciliation statement: zeroes sh & commission Rs. 2000 (1) A cheque of Rs. 1120 issued was not recorded in bank. @) Dividend of Rs. 400 was directly deposited in bank without any intimation. (3) Debit side of cash book was wrongly overcast by Rs.40 (4) Cheque deposited into the bank but not shown in pass book of Rs.900. () Bank has debited Rs.180 for overdraft interest, which is recorded in cash book as interest received (@) A deposit of Rs.800.00 made on Dec 31 does not appear on bank statement. (2) Bank charges of Rs.26 were recorded twice in the cash book (A) Explain objectives of providing depreciation (B) Write short note on ANY TWO: (1) Going concern concept (2) Convention of Consistency (8) Sinking fund method of depreciation 505) 3 [ 1000 13 10