(8 pages)

S.No. 7299 19UBAE01

(For the candidates admitted from 2019-2020 onwards)

B.B.A. DEGREE EXAMINATION

Second Semester

FINANCIAL ACCOUNTING

Time : Three hours Maximum : 75 marks

PART A — (15  1 = 15 marks)

Answer ALL questions.

Multiple choice.

1. Journal is a book of ––––––––––

(a) Prime entry
(b) Only cash transaction
(c) Secondary entry
(d) Credit transaction

2. Ledger contains ––––––––––

(a) Personal accounts
(b) Real accounts
(c) Nominal accounts
(d) All of the above
3. Every debit has a corresponding credit is the
concepts of ––––––––––.
(a) Incomplete records
(b) Cost sheet
(c) Single entry system
(d) Double entry system

4. Net profit can be expressed ––––––––––

(a) Total profit
(b) Total profit – trading expenses
(c) GP + (Income – Expenditure)
(d) None of the above

5. Outstanding salaries are shown as ––––––––––

(a) An expenses
(b) A liability
(c) An assets
(d) An income

6. The financial statement that displays the revenue

and expenses is ––––––––––.
(a) Balance sheet
(b) Income statement
(c) Fund flow statement
(d) Cash flow statement
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7. Under Hire purchase system, the agreement can
be –––––––––– any time.
(a) Renewed (b) Registered
(c) Terminated (d) Endorsed

8. When an asset is acquired on hire purchase

system the asset account debited with ––––––––––
of the asset in book of the hire purchaser.
(a) Hire purchase price
(b) Cash price
(c) Instalment price
(d) None of the above

9. The initial amount paid Hire purchase system is

called as ––––––––––
(a) Cash price (b) Retail price
(c) Interest (d) Down payment

10. Bank reconciliation statement is prepared to

verify.
(a) Pass Book
(b) Cash Book
(c) Arithmetical Accuracy
(d) Trial Balance

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11. Bank charges debited in the pass book reduce the
balance in ––––––––––.
(a) cash book
(b) pass book
(c) invoice book
(d) cash book and pass book

12. Cheques issued but not presented for payment

must be added in cash book when it is started with
––––––––––.
(a) cash book unfavourable balance
(b) pass book unfavourable balance
(c) cash book favourable balance
(d) pass book favourable balance

13. The depreciation is a cost accumulating from.

(a) The use of fixed asset
(b) The use of services
(c) The consumption of consumable store
(d) None of the above

14. Small item like livestock or losse tools follow

––––––––––
(a) Annuity method
(b) Revaluation method
(c) Straight line method
(d) Depletion method
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[P.T.O.]
15. The amount of depreciation is fixed for all the year
under ––––––––––.
(a) Written down value method
(b) Annuity method
(c) Depreciation fund method
(d) Straight line method

PART B — (2 × 5 = 10 marks)

Answer any TWO questions.

16. From the following information prepare a trial

balance.
Particulars Rs.
Cash 28,650
Capital 50,000
Bank 13,500
Furniture 3,000
Creditors 2,800
Debtors 2,000
Sales 7,000
Purchase 10,100
Wages 200
Drawings 1,250
Stationary 100
Salary 1,000

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17. Find out gross profit from the following
information.
Particulars Rs.
Stock on 1.1.2020 30,000
Purchase 1,50,000
Sales 2,00,000
Closing stock (31.12.2020) 40,000

18. Explain the various features of hire purchase

system.

19. Explain the steps in calculating average due date.

20. Discuss the advantages and disadvantages of

straight line method of depreciation.

PART C — (5 × 10 = 50 marks)

Answer ALL questions.

21. (a) Differentiate between journal and ledger.

Or
(b) Explain the various accounting concepts and
conventions.

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22. (a) From the following information find out net
profit of the organisation.
Particulars Rs.
Wages 15,000
Salaries 22,000
Gross profit 74,000
Interest 4,350
Rent 11,500
Postages 4,300
Commission received 6,000
Buildings 1,50,000

Or
(b) Prepare a trading a/c, p/l a/c and balance
sheet from the following information.
Particulars Rs.
Opening stock 30,000
Sales 50,000
Salary 8,000
Printing 7,000
Bills receivable 40,000
Purchase 20,000
Capital 1,00,000
Bills payable 5,000
Closing stock 40,000
Building 50,000
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23. (a) Differentiate between Hire purchase system
and instalment system.

Or
(b) Sonia purchased a machinery on HP system
and the amount is payable 10 annual
instalment of Rs. 65,000 each. The present
value of annuity of Rs. 1 for 10 years at 5%
rate of interest Rs. 7,7217. Compute cash
price and interest under annuity basis.

24. (a) Explain the methods of preparing account

current.

Or
(b) State the reason for differences in cash book
and pass book.

25. (a) Vasanth & Co purchased a Motor Car on 1st

April 2018 for Rs. 5,00,000. Depreciation is
to provided at 10% per annum as per
straight line method. The books are closed
31st March every year. Pass necessary
journal entries for the first three years.

Or
(b) Discuss the various merits and demerits of
written down value method and insurance
policy method of depreciation.
––––––––––––––––

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