Sample Question Paper set – ACCT102

ACCT102
Accounting Fundamentals (BBA 1st Sem.)

Mapped Subjects:

[Max Marks: 70]

Note: Attempt Questions from all sections as directed.

Section A - Attempt any Two questions out of Four. Each question carries 7.50 marks. [15
Marks]

Question No: 1
What is the significance of Ratio analysis? Explain Liquidity Ratio and Profitability Ratios.

Question No: 2
What is the significance of cash flow statement? Explain in brief.

Question No: 3

Journalize the following transactions in the books of Mr. Gaurav, for

June 2018 :
2018
June-
June 1: Gaurav started business with Rs. 10,00,000 of which 25% amount was borrowed
from wife.
June 4: Purchased goods from Aniket worth Rs. 40,000 at 20% Trade Discount and
1/5th amount paid in cash
June 7: Cash purchases Rs. 25,000.
June 10: Sold goods to Vishakha Rs. 30,000 at 30% TD and received 30% amount in cash.
June 12: Deposited cash into bank Rs. 20,000.
June 15: Uninsured goods destroyed by fire Rs. 5,500.
June 19: Received commission Rs. 3,500.
June 22: Paid to Aniket Rs. 25,500 in full settlement of A/c.
June 25: Cash stolen from cash box Rs. 1,000
June 27: Received from Vishakha Rs. 14,500 and discount allowed Rs. 200.
June 30: Interest received Rs. 2,400 directly added in our bank account.
 Rs. = INR

Question No: 4

From the following Trial Balance of Mr. Johnson, prepare the Trading, Profit and Loss
Account and Balance Sheet for the year ended 31-3-2014:

Particulars Amount Particulars Amount

Rs. Rs.
Cash in hand 6,000 Sales 1,32,000
Cash at Bank Capital 95,000
Purchases 12,500 Purchase 1,000
Sales Returns 78500 Returns 900
Wages 2000 Interest 10,000
Salaries Creditors 11,500
Advertisement 8,000 Bills Payable 2,000
Insurance 12,500 Discount 2,52,400
Furniture 3,000
Opening Stock
Machinery 1,100
Debtors 12,000
Carriage 40,000
Inwards
Carriage 35,000
outwards 23,000
Rent & Taxes 1,000
Drawings
Bills 1,500
Receivable 2,500
4,800
9,000
2,52,400

Adjustments:
1) Value of Stock as on 31-3-2014 is Rs. 37000.
2) Outstanding Wages Rs. 1,200; Salaries Rs. 2,900
3) Prepaid Insurance Rs. 450
4) Depreciate Furniture by 5%; Machinery by 10%
5) Write off Bad debts Rs. 2,000 and provide Bad debts reserve 5%.

Section B - Compulsory Questions. Each question carries 7.50 marks. [15 Marks]

The following information of Beta Company as on December 31st 2017 is given as below:
ASSETS (amount in INR.)

Current Assets 1,00,000

Fixed Assets 1,50,000
Total 2,50,000

LIABILITIES AND EQUITY (amount in INR.)

Current Liabilities 1,00,000

Long Term Liabilities 75,000
Total Liabilities 1,75,000
Shareholder’s Funds 75,000
Total 2,50,000
Net Sales 3,75,000
Interest Expense 4,000

Net Profit 22,500

On December 31st 2016, Total Assets were Rs. 2,00,000 and the tax rate is 35%.

Calculate the following ratios of Beta Company as on December 31st 2017.

Question No: 1
Calculate the following ratios
(a) Long Term Debt to Total Assets Ratio
(b) Net Profit Ratio

Question No: 2
Calculate the following ratios
(c) Return on Total Assets
(d) Return on Equity

Section C - Compulsory Questions. Each question carries 2.00 marks. [40 Marks]

Question No: 1
Personal and cash accounts are kept in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ system
a) Pure single entry system
b) Quasi single entry system
c) Simple single entry system
 d) None of these

Question No: 2
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a un systematic, un scientific and incomplete system
a) Single entry system
b) Double entry system
c) Nominal entry
d) None of these.

Question No: 3
Profit is only an estimate in this system
a) Nominal system
b) Double entry system
c) Single entry system
d) None of these.

Question No: 4
Expand GAAP
(a) Generally accepted accounting principles
(b) Generally accepted account programmers
(c) General acceptable assumption practices
(d) None of these

Question No: 5
Accounting concepts include certain basic ‐‐‐‐‐‐‐‐‐‐‐‐
a) Account
b) Transactions
c) Assumptions
d) None of these

Question No: 6
The comparison of one accounting period with that of the past is possible when one of the
concepts given is followed
a) Cost
b) Consistency
c) Going concern
d) Matching

Question No: 7
Contingent liabilities are shown as a foot note in the balance sheet as per ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ accounting
principle
a) Full disclosure
b) Objectivity
 c) Materiality
d) Consistency

Question No: 8
State the principle:‐ which assumed the business will last fore a long time
a) Going concern
b) Materiality
c) Consistency
d) Matching

Question No: 9
When a company issues shares to vendors of assets for consideration other than cash these are
issued
a) At par
b) At a discount
c) At a premium
d) Any of these

Question No: 10

"Proposed dividends" is shown in the Balance Sheet of a company under the head:

a) Provisions
b) Reserves and Surplus
c) Current Liabilities
d) Other Liabilities

Question No: 11

Share Allotment Account is a:

a) Real Account
b) Nominal Account
c) Personal Account
d) Company Account

Question No: 12

When shares are forfeited, the Called Up Amount on shares is debited to -

a) Shares Forfeited Account

b) Capital Reserve Account
c) General Reserve Account
d) Capital Account

Question No: 13
That portion of Share Capital which can be called up only on the winding up of the Company is

a) Authorised Capital
b) Issued Capital
c) Subscribed Capital
d) Reserve Capital

Question No: 14

Dividends are usually paid as a percentage of __________

a) Authorized share capital

b) Net profit
c) Paid - up Capital
d) Called - up capita

Question No: 15
While preparing cash flow statement, conversion of debt to equity
(a) Should be shown as a financing activity.
(b) Should be shown as an investing activity.
(c) Should not be shown as it is a non-cash transaction.
(d) None of the above

Question No: 16
Which of the following would be considered a ‘cash-flow item from an “investing”
activity’?
(a) Cash outflow to the government for taxes.
(b) Cash outflow to purchase bonds issued by another company.
(c) Cash outflow to shareholders as dividends.
(d) None of the above

Question No: 17
On January 1, Sohan paid rent of ` 5,000. This can be classified as
(a) An event.
(b) A transaction.
(c) A transaction as well as an event.
(d) None of the above

Question No: 18
On March 31, 2015 after sale of goods worth ` 2,000, he is left with the closing inventory of `
10,000.
This is
(a) An event.
(b) A transaction.
(c) A transaction as well as an event.
(d) None of the above
Question No: 19
Lenders are interested in __________ to judge the fi rm’s ability to pay off current interest and
instalments
a) Debt Ratio
b) Debt Service Coverage Ratio
c) Debt-Equity Ratio
d) None of the above

Question No: 20
The ratio, which indicates the proportion of owner’s fund to total fund invested in the business
a) Debt Ratio
b) Debt Service Coverage Ratio
c) Debt-Equity Ratio
d) Equity Ratio