ASSIGNMENT 2

ACCOUNTING & FINANCIAL ANALYSIS (BBA-104)

Q1) Explain the different categories of accounts along with the rules of debit and credit.

Q2) Explain the meaning of the term Journal and state its significance.

Q3) Explain the different methods of preparing trial balance.

Q4) Explain the difference between cash discount and trade discount.

Q5) What are subsidiary books? Explain with illustrations.

Q6) Journalise the following transactions:

a) Purchased goods from A at a trade discount of 10% and paid half of the amount to avail cash
discount of 2% , the invoice price of the goods is Rs.20000

b) Purchased Machinery woth Rs.100000 and paid Rs.5000 as its installation charges.

c) B turned insolvent and only 70p in a rupee is recovered out of a debt of Rs.15000

d) Rent due to landlord Rs.800

e) Provide 10% depreciation on furniture costing Rs.5000

f) Goods costing Rs.1000 given as charity (Sales Price Rs.1200)

Q7) Use accounting equation to show the effect of the following transactions on assets, liabilities and
capital and show the balance sheet.

(1) Sejal commenced business with cash Rs. 50,000.

(2) Purchased goods for cash Rs. 15,000 and credit Rs. 10,000.

(3) Sold goods for cash Rs. 25,000 costing Rs. 20,000.

(4) Brought furniture on credit Rs. 5,000.

(5) Bought refrigerator for personal use Rs. 6,000.

(6) Cash withdrawn for personal use Rs. 2,000.

(7) Rent Paid Rs. 1,000.

(8) Sold goods on credit for Rs. 7,000 costing Rs. 5,000.

(9) Paid cash to a creditor Rs. 7,000.

(10) Interest on capital @ 5%.