Birla Institute of Technology & Science, Pilani

Work-Integrated Learning Programmes Division

First Semester 2022-2023

Mid-Semester Test
(EC-2 Regular)

Course No. : MBA ZC415

Course Title : FINANCIAL AND MANAGEMENT ACCOUNTING
Nature of Exam : Open Book
Weightage : 30% No. of Pages =3
Duration : 2 Hours No. of Questions = 5
Date of Exam : Sunday, 25/09/2022 (FN)
Note:
1. Please follow all the Instructions to Candidates given on the cover page of the answer book.
2. All parts of a question should be answered consecutively. Each answer should start from a fresh page.
3. Assumptions made if any, should be stated clearly at the beginning of your answer.

Q.1 On March 1, 2022, Samar set up a loan recovery business and concluded the following
transactions in the first month. Analyze the impact (increase/decrease) or no effect of the
following activities on the accounting equation. Answer the questions in the format given
below. [Marks:0.5 *10 = 5]
(a) Samar invested cash in the business Rs. 20,000/-
(b) Brought equipment for cash Rs.12,000/-
(c) Paid rent for the office site Rs. 5000/-
(d) Provided service for cash Rs. 19,000/-
(e) Provided services on credit Rs. 14,000/-
(f) Paid salaries to employees of Rs. 8,000/-
(g) Collected payments for past invoices Rs. 8,500/-
(h) Received advance payment for services Rs. 2,000/-
(i) Withdrew cash for personal use Rs.4500/-
(j) Purchased goods on credit Rs.15000/-

Q.2 Prerana started Designer Garments. The following transactions took place in the first
month i.e. April 2021 [2.5+4+1 = 7.5 Marks]
April 01: Prerana invested cash in the company’s share capital Rs.75000/-
April 02: Paid rent deposit for premises, Rs.15000/-
April 03: Purchased goods on credit Rs.24000/- from X
April 14: Paid electricity expenses Rs.1250/-
April 20: Sold goods to Y on credit, Rs.16000/-

You are required to analyze each transaction. Make journal entries, post them to respective
ledger accounts and prepare a trial balance at the month end.
Q.3 Sree Ram owned a business and engaged in the following transactions find out the nature
of account and also state which account should be debited and which account should be
credited while journalizing the transactions. Answer the questions in the format given
below. [Marks:1*5= 5]

Activities
(a) Sree Ram invested cash in the business
(b) Rent paid
(c) Interested received from the bank
(d) Furniture purchased in cash
(e) Salaries paid in cash

Answer Format

Activity Accounts Nature of Debit Credit

Q.4 involved Accounts
a)
b)
c)
d)
e)

What are the rules for passing the Journal Entries for [Marks-0.5*5=2.5]

 Asset accounts
 Liability accounts
 Equity
 Revenue
 Expenses
Q.5 From the following Trial Balance of M/s.VV Enterprises, prepare the Profit and Loss
account for the year ended 31st March 2021 and Balance Sheet as on that date:

[Marks:10]
Trial Balance as on 31st March, 2021
(Rupees in ‘000)

Particulars Debit Credit

Purchases 31100
Sales 52000
Purchase Returns 900
Accounts Payable 6210
Bills Payable 220
Bank Loan 2000
Stationery 150
Rent Received 1300
Capital 25000
Cash at bank 3960
Accounts Receivables 11000
Advertising 550
Commissions Received 100
Bills Receivable 330
Office expenses 220
Carriage inwards 1240
Rent 120
Building 30000
Insurance 200
Salaries 5860
Sales Returns 1500
Drawings 1500
87730 87730

Adjustments:
1. Depreciate Building by 5%
2. Interest on Bank loan at 10% p.a is unpaid for last 6 months

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