BBA (First Semester)

Examination 2021
BOOK KEEPING and BASIC ACCOUNTING
Section A ( Short Questions)
1. (a) Purchased goods from Moon on Credit for Rs 30,000 Analyse the
transaction and give accounting equation

(b) From the following information prepare the trading account for
the year ending on 31st march 2022
Adjusted purchase 11,06,000 sale 12,40,000 closing stock Rs 84,000
Frieght and cartage inwards 6,000 Wages Rs 4,000 Frieght and
cartage outward Rs 3,000

(c) Following are the extracts of a final balance as 31st March 2012
Particular Debit Bal Credit Bal
Debtor 2,06,000
Bad Debts 2,000
Provision for doubtful debt 15,000
Make a Provision for doubtful debt @ 5% Debtors

(d) Compute the income from subscription for the year 20X2 from
the following particulars relating to a club
1-1-20X2 31-12-20X2
Outstanding Subscription 9,500 7,000
Advance Subscription 2,800 5,200
Subscription received during the year 20X2 Rs Total 1,48,900

(c) What is pro-rate allotment of shares?

Money withdrawn from bank for office use 3,400
 Fees of children paid by cheque 75
Cheque received from Hira and endorsed it to Sunita 4,500
Bank Charges 20
Deposited into the bank the entire balance after retaining Rs700 in
the office.
3. From the following particulars for the year ending 31st March, 2003 of
M/s ABC Co prepare trading and Profit & Loss Account and Balance sheet
as on that date:
Particulars
Stock (1-04-2002) 23,200
Capital 1,45,000
Purchases 58,000
Sales 2,32,000
Office Expenses 23,345
Returns Inward 4,350
Interest on Loan 870
Return Outward 1,160
Drawings 8,700
Wages 20,010
Land and Building 1,59,500
Furniture and Fixtures 7,250

Particulars
Advertisement 15,950
Apprenticeship Premium 3,480
Bill Receivable 10,150
Bill Payable 7,250
Sundry Debtors 58,000
Plant & Machinery 13,050
Sundry Creditors 45,820
Loan (Dr) @ 10% on 01-04-2002 14,500
Investment 8,700
Cash at Bank 10,150
Cash in Hand 725
Stock (31-03-2003) 20,300
Adjustments:
(i) Interest on capital to be allowed at 5% for the year
(ii) Interest on Drawings to be charged to him as ascertained for
the year Rs 232
(iii) Apprenticeship premium is for three years received in advance
on 1st April 2002
(iv) Stock valued at Rs 8,700 destroyed by fire on 25-03-2003 but
insurance company admitted a claim of Rs 5,800 only to be paid
in the year 2004.
(v) Rs 14,500 out of advertisement expenses are to be carried
forward.
(vi) The manager is entitled to a commission of 10% at the net
profit calculated after charging such commission.
(vii) The stock includes material worth Rs 2,900 for which bill had
not been received and therefore not yet accounted for.
4. A sold goods to the value of Rs2,000 to B taking a bill at three months.
A discounted the bill at 8% p.a. with his bank On maturity the bill was
returned by the bank dishonured with Rs 18 as nothing charges B paid Rs
500 and the nothing charges and gave another bill at three months for
1,500 together with 12% p.a. interest but before maturity he had become
bankrupt and ultimately paid to his creditors 25 paise in the rupee.
Pass entries in A’s and B’s journal and prepare A’s account.
5. From the given trail balance containing obvious errors prepare correct
trail balance
Particulars Dr Cr
Cost of goods sold 1,50,000
Closing Stock 40,000
Debtors 60,000
Creditors 30,000
Opening Stock 60,000
Fixed Assets 50,000
Expenses 20,000
Sales 2,00,000
Capital 90,000
Total 3,50,000 3,50,000
Section C (Long Answer)
6. A company bought machinery for Rs 2,00,000 The depreciation is
charged @ 10% p.a. on diminishing balance. During the middle of 3rd year,
one fifth of machinery became useless on account of damage part is sold
for Rs 18,000 On the same day a new machinery costing Rs 20,000 was
purchased Write-up the machinery account for first four year.
7. Show the accounting equation on the basis of the following
transactions and present a balance sheet of the last equation balances:
(i) Rakesh commenced business with cash 90,000
(ii) Purchased goods on credit 15,000
(iii) Bought goods for cash 12,000
(iv) Withdrew cash for private use from business 1,800
(v) Paid Salary 1,200
(vi) Received Commission 300
(vii) Paid to creditors 10,000
(viii) Sold goods on credit 9,000
( cost price 8,000)
(ix) Purchased furniture for cash 8,000

Find out the balance as per Pass book as at March 31 2003 from the
following details:
(i) Bank overdraft as per cash book Rs 15,160
(ii) Bank charges not recorded in cash book Rs 50
(iii) Cheques issued but not presented for payment Rs 22,000
(iv) Interest on the unit of the Unit Trust of India directly credited in bank
Rs 1,200 not recorded in cash bank
9. What is meant by forfeiture of shares? How are shares forfeited? Give
journal entries regarding forfeiture and re-issues of share.