UG/CBCS/BBA/Hons./2nd Sem.
/BBACC4/2023
UNIVERSITY OF NORTH BENGAL
BBA Honours 2nd Semester Examination, 2023
CC4-BBA (204)
FINANCIAL ACCOUNTING FOR MANAGER
Time Allotted: 2 Hours Full Marks: 60
The figures in the margin indicate full marks.
Candidates should answer in their own words and adhere to the word limit as practicable.
All symbols are of usual significance.
GROUP-A
Answer any two questions from the following 12×2 = 24
1. The following Trial Balance was extracted from the books of Mr. Sarkar as on
31st March 2023:
Particulars Debit ( ) Particulars Credit ( )
Plant & Machinery 78,000 Capital Account 1,00,000
Furniture 2,000 Sales 1,27,000
Purchases 60,000 Returns of Goods 750
Returns of Goods 1,000 Discount 800
Discount 425 Sundry Creditors 25,000
Sundry Debtors 45,000 Provision for Doubtful Debts 525
Opening Stock 30,000
Salaries 7,550
Wages 10,000
Carriage on Sales 1,200
Rent & Taxes 10,000
Advertisement 2,000
Cash 6,900
2,54,075 2,54,075
Prepare Trading and Profit and Loss Account for the year ended 31st March
2023 and Balance Sheet as on that date after taking the following adjustments:
(i) Closing Stock was valued at 34,220.
(ii) Provision for Doubtful Debts is to be kept at 500
(iii) Allow interest on capital @ 10% p.a.
(iv) Depreciate plant and machinery by 10% p.a.
(v) The proprietor has taken goods worth 5,000 for personal use and
distributed goods worth 1,000 as free samples.
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2. A, B and C are in partnership sharing profits and losses in the ratio 3:2:1. They 12
decided to dissolve the business on 31.12.2022, on which date their Balance
Sheet was as follows:
Balance Sheet
As on 31st December 2022
Liabilities Assets
Capital Accounts: Land and Buildings 30,810
A 38,700 Motor Car 5,160
B 10,680 Investments 1,080
C 11,100 Stock 19,530
C’s Loan Account 3,000 Debtors 11,280
Creditors 10,320 Cash 5,940
73,800 73,800
The assets were realised piece-meal as follows and it was agreed that cash
should be distributed as and when realized.
15.1.2023- 10,380;
20.2.2023- 27,900;
23.3.2023- 3,600;
15.4.2023- C took over investments at a value of 1,260;
27.4.2023- 19,200.
Dissolution expenses were originally provided for an estimated amount of
2,700 but the actual amount spent on 29.3.2023 was 1,920. The creditors
were settled for 10,080. Prepare a statement showing cash distribution
amongst the partners.
3. (a) Sam Ltd. maintains a Branch at Siliguri to which it sends goods at Cost plus 6+6
25%. Siliguri Branch sells goods both in cash and on credit. All collections and
Cash Sales are directly deposited to Head Office Bank Account and all
expenses are paid by the Head Office directly. From the following information,
prepare Siliguri Branch Account in the books of the Head Office:
Balance on 1.4.2022:
Branch Stock at Invoice Price 30,000
Branch Debtors 40,000
Transactions during the year:
Goods sent to branch at cost 1,40,000
Goods returned by the branch at invoice price 10,000
Goods returned by debtors to branch 3,000
Credit Sales 1,20,000
Cash Sales 30,000
Bad Debts 2,000
Discount Allowed 3,000
Abnormal loss of goods at invoice price 8,000
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UG/CBCS/BBA/Hons./2nd Sem./BBACC4/2023
Cheques sent by Head office to branch for:
Rent 4,000
Salaries 6,000
Petty Expenses 2,000
Balances on 31.3.2023:
Debtors 45,000
Stock at Invoice Price 40,000
Outstanding Rent 1,000
(b) A company purchased machinery for 20,000 on 1st January 2018 and
followed the diminishing balance method of depreciation the value @ 15% p.a.
At the end of 2019, it was decided to follow the fixed instalment system of
depreciating the machine at 3,000 per year from the very beginning and the
necessary amount of unabsorbed depreciation from 2018 to 2020 to be
adjusted in 2021. Show the Machinery account for the period 2018 to 2021.
4. (a) Discuss the special features of the Hire Purchases Agreement. 4+8
(b) Aamir Transport Agency purchased 2 Motor Vans at a price of Rs. 8,00,000
each from Salman Auto Company on 1st January 2020 on the hire purchase
system. the terms of payment were as follows:
Payment of Rs. 2,00,000 each for Motor Van on delivery was made and the
remainder in three equal instalments together with interest @ 12% p.a. to be
paid at the end of each year.
Aamir Transport Agency writes off 20% depreciation each year based on the
diminishing balance method. Aamir Transport Agency paid two instalments
due on 31st December, 2020 and 2021 but could not pay the final instalment.
Salman Auto Company repossessed one Motor Van adjusting its value against
the amount due. The repossession was done based on 25% depreciation on the
Fixed Instalment method. Write up the Ledger accounts in the books of Aamir
Transport Agency.
GROUP-B
5. Answer any four questions: 6×4 = 24
(a) Distinguish between Financial Lease and Operating Lease. 6
(b) Briefly discuss the uses and limitations of Balance Sheet. 6
(c) Discuss the reasons that lead to the dissolution of a firm. State the grounds 3+3
under which a partnership firm can be dissolved by the Court.
(d) From the following information prepare Branch Account in the books of the 6
head office assuming that all the sales at the branch are on the cash basis:
Opening stock at the branch 30,000
Sales during the year 1,20,000
Goods sent to Branch 90,000
Expenses paid by Head Office 14,000
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UG/CBCS/BBA/Hons./2nd Sem./BBACC4/2023
Closing Stock could not be ascertained, but it is known that the branch usually
sells cost plus 20%. The Branch Manager is entitled to a commission of 10%
before charging such a commission.
(e) Narrate the accounting practice developed to comply with the Convention 3+3
Conservatism and Going Concern Concept.
(f) Distinguish between the hire purchase system and the instalment payment 6
system.
GROUP-C
6. Answer any four questions: 3×4 = 12
(a) What are the Debit notes and Credit notes? 3
(b) What do you mean by Branch Adjustment Accounting? 3
(c) What do you mean by deferred revenue expenditure? 3
(d) State the rules of Garner vs. Murray. 3
(e) What do you mean by errors of omission and errors of commission? 3
(f) What is Contingent liability? Give two examples. 3
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