Roll No.

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IMS Unison University
End Term Examination
Name of the Programme: BMH (2021-25) Semester & Session: V, 2023-24
Subject: Accounting Skill for Managers Subject Code: BHM 504
Full Marks: 100 Time: 3 Hours
Instructions: Marks Difficulty
1. Answer all Questions from Part-I and Part-II & any two questions from Part –III. Level – Please
2. 2. Don’t write anything on question paper except Roll No. specify as per
the Guidelines
for setting of
question paper
Q. No. Part-I (Very short answer type questions) 5x2=10
1.(a) Why do we enter transactions first in the journal and then post them to 4
the ledger?
1.(b) From the following transactions, prepare a furniture account: 3
Furniture purchased – ₹25,000; Furniture purchased – ₹12,000;
Furniture sold – ₹5,000; Depreciation on furniture – ₹2,000.
1.(c) What do you understand by special purpose subsidiary books? 3
1.(d) How will you recognize ‘Contra entry’ from among other entries in 5
cash book?
1.(e) Give two examples each of the one-sided and double-sided errors. 2
1.(f) Mention two points of difference between accrued income and 3
outstanding income.
1.(g) Define depreciation, depletion and amortization. 2
1.(h) Write differences between data and information with examples. 6
Part- II (Short answer type questions) 5X10=50
2. What is the meaning of debit balance and a credit balance? Is a debit 4
balance always favourable and a credit balance always unfavourable?
3. Salini Arora set up Ace Marketing Ltd. to provide consultancy. During 5
a short period, the company completed the following transactions:
(a) Shalini invested cash in Ace’s share capital, ₹20,000.
(b) Billed customers for services provided, ₹5,600.
(c) Paid assistant’s salary, ₹600.
(d) Bought computer on credit, ₹4,400.
(e) Received cash from customers billed earlier, ₹1350.
(f) Took a bank loan, ₹5,000.
(g) Paid creditors, ₹2,000.
(h) Received fee for professional services, ₹8,250.
(i) Paid dividends, ₹1,100.
Prepare journal entries to record the transactions.
4. What is capital expenditure? How is it different from revenue 4
expenditure? Illustrate your answer by giving five examples.
5. Rectify the following errors: 7
(a) ₹700 paid for the purchase of new office furniture charged to office
expenses account.
(b) Goods worth ₹174 were sold to Roop but latter account was actually
credited by ₹147.
(c) Sales day book was undercast by ₹200.
(d) The total of the discount column on the debit side of the cash book
was short by ₹30.
(e) An amount of ₹1,000 withdrawn by the proprietor for his personal
use was debited to trade expenses account.
(f) ₹200 was received on account of rent but was credited to dividend
account.
(g) Goods sold to Mr. Rakesh for ₹705 but entry was made for ₹570.
(h) An amount of ₹325 owing by Mukesh was omitted from the list of
sundry debtors.
6. What adjustments are required to close the books of accounts? Also 6
write short notes on any two:
(a) Wasting assets.
(b) Patent rights.
(c) Fictitious assets.
7. The following figures appear in the books of Mr. Albert. 8
₹
Jan 1 Provisions for bad and doubtful debts 2,400
Jan 1 Provision for discount on debtors 1,1,20
Dec. 31 Bad debts written off 940
Dec. 31 Discount allowed during the year 1,860
Dec. 31 Bad debts recovered 50
Dec. 31 Debtors 20,120
Write off further ₹480 (definitely bad)
Create a provision for discount of debtors @2% and also for bad and
doubtful debts @4% you are required to journalize the above and
prepare provision for bad and doubtful debts account and provision for
discount and bad debts account and discount account.
8. Describe – 5
I. The points of similarity and
II. The points of distinction
between depreciation fund method and insurance policy method of
providing depreciation.
9. Why the computerization of Financial Accounting is required and why 5
is it useful?
 Part–III (Long/Case Study/Case based/Application Oriented answer 2X20=40
type questions) Attempt any two questions
10. State the principles of double entry system of accounting. Give briefly 5
its chief advantages and disadvantages.
11. From the following trial balance, prepare trading account, profit and 8
loss account and balance sheet as on 31st December, 2022.
Particulars Debit ₹ Credit ₹
Opening stock 3,000 ̶
Purchases and sales 18,500 35,000
Discount allowed 1,300 ̶
Wages 4,500 ̶
Salaries 2,000 ̶
Travelling expenses 400 ̶
Commission 425 ̶
Carriage inward 275 ̶
Administration expenses 405 ̶
Insurance 1,250 ̶
Trade expenses 1,600 ̶
Capital ̶ 15,000
Debtors and creditors 6,000 3,000
Cash in hand 2,145 ̶
Furniture 2,200 ̶
Buildings 9,000 ̶
53,000 53,000
Additional information:
(i) Stock on 31st December, 2022 was ₹7,500.
(ii) Depreciate buildings @5% and furniture @10%.
(iii) Create a provision for bad debts @5% on debtors.
(iv) Outstanding wages ₹250 and salaries ₹650.
(v) Prepaid insurance ₹350.
(vi) Goods used by proprietor ₹1,000.
12. Is the agreement of a trial balance a conclusive proof of accuracy of 6
ledger accounts? If not, what are the errors which remain undetected
by the trial balance? Also mention the errors which are revealed by the
trial balance.
13. What is encryption and how is it helpful in Computerized Accounting 7
Software (CAS)? Also describe the salient features, advantages and
disadvantages of CAS.
 Dr. Ishi Mohan
Name and Signature of the Paper Setter (Signature of Moderator(s))
Note: Instructions, if any, should be clearly indicated on the Question Paper regarding use of Graph Papers,
Log Table, Calculators etc.