FACULTY OF SOCIAL SCIENCE DEPARTMENT OF MANAGEMENT BBM – 101 FINANCIAL ACCOUNTING QUESTION BANK (2019-20) REVISED: AUGUST 2019 Unit-I 1.What do you mean by Accounting? Who are the parties interested in accountinginformation?2.State the fundamental steps in the accounting process. Explain the objectives and need ofAccounting in modern business.3.What is the role of controller and treasurer?4.Briefly discuss the advantages and scope of Accounting.5.What are the accounting concepts and conventions? Explain6.Why are some accounting systems called double accounting systems?7.“Accounting equation is simply a basis for learning the double entry system and nothingmore.” Comment on the statement. Give four examples.8.What entry (debit or credit) would you make to:(a) increase revenue(b) decrease in expense,(c) record drawings(d) record the fresh capital introduced by the owner.9.Record the transactions in Journal of Sita Ram. (i) Business commenced with a capital ofRs. 6,00,000. (ii) Rs. 4,50,000 deposited in a bank account. (iii) Rs. 2,30,000 Plant andMachinery Purchased by paying Rs. 30,000 cash immediately. (iv) Purchased goodsworth Rs. 40,000 for cash and Rs. 45,000 on account. (v) Paid a cheque of Rs. 2, 00,000to the supplier for Plant and Machinery. (vi) Rs. 70,000 cash sales (of goods costing Rs.50,000). (vii) Withdrawn by the proprietor Rs. 35,000 cash for personal use. (viii)Insurance paid by cheque of Rs. 2,500. (ix) Salary of Rs. 5,500 outstanding. (x)Furniture of Rs. 30,000 purchased in cash. Xi) Building purchased for cash Rs. 20,00010.Write short notes on the following:a)Types of accounts b)Dual aspect conceptc)Realization conceptd)Convention of Conservatism11.Journalize the following transactions in the books of Rajesh Kumar.DATEPARTICULARS AMOUNT (Rs.) April 1Started business with cash 10,000April 4Machinery purchased 3,000April 11Goods purchased for cash from Manish 700 1
12.Enter the following entries in the Journal of M/s Ajit & Company .2008Rs.July 1Invested cash50,000Brought Furniture 2,000Brought Goods 8,000July 4 Building purchased 20,000July 5 Goods purchased for cash 8,000July 6 Purchased Goods on credit from XYZ & Co 3,000July 9 Paid freight and cartage 200July 11 Sold Goods to M/s Lalit & co., for cash 7,000July 13 Sold Goods to M/s Mahendra & Co. 4,000July 15 Cash deposited in Bank 5,000July 19 Withdrawn cash from Bank for personal use 2,000July 24 Paid to Creditors (XYZ & Co.) 3,000July 27 Amount received from M/s Mahendra & Co 3,000July 29 Paid Salary 80013.Journalise the following transactions of M/s Time Zone and post them to the ledgeraccounts : Date Details Amount 2014 Rs. Dec. 01 Business started with cash 1,20,000Dec. 02 Opened a bank account with ICICI 4,00,00 Dec. 04 Goods purchased for cash12,000 Dec. 10 Paid cartage 500 Dec. 12 Goods sold on credit to M/s Lara India 25,000Dec. 14 Cash received from M/s Lara India 10,000 Dec. 16 Goods returned from LaraIndia 3,000 Dec. 18 Paid trade expenses 700 Dec. 19 Goods purchased on credit fromTaranum 32,000 Dec. 20 Cheque received from M/s Lara India for final settlement
You've reached the end of your free preview.
Want to read all 11 pages?
- Fall '19