Department of Business Administration
Class: BBA
Sem: 1
Course Code: BBAD1912
Title of the paper: Financial Accounting Max: 15 Marks
Answer the following questions in (500 words).
1. List the characteristics of Accounting principles.
The following Transactions during the month were;
2023 Jan. 2. Bought goods of Jack – Rs. 2, 700/-
Jan 3. Sold to Jill – Rs. 3, 000/-
Jan 5. Bought goods of Lim for cash, paid by cheque – Rs. 3, 600/-
Jan 7. Withdraw cash for personal use – Rs. 200/-
Jan 10. Sold goods to Fen Rs.2,400 in credit
Jan 13. Received from Fen in full settlement – Rs. 2, 350/-
Jan 17. Paid to Sibi – Rs. 2, 920/-
Jan 22. Paid cash for stationery – Rs. 50/-
Jan 29. Paid to K by cheque and Rs. 650/- Discount allowed by him – Rs. 50/-
Journalize the above transactions and prepare Ledger accounts.
2. “Financial statements are the only basis for measuring the performance of a
company”. Comment.
3. State the need for the preparation of a bank reconciliation statement.
4. Mr.Dell purchased a machine for Rs.90,000 on 1st April 2020. He spend
Rs.5,000 on its Installation. Depreciation is written off @ 10 % p.a. on the
original cost. On 30 th June 2022, the machine was found to be unsuitable
and sold for Rs.45,000. Prepare the Machinery account from 2020 to 2022
assuming that the accounts are closed on 31st December every year.
5. A started a business by investing Rs. 45,000. After a period of 3 months, B joined
with an investment of Rs. 60,000 and after another 6 months C joined the
venture with a capital of Rs. 90,000. At the end of the year, the total profit made
was Rs. 16,500. Find out the share of each person.
