Aditya Degree College::Bhimavaram: Accounting For Managers

ADITYA DEGREE COLLEGE::BHIMAVARAM
ACCOUNTING FOR MANAGERS

Year: I Semester: II
Course: BBA Max.Marks:75
SECTION-A
Answer any FIVE of the following 5X5 marks=25 marks
1 Distinguish between Book-keeping and Accounting.
2 Distinguish Debit Note and Credit Note.
3 Explain the Types of Errors.
4 Explain the Features of Joint venture.
5 Explain the causes of Depreciation.
6 Explain {DEBIT, CREDIT} Rules of Double entry system.
7 Distinguish between Proforma Invoice and Account Sales.
8 Distinguish between Normal loss and Abnormal loss
SECTION-B
Answer ALL Questions 5x 10 marks=50 marks
9 a Define Computerized accounting.Explain advantages and disadvantages.
(OR)
b Define Accounting. Explain the Features and objectives.
10 a What do you mean by a Bank Reconciliation Statement? Explain the
reasons on account of which the balance as shown by the Pass Book does
not agree with the balance.
(OR)
b Enter the following transactions in the subsidiary books of Soundarya
Saree
Shop 2019
August1. Purchased from Pathi Silk Kendra, 100 silk sarees at Rs. 250
each.
August5. Purchased from NSR and company,200 Kanchi Silk sarees at Rs.
1000 each.
August, 7. Sold to Kumar on account, 50 printed sarees at Rs. 300 and 100
Kanchi sarees at Rs. 1000 each.
August, 8. Claimed for damages from Pathi Silk Kendra Rs 500.
August, 9. Returned damaged goods to NSR and Co. 5 Kanchi sarees.
August, 12. Purchased from Sudharshan Silks150 Mysore Silk at Rs. 250
each100 handloom sarees at Rs. 750 each, less trade discount at 10%.
August16. Sold to Kala on account 20 printed sarees at Rs. 300 each, 25
Kanchi sarees at Rs. 1,300 each, 20 Mysore Silksarees at Rs.300 each, less
trade discount at 5%.
August20.Sold to Kusam sarees, 40 Handloom sarees at Rs.1000 each.
August, 21.Kumar returned 10 printed sarees and 20 Kanchi sarees.
August, 25. Returned to Sudharshan’s Silk, 25 Mysore silk.
August, 27. Returned from Kusum sarees, 10 Handloom sarees.
August, 30. Purchased from Nandi Sild, 400 Nandi brand sarees at Rs.
500.
11 a An inexperienced book-keeper has drawn up an Incorrect and Unadjusted
Trial Balance, You are required to correct Trial Balance, and then prepare
Adjusted Trial Balance:
ADITYA COMPANY LTD INCORRECT, UN ADJUSTED TRIAL
BALANCE
AS ON 31-12-2019
S.no Heads of Accounts Amount Amount
Debit Credit{Rs}
{Rs}
1 PURCHASE 13,000
RETURNS
2 MACHINERY 34,000
3 SALARIES 17,200
4 CREDITORS 33,000
5 CASH IN HAND 40,000
6 CARRIAGE INWARD 6,000
7 RENT RECEIVED 3,000
8 DICOUNT ALLOWED 2,000
9 BILLSPAYABLE 20,000
10 DEBTORS 15,000
11 CARRIAGE OUT WARD 5,000
12 CAPITAL 53,200
13 BUILDING 18,000
14 SALES RETURNS 3,000
15 DISCOUNT RECEIVED 14,000
16 INSURANCE 6,000
17 SALES 1,30,000
18 FURNITURE 20,000
19 COMMISSION RECEIVED 8,000
20 PURCHASED 1,00,000
(OR)
b Following balances are extracted from the books of Kutilya and co. on
31, march,2019. You are required to make the Trading and Profit and
loss account, and a Balance Sheet as shown, Closing stock was valued
at RS.12, 500.
Opening Stock 500 Returns outward 250
Bills Receivable 2,250 Trade expenses 100
Purchases 19,500 Office Fixtures 500
Wages 1,400 Cash in Hand 250
Insurance 550 Cash at Bank 2,375
Sundry Debtors 15,000 Rental Taxes 550
Carriage inward 400 Carriage Outward 725
Commission{Dr} 400 Sales 25,000
Interest on Capital 350 Bills Payable 1,500
Stationery 225 Creditors 9,825
Returns Inward 650 Capital 8,950
Commission{Cr} 200
12 a Distinguish between Consignment and Joint Venture.

(OR)
b A,B,& C jointly undertake to construct a theatre building for Popular
Entertainment Ltd., at a price of Rs. 50,00,000 to be paid Rs. 40,00,000 in
cash by instalments and Rs. 10,00,000 in debentures of the Co. They
agreed to share the profit or losses equally. They contribute A—Rs.
6,00,000, B— Rs.7,50,000 and C—Rs. 4,00,000. These amounts are
deposited in a joint banking account. A gets the plan prepared and pays
Rs. 70,000 architects fees. B brings into the venture a concrete mixer of
the value of the value Rs.2,50,000 and C brings into the venture a truck of
the value of Rs.2,00,000. They buy a plant for Rs. 2,40,000, material worth
Rs. 24,00,000, material worth Rs. 24,00,000 and paid wages Rs.19,50,000.
On completion of the venture A takes over the unused materials for Rs.
1,40,000 ,B takes back the concrete mixer at a valuation of Rs. 1,20,000
and C takes back the truck at Rs. 80,000. The plant was sold for
Rs.60,000. When the contract price fully received A took over the
debentures at a valuation of Rs.8,00,000.
Show joint venture Account, Joint Bank Account and Individual Accounts
of Ventures.
13 a What do you mean by Reserve and Provision? How is Provision different
from reserve?
(OR)
b Rama & co. Purchased a second hand machine for Rs.48,000 on 1st
January, 2010.They spent Rs. 2,000 on the repairs there of an installed
the same. Depreciation written off at 10% p.a on the straight line method
on 30th June 2012 the machinery was found to be unsuitable and sold for
Rs.26,000.Prepare machinery account from 2010 to 2012 assuming that
the account are closed on 31st December every year
********

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ADITYA DEGREE COLLEGE::BHIMAVARAM

ACCOUNTING FOR MANAGERS

12 a Distinguish between Consignment and Joint Venture.

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