FUTURE INSTITUTE OF MANAGEMENT STUDIES, BAREILLY

MBA I YEAR
BUSINESS ACCOUNTING
SECTION A
EXPLAIN ANY THREE OF THE FOLLOWING (3*2)
1. Share holder fund
2. Provision and reserve
3. Contingent liability
PARTICULARS

L
F

Computers
Plant and machinery
Cash in hand
Cash at bank
Stock as on 1/4/2013
Debtors
Purchase/sales
Carriage outward
Creditors
Rent
General expenses
Loan ( taken on 1/4/2013)
Returns
Repairs
Wages
Interest on loan
Electricity charges
Bills payable
Capital
TOTAL
appropriation account
5. Goodwill
6. Copyright

AMOUNT Dr.
37000
380000
4500
51830
8100
65300
273685
3100

AMOUNT Cr.

4. P/L

520870
20600

41700
24000
1300
1400
54755
10000
2800
959470

SECTION B

200000
1100

6900
210000
959470

(9)

Following is the Trial Balance of Mohan & company. Prepare trading and profit and loss account
for the year ending March 31, 2014 and balance sheet as on 31/2/2014.

Adjustments:
1.
2.
3.
4.

Closing stock 15600

Create a provision for doubtful debts 5%.
Depreciate plant and machine 10% and computer 20%.
General expenses include Rs. 2000 paid for wages.
SECTION C

(2*7.5)

1. What do you understand by financial statements? Explain the significance of financial

analysis.
2. Calculate the following:
a) X ltd has a current ratio of 4.5 : 1 and acid test ratio of 3 : 1. If its inventory is Rs.
24000 find out current liabilities.
b) If a firm cost of goods sold is Rs. 125000 and the gross profit is 20 % on sales find out
gross profit and sales.
c) Calculate debtors turnover ratio if cash sale 20% of total sale-Rs. 120000. Average
debtors- Rs. 60000
3. Short notes
a. Concept of GAAP
b. Accounting standards
c. Convention of conservatism and consistency