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Bba203 Winter 2016 Solved Assignment
Bba203 Winter 2016 Solved Assignment
Bba203 Winter 2016 Solved Assignment
2. Explain Bill of exchange and the procedure for recording bills in the
books of drawer and accepter when the bill is : Accepted and
discharged.
i) Explain bill of exchange
ii) Journal entries in the books of drawer
iii) Journal entries in the books of acceptor
Answer: A bill of exchange is documentary evidence in writing containing an
unconditional order signed by the maker, directing a certain person to pay a
certain sum of money only to, or the order of, a certain person or to the bearer of
the instrument.
In the Boo
Answer: Goodwill generally means the reputation of the firm. When a business
is doing its operations over a number of years, it may develop a good name and
reputation among the customers or society. In accounting parlance, it can be
called as Goodwill. The goodwill of a firm may earn
5. Prepare Trading, Profit and Loss Account and Balance Sheet from the
following particulars as on 31st March 2016.
Trial Balance
Particulars Dr. Cr.
(Rs) (Rs)
Capital / Drawings 1400 10000
Cash in hand 1500 -
Bank overdraft @ 5% - 2000
Purchase and Sales 12000 15000
Returns 1000 2000
Establishments charges 2500 -
Taxes and Insurance 500 -
Provision for Doubtful - 1000
Debts
Bad Debts 500 -
Sundry Debtors and 5000 1850
Creditors
Commission - 500
Investments 4000 -
Stock on 1 April 2010 3000 -
Furniture 600 -
Bills Receivable & Bills 3000 2500
payable
Collected Sales Tax - 150
Total 35000 35000
Further, you are required to take into consideration the following
information:
a) Salary Rs.100 and taxes Rs.400 are outstanding but insurance Rs.50
prepaid
b) Commission amounting to Rs.100 has been received in advance for
work to be done next year.
c) Interest accrued on investments Rs.210
d) Provision for doubtful Debts is to be maintained at 20%
e) Depreciation on furniture is to be charged at 10% p.a.
f) Stock on 31st March 2016 was valued at Rs.4,500
g) A fire occurred on 25th March 2016 in the godown and stock of the
value of Rs.1,000 was destroyed. It was fully insured and the insurance
company admitted the claim in full.
[Calculation of Trading and P/L a/c-5
Preparation of balance sheet-5]
Answer: Trading and Profit and loss Account for the period ended 31st
March 2016
Particulars Rs Rs Particulars Rs Rs
To Opening Stock 3000 By Sales 15000
To Purchase 12000 Less: Sales Returns 1000 14000