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1 Assignment BBA 101
1 Assignment BBA 101
1 Assignment BBA 101
Note : Question No. 1 is of short answer type and is compulsory for all the students. It carries 5 Marks.
(Word limits 50-100)
Note: Answer any two questions. Each question carries 5 marks (Word limits 500)
Q. 2. What do you mean by accounting? Who are the users of accounting? Explain its scope.
Q. 3. Define debenture. Explain the various types of debentures.
Q. 4. Journalise the following transactions in the books of M/s Sohan & sons:
2008 Rs.
Jan., 01 Goods purchase for cash 1,200
Jan., 02 Purchase good from Ram 1,500
Jan., 04 Goods sold to Laxman 1,000
Jan., 05 Furniture purchase for cash 800
Jan., 07 Charge interest on capital 2,500
Jan., 11 Goods return from Laxman 200
Jan., 12 Goods return to Ram 500
Jan., 14 Withdrew from bank for private use 6,000
Jan., 16 Give in charity: Cash 100
Goods 200
Jan., 19 Salaries paid by cheque 4,000
Jan., 21 Goods sold to Sachin on 10% trade discount and 8% Cash discount 1,000
Jan., 23 Laxman become insolvent and could pay only 75 paise in a rupee
Jan., 26 Proprietor took goods for his personal use 2,000
Jan., 29 Postage Rs. 200 and Rent Rs. 1000 Paid
Jan., 31 Received Rs. 4,000 from insurance company
Answer to the all Question No-1
1.To maintain the cash accounts through the Cash Book and to find out the
Cash balance on any particular day.
ii) Distinguish between Profit and Loss Account and trading a/c.
Answer: Distinguish between profit and loss account and trading account
given below:
Answer:
Accounts from incomplete records is the system in which we convert single
entry system into double entry system. As per accounting rules, single entr
y system can only show incomplete records because accountant (who follo
ws this single entry system) do not records the expenses and revenue. He j
ust record total cash and credit. It means, it is very difficult to know the profi
t or loss of such business because we cannot make profit and loss accounti
n single entry system. For converting incomplete records into complete rec
ords with double entry system, we need current years profit or loss.
Straight-line Depreciation
The simplest and most commonly used method, straight-line depreciation is
calculated by taking the purchase or acquisition price of an asset,
subtracting the salvage value (value at which it can be sold once the
company no longer needs it) and dividing by the total productive years for
which the asset can reasonably be expected to benefit the company (or its
useful life).
Types of Debentures
It is the first type of debentures, which does not hold any security on
account. These debentures are standing in the similar point as any other
unsecured creditors and having no concern at the time of company winding
up.
2. Mortgage Debentures
These types of debentures are secured against the credit on the actual
property of the company. The holder of debenture has a lawful right to sell
the possessions and recover the credit if the company does not refund the
borrowed money at a particular period of time.
3. Redeemable Debentures
4. Irredeemable Debentures
These types of debentures are not refundable during the life time of the
issuing company. These are only to be paid either at the time of any failure
to pay on the part of the company or on the winding up of the company.
5. Registered Debentures
These types of debentures are issued in the name of specific person. The
name must show on the front side of the bond and also in the company
books.
6. Bearer Debentures
These does not show specific name of person on the bond. The holder of
said debenture is allowed to receive any interest fee on the payable dates.
These debentures are issued to raise funds for the purchase of new
equipment of a business.
8. Convertible Debentures
It certain cases, the company allow the debentures holders to convert their
debentures for the Shares of the company. If the investor avails of this
provision, then he becomes the shareholder of the company.
Journal in the books of M/s Sohan & Sons for the period from 1st to
31th January 2008.