Principles OF Accounting

BBA-N-204

Note :- Attempt any five questions.

Q.1. Briefly discuss the basic accounting concept and conventions ?

Q.2. Why are Accounting Standards Framed.

Q.3. Explain the accounting procedure for making price level changes in financial statements.

Q.4. Ram consigned 1000 radio sets costing rs. 900 each to Shyam,his agent on !st july 2008.Ram
incurred the following expenditure on sending the consignment: Rs.

Carriage 650
Freight 7,000
Insurance 3,250
th
Shyam received the delivery of 950 radio sets . An account sale dated 30 Nov. 2008 showed that 750
sets were sold for rs. 9,00,000 and Shyam incurred rs. 3,000 for carriage and 7,500 for the custom duty
at the time taking delivery. Shyam was entitled to a commission @ 6% on the sales affected by him . He
incurred expenses amounting to rs. 2,500 for repairing the damaged radio sets remaining in stock. Ram
lodged a claim with insurance company which was admitted at rs. 35,000 . Show the Consignment
Account and Shyam’s account in the books of Ram.

Q.5.On January 1,2005,X Ltd. Purchased a machinery for Rs. 12,00,000. On July 1, 2007, a part of the
machinery purchased on January 1,2005 for Rs. 80,000 was sold for Rs. 45,000 and a new machinery at
a cost of Rs. 1,58,000 was purchased and installed on the same date . The company has adopted the
method of providing 10% p.a. depreciation on original cost of machinery.Show the necessary ledger
Accounts when ‘Provision for Depreciation Account is Maintained.

Q.6. A business enterprise has three departments. The details for the year 2011 are given below :

Departments

A B C

Opening Stock 10,000 5,000 3,000

Purchases 1,00,000 80,000 60,000

Closing Stock 3,000 2,000 1,000

Sales 2,00,000 1,50,000 1,00,000

Other expenses were as follows:

  Rent,Rates and Inshurance Rs. 10,000 (space occupied by A ½ ,B ¼ ,and remaining by C
department).
 Salaries Rs. 20,000, divided them in ratio of 5:3:2.
 Advertisement Rs.15,000; Discount Rs. 6,000 and Office exp. Rs. 14,000.
 General exp. Rs. 30,000 to be equally.

The departments transfers were as follows :

A toB Rs.10,000 A to C Rs.5,000

B to A Rs. 6,000 B to C Rs. 3,000

C to A Rs. 3,000

Prepare Departmental Trading and Profit & Loss Account showing results of each department.

Q.7.Define a joint venture and give its various features. Name the different Methods used to record

Joint venture transactions.

Q.8. What do you understand by Non –Trading Institutions or Organizations .Where are Receipts and
Payment Account and Income and Expenditure Account used?
 Subject- Auditing

BBA-N-204

Note: - Attempt any five questions.

Q.1. What do you understand by ‘Auditing’? Explain its objects.

Q.2. Differentiate between Accounting and Auditing?

Q.3. What is Internal audit ? Explain the difference between Internal and Independent Audit?

Q.4. What do mean by Internal Control? Also give its characteristics.

Q.5. Describe Verification of assets and liabilities? Also explain its objectives.

Q.6. Explain:-

(a) Routine Checking.

(b) FIFO and LIFO.

Q.7. “Accounting is necessity while Auditing is a Luxury”. Comment.

Q.8. Write Short note on two:-

(a) Audit Programme.

(b)Audit File.

(c) Audit Note –Book.

(d)Working Papers.