SYMBIOSIS INTERNATIONAL (DEEMED UNIVERSITY)

(Established under Section 3 of the UGC Act 1956)

Re-accredited by NAAC with ‘A’ grade (3.58/4) Awarded Category – I by UGC

Program: BBA LLB (hons)

Batch: 2021-26
Semester: 1st
Course Name: Business Accounting
PRN: 21010126008
Name of the Student: Aniket Rauthan

INSTRUCTIONS
1. Mention your details only in the space provided above. If any other details
name, contact detail etc. are written anywhere else in the answer script it will
be treated as adoption of unfair means.
2. Use diagrams and sketches wherever required.
3. Submission must be done by the student through google form link provided
by the examination department and all submissions must be in the word
format only(.doc/.docx). Submission of any other format will not accepted.
4. Submission will not be accepted beyond the deadline given by the
examination department in each subject. Student will be marked absent in
case of late submission.
5. Formatting guidelines: Font size & name: 12 & Times New Roman; Line
spacing 1.5; Justified; Page size: A4; No borders
6. Write your answer in your own language and do not copy paste from any
source. Read the question carefully and write your answer fulfilling the
requirements of the question.
7. If the students copy from each other’s assignment, it will be considered as
unfair means case and performance will be treated as null and void for the
entire examination.
1A
TRIAL BALANCE

In the books of XYZ as on ….

Particulars L. Debit (Rs.) Credit (Rs.)

F.

Opening Stock 30,000

Machinery 5000

Capital 50,000

Furniture 40,000

Debtor 16,000

Creditor 5,000

Bank Overdraft 5,000

Purchases 80,000

Salaries 11,000

Interest on Loan 100

Interest on Investment 500

Discount allowed 300

Sales 1,30,000

Loan from Y 8,000

Advertisement 4,000

Drawings 5,000

Carriage inwards 900

 Return inwards 3,000

Return Outwards 1000

Insurance Premium 1,200

Investments 10,000

Suspense Account 7000

Total 2,06,500 2,06,500

Reasons for the particulars item to be considered in Debit and Credit amount are-

 Furniture is an asset to the company and hence, it has a debit balance.

 Debtors are an asset to the company hence, it has a debit balance.
 Creditors are the liability for the company and hence, has a credit balance.
 Bank overdraft is a liability for the company and hence, has a credit balance.
 Salaries is a liability for the company and hence, has a credit balance.
 Sales are the income to the company and hence, it has a credit balance.
 Loan from Y is a liability for the company and hence, has a credit balance.
 Advertisement is an expense for the company and hence, has a debit balance.
 Drawings are the amount deduct from the capital of the company hence, it has a credit
balance.
 Return inward are the debit balance of the company.

Q2.

D PAR N L DI C B D PAR J L DI C B
A TIC O . SC A A A TIC . . SC A A
T UL F OU S N T UL N F OU S N
E AR NT H K E AR O NT H K
AL RE
 LO CE
W IV
ED ED

201 To - 300 - 201 By - 180 -

5, balance 5, Purcha
Au b/d Au ses a/c
g1 g3

2 To - - 790 9 By - 45 -
balance electric
b/d ity a/c

4 To T. 20 - - 13 By c - 500 -
Lala & Cash
Co. a/c a/c

8 To T. - - 980 19 By - 15 -
Lala & Postage
Co. a/c a/c

13 To c - - 500 24 By - - 120
Bank Insuran
a/c ce a/c

15 To H. 10 - 790 24 By c - - 500
Lal’s Bank
a/c a/c

24 To c - 500 - 31 By 45 60 3,1
Cash balance 95
a/c c/d

27 To S. 15 - -
Lal a/c

30 To S. - - 285
Lal a/c

31 To S. - - 470
Talwar
a/c

45 800 381 45 800 381

5 5
3B Bank Reconciliation Statement
As on 30th June 2015
Particulars Dr. Cr.
Add: Balance as per cash book (Cr.) 110450
i. Cheque deposited but not credited 22750
ii. Interest debited by bank but not recorded in cash book 12115
iii. Amount wrongly debited by bank 2400 37265
147715

Less:
i. Cheque issued but not yet presented 15000
ii. Bills sent for collection credited by bank but not recorded in 47200
cash book
iii. Subsidy received by bank and credited but not yet recorded in 22000
cash book
iv. Amount wrongly credited by bank 5000 89200

Balance overdraft as per pass book (Dr.) 58515

4A)A Bank Reconciliation Statement is a log of a bank account's transactions. This statement enables
account holders to monitor and manage their funds, as well as to change their transaction records.
The term "bank reconciliation statement" is also used to refer to the bank passbook. The value
shown in the bank passbook section of the statement must correspond to the balance shown in the
cash book. All deposits will appear in the credit column on the statement, while withdrawals will
appear in the debit column. However, if the withdrawal exceeds the deposit, a debit balance will be
displayed (overdraft).

Comparing the cash book and bank balance of a business generally does not result in a match. As a
result, the bank reconciliation statement must show the cause of the discrepancy and then the two
balances must be tallied. The bank reconciliation statement explains the discrepancies between the
company's cash book and bank account. The following factors contribute to the discrepancy
between the bank's cash book and the customer's personal chequebook:

Importance of Bank Reconciliation Statement

Recording the transactions at different times: There are several causes that can lead to a discrepancy
in timing, such as:
  An undeposited bank check issued by a financial institution.
 The bank has received the payment, but it has yet to clear.
 The customer's account was debited by direct debit by the bank.
 Cash put directly into your bank account in the form of a check
 The bank receives dividends and interest from its customers.
 The customer made a direct payment to the bank.
 Deposited checks and discounted bills are not honoured.
 Errors committed by the business or the bank: The bank or the company's cash book can
make an error in two balances on rare instances. Some examples of mistakes include:
 The company committed mistakes when recording the transaction.
 The bank made mistakes when registering the transaction.

5B Prepaid Expenses

Prepaid expenses are a sort of asset on the balance sheet that emerge from a business making
advance payments for future goods or services. While prepaid expenses are originally capitalised as
assets, their value is expensed onto the income statement over time. Unlike traditional expenses,
the business will receive something of value over the course of multiple accounting periods from the
prepaid expense.

Prepayments are made by businesses for goods and services such as leased office equipment or
insurance coverage that give ongoing benefits over time. These types of goods or services cannot be
expensed immediately because the expense would be out of step with the benefit accrued over time
from the asset's use.

According to generally accepted accounting principles (GAAP), expenses should be recognised

concurrently with the relevant asset's benefit.

For instance, if a business leases a large copying machine for a period of 12 months, the business
profits from its utilisation throughout that time period. Accounting for an advance payment on the
lease as an expense in the first month would result in an insufficient match between expenses and
revenues generated by its utilisation. As a result, it should be reported as a prepaid item and
expensed over the course of twelve months.

Outstanding Expenses

Outstanding expenses are expenses that will be incurred during the current accounting period but
will not be paid, or in other words, there are certain expenses that will take place during the current
accounting period but for which payment will not be made; these expenses are referred to as
outstanding expenses in the normal course of business. Outstanding expenses are expenses that are
incurred during the current accounting period but for which payment will not be made.

In this case, the outstanding expense is a personal account with a positive balance, and it is
recognised as a liability for the company. This type of liability is documented on the liabilities side of
a company's balance sheet.
These expenses must be recognised in order to maintain accounting accuracy, regardless of whether
they are paid or not. Like all other expenses made by a business, this one is deducted from the profit
realised for the current year and deducted from future profits.