CENTRE FOR CONTINUING EDUCATION BBA (AVIATION OPERATION)

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1 CENTRE FOR CONTINUING EDUCATION BBA (AVIATION OPERATION) BATCH: SEMESTER: NAME: ROLL NO: ASSIGNMENT 1 & 2 FOR BUSINESS ACCOUNTING BBCF 131 UNIVERSITY OF PETROLEUM & ENERGY STUDIES

2 Assignment-1 Note: All sections are compulsory. Section A (Short Notes) (4*5)=20 Marks Q1. What is Accounting Equation? Q2. Name the two methods of charging depreciation? Q3. What are the various steps in accounting? Q4. What are various tools of analyzing financial statements? Section (B) Long Types (3*10)=30 Marks Q5.From the Trial balance given below Prepare trading and profit / loss account and Balance Sheet for the year ending 31 st March Dr. Cr. Particulars Amount Particulars Amount Purchases 2,00,000 Sales 3,00,000 Sales Return Purchase return 25,000 Office expenses Discount received 90,000 Debtors Creditors 55,000 Land & Building 1,00,000 Capital 4,50,000 Furniture & Fittings 4,15,500 Interest received 15,000 Fuel & Power 9,500 Cash in hand 12,500, Cash at bank 12,500 Drawings 50,000 Salary & Wages 15,000 Opening stock 45,000 Total 9,35,000 Total 9,35,000 Following are adjustment: 1. Closing stock is valued at which has its market value of Rs Furniture & Fittings is to be P.A. 3. Write off Rs as Bad debts. 4. Outstanding office expenses for the year amounted to Rs Interest received in advance amounted to Rs.5000 Q6. A Company purchased a second hand Machinery on for Rs and immediately spent Rs.2000 on its repairs and Rs.1000 on its erection. On , it purchased another

3 machine for Rs On , it sold off the first machine for Rs and bought another for Rs Depreciation is to be provided at the rate of 10% per annuam on the original cost annually on 31 st December. With effect from the company changed the method of providing depreciation and adopted the written down value method and rate is 15% per annuam. Prepare Machinery Account for four (4) years. Q7. With the help of the following information prepare a Trading Account, Profit and Loss Account and Balance Sheet of ABC Ltd.: (i) Gross Profit Ratio 25% (ii) Net Profit Ratio 20% (iii) Inventory Turnover Ratio 10 Times (iv) Net Profit / Capital 1/5 (v) Capital / External Liabilities 1/2 (vi) Fixed assets to Capital 5/4 (vii) Fixed Assets / Total Current Assets 5/7 (viii) Fixed Assets Rs. 5,00,000 (ix) Closing Stock Rs. 50,000 What conclusion you can derive from the above analysis regarding the profitability and effectiveness of fixed assets utilization w.r.t capital invested? Also throw light on the short term solvency of the firm. Section C Case Study/ Long type Numerical (2*25)=50 Marks Q8.From the following particulars, prepare Balance sheet as on Current ratio 2:1 2. working capital Rs capital block to current assets 3:2 4. fixed assets to turnover 1:3 5. sales cash/ credit 1:2 6. debenture/ share capital 1:2 7. stock velocity 2 months 8. creditors velocity 2 months 9. debtors velocity 2 months 10. gross profit ratio 25% on sales 11. CAPITAL BLOCK: Net profit 10% of turnover Reserves 2.5% of turnover Note:-Working notes should form part of your Answer

4 Q9. The following is the Balance sheet for two years 2010 & LIABILITY ASSETS Share capital General reserve P/L A/C Creditors Provision for tax Loan taken Fixed assets Investments Stock Debtors cash Additional Information: 1. Dividend paid during the year amounted to investment costing Rs were sold for Rs During the year part of fixed assets costing Rs were sold for Rs Provision for tax made during the year Rs Prepare Statement for change in Working Capital & FUND FLOW STATEMENT Assignment No.:2 Section A (Short Notes) (4*5)=20 Marks Q1. Define the term accounting. State its functions. Explain how accounting is different from bookkeeping? Q2. Who are the interested persons in the accounting information? Prepare the detailed format of Balance sheet as per Part I of Schedule VI of Company s Act Q3. Distinguish between straight line method and written down value method for charging Depreciation? Q4. What are Accounting concepts? Name them and explain any two accounting concept in detail?

5 Section (B) Long Types (3*10)=30 Marks Q5. Show the treatment of the following items in the Profit & Loss a/c and Balance Sheet: Ledger Accounts Debit Credit Debtors Provision for doubtful debts Bad debts Adjustments: 1. There was a further bad debt of Rs Make a provision for doubtful Q6.What do you mean by Analysis of Financial Statement discuss various method to Analyze financial statement? Q7. A manufacturing concern, whose books are closed on 31 st December every year, purchased machinery for Rs.50,000 on Jan.1, Additional machinery was purchased for Rs.10,000 on and for Rs.16,061 on Part of the machinery purchased for Rs.10,000 on Jan.1,2000 was sold for Rs.5000 on Prepare Machinery account for 5 years. W.e.f till (Depreciation is written off at 10% per annum on written down value method.) Section C Case Study/ Long type Numerical (2*25)=50 Marks Q8. From the following information, calculate (i) Fixed Assets Turnover and (ii) Working Capital Turnover Ratios (iii) Current Ratio (iv) Debt- Equity ratio (v) Capital Gearing ratio Preference Shares Capital 6,00,000 Plant and Machinery 6,00,000 Equity Share Capital 4,00,000 Land and Building 7,00,000 General Reserve 2,00,000 Motor Car 2,50,000 Profit and Loss Account 2,00,000 Furniture 50,000 15% Debentures 3,00,000 Stock 1,70,000 14% Loan 1,00,000 Debtors 1,20,000 Creditors 1,40,000 Bank 90,000 Bills Payable 30,000 Cash 20,000 Outstanding Expenses 30,000 20,00,000 20,00,000

6 Sales for the year were Rs. 60,00,000. Q9. From the following trial balance of Shri Mehta, prepare final accounts taking adjustments into consideration for the year ended on March 31, Trial Balance Debit (Rs.) Credit (Rs.) Stock on Purchases Investments Returns Inward Trade Expenses Wages Salaries Office Expenses Advertisement Rent, Rates and Insurance Bad Debts Discount Interest and Commission Premises Plant and Machinery Fixtures and Fittings Sundry Debtors Cash in hand Capital Sales Returns Outwards Creditors Bank Overdraft Total 30,000 75,000 11,000 2, ,500 5, , ,000 10,000 5,000 46,000 1,030 35,000 1,25,000 1,300 30,000 10, Adjustments 1. Stock on March 31, 2011was Rs. 45, There were outstanding liabilities in respect of rent of Rs. 550 and wages of Rs Insurance paid in advance amounted to Rs Salaries were unpaid to the extent of Rs Write off Rs. 400 as further bad debts and maintain doubtful debts at 5% on debtors. 5. Depreciate premises by 2½%, machinery at 7½% and fixture and fitting at 10%. 6. Accrued interest on investments is Rs. 275.