BBS 1st Year Account Model_page1

Financial Accounting and Analysis

BBS 1st Year

Model Question II

Nature of the Course: Core	Full Marks: 100
Course No.: MGT 211	Pass Marks: 35

Candidates are required to give their answer in their own words as far as practicable. The figures in the margin indicate full marks.

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Section A

Brief Answer Questions

Attempt ALL Questions	(10x2=20)

1. What is financial accounting?
2. What is accrual concept of accounting?
3. Write about the perpetual system of inventory.
4. Write any two differences between stock dividend and stock splits.
5. What is matching concept of accounting?
6. An enterprise has total assets of Rs. 500,000 and liabilities of Rs. 300,000 at the beginning of the year. During the year, the company earned Rs. 200,000 and distributed Rs. 50,000 dividend.
   Required: Equity at the end of the year
7. The following transactions of the company are given below:

   Jestha 2	Acceptance was given to Hari for 3 months for Rs.30,000
   Ashad 9	Received from Rajendra an acceptance for 1 month for Rs.8,000
   Ashad 27	Discounted Rajendra’s acceptance for Rs.7,900
   Shrawan 25	Acceptance was given to Ram for 2 months for Rs.22,000

   Required: Bills Payable Book
8. ABC Company receives a one year loan from Nepal Bank Ltd. On 1st Shrawan 2075. The face value of the Note of Rs.100,000 must be repaid on 31st Ashad 2076 along with 12% interest.
   Required: Journal entries to record the loan and its repayment.
9. Pashupati Company redeemed Rs. 100,000 face value bond issued at premium Rs. 10,000. The unamortized premium was Rs. 6,000 and the bond contains a call provision of Rs. 103.
   Required: Gain or loss on early redemption of bond.
10. Following information are given to you:

    Insurance expenses	Rs.10,000	Salary	Rs.12,000
    Commission received	Rs.5,000	Interest (Cr.)	Rs.7,000
    Utilities	Rs.8,000	Depreciation	Rs.10,000
    Supplies expenses	Rs.4,000

    
    Required: Closing entries

Section B

Short Answer Questions

Attempt any FIVE Questions	[5x10=50]

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11. On 31st Chaitra 2075 Bank Statement of Citi College disclosed a balance of Rs.12,400 and Cash Book showed the balance of Rs.12,500
    
    1. Number of cheques were deposited in the bank but on 31st Chaitra, 2075, a cheque for Rs.2,000 was not credited in the Bank Statement.
    2. Cheques issued of Rs.6,000 but only Rs.2,000 presented before 31st Chaitra.
    3. Notes receivable collected by the bank Rs.1,500
    4. Cash of Rs.4,800 deposited by the college on Chaitra was recorded by the bank as Rs.4,200.
    5. A cheque for Rs.3,000 received from a student was returned by the bank due to insufficient fund with the bank.
    
    Required: i. Journal entries ii. Bank Reconciliation Statement as on 31st Chaitra 2075
    iii. Bank balance on 31st Chaitra balance sheet. (4+5+1=10)

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