BBS Financial Accounting and Analysis

bbsfirst year

This course covers the concepts and principles of financial accounting, recording business transactions, accrual accounting, adjusting and closing entries, preparation of financial statements, and basic financial statement analysis.

Chapter Wise Notes Question Banks Syllabus Chapter Wise Questions

Faculty of Management

2083

Bachelor of Business Studies

Financial Accounting and Analysis

MGT 211

Full Marks: 100

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

"Section A"

Attempt All Questions .

[10*2=20]

Define the business entity concept of accounting.

[2]

Write about the accrual basis of accounting.

[2]

What is a periodic inventory system?

[2]

Give the meaning of current liabilities.

[2]

What is stock dividend?

[2]

Following information are provided:

I. Started business with cash Rs. 100,000 and bank balance Rs. 150,000.
II. Good costing Rs. 20,000 sold on credit at a profit of 10%.

Required: Accounting equation (Note: "Account of value added" is crossed out and handwritten as "equation")

[2]

You are provided the following information:

Interest received: Rs. 20,000 | Wages and salaries: Rs. 30,000
Dividend paid: Rs. 10,000 | Income tax paid: Rs. 12,000
Depreciation: Rs. 30,000 | Net profit: Rs. 15,000

Required: Amount of value added.

[2]

Following transactions are given:

January 10: Sold to ABC Furniture House:
- 2 sets Sofa Set @ Rs. 20,000 each
- 10 Chairs for Rs. 10,000
- (Trade Discount @ 10%)
January 25: Sold to XYZ Furniture House:
- 10 Tables @ Rs. 1,500 each
- 10 Chairs @ Rs 1,000 each with trade discount @ 5%

Required: Sales book

[2]

On $ 1^{\text{st}} $Baishak, A grocery shop borrowed Rs. 300,000 from a bank by signing a 6-months, 8% note payable. It paid the principal and interest at due date.

Required: Journal entries for issue and retirement of note.

[2]

10.

A Company issued Rs. 200,000 face value bond at discount of Rs 20,000. The unamortized discount was Rs. 5,000 and the bond contains a call provision of Rs. 102.

Required: Gain or loss on early redemption of bond

[2]

"Section B"

Attempt any FIVE Questions .

[5*10=50 ]

The following information is provided:


Quick assets	Rs. 450,000	Inventory	Rs. 350,00
Current liabilities	Rs. 300,000	Total capital employed	Rs. 10,00,000
10% Debenture	Rs. 400,000	Fixed assets	600,000

Operating profit of the year Rs.120,000 being 20% of Sales.

Income tax is 25%.

Required:

a. Net profit

b. Quick ratio

c. Debt to total capital ratio

d. Stock turnover ratio

e. Return on shareholder's equity

f. Net profit margin

g. Total assets turnover ratio

[10]

A company provides you the following information related to the inventories for the month of Asadh.

Asadh 1: Beginning inventory 500 units @ Rs.10 each
Asadh 10: Purchased 1,000 units @ Rs.14 each
Asadh 15: Sold 1,200 units @ Rs.15 each
Asadh 20: Purchased 500 units @ Rs.12 each
Asadh 27: Purchased 200 units @ Rs.10 each
Asadh 31: Sold 500 units @ Rs.20 each.

Required:

a. Cost of goods sold and ending inventory under LIFO and FIFO method.

b. Income statement under both methods, assuming operating expenses Rs. 4,000 and estimated tax @ 25%

[10]

(a) A company purchased a machine on Junary 1, 2023 for Rs. 90,000 and spent Rs. 10,000 on its installation. The company writes off depreciation @ 10% p.a. on straight line method. At the end of June 2025, the company sold the machine at Rs. 90,000. The books are closed on 31$^{\text{st}}$ December every year.

Required: Machinery account for the first three years.

(b) Differentiate between capital and revenue expenditures.

[10]

(a) On Chitra 2081, Bank Statement disclosed a balance of Rs.10,000 and Cash Book showed the balance of Rs.8900.

i) Undeposited cheque Rs. 3,000
ii) Outstanding cheque Rs. 4,000.

iii) Notes receivable and interest collected by the bank Rs. 1,000 and Rs. 200 respectively.
iv) A customer's cheque for Rs. 1,000 was returned by the bank due to insufficient fund.
v) Bank charge Rs. 100 for the service provided by the bank.

Required:

a. Bank Reconciliation Statement as on $ 31^{\text{st}} $Chaitra b. Bank balance to be reported on company's balance sheet as on $ 31^{\text{st}} $ Chaitra .

(b) Differentiate between accounting and accountancy.

[10]

Write down the meaning and types of lease. Also, point out the criteria for identifying capital lease.

[10]

Define source of documents. Write down the objectives of the source of documents.

[10]

"Section C"

Attempt any TWO Questions .

[2*15=30]

Following are the transaction of a company.

a. Started business with cash Rs. 100,000 and bank balance Rs. 40,000.

b. Purchased office equipment for Rs. 100,000 and paid 25% cash and balance through cheque.

c. Purchased merchandise goods for Rs. 50,000 on account.

d. Sold merchandise goods on account for Rs. 170,000.

e. Received a cheque from customer Rs. 145,000 in full settlement of Rs. 150,000.

f. Paid Rs. 45,000 to supplier by issuing a cheque after deducting 10% discount.

g. Rs. 12,000 was paid for insurance premium.

h. Paid electricity bill Rs. 15,000.

i. Paid office salary Rs. 20,000.

j. Rent paid in advance Rs. 15,000 through cheque.

Additional Information

a) Ending inventory Rs. 20000.

b) Office salary due Rs. 4000

c) Depreciation on office equipment @25%

Required:

a. Journal entries.

b. Triple column cash book.

c. Accounts receivable and payable account.

d. Adjusted trial balance.

[15]

The Following are the financial statement of a company:

Liabilities	Last Year	Current year	Assets	Last Year	Current year
Share capital	150,000	300,000	Fixed assets	250,000	360,000
Pref. share capital	60,000	90,000	Investment	60,000	75,000
10% bank loan	75,000	30,000	Sundry debtors	45,000	60,000
Accounts payable	40,000	30,000	Inventories	30,000	75,000
Retained earnings	30,000	75,000	Cash at bank	15,000	30,000
Prov. for dividend	15,000	30,000
Prov. for tax	30,000	45,000
Total	400,000	600,000	Total	400,000	600,000

Income Statement for the current year

Particulars	Rs.	Rs.
Sales		300,000
Less: Cost of goods sold		120,000
Gross profit		180,000
Less: Operating expenses (Including depreciation Rs. 30,000 and Interest Rs. 12,000)	87,000
Provision for tax	45,000
Provision for dividend	30,000	162,000
		18,000
Add: Gain on sale of plant (Cost Rs. 30,000 accumulated depreciation Rs. 15,000)		12,000
Interest on investment		15,000
Net income		45,000

Required: Cash flow statement by using direct method.

[15]

Describe the users of accounting information. Why do they need such information? Explain.

[15]

BBS Financial Accounting and Analysis

BBS First Year Financial Accounting and Analysis Question Paper 2083 (TU) – Solved

Faculty of Management