B.B.S.(4YRS.)/THIRD YEAR/ MGMT
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.
Brief Answer Questions
Attempt ALL Questions [10×2-20]
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 a 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 120 interest
Required: Journal entries to record the loan and it;s 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
Uilities Rs.8,000 Depreciation Rs.10,000
Supplies expenses Rs.4,000
Required: Closing entries
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Descriptive Answer Questions: [5×10-50]
Attempt FIVE Questions
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
a. 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.
b. Cheques issued of Rs.6,000 but only Rs.2,000 presented before 31st Chaitra.
C. Notes recevable collected by the bank Rs.1,500
d. Cash of Rs.4,800 deposited by the college on Chaitra was recorded by the bank as Rs.4,200.
e. A cheque for Rs.3,000 received from a student was returned by the bank due to insufficient fund with the bank.
1 Journal entries
2. Bank Reconciliation Statement as on 31st Chaitra 2075
3. Bank balance on 31st Chaitra balance sheet
12. Alpha Enterprises provides you the following information related to the inventories for April 2019. Alpha makes counting and recording of inventories items only at end of each month.
April 1:Beginning inventory 600 units @ Rs10 each
April 5 Purchased 800 units@Rs.11 each
April12 Purchased 1,200 units @Rs.12 each
April 19 Sold 1,000 units @18 each
April 23 Purchased 600 units@Rs.12 each
April 26 Purchased 220 units @Rs.15 each
April 30 Sold 1,200 units @Rs.20 each
a What inventory system the Alpha is adopting?
b Ending inventory and cost of goods sold under the LIFO method assuming a periodic inventory system.
c Income statement showing net income, assume depreciation expenses Rs. 8,000 and other operating expenses Rs. 12,000.
13 ABC Company bought a machine, expected to render 72,000 hours of service for RS 380000. Its transportation and installation cost are 10000 each with salvage value of RS 40000.It has been estimated that the time requires for manufacturing a finished product is 2 machine hour per unit
During first 3 year the company manufactured the good as under.
|Output in units||9000||10000||11000|
Required: Machinery account for 3 year
b. Differentiate between accounting and accountancy
14 a. During the year of 2075, XYZ Čompany made total sales or RS.12,00,000 of which 70% are on credit. company collected cash of Řs.768,000 from the open account in that year. In the year 2075 it has also wrote off Rs.20,000 as an uncollectible account. The following balance of accounts at the end of 2074.
Account receivables Rs.18,000
Allowance for doubtful debt RS 18000
Company past performance shows that 5% of Its ending balance of account receivable is expected to be doubtful debt account.
a. Journal entries for sales, collection and write-off of uncollectible accounts
b . Estimated bad debt for 2075 based on the percentage on account receivable .Also journalize it .
15 b. Differentiate between capital and revenue expenditure.
15. “A lease is a legal contract under which one party agrees to pay rent properly owned by other party .discuss
16. Explain the meaning of the source of documents. Also, write down the importance of source of document.
Analytical Answer Questions [2×15-30
Attempt any TWO Questions
17. The ABC Company’s Statement of Profit and Loss alc and statement of Financial Position for two years have been given below:
Statement of Profit and Loss a/c for the year 2075
|sales (including RS 800000 credit sales)||1500000|
|Less :cost of good sold||900000|
|Less operating expenses|
|other operating expenses||150000|
|NET INCOME BEFORE OTHER INCOME||120000|
|ADD: Profit from sale of fixed assess (book value RS 40000)||20000|
Statement of Financial Position of a company for 2074 and 2075
|Capital & Liabilities||2074||2075|
|share capital @RS 100 per share||1200000||1500000|
Required for 2075:
a. Current ratio b. Quick ratio
C. Debt to total capital ratio d. Inventory turnover ratio
e. Total assets turnover ratio f. Net profit ratio
g. Return on equity h. Return on investment
i. Interest coverage ratio J Account receivable turnover ratio
18 An unadjusted trial balance of a company are given below
|interest on loan||7000|
|12% bank loan||100000|
i. Closing stock Rs.50,000
ii. Prepaid rent was Rs.4,000
ii. Outstanding interest on bank loan was Rs.5,000
4. Depreciation on furniture at 25% per annum
a. Adjusted Trial Balance
b. Statement of Profit and Loss alc as per NFRS
C. Statement of Financial Position as per NFRS
d. Statement of Cash flow Statement as per NFRS
19. a Who are the external users of accounting information? Why do they need such information?
b. Explain about the value added statement with its advantages.