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Transcript of ug.its.edu.in · Web viewPRINCIPLES OF ACCOUNTING BBA II SEMESTER Assignment#1 Statistics is a...
PRINCIPLES OF ACCOUNTING
BBA II SEMESTER
Assignment#1
1. Statistics is a called both science and art. Why?2. Write limitation and scope of Statistics. 3. The Whitcomb Company manufactures a metal ring for Industrialengines that usually
weighs about 50 ounces.A random sample of 50 of these metal rings producedthe following weights (in ounces).
51 53 56 5044 4753 53 42 57 46 5541 44 52 56 50 5744 46 41 52 69 53
57 51 54 63 42 4747 52 53 46 36 5851 38 49 50 62 3944 55 43 52 43 4257 49
Construct a frequency distribution for these data usingeight classes. What can you observe about the data fromthe frequency distribution?
4. Good relatively inexpensive prenatal care often can preventa lifetime ofexpense owing to complications resultingFroma baby’slowbirthweight.A survey of a randomsample of 57 new mothers asked them to estimate howmuch they spent on prenatal care. The researcher talliedthe results and presented them in the frequency distributionshown.Use these data to construct a histogram,a frequency polygon, and an ogive.
4.Suppose 150 shoppers at an upscale mall are interviewedand one of the questions asked is the household income.Study the histogram of the following data anddiscuss what can be learned about the shoppers.
Amount Spent on Prenatal Care
Frequency ofNew Mothers
0-100 3100-200 6200-300 12300-400 19400-500 11500-600 6
BUSINESS COMMUNICATION
I ASSIGNMENT
1. Explain the meaning of communication. What are the objectives of communication?2. Briefly explain the various forms of communication.3. Explain the process of communication?4. What is formal and informal communication?5. Explain the barriers in communication.6. What is a communication network? Explain grapevine.
Principals of Accounting
BBA-II Sem
ASSIGNMENT -1
QUESTION 1) From the following Receipts and Payment of a club and from the information provided, you are required to prepare an Income and Expenditure A/C for the year ended 31 st December 2001 and the balance sheet as on that date:
Receipts and Payment account
Receipts Amount Payment Amount
To balance b/d 550 By salaries 1400
To subscriptions: By general expenses 300
2001: 250 By electric charges 200
2002: 1000 By books 500
2003: 200 1450 By newspaper 400
To rent received 700 By balance c/d 400
To profit from sale of tickets 400
To sales of newspaper 100
3200 3200
Additional information:
1) The club has 50 members each paying an annual subscription of Rs 25, subscription outstanding on 31st December 2001 were Rs 300.
2) On 31st December 2002 salaries outstanding amounted to Rs 100.Salaries paid in 2002 included Rs 300 for the year 2001.
3) On 1.1.2002, the club owned building valued at Rs 10000, furniture Rs 1000 and books Rs 1000.4) Provide depreciation on furniture at 10% p.a.
Principals of Accounting
BBA-II Sem
ASSIGNMENT-4
A) DEBTORS SYSTEM (AT COST PRICE)Illustration 1A) Sandhya ltd has their branch at Rohini Delhi which sell goods for cash only. The following are the transactions between the head office and branch office for the year ending 31st March , 2009:
Opening stock as on 1st April 2008 40000Goods supplied to branch 100000Cash sent to branch for:Salary 400Rent 200 600Cash received from branch during the year 120000Closing stock at 31st March 2009 30000Closing balance of petty cash 40
From the following information’s pass the necessary journal entries .
ILLUSTRATION 2A) From the following information prepare the Bangalore branch A/C in the books of head office for the year ending on 31st March 2010
Opening stock 356000 Closing debtors 192000Opening debtors 28000 Closing stock 376000Opening petty cash 500 Closing petty cash 240Furniture in the beginning 12000 Closing creditors 12000 Opening creditors 14000 Cheques sent to branch 99700Goods returned by branch to H.O
17200 Cash received from debtors
1280000
Goods sent to branch 1040000 Cash sales 64000
Depreciate furniture @ 10%.
ILLUSTRATION 3A) A trader has its branch at Kolkata to which goods despatched. Prepare branch A/C in H.O books from the following:
Opening stock at branch 24000 Branch expenses paid by H.O
3000
Cash sales at branch 17500 Expenses paid by branch 6000Credit sales 41000 Branch expenses remain
unpaid.1400
Collection from debtors 37900 Goods in transit from H.O
3600
Goods received from H.O 30000Closing stock at branch 18000Closing balance of debtors 9160
ILLUSTRATION 4A) A head office in Mumbai supplies goods to Madras at cost. The branch sell goods for cash and on credit and remits the proceeds to the head office, the branch expenses being met by the head office by cheque. The following are the transactions relating to the branch for the year ended 31st December 2010 :
Opening stock as on 01.01.10 6000 Discount allowed 2000Debtors as on 01.01.10 8000 Bad debts written off 1000Goods sent to branch 45000 Cheques sent be H.O
for branch expenses8000
Sales (including cash sales Rs22000)
74000 Stock as on 31.12.11 9000
Goods returned by branch 2000Goods returned by customers 2000
Collection from debtors 42000
A. Practical) DEBTORS SYSTEM (AT COST PRICE)
Q1) The following information relates to Meerut branch:
Opening stock as on 01.01.10 11200 Sales at branch:Debtors as on 01.01.10 6300 Cash sales 25000Goods sent to branch 51000 Credit sales 39000 64000Cash sent to branch for Cash received from
debtors41200
Rent 1500 Closing stock 13600Salaries 3000Petty cash 500
Prepare the branch account for the year 2010.
(branch profit 10900)
Q2) From the following figures prepare the branch A/C of Ajmer ltd :
Opening stock at cost 30000 Discount allowed 2000Opening Cash and bank 7100 Goods returned by
customers (at selling price)
18000
Opening debtors 14200 Receipts from customers
194500
Stock as on 31.12.10 19000 Bad debts 300Closing cash and bank 3700 Cash remitted to H.O 363900Debtors as on 31.12.10 19400 Salaries paid by branch 8000Goods sent to branch 300000 Salaries paid by H.O 27000Goods returned from branch 1000 Rent and rates paid by
H.O5400
Cash sales 174000 Administrative expenses paid by H.O
11200
Credit sales 220000 (Branch profit Rs 66000)
Q3) Krishnan ltd opened a branch at Meerut on 01.01.2010. The following information is available in respect of the branch for the year2010. Prepare branch account to show the profit & loss a/c.
Goods sent to branch 75000 Cash remittance to branch towards petty
6000
cashCash sales at branch 50000 Petty cash at branch on
31.12.10500
Credit sales at the branch 60000 Debtors at branch on 31.12.10
5000
Salaries of the branch staff paid by the H.O
15000 stock at branch on 31.12.10
27000
Office expenses of the branch paid by the H.O
12000
(branch profit 29500)
Q4) Krishnan ltd opened a branch at Madras on 01.01.2010. The following information is available in respect of the branch for the year2010. Prepare branch account to show the profit & loss a/c.
Q5) Honey ltd has a branch at Kolkata , where goods are sent at cost price. You are required to ascertain the profit and loss from branch A/C.
Stock on 1st Jan,2009 11250 Cash received from debtors
40000
Debtors on 1st Jan, 2009 11400 Discount allowed 300Goods sent to branch 50250 Bad debts written off 250Cash sales at branch 31000 Cheques sent to branch
for expenses6700
Credit sales at branch 37400 Closing stock as on 31st Dec, 2009
13400
(branch profit : 9700)
B) DEBTORS SYSTEM (AT INVOICE PRICE)
ILLUSTRATION 1B)Delhi H.O supplies goods to its branch at Lucknow at invoice price which is cost plus 50%. All cash received by branch is remitted to Delhi and all branch expenses are paid by the H.O. From the following particulars related to Lucknow branch for the year 2010, prepare the branch A/C.
Opening stock at branch 60000 Allowance to customers off selling price(already adjusted while invoicing)
1000
Opening branch debtors 12000 Cash received from debtors
90000
Opening petty cash balance 100 Discount allowed to 2400
debtorsGoods received from H.O 186000 Expenses ( cash paid by
H.O):Goods returned to H.O 3000 Rent 2400Cash sales 104000 Salaries 24000Closing petty cash 100 Petty cash 1000 27400Closing branch debtors 3600
Solution )
Lucknow branch A/C in the books of H.O
Particular amount Particular AmountTo balance b/d By bank a/c (remittance) 194000Stock 60000 By goods sent to branch 3000Debtors 12000 By goods sent to branch
(loading)61000
petty cash 100 72100 By stock reserve 20000To goods sent to branch 186000 By balance c/d:To bank a/c (expenses paid by H.O)
27400 Stock 54000
To stock reserve a/c 18000 Debtors 3600To net profit transferred 32200 Petty cash 100 57700
335700 335700
Working notes: Let the cost price = 100, then the invoice price will be = 150
(a) CALCULATION FOR OPENING STOCK (loading)
Cost price Invoice price Loading (I.P - C.P)100 150 50Y Stock 60000 xIf nothing is mentioned for stock it shall be assumed to be in INVOICE. Students can solve either way. The logic is , if goods of 100 can be sold or invoiced at 150 then what should be the cost if the stock itself is at invoice. Cross multiplying will give the cost price (y) and the difference will land you to give loading.
150 x Y = 60000 x 100
Y = (60000 x 100)/150
Y = 40000 (cost price), loading will be the difference between Rs 60000 – Rs 40000 = 20000
(b) CALCULATION FOR CLOSING STOCK (loading)
Cost price Invoice price Loading (I.P - C.P)100 150 50Y Stock 54000 xIf nothing is mentioned for stock it shall be assumed to be in INVOICE. Students can solve either way. The logic is , if goods of 100 can be sold or invoiced at 150 then what should be the cost if the stock itself is at invoice. Cross multiplying will give the cost price (y) and the difference will land you to give loading.150 x Y = 54000 x 100
Y = (54000 x 100)/150
Y = 36000 (cost price), loading will be the difference between Rs 54000 – Rs 36000 = 18000
(c) CALCULATION FOR GOODS RECEIVED FROM HEAD OFFICE (loading)
Cost price Invoice price Loading (I.P - C.P)100 150 50y 183000 (goods received from
H.O)x
Students can solve either way. The logic is , if goods of 100 can be sent or invoiced at 150 then what should be the cost if the goods are at invoice. Cross multiplying will give the cost price (y) and the difference will land you to give loading.150 x Y = 183000 x 100
Y = 183000 x 100/150
Y = 122000 (Cost price), loading will be the difference between Rs 183000 – Rs 122000 = 61000
(d) Memorandum branch debtors A/C
Particular amount Particular AmountTo balance b/d 12000 By cash received from
debtors90000
To credit sales(balancing fig )
84000 By discount allowed 2400
By balance c/d 360090000 90000
(e) Lucknow branch stock A/C
Particular amount Particular AmountTo balance b/d 60000 By goods sent to branch 3000To goods sent to branch 186000 By branch debtors A/C 84000
By branch cash a/c 104000By agreed allowance 1000By balance c/d( balancing fig )
54000
246000 246000
(f) Memorandum branch cash A/C
Particular amount Particular AmountTo H.O 27400 By rent 2400To cash sales 104000 By salaries 24000To collection from debtors 90000 By petty cash a/c 1000
By Head office (remittance balancing fig)
194000
221400 221400
ILLUSTRATION 2B) A trader has its branch at Manniputam to which goods invoiced at cost plus 20%. Prepare branch A/C in H.O books from the following:
Opening stock at branch 24000 Branch expenses paid by H.O
3000
Cash sales at branch 17500 Expenses paid by branch 6000Credit sales 41000 Branch expenses remain
unpaid.1400
Collection from debtors 37900 Goods in transit from H.O
3600
Goods received from H.O 30000Closing stock at branch 18000Closing balance of debtors 9160
Solution) ) BRANCH A/C
Working notes: : Let the cost price = 100, then the invoice price will be = 120
(a) CALCULATION FOR OPENING STOCK (loading)
Cost price Invoice price Loading (I.P - C.P)100 120 20Y Stock 24000 XIf nothing is mentioned for stock it shall be assumed to be in INVOICE. Students can solve either way. The logic is , if goods of 100 can be sold or invoiced at 120 then what should be the cost if the stock itself is at invoice. Cross multiplying will give the cost price (y) and the difference will land you to give loading.
120 x Y = 24000 x 100
Y = (24000 x 100)/120
Y = 20000 (cost price), loading will be the difference between Rs 24000 – Rs 20000 = 4000
(b) CALCULATION FOR CLOSING STOCK (loading)
Cost price Invoice price Loading (I.P - C.P)100 120 20Y Stock 21600 X
PARTICULAR AMOUNT PARTICULAR AMOUNTTo balance b/d: By cash
A/C(remittance)49400
Stock 24000 By balance c/dDebtors 6060 30060 Branch stock 21600To goods sent to branch (30000 + 3600 )
33600 Debtors 9160
30760
To cash ( exp paid by H.O)
3000 By goods in transit 3600
To balance c/d To branch stock reserve
4000
Expenses outstanding 1400 By balance c/d:To branch stock reserve 3600 Branch stock
21600To net profit transferred 18100 Branch debtors 9160 30760
By goods sent to branch
5960
89760 89760
If nothing is mentioned for stock it shall be assumed to be in INVOICE. Students can solve either way. The logic is , if goods of 100 can be sold or invoiced at 120 then what should be the cost if the stock itself is at invoice. Cross multiplying will give the cost price (y) and the difference will land you to give loading.120 x Y = 21600 x 100
Y = (21600 x 100)/120
Y = 18000 (cost price), loading will be the difference between Rs 21600 – Rs 18000 = 3600
(c) CALCULATION FOR GOODS RECEIVED FROM HEAD OFFICE (loading)
Cost price Invoice price Loading (I.P - C.P)100 120 20y 30000 + 3600 (goods
received from H.O)x
Students can solve either way. The logic is , if goods of 100 can be sent or invoiced at 150 then what should be the cost if the goods are at invoice. Cross multiplying will give the cost price (y) and the difference will land you to give loading.120 x Y = 33600 x 100
Y = 33600 x 100/120
Y = 28000 (Cost price), loading will be the difference between Rs 33600 – Rs 28000 = 5600
(d) Memorandum branch debtors A/C
Particular amount Particular AmountTo balance b/d ( balancing fig)
6060 By cash received from debtors
37900
To credit sales 41000 By balance c/d 9160
47060 47060
(e) Memorandum branch cash A/C
Particular amount Particular AmountTo balance b/d nil By expenses a/c 6000To cash sales 17500 By Head office (remittance 49400
balancing fig)To collection from debtors 37900
55400 55400
ILLUSTRATION 3B) A trader has its branch at KOTLA to which goods are invoiced at cost plus 25%. Branch is instructed to deposit cash every day in the head office account with the bank. Prepare branch A/C in H.O books from the following:
Opening stock at branch 2500 Branch expenses paid by H.O
1640
Cash sales at branch 10800 Expenses paid by branch 120Credit sales 7000 Furniture purchased by
the branch manager1200
Cash remitted to the H.O 15000 Opening debtors 1400Goods received from H.O(I.P)
18200
Closing stock at branch 3000Closing balance of debtors 1800
So;ution) BRANCH A/C
Working note: : Let the cost price = 100, then the invoice price will be = 125
(a) CALCULATION FOR OPENING STOCK (loading)
Cost price Invoice price Loading (I.P - C.P)
PARTICULAR AMOUNT PARTICULAR AMOUNTTo balance b/d: By cash
A/C(remittance)15000
Stock 2500 By balance c/dDebtors 1400 3900 Branch stock
3000To goods sent to branch 18200 Debtors
1800To cash ( exp paid by H.O)
1640 Furniture 1200
To stock reserve 600 Cash a/c 1080
7080
By stock reserve 500To net profit transferred 1880 By goods sent to
branch3640
26220 26220
100 125 25Y Stock 2500 XIf nothing is mentioned for stock it shall be assumed to be in INVOICE. Students can solve either way. The logic is , if goods of 100 can be sold or invoiced at 125 then what should be the cost if the stock itself is at invoice. Cross multiplying will give the cost price (y) and the difference will land you to give loading.
125 x Y = 2500 x 100
Y = (2500 x 100)/125
Y = 2000 (cost price), loading will be the difference between Rs 2500 – Rs 2000 = 500
(b) CALCULATION FOR CLOSING STOCK (loading)
Cost price Invoice price Loading (I.P - C.P)100 125 25Y Stock 3000 XIf nothing is mentioned for stock it shall be assumed to be in INVOICE. Students can solve either way. The logic is , if goods of 100 can be sold or invoiced at 120 then what should be the cost if the stock itself is at invoice. Cross multiplying will give the cost price (y) and the difference will land you to give loading.125 x Y = 3000 x 100
Y = (3000 x 100)/125
Y = 2400 (cost price), loading will be the difference between Rs 3000 – Rs 2400 = 600
(c) CALCULATION FOR GOODS RECEIVED FROM HEAD OFFICE (loading)
Cost price Invoice price Loading (I.P - C.P)100 125 25y 18200 XStudents can solve either way. The logic is , if goods of 100 can be sent or invoiced at 125 then what should be the cost if the goods are at invoice. Cross multiplying will give the cost price (y) and the difference will land you to give loading.125 x Y = 18200 x 100
Y = 18200 x 100/125
Y = 14560 (Cost price), loading will be the difference between Rs 18200 – Rs 14560 = 3640
(d) Memorandum branch debtors A/C
Particular amount Particular Amount
To balance b/d 1400 By cash received from debtors(balancing fig )
6600
To credit sales 7000 By balance c/d 1800
8400 8400
(e) Memorandum branch cash A/C
Particular amount Particular AmountTo balance b/d nil By cash remitted 15000To cash sales 10800 By furniture 1200To collection from debtors 6600 By petty expenses 120
By balance c/d 108017400 17400
ILLUSTRATION 4B) Sambhu co: ltd having H.O at Bulandshaher invoices goods to its Meerut branch at cost plus 20%. The Meerut branch also purchases independently from local parties for which payments are made by H.O .Cash collected by the branch are deposited in the bank account of the H.O on the same day and all expenses are directly paid by H.O except for a petty cash a/c under imprest system maintained by branch for which periodical transfer are made by H.O. Prepare branch a/c in the books of H.O. and ascertain the net financial result of the branch for the year ended 31st December 2010:
Opening imprest balance 4800 Collection from customers
300000
Opening debtors balance 60000 Goods sent by H.O to branch (invoice price)
144000
Opening stock: Branch expenses 7200Sent by H.O at I.P 57600
Closing stock:
Directly purchased by branch 38400 96000 Transfer from H.O (I.P)
43200
Cash sales 312000 Directly purchased by branch
28800
Credit sales 108000 Discount allowed to customers
4800
Goods directly purchased by branch 7200 Transfer from H.O for petty expenses
6000
Goods returned by customers 6000 Bad debts 2400
Solution ) BRANCH ACCOUNT IN THE BOOKS OF H.O
Particular amount Particular AmountTo balance b/d: By bank:Stock sent by H.O 57600 Cash sales 108000Local purchases 38400 Collection from
debtors 300000Debtors 60000 (-) petty cash(360) 407640Petty cash 4800 160800 By goods sent to
branch (loading)24000
To goods sent to branch 144000 By stock reserve (loading)
9600
To bank (expenses) 7200 By balance c/d:To purchases(direct purchases)
108000 Stock 43200
To branch (petty cash) 6000 Local purchases 28800
72000
To branch stock reserve 7200 Branch debtors 57600Petty cash 4800
575640 575640
Working notes: : Let the cost price = 100, then the invoice price will be = 120
(a) CALCULATION FOR OPENING STOCK (loading)
Cost price Invoice price Loading (I.P - C.P)100 120 20Y Stock 57600 XIf nothing is mentioned for stock it shall be assumed to be in INVOICE. Students can solve either way. The logic is , if goods of 100 can be sold or invoiced at 120 then what should be the cost if the stock itself is at invoice. Cross multiplying will give the cost price (y) and the difference will land you to give loading.
120 x Y = 57600 x 100
Y = (57600 x 100)/120
Y = 48000 (cost price), loading will be the difference between Rs 57600 – Rs 48000 = 9600
(b) CALCULATION FOR CLOSING STOCK (loading)
Cost price Invoice price Loading (I.P - C.P)100 120 20Y Stock 43200 XIf nothing is mentioned for stock it shall be assumed to be in INVOICE. Students can solve either way. The logic is , if goods of 100 can be sold or invoiced at 120 then what should be the cost if the stock itself is at invoice. Cross multiplying will give the cost price (y) and the
difference will land you to give loading.120 x Y = 43200 x 100
Y = (43200 x 100)/120
Y = 36000 (cost price), loading will be the difference between Rs 43200 – Rs 36000 = 7200
(c) CALCULATION FOR GOODS RECEIVED FROM HEAD OFFICE (loading)
Cost price Invoice price Loading (I.P - C.P)100 120 20y 144000 XStudents can solve either way. The logic is , if goods of 100 can be sent or invoiced at 120 then what should be the cost if the goods are at invoice. Cross multiplying will give the cost price (y) and the difference will land you to give loading.120 x Y = 144000 x 100
Y = 144000 x 100/120
Y = 120000 (Cost price), loading will be the difference between Rs 144000 – Rs 120000 = 24000
(d) Memorandum branch debtors A/C
Particular amount Particular AmountTo balance b/d 60000 By cash received from
debtors(balancing fig )300000
To credit sales 312000 By return inward 7200
8400 By discount allowed 4800By bad debts 2400By balance c/d(balancing fig:) 57600
372000 372000
4B PRACTICALS
Q1) A Kanpur H.O has a branch in Hapur to which goods are invoiced at cost plus 20%. From the following particulars prepare the necessary journal entries and open branch account in the H.O books:
Goods sent to Hapur 105936Total sales 103200Cash sales. 55200Cash received from debtors 44000Opening branch debtors 12000Opening branch stock 3840Branch stock at the close 6720(closing debtors 16000 , net profit transferred 17320)
Q2) Shiv Kumar has a branch at Rajasthan, goods are invoiced to the branch at cost plus 25%.branch is instructed to deposit cash every day in the head office account in the branch. All expenses are paid by cheque by the H.O except petty cash expenses which are paid by the branch manager. From the following informations prepare the branch a/c.
Opening imprest balance 4800 Collection from customers
300000
Stock as on 1st Jan, 2010 2500 Cash remitted to H.O 15000Stock as on 31st Dec, 2010 3000 Furniture purchased
by the branch manager
1400
Opening debtors 1400 Goods invoiced from the H.O
18200
Closing debtors 1800 Expenses paid by H.O
1640
Cash sales for the year 10800 Expenses paid by branch
120
Credit sales for the year 7000 H.O sent cash to purchase locker for the branch
1300
(cash received from debtors 6600 , cash in hand closing 1080 , net profit transferred 2080)
Q3) Honey ltd has a branch at Kolkata , where goods are sent at cost plus 33 1/3%. You are required to ascertain the profit and loss from branch A/C.
Stock on 1st Jan,2009 15000 Cash received from debtors
40000
Debtors on 1st Jan, 2009 11400 Discount allowed 300Goods sent to branch 67000 Bad debts written off 250Cash sales at branch 31000 Cheques sent to branch
for expenses6700
Credit sales at branch 37400 Closing stock as on 31st Dec, 2009
13400
(closing debtors 8250 , net profit transferred 9700)
Q4) BATA shoes is having its branch at Trilok nagar. Goods are invoiced to the branch at 20% profit on sale. Branch has been instructed to send all cash daily to the H.O. All expenses which are paid by the H.O except petty cash expenses which are met by the branch manager. From the following prepare the branch a/c in the books of BATA ltd.
Cash in hand 400 Collection from customers
30000
Stock as on 1st Jan, 2010 15000 Goods returned by debtors
480
Stock as on 31st Dec, 2010 14000 Cash sales 50000Opening debtors 9000 Credit sales 30000Office furniture(opening) 1200 Discount allowed 30Goods invoiced from H.O 80000 Expenses paid by
H.O3900
Goods returned to H.O 1000 Petty expenses paid by the branch manager
280
Depreciation is to be provided @10% p.a
(branch debtors closing 8490, net profit transferred 11190 )
C) .STOCK AND DEBTORS SYSTEM