Pokhara University old Question Papers | BBA | Financial Accounting I

Pokhara university old question paper bba

Question Paper in written form:

Pokhara University

Level: Bachelor                                    Semester                      Year:    2020

Programme: BBA/BI/BCIS/TT                                                 Full Marks: 100

Course: Financial Accounting I                                                 Pass Marks: 45

                                                                                                Time: – 3hrs.

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’

       Very short answer questions               10×2

Attempt all the questions.

  1. List out different types of assets.
  2. What are different items included in investing activities?
  3. What is the purpose of trial balance?
  4. What are the four basic types of adjusting entries?
  5. Why do firms prepare bank reconciliation statements?
  6. Why do closing entries require?
  7. Rogers corporation stats the year with a Retained Earning balance of Rs: 55,00. Net income for the year is Rs. 27,00. The ending balance in Retained Earnings is Rs.70,000. What was the number of dividends for the year?
  8. The opening stock is Rs. 20,000, purchase during the year is Rs. 1,50,000, a purchase expanse is Rs. 10,000 and closing stock is Rs, 30,000. Find the amount of cost of goods sold.
  9. Shoe the effect on the accounting equation and journal of transaction starting a business with a share capital of Rs. 3,00,000 and bank loan of Rs.1,00,000.
  10. The provision for tax during the year is Rs. 15,000. The tax is payable on the balance sheet decrease by Rs.5,000. Find the amount of tax during the year.

                                    Section ‘B’

      Descriptive answer questions              6×10

Attempt any six questions

11. Himalayan Service Company started business on January 1, 2018. The following transaction during the first month of operation, prepare journal entries, T-accounts and Trial balance.

a) Acquired the articles of incorporation and three shareholders introduced Rs.1,00,000 each in exchange of share.

b) Purchased the office building for Rs. 1,50,000 in cash and building is valued at Rs. 1,00,000 and reminder as land.

c) Signed a three-year promissory note at the bank for Rs.1,2,5000.

d) Purchased office equipment at a cost of Rs. 50,000, paying Rs. 10,000 down and agreeing to repay the remainder in 10 days.

e) Paid wages and salaries of Rs.1,30,000 for the first half of the month.

f) Paid the balance due on the office equipment.

g) Sold Rs. 24,000 of advertising during the first month, customers have until the 15th of the following month to pay their bills.

12. Deuali company was incorporated on 1th January 2018, under a Nepal company Act 2063 that authorized the issuance of 5,000 shares of common stock of Rs. 10 par value. A company provides you the following information as on 31th December 2018.

ParticularDr. amountCr. amount
Supplies on hindRs. 3,280 
Equipment30,000 
Cass27,800 
Building75,000 
Account receivables25,300 
Prepaid insurance6,000 
Wages and salaries3,400 
Advertising expenses1,000 
Capital stock 50,000
Accumulated depreciation-equipment 3,000
Accumulated depreciation- building 7,500
Notes payable 20,000
Account payable 37,280
Retained earnings 40,300
Service revenue 13,700
TotalRs.171,780Rs.171,780

Additional information:

  1. A count of supplies on hand at the end reveals a balance of Rs.3,000.
  2. The company paid cash on September 1, 2018, for a two-year insurance policy.
  3. Equipment and building depreciate at the rate of 10% per annum.
  4. Wages and salaries due but not paid Rs. 3,500.
  5. The company signed six-month promissory notes on December 1 and the interest rate is 12%.

Required:

  • Adjustment entries for the above transaction.                     2.5
  • Develop a 10-column worksheet.                                   7.5

13. The bank statement for Nepal bank Ltd. Shows a balance of Rs. 15,907,45 on April 30, 2019. On this date, the balance as per the book is Rs. 11,589.45. The following reconciling items are determined:

  • Deposit in transit Rs. 2,201,40.
  • Outstanding cheques of Rs. 5,904.
  • A cheque of Rs. 1,226 correctly written by the company and was correctly paid by the bank. But the company recorded it for Rs. 1,262.
  • Bank debited NSF cheque for Rs. 425,60, bank charge of Rs. 30.
  • The bank credited note receivable for Rs. 1,000 plus interest earned Rs.50, less bank collection charge of Rs.15.

      Required:

  • Bank reconciliation statement.                     8
  • How much cash balance should be reported on Nepal bank`s April 30, balance sheet?              2

 14. A) the following balance sheet items, listed in alphabetical order are available from the record of ABC company at December 31, 2018:


Account payable
Accumulated depreciation-building
Accumulated depreciation- equipment
Bond payable
Capital stock
Equipment
Interest payable
Marketable securities
Notes payable
Paid-in capital in excess of par
34280
40000  
12500
250000
200000
84500
2200
15000
6500
75000
Retained earnings
Account receivable
Building
Cash
Income tax payable
Land
Merchandise inventory
Office supplies
Prepaid rent
Salaries payable patent 
113510
26700
150000
60790
7500
250000
112900
400
3600
7400
45000

Required: Classified balance sheet.

B. the following income statement items are arranged in alphabet order of ABC company for the year ended 31th December 2018.

Advertising expenses1,500Commission expenses2,415  
Depreciation office building2,900Cost of goods sold29,200  
Income tax expenses1,540Insurance expenses of sales man2,250  
Interest expenses1,400Interest revenue1,340
Salaries and wage expenses12,560Sales revenue48,300  
Supplies expenses890  

Required: Multi-step income statement.

15. What are the different group users of accounting information? Explain their needs of accounting information?

16. What do you understand by “Annual Report” of a company? Briefly explain the major elements of an Annual Report.

17. Discuss about various accounting concepts, accounting principles and accounting conventions.               

                                         Section “C”

  1.  Rani Traders just completed another successful year, as indicated by the following income statement for 2019:

                                    Rani Traders

                                 Income statement

                                December 31,2019

ParticularsAmounts (RS.)
Sales revenue
Less: Costs of goods sold
Gross margin
Less: Operating expenses
Income before interest and tax
Interest expenses
Net income before tax
Less: tax expenses
Net income
12,50,000
700,000
550,000
150,000
400,000
25,000
375,000
150,000
225,000

                                    Comparative balance sheet

Assets2019 (Rs.)2018(Rs.)
Cash
Account’s receivable
Inventory
Prepaid insurance
52,000
180,000
230,000
15,000
90,000
130,000
200,000
25,000
Total current assets477,000445,000
Land
Plant and equipment
Accumulated depreciation
750,000
700,000
(250,000)
600,000
500,000
(200,000)
Total long-term assets12,00,000900,000
Total assets16,77,00013,45,000
Accounts payable
Salary payable
Income tax payable
130,000
68,000
90,000
148,000
63,000
1110,000
Total current liabilities288,000321,000
Long term bank loan350,000300,000
Common stock Retained earnings550,000
489,000
400,000
324,000
Total stockholders` equity10,39,000724,000
Total liabilities and stockholders` equity16,77,00013,45,000

Other information is as follows:

  1. Divided of Rs.60,000 were declared and paid during the year.
  2. Operating expenses include Rs.50,000 of depreciation.
  3. Land and plant and equipment were acquired for cash, and the additional stock was issued for cash, cash also was received from additional bank loans.

                        The president has asked you some questions about the year`s results. She is very impressed with the profit margin of 18% (net income divided by sales revenue). She is bothered, however, by the decline in the company`s cash balance during the year. One of the conditions of the existing bank loan is that the company maintains a minimum cash balance of Rs.50,000.

Required:

a) Prepare a stamen of cash flows for 2019using the direct method in the operating activities section.

b) On the basis of your statement, draft a brief memo to the president to explain why cash decreased during such a profitable year. Include in your explanation any recommendations for improving the company`s cash flow in future years.

See the question paper in jpg form.

Pokhara University old Question Papers financial accounting
Pokhara University old Question Papers financial accounting
Pokhara University old Question Papers financial accounting

You also want to get other question paper:

Leave a Comment

Ezi-Learning

Ezi-Learning is the site where you can learn every subject matter of class 11, class 12, and Bachelor.

Contact

Phone number: +9779800887123

Lekhnath, Pokhara (Nepal)