Master of Business Administration- MBA Semester 1 MB0041 – Financial Management & Accounting - 4 Credits (Book ID: 1130)
Assignment Set- 1 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions. 1. What is accounting cycle? List the sequential steps involved in Accounting cycle? 2. A. Bring out the difference between Indian GAAP and US GAAP norms? B. What is Matching Principle? Why should a business concern follow this principle? 3. Prove that the accounting equation is satisfied in all the following transactions of Mr. X (a) Commence business with cash Rs.50000 (b) Paid rent in advance Rs.1000 (c) Purchased goods for cash Rs.18000 and Credit Rs.20000 (d) Sold goods for cash Rs.25000 costing Rs.22000 (e) Paid salary Rs.5000 and salary outstanding is Rs.3000 (f) Bought moped for personal use Rs.20000 4. Following are the extracts from the Trial Balance of a firm as on 31st March 20X7
Dr Sundry Debtors Provision for Doubtful Debts Provision for Discount on Debtors Bad Debts Discount Additional Information: 1) Additional Bad Debts required Rs.4,000 2) Additional Discount allowed to Debtors Rs.1,000 3) Maintain a provision for bad debts @ 10% on debtors 4) Maintain a provision for discount @ 2% on debtors 3,000 1,000 2,05,000
Required: Pass the necessary journal entries and show the relevant accounts including final accounts. 5. A. Bring out the difference between trade discount and cash discount. (5 Marks)
B. Explain the term (1) asset (2) liability with the help of examples. 6. A fresh MBA student joined as trainee was asked to prepare Trial balance. He was unable to submit a correct trial balance. You, as a senior accountant find out the errors and rectify them. After redrafting the trial balance prepare trading and Profit and loss account. Particulars Capital Cash in Hand Purchases Sales Cash at bank Fixtures and Fittings Freehold premises Lighting and Heating Bills Receivable...