ug.its.edu.in · Web viewPRINCIPLES OF ACCOUNTING BBA II SEMESTER Assignment#1 Statistics is a called both science and art. Why? Write limitation and scope of Statistics. The Whitcomb

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


(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:


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


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



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



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



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:


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


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



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



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



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


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



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



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



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

Documents

ug.its.edu.in · Web viewPRINCIPLES OF ACCOUNTING BBA II SEMESTER Assignment#1 Statistics is a called both science and art. Why? Write limitation and scope of Statistics. The Whitcomb