BFO-12 2025 SOLVED ASSIGNMENT

Description

BFO-012: BASIC ACCOUNTS AND FINANCE
(TUTOR MARKED ASSIGNMENTS)

Course Code: BFO-012 Programme: BAFSM
Total Marks: 100 Assignment Code: BFO-012/TMA/2025

Note:
This TMA consists of ten questions, out of which you have to attempt any five. The
questions carries 20 marks each and should be answered in about 600 words each. Send
your TMA to the coordinator of your Study Center.
Section A: (20 marks each) 40
1. From the following Trial Balance of Gupta & Sons, prepare Trading and Profit and
Loss Account for the year ended December 31, 2018 and a Balance Sheet as on that
date.
Trial Balance
Name of the Account Debit Balances Credit Balances
Rs. Rs.
Capital 5,00,000
Sales 10,00,000
Sales Returns 25,000
Purchases 5,00,000
Purchases Returns 15,000
Inventory as on 1.1.18 60,000
Land & Buildings 4,00,000
Plant & Machinery 3,00,000
Furniture 1,00,000
Wages 50,000
Carriage Inwards 10,000
Provision for Bad Debts 7,000
Carriage Outwards 5,000
Cartage 5,000
Salaries 40,000
Loan 2,60,000
Debtors 1,50,000
Creditors 70,000
Rent 8,000
Bills Receivable 40,000
Acceptances 10,000
General Expenses 20,000
Rent & Rates 10,000
Investments 50,000
Cash in hand 50,000
Bank Overdraft 10,000
Discount 4,500
Bad Debts 5,000
Interest on Investments 5,000
Interest on Bank Overdraft 500
Goodwill 60,000
Total 18,85,000 18,85,000

Additional Information
1) The value of inventory on December 31, 2018 was Rs. 1,00,000.
2) Depreciation is to be provided on: Land & Building @ 5% p.a. Furniture @ 10%
p.a. Plant & Machinery Rs. 50,000.
3) Provision for Bad Debts is to be maintained @ 5% on debtors.
4) Wages are outstanding to the extent of Rs. 4,000 and Salaries to the extent of Rs. 3,000.
5) Rent and Rates are prepaid to the extent of 1/4th of the amount paid.
6) Interest on Investment outstanding is Rs. 1,000.
7) Rent to the extent of Rs. 2,000 has been received in advance.
2. Write short notes on the following (Any four):
a. Principal of double entry
b. Cost of capital
c. Operating leverage
d. Budgetary control
e. Margin of safety
Section B: (10 marks each) 30
3. What is capital structure? What are the major factors determining the capital structure of a
company?
4. What is budgeting? What are the essentials of establishment of sound system of
Budgeting?
5. Define a computerised accounting system. Briefly explain its advantages and
disadvantages.
Section C: (6 marks each) 30
6. What are the qualitative characteristics of accounting information? Briefly explain.
7. Briefly explain the accounting concepts which guide the accountant at the recording stage.
8. Differentiate between
a. Fixed Instalment Method and Diminishing Balance Method
b. Fixed Assets and Semi-Fixed Assets
9. What is ratio analysis? What are its different uses?
10. Discuss the challenges faced by the financial manager in India