BITM 3rd Semester
Financial Accounting Board Question Paper 2022

What is financial accounting?

What is Business entity concept?

Differential between Capital expenditure and Revenue expenditure.

You are given the following information;
• Business started with cash Rs 100,000 and stock Rs 50,000.
• Goods costing Rs 20,000 sold for Rs18,000.
• Salaries paid Rs10,000 and payable Rs 2,000.
• Purchase goods for cash Rs 5,000 and credit Rs 12,000.
Required: Accounting equation

Following information were provided to you for the year ended chaitra 31st 2077.
Trial balance on 31st chaitra

What is the meaning of double-entry system of book-keeping? Explain the rules of Debit and Credit.

Pass the journal entries to rectify the following errors located after the Trial balance.
• Goods Purchase from Sujata store for Rs 15,000 were recorded in Sales book.
• Purchase return book overcast by Rs 2,000.
• Commission received Rs 3,000 from ABC's co. but debited in ABC's Co. account.
• Wages paid for the installation of Furniture was debited in wages account Rs 4,500.
• Depreciation of Rs 4,500 has been wrongly posted as Rs 5,400 in machinery account.
Required: Entries for rectification

Consider the following purchase transactions of Biraj.
Marga 5 purchased goods on credit from SB Furniture, Biratnager.
100 chairs @ Rs 800 each
20 Sofa set @ Rs 10,000 each
(Trade discount 5% of both)
Marga 15 Purchased goods from Shrestha furniture of Bhaktapur
5 Dining table @ Rs 11,000 each
15 Revolving Chairs @ Rs 3,500 each
Marga 25 Purchase on cash 100 tea table from Sabina furniture @ Rs 500 each
Required: Purchase Book and Purchase account.

You are given the following information.
• Bank balance as per Pass book as on 31st January, 2021 Rs 45,000.
• Cheque issued but not presented for payment in the month Rs 13,000.
• Cheque sent to the bank for collection on January 20th Rs 15,000 but only credited by bank Rs 8,000.
• Debit side of cash book has been casted short by Rs 400.
• Interest on Investment collected by bank Rs 2,500
• Bank charged commission but not entered in cash book Rs 500.
Required: Bank Reconciliation Statement

The following transactions is extracted from the books of a trader.
a. Started business with cash Rs 600,000, which was collected by issuing the shares Rs 100 each.
b. Cash deposited into bank Rs 200,000 to open bank account.
c. Purchase goods costing Rs 200,000 on credit from suppliers for which Rs 72,000 (Net of discount) was paid at the time of purchase to settle 40% of the account.
d. A Plant and Machinery costing Rs 100,000 was purchase and payment made by cheque.
e. A Plant and Machinery costing Rs 80,000 was purchase on credit.
f. Sold goods for Rs 300,000 on credit to customers and received a cheques of Rs 81,000 (Net of discount) was to settle of sales 30% of the amount.
g. Received cheque from customer Rs 135,000 after deduction of 10% discount. The received cheque was immediately deposited into the bank.
h. Rs 25,000 was paid for electricity bill.
i. Issue cheque to suppliers Rs 108,000 after deducting 10% discount.
j. Paid wages Rs 20,000 and salary Rs 31,000 to office staff by issuing cheques.
k. Rent paid Rs 28,000 for the period.
l. Cash withdrawn from bank Rs 20,000 for office used.
Additional information;
➢ Depreciation provided on Plant and Machinery Rs 36,000
➢ Outstanding Salary Rs 5,000 and prepaid Rent Rs 4,000.
➢ Stock at the end Rs 25,000.
Required:
a) Journal entries
b) Triple column Cash book
c) Ledger Accounts of Plant & Machinery, Account Receivable and Account Payable.
d) Financial statements by using Work Sheet (showing cost of goods sold)
e) Cash flow statement by using Direct method [10+4+3+8+5]