Important
Model Questions and Answers for BBA Sem 2
**1. Basics of Accounting**
Q1. Define Accounting and explain its objectives and scopes.
Q2. Discuss the major branches of accounting and their utility in business.
Q3. What are the limitations of accounting? Give examples.
**2. Double-Entry System**
Q4. Explain the double-entry system of accounting with examples.
Q5. State the advantages of the double-entry system.
**3. Journals**
Q6. What are journals? Explain the rules of debit and credit with examples.
Q7. Write the journal entries for the following transactions:
a) Started business with INR 1,00,000
b) Purchased goods worth INR 20,000 on credit
c) Paid salaries of INR 5,000
**4. Ledger**
Q8. Define Ledger and explain its importance in the accounting process.
Q9. Differentiate between Journal and Ledger.
Q10. Post the following transactions to the ledger accounts:
- Purchased goods worth INR 30,000
- Sold goods for INR 50,000
- Paid rent INR 5,000
**5. Trial Balance and Rectification of Errors**
Q11. What is a Trial Balance? Discuss its objectives and utility.
Q12. Identify and rectify the errors in the following Trial Balance:
Example: Salaries paid INR 5,000 wrongly debited to Rent A/c.
Q13. What do you understand by rectification of errors? Explain the different types of errors.
Q14. What do you mean by Trial Balance? Describe the methods used to prepare a Trial Balance.
Q15. How can errors in accounting records be corrected? Explain the common categories of errors
with examples.
Q16. Define a Trial Balance. Discuss the steps and procedures involved in its preparation.
**6. Depreciation**
Q17. Define Depreciation. What are its causes and importance?
Q18. Explain the methods of charging depreciation: Straight-line method and Written-down value
method.
Q19. A machinery worth INR 50,000 has a life of 5 years with no scrap value. Calculate depreciation
using the straight-line method.
**7. Preparation of Financial Statements**
Q20. What are financial statements? Explain the components of a Balance Sheet and Profit & Loss
Account.
Q21. Prepare a simple Profit & Loss Account and Balance Sheet based on the following details:
- Sales: INR 1,00,000
- Purchases: INR 60,000
- Salaries: INR 10,000
- Rent: INR 5,000
- Capital: INR 50,000
- Machinery: INR 40,000
**8. Multiple Choice Questions (MCQs)**
1. What is the primary objective of accounting?
a) To record transactions
b) To prepare trial balance
c) To check errors
d) To estimate future sales
2. Which method of depreciation charges equal amounts every year?
a) Written-down value method
b) Reducing balance method
c) Straight-line method
d) Sinking fund method
3. A Trial Balance is prepared to:
a) Identify profit or loss
b) Check the arithmetical accuracy of ledger accounts
c) Prepare financial statements
d) Record transactions
4. An example of a compensating error is:
a) Purchase recorded twice
b) Debiting wages instead of salaries
c) Excess debit in one account and excess credit in another
d) Error in posting to ledger
5. In which book are original transactions recorded?
a) Ledger
b) Journal
c) Trial Balance
d) Profit & Loss Account