Loyola College B.Com Nov 2010 Financial Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

   B.Com. DEGREE EXAMINATION – COMMERCE

FIRST SEMESTER – NOVEMBER 2010

CO 1500 – FINANCIAL ACCOUNTING

 

 

 

Date : 10-11-10                     Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

 

SECTION – A

Answer All questions:                                                                                   (10 x 2 = 20 Marks)

 

  1. What do you mean by cost of goods sold?
  2. Give the adjusting entries for the following appearing under the Trial balance:

(i)      Prepaid Insurance                     (ii) Depreciation on Machinery

(iii)    Closing stock                            (iv) Goods issued as samples

 

  1. Depreciation is a process of : (Choose the correct answer)

(a) Valuation of asset                                            (b) Allocation of cost

(c) Both valuation of asset and allocation of cost   (d) None of these

 

  1. Bills receivable endorsed are debited to: (Choose the correct answer)

(a) B/R  A/c.                    (b) B/P A/c            (c) debtors A/c.     (d) Creditors A/c.

 

  1. Calculate the missing figure: Opening Capital Rs.1,50,000, Profits Rs.60,000,

Closing capital Rs.3,90,000,  Drawings or Capital introduced Rs. ________.

 

  1. Explain the terms: Goods in Transit, Cash in Transit.

 

  1. What is ‘inter-departmental transfer’ and how is this treated in accounts?

 

  1. Calculate total interest when cash price is Rs.5,00,000 and down payment is Rs.1,25,000. Three annual instalments are of Rs.1,21,000, Rs.1,33,100 and Rs.1,46,410 are to be paid.

 

  1. What is minimum rent?

 

  1. It is given that short sales were Rs.2,04,000 and that of gross profit on sales was 25%. Hence the loss of profit will be equal to: (choose the correct answer)

(a)     Rs.40,800                                (b)     Rs.51,000

(c)     Rs.68,000                                (d)     Rs.55,000

SECTION – B

Answer any FIVE Questions:                                                                         (5×8=40marks)

 

  1. State the features and defects of single entry system.
  2. What are the special terms used in hire-purchase? Explain in detail.
  3. Define depreciation. What factors do you consider for calculating depreciation?
  4. Gopal purchased a machine for Rs.8,000 on 1st April 2001. He spent Rs.3,500 on its repair and installation.  Depreciation is written off @ 10% p.a. on the Diminishing balance Method.  On 30th June 2004 the machine was found to be unsuitable and sold for Rs.6,500.  Prepare the machine account from 2001 to 2004 assuming that the accounts are closed on 31st December every year.

 

  1. From the following details, write General Ledger adjustment accounts as on 31.12.2008.

Rs.                                                              Rs.

Debtors (1.1.2008) Dr       1,74,250      Bills accepted for Creditors                   74,000

Debtors (1.1.2008) Cr            3,200      Discount allowed to debtors          2,150

Creditors(1.1.2008)Cr       2,74,080      Discount allowed to debtors

Creditors(1.1.2008) Dr           2,040      but later on disallowed                   1,000

Purchases                         2,52,000      Cash received from debtors          87,000

Sales                               2,82,090      Discount allowed by creditors      10,200

Sales Returns                       2,080      Cash paid to debtors                         250

Purchases returns                  7,140      Transfer from debtors to               12,420

Cash paid to Creditors       1,27,000     creditors ledger

Bills received from debtors    93,000      Cash purchases                            43,200

Bills dishonoured                    2,000     Cash sales                                  74,000

Bad debts written off              2,150

 

  1. From the data, prepare Departmental Trading, Profit & Loss account and thereafter the combined income account revealing the concern’s true result for the year ended 31.12.2008.

Dept. A                          Dept.B

   Rs.                                  Rs.

Stock (January)                                 40,000                                –

Purchase from outside                     2,00,000                           20,000                  Wages                                                10,000                             1,000                  Transfer of goods from Dept.A               –                                 50,000

Stock (Dec 31st) at Cost of the Deptt. 30,000                           10,000

Sale of outsiders                              2,00,000                           71,000

 

B’s entire stock represents goods from Deptt.A which transfers them at 25% above its cost.  Administrative and selling expenses amount Rs.15,000 which are to be allocated between departments A and B in the ratio 4:1 respectively.

 

 

 

 

 

 

 

  1. Rajan took licence from Golden Flask Co. for production and sale of flasks at a royalty of Rs.0.50 per piece sold subject to a minimum rent of Rs.6000. short working is recoverable within 3 years of agreement. Pass journal entries in the books of Rajan.

     Year                    I                  II                III             IV

Production             8000           11000                   14000                   6000

Closing Stock         2000             1600                     3000                   4000

 

  1. A fire occurred in the premises of a company on 15.10.2008. From the following data, ascertain the loss of stock and prepare a claim for Insurance.

Rs.

Stock on 1.1.2007                                                             30,600

Purchases from 1.1.2007 to 31.12.2007                         1,22,000

Sales from 1.1.2007 to 31.12.2007                                1,80,000

Stock on 31.12.2007                                                         27,000

Purchases from 1.1.2008 to 15.10.2008                         1,47,000

Sales from 1.1.2008 to 15.10.2008                                1,50,000

Value of stock salvaged was                                              18,000

Amount of policy was                                                         63,000

Stocks were always valued at 90% of cost

 

There was an average clause in the Policy.

 

SECTION  – C

 

Answer any TWO Questions:                                                                 (2×20=40marks)

 

  1. A head office invoices goods to its branch at cost plus 50%. Branch remits all cash received to the head office and all expenses are met by the H.O. From the following particulars, prepare the necessary accounts on the stock and debtors system to show the Profit or loss at the branch.

Rs.                                                             Rs.

Stock on 1.1.2008          27,900        Goods returned by debtors       3600

(Invoice price)

Debtors on 1.1.2008       20,400        Goods returned to H.O.by branch    4500

Goods invoice to the                          Shortage of stock                     1350

Branch (Invoice Price)   1,53,000       Discount allowed                        600

Cash sales                      75,000        Expenses at the branch           16200

Credit sales                     93,000        Bad Debts                                   600

Cash collected from

Debtors                           91,200

 

  1. Mohan purchased a machine on hire purchase system on 1.1.2008. The terms of payment are four annual instalment of Rs.12,690 at the end of each year.  Interest is charged @ 5% and is included in the annual payment of Rs.12690. Show machinery account and hire vendor account in the books of Mohan who defaulted in the payment of the third yearly payment whereupon the vendor repossessed the machinery.  Mohan provides depreciation on the machinery @ 10% p.a. on the reducing balance.

 

  1. The Position of Manohar’s business as on 1.1.2008 was as under: Sundry Creditors Rs.1,70,000 ; Freehold premises Rs.5,00,000 ; Stock Rs.2,50,000 ; Sundry debtors Rs.2,00,000; Furniture Rs.20,000.

An abstract of the cash book is appended below

       Receipts            Rs.                    Payments                            Rs.

Sundry Debtors     1,50,000               Overdraft(1.1.2008)        1,00,000

Cash sales             8,00,000               Expenses                         5,00,000

Drawings                             30,000

Sundry Creditors               2,00,000

Cash in hand                       20,000

Cash at bank                    1,00,000

 

9,50,000                                                       9,50,000

The following additional information is available: Closing Stock Rs.3,00,000; Closing Debtors Rs.2,50,000 ; Closing Creditors Rs.1,20,000. No additions were made during the year to premises and furniture but they are to be depreciated @ 10% and 15% respectively.  A bad debts provision of 2.5% is to be raised.

 

Prepare a Trading and profit and loss account for the year ended 31.12.2008, and a balance sheet as on that date.

 

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