St. Joseph’s College of commerce (AUTONOMOUS)
|
||||||||||||||||||||||||||||||||||||||||||
| END SEMESTER EXAMINATION – MARCH /APRIL 2016 | ||||||||||||||||||||||||||||||||||||||||||
| B.B.A. – II SEMESTER | ||||||||||||||||||||||||||||||||||||||||||
| M1 15MC203 : fundamentals of accounting | ||||||||||||||||||||||||||||||||||||||||||
| Duration: 3 Hours Max. Marks: 100 | ||||||||||||||||||||||||||||||||||||||||||
| SECTION – A | ||||||||||||||||||||||||||||||||||||||||||
| I) | Answer ALL the questions. Each carries 2 marks. (10×2=20) | |||||||||||||||||||||||||||||||||||||||||
| 1. | “Accounting involves the process of recording, classifying and summarizing business transactions.” Explain the above in light of accounting cycle. | |||||||||||||||||||||||||||||||||||||||||
| 2. | Explain how reliability of financial statements can be ensured for external users of the accounting information. | |||||||||||||||||||||||||||||||||||||||||
| 3. | “Assets are not recorded at their current market value”. Explain the underlying concept and an exception to that principle. | |||||||||||||||||||||||||||||||||||||||||
| 4. | From the following, state the nature of accounts according to modern classification and state which account will be debited and which account will be credited:
i. Goods withdrawn by the proprietor. ii. Rent outstanding. |
|||||||||||||||||||||||||||||||||||||||||
| 5. | What is meant by Trial Balance? What are the main objectives and limitations of a trial balance? | |||||||||||||||||||||||||||||||||||||||||
| 6. | Explain Capital and Revenue items of expense and income with an example for each. | |||||||||||||||||||||||||||||||||||||||||
| 7. | From the following find the cost of goods sold:
Particulars Rs. Opening Stock 1,50,000 Purchases 1,00,000 Freight Inwards 5,000 Fuel and Power 2,000 Carriage Outwards 500 Purchases Returns 10,000 Sales 2,50,000 Closing Stock 50,000 |
|||||||||||||||||||||||||||||||||||||||||
| 8. | What are Fictitious Assets? Give an example. | |||||||||||||||||||||||||||||||||||||||||
| 9. | Explain the significance of creating Provisions out of profits of a concern. Give two examples for the same. | |||||||||||||||||||||||||||||||||||||||||
| 10. | Write a note on Statement of Profit and Loss Appropriation. | |||||||||||||||||||||||||||||||||||||||||
| SECTION – B | ||||||||||||||||||||||||||||||||||||||||||
| II) | Answer any FOUR questions. Each carries 5 marks. (4×5=20) | |||||||||||||||||||||||||||||||||||||||||
| 11. | Explain the errors disclosed by trial balance and errors not disclosed by it. | |||||||||||||||||||||||||||||||||||||||||
| 12. | Show the accounting equation for the following transactions.
i. George commenced business with Rs. 50,000 ii. Paid rent in advance Rs. 5,000 iii. Purchased goods from Sohan Rs. 35,000
iv. Sold goods to Hema for cash Rs. 40,000 (costing Rs. 30,000) v. Commission received in advance Rs. 1,000 |
|||||||||||||||||||||||||||||||||||||||||
| 13. | From the following prepare Ram’s account in the books of Shyam and explain what the balancing amount represents:
i. Sold goods to Ram Rs. 1,00,000 ii. Ram returned goods worth Rs. 8,000 iii. Received cash Rs. 20,000 from Ram and allowed him discount Rs. 1,000 iv. Ram gave a cheque for Rs. 30,000 which was deposited into bank immediately |
|||||||||||||||||||||||||||||||||||||||||
| 14. | Rectify the following errors detected before the preparation of the Trial Balance.
i. Sales book has been undercast by Rs. 1,000 ii. An item of Rs. 2,500 from purchases book has been credited to the personal account of Rajan as Rs. 5,200 iii. Rs. 2,000 spent on installation of Machine was debited to Wages A/c iv. A sum of Rs. 500 received for interest has been posted to the debit of interest account. |
|||||||||||||||||||||||||||||||||||||||||
| 15. | From the following information prepare the Trading A/c:
Opening Stock Rs. 1,50,000; Cash Sales Rs. 60,000; Credit Sales Rs. 12,00,000; Returns Outwards Rs. 10,000; Wages Rs. 4,000; Cartage Inwards Rs. 5,000; Freight Inwards Rs. 3,000; Salaries Rs. 10,000; Purchases Rs. 10,00,000; Returns Inwards Rs. 20,000; Closing Stock Rs. 84,000. |
|||||||||||||||||||||||||||||||||||||||||
| 16. | Under what heads the following items would appear in the Balance Sheet of a Company as per the new Company’s Act of 2013:
i. Patents and Trade Marks ii. Prepaid Interest iii. Securities Premium Reserve iv. Unclaimed Dividend v. Sundry Debtors vi. Outstanding Rent vii. Provision for Tax viii. Bills Payable |
|||||||||||||||||||||||||||||||||||||||||
| SECTION – C | ||||||||||||||||||||||||||||||||||||||||||
| III) | Answer any THREE questions. Each carries 15 marks. (3×15=45) | |||||||||||||||||||||||||||||||||||||||||
| 17. | Write short notes on the following:
i. Suspense A/c ii. Profit and Loss A/c iii. Convention of Conservatism iv. Accrual Concept v. Statement of Financial Position or Balance Sheet |
|||||||||||||||||||||||||||||||||||||||||
| 18. | Journalise the following transactions in the books of Thora.
|
|||||||||||||||||||||||||||||||||||||||||
| 19. | A trial balance is prepared and the book keeper finds that it disagrees, there being an excess debit of Rs. 1,270. the time in hand to trace the errors being short, he places the difference to the credit of a newly opened account called suspense account.
He subsequently discovers the following errors. Pass rectigying journal entries with a view to close the suspense account. Show also the suspense account. i. The day book is totalled Rs. 50 short. ii. Payment of trade expenses Rs. 275 entered on the payment side of the cash book is omitted to be posted. iii. Commission Rs. 125 paid, has been posted twice to commission account. iv. A sale to A.Gopal for Rs. 195 though correctly entered in the day book is debited to A Gopal Account as Rs. 465. v. Good bought from L.LL For Rs. 500 though correctly entered in the invoice book is debited to L.Lal’s personal account instead of being credited to him. vi. Discount column on the receipts side of cash book, totaling Rs. 615 has been added up to show Rs. 715. |
|||||||||||||||||||||||||||||||||||||||||
| 20. | Enter the following transactions in the Journal of M/s F & F Ltd., post them to Ledger Accounts and prepare the Trial Balance.
|
|||||||||||||||||||||||||||||||||||||||||
| 21. | From the following figures, prepare a Statement of Profit and Loss of Skyline Ltd. for the year ending 31.03.2013.
Additional Information: a. Stock on 31.03.2013 is Rs. 2,13,840 (Net Realizable value being Rs. 2,25,580). b. Provision for doubtful debts is to be maintained at 1% of Debtors. c. Provision for discount on creditors is required at 0.5%. d. Outstanding salary is Rs. 12,200. e. Rent is outstanding for 2 months. f. Wages prepaid is Rs. 2,200. g. Provide for tax at 40%. h. No. of Equity Shares of the Company since 1.4.2012 is 40,000. |
|||||||||||||||||||||||||||||||||||||||||
| SECTION – D | ||||||||||||||||||||||||||||||||||||||||||
| IV) | Case Study – Compulsory question. (1×15=15) | |||||||||||||||||||||||||||||||||||||||||
| 22. | From the following Trial Balance and additional information of Ms. Ursala, a proprietor, prepare Trading, Profit & Loss A/c for the year ending 31st March, 2013 and the Balance Sheet as on that date:
Trial Balance as at 31st March, 2013
Additional Information: i. Rent has been paid for 11 months and has been received for 13 months. ii. Write off further Rs. 6,000 as bad and maintain a provision of 10% for doubtful debts. iii. Maintain a provision for discount @ 2% on debtors. iv. A Machine costing Rs. 20,000 was purchased on 1st July 2012. Wages Rs. 1,000 for its installation has been debited to general expenses account. Provide depreciation on Plant & Machinery @ 10% p.a. v. Provide depreciation @ 10% on Furniture and @ 5% on Building.
******************************************* |
|||||||||||||||||||||||||||||||||||||||||
Latest Govt Job & Exam Updates: