- JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH/APRIL 2013
B.COM – II SEMESTER (Travel & Tourism)
FINANCIAL ACCOUNTING – II
Duration: 3 Hours Max. Marks: 100
SECTION – A
- Answer any TEN of the following questions. ( 10 x 2 = 20)
- What do you understand by the term ‘Mark up or Loading’ in invoicing goods in Branch accounts?
- Shyam sundar’s goods costing Rs.50,000 were destroyed by fire, stock saved was Rs.5,000. He had insured his goods for Rs.2,00,000, but the actual stock on the date of fire was Rs.1,50,000. Is average clause applicable for calculating claim, give reasons? What is the amount of claim?
- What do you understand by the term ‘Independent Branches’ in Branch Accounting ?
- How is the Credit sales ascertained during conversion of single entry into double entry?
- What is the difference between Branch Debtors system and Branch Final account system?
- Calculate the missing figure
Opening Capital ?
Closing Capital Rs. 36,400; Capital Introduced Rs. 9,400; Drawings Rs. 5,600; Loss Rs. 2,800
- Calculate Sales; if Opening Debtors – Rs. 10,000; Cash Received From Debtors &
B/R – Rs. 20,000; Opening Balance of B/R – Rs. 4,000 and Closing Balance
of B/R – Rs. 2,000; Closing Balance of Debtors – Rs. 16,000
- Write the journal entry for bills receivable dishonored?
- Calculate Purchases:
Cost of goods sold Rs.4,00,000, opening stock Rs.50,000 and closing stock Rs.60,000.
- A trader had taken a Fire Insurance Policy for Rs.3,42,000 with an average clause. The stock on date of fire is Rs.4,56,000 and the stock salvaged was Rs.56,000. Calculate the claim.
- The Gross Profit for the year ending 31/3/06 was 40% of sales. The selling price
has been reduced by 10% in order to increase sales from 1/4/06. What would be
the expected Gross Profit percentage?
SECTION – B
- II) Answer any FOUR of the following ( 4 x 5 = 20)
- 12. Fire occurred in the premises Janatha Enterprises on 30-9-2009 and stock of the value of Rs.1,01,000 was salvaged and the books of accounts were saved. The following information is given:
Purchases during the year ended 31-3-2009 Rs.7,00,000
Sales during the above period Rs.10,00,000
Purchases from 1-4-2009 to 30-9-2009 Rs.2,40,000
Sales from 1-4-2009 to 30-9-2009 Rs.3,60,000
Stock on 31-3-2008 Rs.3,00,000
Stock on 31-3-2009 Rs.3,40,000
Stock on 31-3-2009 as over valued by Rs.20,000. Calculate the fire claim based on the rate of profit for the previous year.
- 13. A head office in Mangalore had branches at Puttur and Udupi. Give entries in the books of the head office to rectify or adjust the following, assuming the books are closed on 31st March 2007.
- Expenses of Rs.4,800 to be charged to Udupi Branch for work done on its behalf by the Head office
- Puttur Branch paid Rs.3,600 salary to a visiting Head office official. The Branch has debited the amount to salaries account.
- Depreciation at 10% p.a. is to be charged on Furniture at Puttur costing Rs.10,000, the account of which is in the Head office.
- Goods costing Rs.2,400 purchased by the Head office from D’souza Brothers, but the payment was made by Puttur Branch.
- A remittance of Rs.3,750 made by Udupi Branch to the Head office on 28th March 2007, was received by the latter on 1st April 2007.
- Prepare the Debtors account and Bills receivable account from the following ON 31/03/2005 .
| Debtors on 31-3-2005 | 40,000 | B/R as endorsed dishonoured | 2,000 |
| Bills receivable 31-3-2005 | 30,000 | Discount allowed | 1,000 |
| Stock on 31-3-2005 | 30,000 | Discount received | 2,000 |
| B/R dishonoured | 5,000 | ||
| B/R endorsed to creditors | 15,000 |
- A head office in Madras sends goods to its branch in Kannur. Prepare Branch Account and calculate the profit.
| Rs. | |
| Debtors on 1st July 2004 | 12,000 |
| Stock on 1st July 2004 | 10,000 |
| Goods sent to Branch | 32,000 |
| Cash sales | 16,000 |
| Cash received from Debtors | 29,000 |
| Goods returned to Head office | 1,920 |
| Cheques sent to Branch for expenses | 14,510 |
| Stock on 31st March 2005 | 12,000 |
| Debtors on 31st March 2005 | 22,500 |
- What are the differences between Single Entry system and Double Entry system of
Book keeping?
- Explain the salient features of Branch Accounting?
SECTION – C
III) Answer any THREE of the following questions. ( 3 x 15 = 45)
- Hameed enterprises suffered loss of stock due to fire on May 15,2010. From the following information, prepare a statement showing the claim to be lodged.
Stock on 1-1-2009 Rs.38,400
Purchases during 2009 Rs.1,60,000
Sales during 2009 Rs.2,02,600
Closing stock on 31-12-2009 Rs.31,800
Purchases from 1-1-2010 to 15-5-2010 Rs.54,000
Sales from 1-1-2010 to 15-5-2010 Rs.61,400
An item of stock purchased in 2008 at a cost of Rs.10,000 was valued at Rs.6,000 on 31st. December 2008. Half of this stock was sold in 2009 for Rs.2,600 the remaining was valued at Rs.2,400 on 31-12-2009. One fourth of the original stock was sold in March 2010 for Rs.1,400 and the remaining stock was considered to be worth 60% of the original cost. Salvage was Rs.12,000. The amount of the policy was Rs.30,000 and there was an average clause in the policy.
- Manikchand carries on business as retail merchant. He does not maintain regular account books. From cash sales effected by him he effects business and other payments, always retain cash of Rs.1,000 on hand and deposits the balance in the bank account. The stock inventories for the year ended 31st December 2005 are lost. However, he informs you that he has sold goods invariably at a price, which yields him a profit of 33 1/3% on cost. From the following additional information supplied to you prepare necessary final accounts for the year ended 31st December 2005.
| Assets and Liabilities | 1st Jan. 2005 | 31st Dec. 2005 |
| Cash in hand | Rs.1,000 | Rs. 1,000 |
| Sundry Creditors | 4,000 | 9,000 |
| Cash at Bank | N.A. | 8,000 |
| Sundry Debtors | 10,000 | 35,000 |
| Stock of Goods | 28,000 | N.A. |
(N.A. = not available)
Analysis of the Bank Pass book reveals the following information:
| Payment to Creditors | Rs.70,000 |
| Payment for Business Expenses | 12,000 |
| Receipts from Debtors | 75,000 |
| Loans from Azad taken on 1st Jan., 2005 @ 10% p.a. | 10,000 |
| Cash deposited in the Bank | 10,000 |
In addition, he paid to the creditors for goods Rs.2,000 in cash and salaries Rs.4,000 in cash. He also withdrew Rs.8,000 cash for his personal expenses.
- A shoe company of Kanpur has its branch at Mangalore. Goods are invoiced to the branch at cost plus 25%. Branch has been instructed to deposit daily all cash received by it in the H.O except the petty cash expenses, which are met by the branch manager from the petty cash amount sent by the H.O. from time to time. From the following particulars, prepare Mangalore Branch Account in the books of the H.O at Kanpur. The branch sells goods at the invoice price only.
| Stock on 1st April 2000 at invoice price
Sundry debtors on 1st April 2000 Cash on hand on 1st April 2000 Office Furniture on 1st April 2000 |
Rs.30,000
18,000 800 2,400 |
Cash sales | 1,00,000 | |
| Credit sales | 60,000 | |||
| Expenses paid by the H.O for
Rent 2,400 Salary 4,800 Printing and stationery 600 |
7,800 |
|||
| Goods invoiced from H.O (invoice price) | 1,60,000 | |||
| Goods returned form the H.O (invoice price) | 2,000 | |||
| Cash received form debtors | 60,000 | |||
| Discount allowed by debtors | 600 | Petty expenses paid by the branch manager |
560 |
|
| Goods returned by debtors | 960 | |||
| Depreciation to be provided on branch furniture at 10% p.a. |
- Greenply has 2 departments P and Q, Department P sells goods to Department Q at normal selling prices. From the following particulars, prepare Departmental Trading and P&L account for the year ended 31-3-2004 and ascertain the profit to be transferred to Balance sheet.
| Particulars | Dept P | Dept Q |
| Opening stock | 1,00,000 | Nil |
| Purchases | 23,00,000 | 2,00,000 |
| Goods from Department P | ——— | 7,00,000 |
| Wages | 1,00,000 | 1,60,000 |
| Traveling expenses | 10,000 | 1,40,000 |
| Closing stock at cost to the Dept | 5,00,000 | 1,80,000 |
| Sales | 23,00,000 | 15,00,000 |
| Printing and stationery | 20,000 | 16,000 |
The following expenses incurred for both the departments were not apportioned between the departments.
- Salaries Rs.2,70,000
- Advertisement expenses Rs.90,000
- General expenses Rs.8,00,000
- Depreciation @ 25% on the machinery value of Rs.48,000
Advertisement expenses are to be apportioned in the turnover ratio, salaries in 2:1 and depreciation in 1:3 ratio, between the Departments P and Q. General expenses are to be apportioned in the ratio of 3:1
- Following is the trial balance of Bangalore Branch as on 31-3-2005
| Debit | Credit | |
| Furniture | 1,400 | |
| Cash at bank & on hand | 1,780 | |
| Office expenses | 470 | |
| Rent | 960 | |
| Debtors & creditors | 3,700 | 1,850 |
| Salaries | 1,500 | |
| Goods supplied to Head office | 6,000 | |
| Sales | 38,000 | |
| Goods received from head office | 8,000 | |
| Purchases | 18,800 | |
| Stock on 1st April 2004 | 6,000 | |
| Head office account | 3,240 | |
| 45,850 | 45,850 |
Closing stock was valued at Rs.2,700. The Branch Account in the Head office books stood at Rs.400 (Dr). Goods worth Rs.2,500 sent by Head office and remittance of Rs.1,200 sent by Branch to Head office was in transit.
You are required to incorporate the above trial balance in the Branch in Head office and to prepare the Bangalore Branch account in the books of the Head office.
SECTION – D
- IV) Compulsory question (15 marks)
- A trader, who has not kept a complete set of books, asks you to prepare his final accounts for the year ended 31st December 2005. You are, however, able to obtain the following information:
SUMMARY OF HIS CASH BOOK:
| Rs. | |
| Balance of Cash on 1st January, 2005 | 51,700 |
| Receipt from Debtors | 4,20,500 |
| Personal Drawings | 30,000 |
| Payment to Creditors | 3,24,000 |
| Salaries | 25,000 |
| Rent | 12,000 |
| Electricity Charges | 3,500 |
| Printing and Stationery | 2,500 |
| Advertising | 4,500 |
Additional Information:
| 31/12/04 (Rs.) |
31/12/05 (Rs.) |
|
| Debtors | 33,500 | 51,000 |
| Creditors | 14,000 | 35,000 |
| Rent Outstanding | 1,000 | 1,000 |
| Electricity Charges Outstanding | 200 | 150 |
| Advertising Outstanding | 2,500 | |
The stock on 31st December 05 was valued at Rs.45,000, but the trader has no record of the Stock on 31st December 04. He informs you, however, that he invariably sells, his goods at cost plus 33 1/3 percent.
Prepare his Trading and Profit and Loss Account for the year ending 31st December 05 and his Balance Sheet as on that date. Give detailed working of arriving at the different unknown figures.
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