1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – MARCH / APRIL 2014

BBM – II SEMESTER

FUNDAMENTALS OF ACCOUNTING

Duration: 3 Hours                                                                                           Max. Marks: 100

SECTION – A

1. Answer ALL the following questions. Each carries 2 marks.               (10 x2 = 20)

 

• What is a debit note? Give an example.
• What is accounting? State any two branches of accounting.
• Define Accounting concepts and Accounting convention?
• What do mean by journalising and posting?
• Name the various types of cash books maintained in a business?
• What is contra entry? Give an example.
• Distinguish between balance sheet and trial balance – any two.
• What is meant by Rectification of errors? Mention any two types of errors.
• Classify the following accounts:

Wages Account,  Capital Account,  Interest Account, and Stock Account.

• Mention any four uses of final accounts.

 

SECTION – B

1. Answer any FOUR Each carries 5 marks.                        (4 x 5 = 20)

 

• What is double entry system? Briefly explain the rules of double entry system.

 

• Show the accounting equation on the basis of the following transactions:
  1. Rajesh started business with cash Rs 9000
  2. Purchased equipment for cash Rs 7400
  3. Purchased goods on credit Rs 2,650
  4. Paid Rs 300 to creditors
  5. Sold goods for cash Rs 2,000 (cost price Rs 1,200)

 

• From the following balances, prepare a trial balance

Particulars	Amount	Particulars	Amount
Drawings	2000	Bad debts	550
General expenses	4740	Loan to Ramesh	7880
Buildings	20000	Sales	68000
Stock	16540	Purchases	40000
Wages	8515	Bank overdraft	10000
Debtors	6280	Capital	?
Creditors	2500

 

14) A) Mr. A had a capital of Rs 45,000 on 31/3/2007. He had also goods amounting Rs 25,000, which he had purchased on credit and the payment, had not been made. Find out the value of the assets.

1. B) After a period of one month he came to know that he had suffered a loss of Rs 2,500 he withdrew Rs 1,500 for his personal use. Find out his capital and assets of the business.

• Enter the following transactions in the simple petty cash book.

Date	Particulars	Amount
1/8/2007	Received a cheque to open petty cash book	1,000
5/8/2007	Bought postage stamps	50
8/8/2007	Paid for stationery	80
10/8/2007	Sent telegram	70
12/8/2007	Paid for cartage	50
14/8/2007	Paid tiffin charges for customers	130
20/8/2007	Balance due to Mr B paid	60
25/8/2007	Paid auto charges of the salesmen	70
28/8/2007	Paid coolie	90
29/8/2007	Purchased paper clips	40
31/8/2007	Paid electric charges	80

 

• You are required to rectify these errors which were located before the preparation of the final accounts
  1. An amount of Rs 37,500 posted to the cashbook as against cash sales of Rs 3,75,000.
  2. An amount of Rs 5,000 spent towards wages for installation of a machine posted to wages account.
  3. Rs 10,000 received from Mr S posted to Mr R’s Account.
  4. Sale to Mr S has been wrongly posted to purchase book for goods worth Rs 28,000
  5. Repairs to plant amounting to Rs 567 had been charged to plant and machinery account.

 

SECTION – C

• Answer any THREE Each carries 15 marks        (3x 15 = 45)

 

• Enter the following transactions in the subsidiary books of Soundarya Saree Shop for the month May 2013.

May 1	Purchased from Pathi Silk Kendra 100 silk sarees at Rs 250 each
May 5	Purchased from NSR and Co 200 Silk Sarees Rs 1,000 each
May 7	Sold to Mr Kumar on account 50 printed sarees at Rs 300 and 100 silk sarees at Rs 1,000 each.
May 8	Claimed for damages from Pathi Silk Kendra Rs 500
May 9	Returned damaged goods to NSR and Co 5 silk sarees.
May 12	Purchased from Sudharshan silks 150 Mysore silk at Rs 250 each, 100 handloom sarees at Rs 750 less trade discount at 10%
May 15	Sold to Mr. Kala on account 20 printed sarees at Rs 300 each, 25 silk sarees at Rs 1,300 each, and 20 mysore silk saree at Rs 300 each less trade discount 5%.
May 20	Sold to kusum 40 handloom sarees at Rs 1,000 each
May 21	Kumar returned 10 printed sarees and 20 silk sarees.
May 25	Returned to Sudharshan’s silk 25 mysore silk
May 27	Returned from Kusum 10 handloom sarees.
May 30	Purchased from Nandi Silk 400 sarees at Rs 500 each.

 

 

• Journalise the following transaction in the books of Ravi for the month of Jan 2007

Date	Particulars	Amount
Jan 1	Started business with cash	1,00,000
Jan 1	Paid into bank	50,000
Jan 2	Goods purchased for cash	30,000
Jan 3	Purchased furniture paid by cheque	10,000
Jan 5	Sold goods for cash	20,000
Jan 8	Sold goods to Ramesh	10,000
Jan 10	Purchased goods from Ajay	15,000
Jan 12	Goods returned to Ajay	1,000
Jan 15	Goods returned by Ramesh	5,00
Jan 18	Cash received from Ramesh Discount allowed to him	9,300 200
Jan 21	Withdrew from bank for personal use Withdrew from bank for office use	2,000 12,000
Jan 25	Paid telephone rent for one year	1,200
Jan 28	Cash paid to Ajay in full settlement of his account	13,700
Jan 31	Paid for stationery Rs 4,400 rent Rs 2,000 and salaries to staff Rs 5,000

 

• Draw the two-column cashbook from the transaction for the month of March 2012.

March 1	Balance of cash in hand Rs 6000
March 2	Received cash from Sohan Rs 1000
March 4	Paid into bank Rs 1800
March 6	Paid to Mohan for goods purchased Rs 2000
March 7	Received Rs 1800 from cash sales
March 8	Paid for cash purchases Rs1920 and received Rs 80 as discount.
March 8	Withdrew for personal use Rs 1000
March 10	Received Rs 1160 from Kapoor and allowed Rs 40 as discount
March 12	Drew from bank for office use Rs 800
March 15	Paid cash for electricity charges Rs 120
March 20	Paid rent Rs 320
March 24	Cash sales Rs 1400
March 27	Deposited in bank Rs 1000
March 30	Paid cash for advertisement Rs 80
March 31	Paid salaries in cash Rs 140

 

• Prepare ledger account from the following transaction for the month of April 2004

Date	Particulars	Amount
April 1	Mr. Ram started business with a capital	50,000
April 2	Purchased furniture	5,000
April 3	Bought goods on credit from Mr. Vinod	8,000
April 14	Sold goods to Mr. Sham	5,000
April 15	Received cash from Mr. Sham	3,000
April 18	Purchased goods for cash	12,000
April 25	Sold goods for cash	8,000
April 28	Paid rent Rs 1,200	1,200
April 31	Paid Mr. Vinod	3,000

 

• From the following particulars taken from the books of Suresh and Co prepare the bills receivables and bills payable book and post them to ledger for the month of March 2012.

Date	Particulars
1/3	Acceptance received from Roy payable three months after date for Rs 6500
5/3	Accepted Subhash’s draft for Rs 4000 for 2 months
12/3	Drew a bill on Yusuf for Rs 2500 for 3 months
20/3	Gave Rajesh our acceptance for Rs 5000 payable 4 months after date
22/3	Roy’s acceptance for Rs 6500 was retired under a rebate of Rs 100
25/3	Received a bill from Naresh for Rs 1000 for 1 month
28/3	Accepted bill of Patel for Rs 4500 for 2 months
30/3	Accepted Subhash’s draft for Rs 2000 for 1 month
30/3	Drew a bill on Yusuf for Rs 2000 for 2 months and accepted by him payable at Bank of India, Bangalore.

 

SECTION – D

 

1. Compulsory Question.          (1 x 15 = 15)

 

22. From the following trial Prepare trading and profit and loss account for the year ended 31^st March 2007 and Balance sheet as at that date from the following particulars.

Particulars	Debit (Rs)	Credit (Rs)
Capital	——	30000
Drawings	5000	——
Purchases	40000	——
Carriage outwards	500	——
Returns outwards	——	1000
Sundry expenses	800	——
Bad debts	300	——
Sales	——	60000
Postage	200	——
Wages	1000	——
Bills payable	——	3000
Discount	500	——
Land	18000	——
Machinery	7500	——
Sundry creditors	——	8500
Sundry debtors	10500	——
Salary	1500	——
Investments	3000	——
Opening stock	13200	——
Cash in hand	500	——
TOTAL	102500	102500

Adjustments: Closing stock Rs 10300, make a provision for bad debts at 5%, depreciation machinery by 6%, outstanding salary Rs 400, interest accrued on investments Rs 90, wages paid in advance Rs 50.

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1. JOSEPHS’ COLLEGE OF COMMERCE (AUTONOMOUS)

BBM – II SEMESTER

FUNDAMENTALS OF ACCOUNTING – SCHEME OF VALUATION

 

SECTION A

1. 1+1
2. 1+1/2 each
3. 2 marks
4. 1+1
5. ½ marks each
6. 1+1
7. 1+1
8. 1+1/2 each
9. ½ each
10. ½ each

 

SECTION B

1. 2 + 1 each
2. 1 each
3. ANSWER Capital Rs 26005 (steps 1+ 1/4 each +Ans 1)
4. ANSWER 70000, 41000, 66000 (1+2+2)
5. ANSWER 280 (1/2 each)
6. 1 each

 

SECTION C

1. Purchase Book 526250, sales book 197275, PR book 11750, SR book 33000 (5+5+3+2)
2. 1 each
3. Cash balance 3780 (1 each)
4. 2 each

 

SECTION D

1. Gross profit 17150, Net profit 12065, Balance sheet 48965 (5+5+5)

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