| st. joseph’s college of commerce (autonomous) |
| END SEMESTER EXAMINATION – MARCH/APRIL 2015 |
| BBM – ii semester |
| M1 11 201 FUNDAMENTALS OF ACCOUNTING |
| Duration: 3 Hours Max. Marks: 100 |
| SECTION – A |
| I) |
Answer ALL the questions. Each carries 2 marks. (10×2=20) |
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1. |
What is meant by “Going Concern Concept”? |
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2. |
Name four parties who would interested to use the information revealed by the Accounting System |
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3. |
Name four accounting conventions. |
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4. |
What is meant by Capital Receipts? Give an example. |
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5. |
What is a good debt? |
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6. |
Name four intangible assets. |
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7. |
What is meant by ‘Imprest System’ in Petty Cash Book? |
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8. |
State four types of errors which might occur while maintaining books of accounts. |
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9. |
What is a Contra Entry? Give two examples |
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10. |
Explain Interest on Drawings. |
| SECTION – B |
| II) |
Answer any FOUR questions. Each carries 5 marks. (4×5=20) |
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11. |
Mr. Rajesh starts a business; the details of the transactions of his business are given below: Record the accounting equation for each transaction & the Balance Sheet at the end.
| |
Rs. |
| (i) Commenced business with a capital of |
1,00,000 |
| (ii) Bought goods on credit from Ajay |
80,000 |
| (iii) Bought furniture for cash |
10,000 |
| (iv) Sold goods for cash |
40,000 |
| (v) Paid Ajay on account |
40,000 |
| (vi) Paid shop rent |
10,000 |
| (vii) Paid salaries |
5,000 |
| (viii) Sold goods on credit to Varun |
5,000 |
|
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12. |
What is a Journal Proper? Explain any four types of journal entries that are recorded in the Journal Proper. |
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13. |
Enter the following transactions in the proper subsidiary books.
| 2013 |
|
Rs. |
| March 01 |
Bought good from Albert |
2,000 |
| March 02 |
Sold goods to Brown |
1,000 |
| March 07 |
Charles sold goods to the firm |
1,000 |
| March 08 |
David bought goods from the firm |
700 |
| March 10 |
Received goods returned by Brown |
80 |
| March 12 |
The firm returned goods to Albert |
50 |
| March 18 |
Sold goods to Mohan |
500 |
| March 22 |
Purchased goods from Moses |
600 |
| March 25 |
Returned goods to Charles |
100 |
| March 30 |
Sold goods to Solomon |
600 |
|
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14. |
From the following trial balance of Hariprasad of Mumbai (containing errors), prepare a correct trial balance:
| |
Rs. |
Rs. |
| Purchases |
60,000 |
– |
| Reserve Fund |
20,000 |
– |
| Sales |
1,00,000 |
– |
| Purchases Returns |
1,000 |
– |
| Sales Returns |
– |
2,000 |
| Opening Stock |
30,000 |
– |
| Closing Stock |
– |
40,000 |
| Expenses |
– |
20,000 |
| O/s Expenses |
2,000 |
– |
| Bank Balances |
5,000 |
– |
| Assets |
50,000 |
– |
| Debtors |
– |
80,000 |
| Creditors |
– |
30,000 |
| Capital |
94,000 |
|
| Suspense account being difference in the books |
10,000 |
|
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2,72,000 |
2,72,000 |
|
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15. |
Prepare the personal account of Mr. Ganesh from the following transactions:
| 2011 |
|
Rs. |
| March 01 |
Debit balance of Ganesh account |
8,100 |
| 3 |
Bought from, Ganesh |
1,400 |
| 5 |
Goods sold to him |
2,300 |
| 9 |
Paid to him |
1,300 |
| 12 |
Returned goods to him |
130 |
| 15 |
Ganesh bought goods from the firm |
1,500 |
| 18 |
He returned goods |
600 |
| 22 |
Received a bearer cheque from Ganesh |
1,000 |
| 25 |
Goods returned to Ganesh |
250 |
| 30 |
Ganesh sold goods to the firm |
1,800 |
|
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16. |
What does GAAP stand for? Explain the following accounting principles:
a) Dual aspect concept
b) Money measurement concept
c) Cost concept
d) Accrual concept |
| SECTION – C |
| III) |
Answer any THREE questions. Each carries 15 marks. (3×15=45) |
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17. |
From the following Trial Balance of a trader on 31st March 2014, prepare Trading and Profit and Loss account for the year ended 31/3/2014 and a Balance Sheet as on that date:
| Particulars |
Debit
Rs. |
Particulars |
Credit
Rs. |
| Cash in hand |
1,200 |
Capital |
60,000 |
| Purchases |
1,00,000 |
4% Bank loan |
20,000 |
| Opening stock |
35,000 |
Bills payable |
20,000 |
| Sundry debtors |
50,000 |
Sundry creditors |
24,000 |
| Plant & Machinery |
60,000 |
Sales |
2,00,000 |
| Furniture |
15,000 |
Bad debts reserve |
1,200 |
| Bills receivable |
18,000 |
Rent outstanding |
1,000 |
| Rent and taxes |
10,000 |
|
|
| Wages |
16,000 |
|
|
| Wages prepaid |
1,000 |
|
|
| Salaries |
20,000 |
|
|
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3,26,200 |
|
3,26,200 |
Additional Information:
- Create Reserve for doubtful debts at 5% on Sundry debtors
- Write off Rs.500 as bad debts
- Depreciate plant and machinery at 5% and on furniture at 10%
- Provide outstanding liabilities: Taxes Rs.2,000 and Salaries Rs.4,000
- Closing stock Rs.40,000
- Provide Interest on 4% Bank Loan.
|
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18. |
Journalize the following transactions in the books of Mr. Kadur
| 2011 |
|
| April 01 |
Commenced business with cash Rs.50,000, Furniture worth Rs.10,000, Goods worth Rs.15,000 and borrowed money from his brother Patil Rs.30,000 |
| 3 |
Purchased goods from Rs.35,000 from Suhas |
| 5 |
Returned goods to Suhas Rs.3,000 |
| 7 |
Gave charity to a poor student Rs.2,000 |
| 9 |
Theft of cash from office Rs.1,000 |
| 11 |
Purchased for cash goods worth Rs.12,000 at 5% cash discount |
| 13 |
Gave an order to Rohit for purchase of goods worth Rs.20,000 |
| 15 |
Received goods worth Rs.20,000 as per the order placed with Rohit |
| 17 |
Sold goods to Pathan Rs.5,000 |
| 19 |
Goods worth Rs.2,000 stolen |
| 21 |
Paid Rs.3,000 to print Pamphlets about business |
| 23 |
Bad debts written off Rs.2,000 from Ganesh |
| 25 |
Recovery of written off bad debts from Pritvi Rs.1,000 |
|
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19. |
Enter the following in a three column cash book of a merchant and record the following transactions:
Balance the cash book on 31st January 2014
| 2014 |
|
| Jan. 01 |
Commenced business with Rs.10,000 |
| Jan. 02 |
Paid into bank Rs.8,000 |
| Jan. 07 |
Purchased goods by cheque Rs.3,000 |
| Jan. 10 |
Paid rent Rs.150 |
| Jan. 12 |
Purchased furniture by cheque Rs.180 |
| Jan. 15 |
Cash sale Rs.650 |
| Jan. 16 |
Give Gopal a cheque for Rs.970/- and he allowed discount Rs.25 |
| Jan. 18 |
Received from Narayan a cheque for Rs.1,500 and he was allowed a discount of Rs.30 |
| Jan. 20 |
Paid into bank Rs.1,500 |
| Jan. 25 |
Paid wages Rs.60 |
| Jan. 28 |
Drew for office use Rs.400 |
| Jan. 30 |
Received from Gopal Rs.100 |
| Jan. 31 |
Withdrew for personal use by cheque Rs.150 |
|
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20.
|
a. Prepare the personal account of Srinivas from the following transactions:
| 2013 |
|
Rs. |
| Jan. 01 |
Debit balance to Srinivas’s A/c |
1,000 |
| Jan. 02 |
Sold goods on credit to Srinivas |
5,400 |
| Jan. 06 |
Received from Srinivas |
6,300 |
| Jan. 06 |
Allowed him discount |
100 |
| Jan. 10 |
Srinivas bought goods on credit |
1,500 |
| Jan. 15 |
Received cash from Srinivas |
1,450 |
| |
Allowed him discount |
50 |
| Jan. 20 |
Purchased goods on credit from Srinivas |
1,040 |
| Jan. 25 |
Paid cash to Srinivas |
500 |
| Jan. 28 |
Returned goods to Srinivas |
140 |
| Jan. 31 |
Paid cash to Srinivas in full settlement of his account |
390 |
b. Mention the limitations of accounting. |
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21. |
A book keeper, while preparing his trial balance finds that the debit exceeds the credit by Rs.7,250/- He places the difference to a Suspense Account. In the next year, the following mistakes were discovered:
(a) A Sale of Rs.4,000 has been passed through the Purchases Day Book. The entry in Customer’s Account has been correctly recorded.
(b) Goods worth Rs.2,500 taken away by the Proprietor for his use has been debited to Repairs Account.
(c) A Bill receivable for Rs.1,300 received from Krishna has been dishonoured on maturity, but no entry passed.
(d) Salary Rs.650 paid to a Clerk has been debited to his personal account.
(e) A purchase of Rs.750 from Raghuvir has been debited to his account. Purchase account has been correctly debited.
(f) A sum of Rs.2,250 written off as depreciation on furniture has not been debited to Depreciation Account.
Draft the journal entries for rectifying the above mistakes and prepare the Suspense Account.
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SECTION – D |
| IV) |
Compulsory question. (1×15=15) |
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22. |
Journalise the following transactions, post the entries in ledger and prepare the Trial Balance.
2013
Jan. 1 Ganesh started his business with Rs.20,000.
2 Borrowed Rs.5,000 from Mahesh.
3 Deposited into the Bank Rs.10,000.
4 Purchased Fixed Assets for Rs.5,000.
5 Bought goods for Rs.1,500.
6 Sold goods for Rs.9,000.
9 Received Rs.11,880 from Shyam after allowing him Cash Discount Rs.120.
10 Paid Rs.19,800 to Ramesh after receiving Cash Discount Rs.200.
12 Withdrew Rs.1,000 for his personal use.
14 Cash deposited into Bank Rs.1,000. |