LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Com. DEGREE EXAMINATION – COMMERCE
FIRST SEMESTER – NOVEMBER 2012
CO 1502 – FINANCIAL ACCOUNTING
Date : 08/11/2012 Dept. No. Max. : 100 Marks
Time : 1:00 – 4:00
PART – A
ANSWER ALL THE QUESTIONS: (10×2=20)
- What are the different types of branches?
- [a] Hire Vendor may take away only a portion of goods on which there is default of
installment___________
[b] ________________is the advance payable by the buyer while signing hire purchase agreement.
- Say True or False:
[a] Single entry is an incomplete system of accounting because here only personal accounts are
maintained.
[b] Depreciable assets are expected to be used for an accounting period.
- Match the following:
[a] Fixed assets – Mines, quarries
[b] Nominal assets – Bills Receivable
[c] Liquid assets – Building
[d] Wasting asset – Discount on shares.
- What is the need for Departmental Accounting?
- From the following data calculate Capital at the beginning of the year.
Capital at the end of the year – Rs.70,000
Drawings during the year – Rs.10,000
Capital introduced during the year – Rs.5,000
Profit made during the year – Rs.20,000
- In what basis the following expenses apportioned in departmental accounting?
[a] Selling expenses [b] Canteen expenses
[c] Depreciation [d] Carriage inwards
- Cash Price of the Machinery Rs.20,000. Down payment Rs.5,000, four annual installments of Rs.5,000 each. Calculate interest for each of the four years.
- Why do you prepare a Statement of Affairs ?
- Why do you prepare a Trading account?
PART – B
Answer any FIVE questions: (5 x 8 = 40 marks)
- State the various methods of depreciation.
- Distinguish between Statement of Affairs and Balance Sheet.
- Define HRA. Enumerate the advantages of HRA.
- On 01.01.2002, X purchased a machine for Rs.50,000. On 01.07.2003 additions were made for
Rs.10,000. On 01.04.2004, Rs.6,400 worth of additions were made. On 31.12.2004, 1/4th of the first
machine purchased on 01.01.2002 was sold for Rs.7,000. Show machinery account from 2002 to 2004
in the books of X under diminishing balance method at 10% per annum.
- From the following details, prepare Departmental Account:
| Particulars | Department A Rs. | Department B Rs. |
| Opening stock
Total Purchases Total sales Closing stock Credit purchases Credit sales |
9,000
27,000 42,000 10,800 17,000 5,000 |
8,400
21,600 36,000 4,800 10,600 6,000 |
Transfer of goods from Departments A to B Rs.4,000
Transfer of services from Departments B to A Rs.500
- The Calcutta Commercial Company invoiced goods to its Jamshedpur Branch at cost. The Head
Office paid all the expenses from its bank except petty cash expenses which were paid by the branch.
From the following details relating to the Branch, prepare,
1) Branch stock A/c 2) Branch Debtors A/c 3) Branch Expenses A/c 4) Branch P&L A/c
| Rs | Rs | ||
| Stock ( Opening )
Debtors ( Opening ) Petty cash ( Opening ) Goods sent from HO Goods returned to HO Cash sales Advertisement Cash received from Debtors Stock ( Closing ) Allowance to customers |
21,000
37,800 600 78,000 3,000 52,500 2,400 85,500 19,500 600 |
Discount to customers
Bad debts Goods returned to branch by customers Salaries & Wages Rent & Rates Debtors(Closing) Petty cash ( Closing ) Credit sales
|
4,200
1,800 1,500
18,600 3,600 29,400 300 85,200
|
- From the following information calculate credit purchases and total purchases:
| Rs. | |
| Cash purchases
Opening balance of bills payable Opening balance of creditors Closing balance of Bills payable Closing balance of creditors Cash paid to creditors Cash paid to bills payable in the relevant year Purchase returns Allowance from creditors Bills payable dishonoured |
29,000
7,500 20,000 2,500 18,000 25,000 10,500 1,500 800 300 |
- From the following information you are required to ascertain
[a] cost of sales [b] Closing inventory as per CPP method,
when the firm follows LIFO method for inventory valuation.
Inventory on 1/4/1996 Rs.1,20,000
Purchases during 1996 – 97 Rs.72,000
Inventory on 31/3/1997 Rs.1,80,000
The firm has decided to adopt retail price index which was as follows:
On 1/4/1996 = 100; on 31/3/1997 = 140; Average during 1996 – 97 =125
PART – C
Answer any TWO questions: (2 x 20 = 40 marks)
- Raja maintains his books under Single Entry system . From the following information prepare Trading
Profit and Loss A/c for the year ending 31.12.1991 and also Balance sheet as on that date.
Cash in hand on 01.01.1991 was Rs.4,250.
Asset and Liabilities
1.1.1991 31.12.1991
Debtors 16,300 21,250
Stock 8,330 11,220
Furniture 850 850
Creditors 5,100 3,780
Other transactions:
Cash received from debtors 52,680 Cash sales 1,275
Cash paid to creditors 37,400 Cash Purchases 4,250
Salaries 10,200 Discount received 595
Rent & Rates 1,275 Discount allowed 255
Other expenses 1,530 Returns inward 850
Drawings 2,550 Returns outward 680
Additional capital 1,700 Bad debts 170
Adjustments:
Write off depreciation @5% on furniture. Provide doubtful debts @ 1% on debtors.
- Kevin purchased a truck for Rs.1,60,000 from Pranesh on 1.1.93 payment to be made Rs.40,000
down,Rs.46,000 at the end of first year, Rs.44,000 at the end of second year and Rs.42,000 at the end
of third year. Interest was charged at 5% and Kevin depreciates the truck at 10% per annum on written
down method.
Kevin, after having paid down payment and first installment at the end of first year, could not pay
second installment. The seller took possession of the truck and after spending Rs.4,000 on repairs of
the asset, sold it away for Rs.91,500.
Give journal entries and ledger accounts in the books of both parties.
- From the following trial balance as on 31.12.2000 prepare Trading, Profit and Loss Account and a
Balance Sheet as on that date.
| Particulars | Debit Rs. | Credit Rs. |
| Stock as on 01.01.2000
Cash in hand Drawings Rent Machinery Tax Provision for bad debts Bad debts Capital Interest General Expenses Bank overdraft Purchases Debtors Sales Creditors Sales return Purchase return |
5,840
192 2,840 480 3,800 600
888
1,760
41,448 16,800
840 |
420
17,000 320
960
47,624 8,000
1,164 |
| 75,488 | 75,488 |
Adjustments:
- Depreciation on machinery 10% p.a
- Rent outstanding Rs.500
- Tax prepaid Rs.100
- Provision for bad debts is to be increased to 5% on debtors
- Closing stock Rs.3,500.
- Discuss the Social Responsibility Accounting in detail.
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