St. Joseph’s College of Commerce 2015 Fundamentals Of Accounting Question Paper PDF Download

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ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – SEPT/OCT. 2015
B.COM(BPM)– I SEMESTER
C3 15MC101: FUNDAMENTALS OF ACCOUNTING
Duration: 3 Hours                                                                                      Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                (10×2=20)
  1. If a radio seller-proprietor buys a radio for his personal use from out of his business funds, the amount paid for the radio will be treated as what? And which accounting concept is applicable? Why?
  2. Differentiate between Trade discount and Cash discount.
  3. Prudence is a concept to recognize unrealized profits and not losses. Is this statement true or false? Explain.
  4. What is error of principal? Give an example.
  5. Classify the following accounts into Personal, Real and Nominal Accounts:

1) Drawings A/c; 2) Rent A/c ; 3) Cash A/c; 4) Goodwill A/c.
  6. Cost of goods sold is 2,00,000 and gross profit is 25% on sales Find out Sales?
  7. What is a Suspense Account? When is it opened?
  8. Distinguish between Reserves and Provisions.
  9. What are the different types of Subsidiary books?
  10. Show the Accounting Equation effect for the transaction prepaid rent in advance.
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                              (4×5=20)
  11. Enter the following transactions in a Simple Cash Book for December, 2014:

Date Particulars Amount (Rs.)
1st Commenced business with  cash 50,000
2nd Bought goods for cash 28,000
5th Received cash from Arun 2,000
7th Paid cash to Sanjay 2,900
10th Paid wages 3,000
14th Received from Rajesh 950
16th Paid into Bank 10,000
18th Cash Sales 2,500
20th Purchased Stationery for cash 250
23rd Paid Suresh Cash 3,900
26th Received from Rakesh 1,900
30th Paid Salaries 2,000
  12. Under which Heading and Sub-Heading the following items appear in the Balance Sheet as per Companies Act, 2013:

1) Debit Balance of Profit & Loss A/c 6) Building under construction
2) Matured Debentures 7) Plant & Machinery
3) Unexpired Insurance 8) Share Premium
4) Preliminary Expenses 9) Secured Loan
5) Goodwill 10) 8% Debentures
  13. The Capital Structure of the BNML Ltd. consisted of:

1) 2,00,000 Equity shares of Rs. 10 each fully called up (calls-in-arrears Rs. 20,000).

2) 10,000, 12% cumulative preference shares of Rs. 100 each fully called up.

12,000, 13% convertible debentures of Rs. 1,000 each.

From the following information, prepare the Profit and Loss Appropriation Statement of BNML Ltd. for the year ended 31st March, 2015:

Balance brought forward from last year Rs. 2,00,000 (credit)

Current year’s profit after all necessary adjustments Rs. 9,20,000

The Board of Directors at the annual general meeting approved the following appropriations:

a.      Provide 15% dividend on equity shares.

b.      Provide for taxation Rs. 30,000.

c.       Dividend Equalization Fund Rs. 42,000.

d.     Transfer to Debenture Redemption Reserve Rs. 36,000.

e.      Rs. 40,000 to be transferred to Reserve Fund and Rs. 26,000 to Sinking Fund.

f.        Provide for Corporate Dividend Tax. (@ 20.358%)
  14. From the following information prepare a Trial Balance as on 31.3.2015: (Amount in Rs.)

Capital Account 12,500 Stock on (1.4.2014) 3,460
Sales 15,450 Purchases 5,475
Furniture and Fittings 640 Bank (Cr Balance) 2,850
Motor Car 6,250 Purchase Returns 125
Buildings 7,500 Commission (Cr) 375
Total Debtors 3,800 Sales Returns 200
Total Creditors 2,500 Advertisement 250
Bad Debts 125 Interest Account (Dr.) 118
Cash Balance 650 Insurance & Tax 1,250
Salaries 4,082    
  15. State whether the following transaction is capital or revenue expenditures, profits or losses or deferred and give reasons for the same:

1)Rs. 15,200 spent on repairs before using a second hand car purchased recently.

2) During the year Rs. 30,000 were spent on repairing of various machines.

3)Freight and cartage on the new machine Rs.  12,000, erection charges Rs. 32,000.

4)Rs. 2,00,000 were spent on advertising in connection with the introduction of a new product.

5)Received Rs.1,00,000 as subsidy from State Government.

 
  16. From the ledger balances, prepare Trading and Profit & Loss Account for the year ending 31. 3. 2015.

Particulars Amount (Rs.)
Stock on 1st April, 2014 60,000
Sales 3,00,000
Sales Returns 10,000
Purchases 2,40,000
Purchase Returns 3,000
Carriage Inwards 4,000
Carriage Outwards 6,000
Salaries and Wages 30,000
Bank Interest Paid 2,000
Printing & Stationery 6,000
Discount Received 1,000
Discount Allowed 5,00
Audit Fees 2,000
Insurance Premium 3,000
Trade Expenses 500
Stock on 31.3.2015 75,000
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                        (3×15=45)                                                                                                 
  17. From the following and other particulars of M/S Preethi and Shreethi given below. You are required to prepare Trading and Profit & Loss A/c for the year ending 31.3.2015 and Balance Sheet as on that date:

Particulars Debits Credits
Preethi’s Capital   46,615
Shreethi’s Capital   46,615
Preethi’s Drawings 3,410  
Shreethi’s Drawings 3,410  
Purchases and Sales 83,290 1,26,177
Debtors and Creditors 47,800 22,680
Returns 7,422 3,172
Wages 9,915  
Manufacturing Wages 2,500  
Stock on 1.4.2014 21,725  
Factory Fuel and Power 542  
Office Salaries 3,745  
Factory Lighting 392  
Carriage Inwards 897  
Carriage Outwards 960  
Plant & Machinery 55,000  
Fixtures & Fittings 1,720  
Bills Payable   6,422
Traveling Expenses 925  
Cash in Hand 68  
Cash at Bank 2,425  
Rent and Taxes 1,765  
Office Expenses 2,778  
Discount Allowed 422  
Insurance 570  
TOTAL 2,51,681 2,51,681

Additional Information:

1. Stock on 31.3.2015 is Rs. 16,580.

2. Insurance prepaid Rs. 70.

3. Wages outstanding Rs. 800, salaries Rs. 350 and Rent Rs. 150.

4. Depreciate plant and machinery by 5% and fixtures and fittings by 10%.

5. Reserve 2.5% of Debtors for bad debts.

6. Goods worth Rs. 2,500 is withdrawn by Preethi for personal use.
  18. (a) A book-keeper found that there was Rs. 325 difference in the Trial Balance, being excess credit. Unable to locate errors in time, he decided to place the amount in Suspense A/c. Subsequently, the following errors were found out. Pass Journal Entries for rectifying them and prepare the Suspense A/c.

1. A credit sale of Rs. 100 to Mr. Lal has been credited to his account.

2. A sum of Rs. 50 received from Mr. Bhat has been credited to his account as Rs. 15.

3. The total of the purchases returns book has been over cast by Rs. 50.

4. The discount column on the credit side of the cash book has been overcast by Rs. 10.

5. Rent of Rs. 80 paid to Landlord has been debited to Landlord’s A/c.

6. A sum of Rs. 50 paid for commission has been credited to Commission A/c.                                                                                                  (10 marks)

 

(b)Give the format of Statement of Profit & Loss Account as per Companies Act, 2013.                                                           (5 marks)
  19. Following Trial Balance of Mr. Khan is given to you:

Particulars Debit (Rs.) Credit (Rs.)
Cash 1,20,000  
Drawings 36,000  
Sales Returns 13,000  
Establishment Expenses 62,000  
Deposits with bank 22,000  
Capital   2,00,000
Sales   8,00,000
Purchases 6,68,000  
Debtors 1,77,000  
Bad Debts 14,000  
Insurance 8,000  
Creditors   49,000
Purchase Returns   18,000
Commission   12,000
Stock (1.4.2014) 1,55,000  
Furniture and Fixtures 11,000  
Bills Payable   40,000
Bills Receivable 13,000  
Bank Overdraft   1,80,000
TOTAL 12,99,000 12,99,000

Additional Information:

1) Outstanding expenses: salary Rs. 6,000 and rent Rs. 4,000.

2) Prepaid insurance Rs. 2,000.

3) Commission includes Rs. 3,000 received in advance for the next year.

4) Interest on bank overdraft Rs. 33,000 to be paid.

5) Depreciation on furniture and fixtures 20% p.a.

6) Stock on 31.3.2015 Rs. 68,000.

Prepare Trading and Profit& Loss Account for year ending 31.3.2015 and also Balance Sheet as on that date.
  20. Journalise the following transactions in the books of Mr. Rajeev:

1) 2015, Aug 01: Mr. Rajeev started his business with Rs. 80,000 in cash, brought office furniture worth Rs. 25,000 and stock of goods valued at Rs. 30,000 and loan from his wife Rs. 24,000.

2) Aug 02: Purchased goods from Mr. Madhu for cash Rs. 28,000 and paid carriage on the same Rs. 500.

3) Aug 05: Invoiced goods to Mr. Dinesh Rs. 4,000.

4) Aug 07: Purchased from Mr. Prakash goods worth Rs. 12,000.

5) Aug 09: Received rent from tenant Rs. 2,500.

6) Aug 11: Mr. Rajeev withdrew for personal use Rs. 3,000.

7) Aug 13: Paid cash for advertisement inserted in newspapers Rs. 750.

8) Aug 15: Returned to Mr. Prakash goods damaged in transit and sent him a debit note Rs. 500.

9) Aug 19: Paid interest at 10% p.a. to Mrs. Rajeev on her loan.

10) Aug 28: Mr. Dinesh returned goods valued at Rs. 200 as being defective.
  21. Prepare daily Balance Sheets for the following transactions and show its effect:

DAY 1: Commenced business with Cash Rs. 20,000; Goods Rs. 50,000 and Furniture Rs. 30,000.

DAY 2: Purchased goods from Gagan on credit Rs. 40,000.

DAY 3: Sold goods for cash Rs. 40,000 (Costing Rs. 30,000).

DAY 4: Sold goods to Ram on Credit Rs.  65,000 (Costing Rs.  50,000)

DAY 5: Purchased typewriter for personal use by the proprietor Rs. 20,000.

DAY 6: Purchased chairs for office use for cash Rs. 10,000.

DAY 7: Withdrew for personal use goods costing Rs. 5000.

DAY 8: Paid for printing Rs. 500 and received commission Rs.1,200.

DAY 9: Paid to Gagan Rs. 30,000.

DAY 10: Introduced fresh capital Rs. 40,000.

DAY 11: Business received a bona fide offer of Rs.20,000 for the business.
SECTION – D
IV) Case Study                                                                                                      (1×15=15)                                                                                           
  22. From the following balances extracted on 31st March 2015 from the books of Modern Ltd, prepare a Balance Sheet in the form prescribed under the Indian Companies Act, 2013 (Show all notes to accounts):

Particulars Amount Amount
Land 80,000  
Cash in Mill 7,000  
Share Capital   6,30,000
Building 2,12,500  
Calls in arrear 25,000  
Creditors   6,18,000
Capital Reserve   1,54,000
Preliminary Expenses 30,000  
Brokerage on shares 12,000  
Stores 90,000  
Wages Due   29,000
Godown Rent Due   3,600
Stock in trade 2,50,000  
Unexpired Insurance 8,200  
Cash in Office 1,25,000  
Employee Benefit Fund   15,000
Salaries Due   3,500
Bad Debts Provision   6,500
Cash at Bank 62,000  
Livestock 4,900  
Machinery 5,08,000  
Loose tools 1,30,000  
Debtors 1,20,000  
Unclaimed Dividend   5,000
Profit & Loss A/c   2,00,000
15% Debentures   1,00,000
Bank Loan Account   1,50,000
Investments 2,50,000  
TOTAL 19,14,600 19,14,600

Note: Bills Discounted but not matured Rs. 40,000.

 

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