1
ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – OCTOBER 2013
B.COM – I SEMESTER (TRAVEL AND TOURISM)
FINANCIAL ACCOUNTING – I
Duration: 3 Hours Max. Marks: 100
SECTION – A
I) Answer any TEN of the following (10 x2=10)
1. Differentiate Capital Expenditure with Revenue Expenditure?
2. Repaid Loan of Rs.10,000 along with interest of Rs.100. Analyze the transaction and
give the Accounting Equation.
3. What is Accounting Equation? Will it be relevant for Single Entry system of Book
Keeping?
4. What is the basis to determine whether an Asset is a Current Asset or a Fixed Asset?
5. Where do you show the closing stock appearing in the trial Balance in Final Accounts?
Give reasons for this treatment.
6. What is the meaning of an ‘Opening Entry’?
7. What is the accounting procedure for ‘trade discount’ and ‘cash discount’?
8. Mention the source document for recording in ‘Purchase book’ and ‘Sales book’?
9. Following are the extracts from the Trial Balance of the firm as on 31st March 2012.
Additional information
i. Additional discount received from Creditors after closing the Accounts Rs.1,000
ii. Create a reserve for discount on Creditors @ 2%
Show how these items would appear in Final accounts.
10. What is the meaning of ‘Accounting Standards’?
11. Calculate the value of Purchases from the following – Cost of Goods sold Rs.5,00,000;
Closing stock Rs.50,000; opening stock Rs.30,000, Royalties Rs.5,000, Salaries Rs.50,000.
12. Where is Carriage inwards and Carriage outwards taken in Final Accounts? Give
reason for the treatment.
Dr. Cr.
Sundry Creditors 2,01,000
Discount 1,000
2
SECTION – B
II) Answer any FOUR of the following (4 x 5 = 20)
13. Using the accounting equation show the effect on Assets, liabilities and Capital
a. Commenced business with cash Rs.36,000
b. Paid rent in advance Rs.300
c. Purchased goods for cash Rs.18,000 and credit Rs.12,000
d. Sold goods for cash Rs.18,000 costing Rs.12,000
e. Paid Salary Rs.300 and salary outstanding Rs.60
f. Purchased furniture for personal use Rs.3,000
g. Received quotation from RK ltd for Machinery Rs.3,00,000
14. From the following particulars prepare the Petty Cash Book on imprest System of
Sadashiva & Co for the month of March 2011
Date Particulars
1st march Opening Balance (on imprest) Rs.5,000
3rd Paid for stationery Rs.450
17th Paid for advertisement Rs.850
23rd Paid courier charges Rs.150
25th Paid Printing Charges Rs.950
27th Paid for traveling expenses Rs.300
30th Paid repair charges Rs.250
15. Journalize the following transactions
1-1-2012 Paid into Bank, Rs.15,000 for opening a Current account
5-1-2012 Withdrew for Private expenses Rs.3,000
11-1-2012 Withdrew from Bank Rs.3,000
12-1-2012 Withdrew from Bank for private use Rs.2,500
17-1-2012 Placed on fixed deposit a/c at Bank by transfer from
current account Rs.4,000
16. Give the necessary adjusting entries for the following items appearing outside the Trial
Balance on 31st March 2011.
a. Bad debts to be written off Rs.3,500
b. Interest due but not received Rs.2,000
c. Salary due but not paid Rs.2,300
d. Unexpired Insurance on 31st March Rs.900
e. Closing stock on hand on 31st March Rs.55,000.
17. Discuss the Accounting Concepts in detail?
18. Write a note on Accounting standards AS-1, AS-4 and AS-10
3
SECTION –C
III) Answer any THREE of the following: (3 x 15 = 45)
19. An accountant could not tally the Trial balance. The difference was temporarily placed
to Suspense Account. The following errors were later discovered.
a. A purchase from Prakash for Rs.233 though correctly entered in Purchase book
was wrongly debited to his personal account
b. Commission of Rs.175 paid was posted twice, once to the commission account
and once to the discount account.
c. The Sales book was under-cast by Rs.750
d. Discount column of the receipt side of the Cash Book was wrongly added as
Rs.250 instead of Rs.230
e. Entertainment expenses of Rs.185 though entered in the Cash book was omitted
to be posted in the Ledger
f. A sale of Rs.1059 to Desai though correctly entered in Sales book was posted
wrongly to his account as Rs.1095.
You are required to :
i. Pass the necessary rectifying entries
ii. Prepare the suspense account.
20. Enter Sai Kumar’s Cash book the following transactions, which took place on 31st
March 2011 and balance the cash book
i. Balance brought forward from the previous day : Cash in hand Rs. 100 and at
bank Rs.8,000
ii. Instructed the bank to issue a bank draft for Rs.5,000 in favour of Sukumar, The
bank charged Rs.10 for issuing the draft.
iii. Received a bank draft for Rs.5,760 from Mahesh in full settlement of Rs.6,000 due
from him. Sent the draft to the Bank
iv. Received a cheque from Rakesh for Rs.2,000. Allowed him discount Rs.120.
v. Endorsed Rakesh’s cheque in favor of Harish
vi. Sent a cheque for Rs.50 for payment of expenses of Sai Kumar’s son
vii. Withdrew Rs.500 from the bank
viii. Placed an order with Vikas for goods of the value of Rs.1,000 and sent cheque
for Rs.1000 with the order.
21. The following figures are given in the Trial Balance on 31st March 2013
Dr. Cr.
Purchases & Sales 3.50,000 7,75,000
Debtors and creditors 2,00,000 1,00,000
Net Profit (before charging Manager’s Commission) 2,22,000
Capital and drawings 10,000 3,60,000
Closing stock 53,000
Provision for bad debts 3,000
4
Adjustments:
i. Goods worth Rs.4,000 were in transit
ii. Create a reserve for discount on creditors at 3%.
iii. The proprietor has withdrawn goods worth Rs.7,000 out of his own stock
iv. Goods in stock worth Rs.8,000 are destroyed by fire. Insurance Company accepts
the claim for Rs. 6,000
v. The Manager is entitled to a commission of 5% of the Net Profit calculated after
charging such commission
vi. Charge interest on drawing Rs.500
vii. Sundry Debtors include Rs.2,000 (doubtful) receivable from John of which
Rs.1,000 is to be written off.
viii. Create a reserve of 5% on Sundry Debtors.
Show how the above items will appear in the Final Accounts
22. Journalise the following transactions:
a. Received commission Rs.15,000 half of which is in advance
b. Brokerage due to us Rs.5,000
c. Paid Income tax Rs.25,000
d. Paid rent of the Building Rs.24,000, half of the building was used by the proprietor for
residential use.
e. Salary due to supervisor Rs.5,000
f. Purchased a Second hand computer for Rs.7,000 and spent Rs.2,000 on upgrading
g. Purchased machinery from Sonu Ltd for Rs.50,000 and paid them by means of a Bank
draft purchased from the Bank for Rs.50,050.
h. Received a cheque from Satish for Rs.7,250, discount allowed Rs.250
i. Charge interest on drawings (Rs.50,000) at 18% for 9 months
j. Satish‘s cheque was dishonored
23. From the following transactions prepare the sales Book of Mahesh Jain, a Saree dealer
and post them to the Ledger
Date Invoice
no.
Particulars
4-1-2011 301 Sold on credit to Gagan & co Mysore , 20 silk sarees @
Rs.3,500 each, less Trade discount @ 10%
9-1-2011 302 Sold for cash to Gaurav & Co, Tumkur, 25 Kota sarees @
Rs.1,000 each
17-1-2011 303 Sold on credit to Manish & co, Kolar, 10 polyester Sarees @
Rs.800 less trade discount at 20%
30-1-2011 Sold on credit to Gowda 2 old chairs @ Rs.500 each
5
SECTION – D
IV) Compulsory question (15 marks)
24. From the following Trial Balance of Janardhan prepare the final accounts as on 31st Dec
2012
Dr Cr
Capital 85,000
Drawings 7,500
Stock on 1st Jan 2012 12,000
Purchases and sales 86,000 1,70,000
Returns 2,000 1,000
Discounts 500 700
Commission received 1,000
Income tax paid 700
Office salaries 17,300
Advertising 2,000
Sundry debtors and creditors 85,000 30,000
Reserve for doubtful debts 3,000
Manufacturing wages 8,600
Bills receivable and payable 5,000 5,000
Carriage 600
Machinery 40,000
Vehicle 7,000
Building 10,000
Office expenses 1,500
Cash at bank 6,000
Cash in hand 2,300
2,95,700 2,95,700
Adjustments
a. Stock on 31st Dec 2012 was Rs.10,000
b. Debts worth Rs.2,000 should be written off as bad
c. Depreciate machinery by 5% and vehicle by 10%
d. Reserve for doubtful debts should be increased by Rs.600
e. Commission accrued and not received Rs.500
f. Goods worth Rs.500 were used by the proprietor for his personal use
g. On 20th Dec 2012, a fire broke out and goods worth Rs.2,000 were completely
destroyed. The insurance company accepted the claim for Rs1,500 only and paid the
amount on 1st January 2013
********************
Latest Govt Job & Exam Updates: