ST.JOSEPH COLLEGE OF COMMERCE (Autonomous)

SUPPLEMENTLARY Examination – April 2013

B.com – II Semester

FINANCIAL ACCOUNTING-II

Time: 3 hrs.                                                                                                    Max. Marks 100

                                                            Section-A

1. Answer all the questions.  Each question carries 2 marks                       (10 x 2  = 20)
2. What is average clause?
3. How can claim for loss of stock will be calculated when average clause is
4. What is salvage?
5. State any two objectives of conversion of single entry to double entry system?
6. Mention any two differences between Statement of Affairs and Balance Sheet.
7. Distinguish between cost price and loaded price in branch accounts.
8. State any two advantages of Departmental Accounts.
9. What is the base of apportionment of the following expenses in case of departmental accounts?-
   1. Labour welfare expenses  ii) Power consumption
10. What do you mean by accounting Standard?
11. Name the title of the accounting standard for AS 6 and AS 10

                                                                   Section- B

1. II) Answer any four of the following. Each question carries 5 marks (4 x 5 = 20)
2. A fire broke out in the premises of a merchant on 30-09-2012. He desires to file a claim with the insurance company for loss of stock and gives the following information.

Final account of the merchant were prepared on 31-12-2011

Sundry creditors on 31-12-2011 were Rs. 25,000

Sundry creditors on 30-09-2012 were Rs. 20,000

Stock on 31-12-2011 was Rs. 15,000

Sales from 1-1-2012 to 30-09-2012 Rs. 1, 34,000

Cash paid to creditors Rs. 1, 30,000

Normal rate of gross profit on sales was 20% and salvage was Rs. 2,800

Prepare a statement of claim.

12.From the following information you are required to calculate total sales-

 

Bills Receivable in the beginning                                   7,800

Debtors in the beginning                                          30,800

Bills receivable received during the year                   20,900

Cash received from debtors                                     70,000

Bad debts written off                                                2,800

Bills Receivable at the end                                        6,000

Debtors at the end25,500

Cash Sales (as per cash book) 60,000

 

13. Bangalore H.O. has a branch in Hyderabad to which goods are invoiced by the H.O. at cost + 25%, cash received by the branch is daily remitted to H.O. All the expenses of branch are paid from Bangalore H.O. From the following details prepare Hyderabad Branch Account in H.O. Books-

Stock on 1-1-2012 at invoice price                                                    12,500

Debtors on 1-1-2012                                                                          12,000

Goods sent from Bangalore at invoice price                                     40,000

Remittances to Bangalore H.O. —     Cash Sales:   16,000

Cash from debtors:  29,500

­­­­­­­­———–                    45,500

Goods returned to H.O. at invoice price                                             2,400

Cash received from Bangalore H.O. for-

Wages and salaries   11,000

Rent                             3,000

Sundry expenses           510

————-                   14,510

Stock on 30-6-2012 at invoice price                                                     15,000

Debtors on 30-6-2012

22,500

14. From the information prepare departmental trading account in the columnar form for the period ending 31-3-2012

Department A     Department B

Opening Stock                                                                       5,000                7,000

Purchases                                                                            42,000               52,000

Sales                                                                                     80,000               93,000

Purchase Returns                                                                  2,000                 2,000

Sales Returns                                                                                2,000                 2,000

 

Power Rs.6,000, Wages Rs.11,000 and Carriage –in-wards Rs.4,500 are for both the departments. Closing stock of Department A Rs.2, 000 and B Rs. 9000 and the wages are allocated in the ratio of 5:6 and the number of units consumed by Department A and Department B are in the ratio of 1:2.

 

15. Give the differences between single entry system and double entry system.

 

16. Explain any two accounting standards?

 

 

Section-C

1. Answer any Three of the following. Each question carries 15 marks. (3 x 15 = 45 )

 

17. The premises and stock of a merchant were totally destroyed by fire on 31-3- The records saved from the fire shows the following information.

Particulars	2010	2011	201	2013
Opening stock as valued	27,090	32,400	36,000	36,900
Purchases less returns	74,900	80,000	81,000	6,000
Sales less returns	1,20,000	1,32,000	1,40,000	12,000
Wages	17,400	19,000	20,900	2,000
Closing stock as valued	32,400	36,000	36,900	—

Stock has been valued always at 10% less than cost. Prepare a statement for submission to the Insurance Company in support of the company for loss of stock.

18. X commenced business on 1-4-2012 with Rs. 15,000 of his own and Rs.10,000 borrowed from his friend Joseph. He purchased a building for Rs. 10,000, Furniture Rs. 2, 000, Machinery Rs. 8,000 and deposited Rs. 2,500 in a bank as fixed deposit at 10% interest p.a. The balance of cash was retained as working capital. The following is the cash transactions during the year-

Collection from debtors                                                         15,000

Cash Sales                                                                              20,000

Cash Purchases                                                                     10,000

Payment to creditors                                                               6,000

Purchase of motor bike                                                           3,000

Purchase of cycle for his son                                                      500

Salary                                                                                       1,500

Business expenses                                                                    2,000

Mr Joseph’s loan was repaid together with interest at 6% p.a. as on 31-3-2013.  On 31-3-2013 his position was as follows-

Debtors                 12,500            Bills Payable      2,500

Creditors               17,500

Bills Receivable      5,000

There was no record of closing stock, but in this type of business the Gross Profit is 50% on sales. During the year purchases returns were Rs. 1,000, Sales Returns were Rs. 2,000, bad debts Rs, 500, outstanding salaries Rs. 250 and prepaid expenses Rs. 50.

Prepare Final Accounts.

19. A Bangalore Trader has a branch at Chennai to which the goods are supplied at cost price. The Chennai Branch keeps its own sales ledger and transmits all cash received to the Head Office every day. All the expenses of the Branch are paid from the Head Office. The transactions for the branch were as follows-

Stock as on 1-4-2012                                                              22,000

Debtors as on 1-4-2012                                                                200

Petty cash on 1-4-2012                                                                 400

Cash Sales                                                                                  5,300

Goods sent to Branch                                                              32,000

Cash received from Debtors                                                   42,000

Goods returned to H.O.                                                               480

Bad debts                                                                                       600

Allowances to debtors                                                                   500

Sales Returns                                                                              1,000

Cheque sent to Branch —

Rent                         1,200

Wages                         400

Salaries                    1,800

______                                                                                          3,400

Stock on 31-3-2013                                                                    20,800

Debtors on 31-3-2013                                                                  4,000

Petty cash on 31-3-2013                                                                  200

Miscellaneous Income                                                                       50

Prepare Branch Trading, Profit and Loss account for the year ended 31-3-2013 in the books of H.O.

20. From the particulars given below, prepare Departmental Trading, Profit and Loss Account and Balance Sheet in the books of John Traders

Particulars	Department  A	Department  B
Stock on 1-1-2012 Purchases Sales Wages Rent, Taxes & Insurance Sundry expenses Salaries Lighting & Heating Discount allowed Discount Received Advertising Carriage Inwards Furniture Plant & Machinery Sundry Debtors Sundry Creditors Capital Drawings Cash	17,400 35,000 60,000 8,200 9,390 3,600 3,000 2,100 2,220 650 3,680 2,340 3,000 21,000 6,060 30,650 47,660 4,500 10,070	14,700 30,000 40,000 2,700

 

Additional Information:

1. Rent, Taxes & Insurance, sundry expenses, lighting and heating, salaries and carriage inwards to be apportioned in the ration of 2:1 to A & B, advertising to be apportioned equally.
2. Discount allowed and Discount received to be apportioned asper sales and purchases(ignoring transfers)
3. Depreciation at 10% p.a. on furniture and plant and machinery to be charged in the ratio of 3:1 to department A & B.
4. Services rendered by B department to A  department included in wages of B  Department Rs. 500
5. Stock on 31-12-2012 were- Department A—Rs. 16,740

Department      B-  Rs.  12,050

6. Internal transfer of goods from department A to Department B at cost price Rs.420

 

21. What do you mean by Independent Branches? List out the various journal entries while accounting for Independent Branches
22. a) In the books of Head office b) In the books of branch office.

                                             

Section- D

 

• Answer the Compulsory question carries 15 marks             (1 x 15 = 15)

 

22. You are given-
23. a) Balance Sheet of Peter on 1-4-2012
24. b) The cash transactions for the year up to March 2013
25. c) A summary of additional information

Balance Sheet of Peter as on 1-4-2012

Liabilities	Rs.	Assets	Rs.
Bank overdraft Sundry Creditors Bills payable Capital	500 3,600 1,600 20,000   __________ 25,700	Cash on hand Bills Receivable Sundry debtors Stock of goods Plant and machinery Land and Building	70 2,500 3,900 7,530 4,700 7,000 25,700

 

 

1. b) Cash transactions upto march 2013

 

Receipts	Rs.	Payments	Rs.
To balance b/d To Receipts from debtors To Bills Receivable To Cash Sales	70 29,000 10,000 3,700             ___________ 42,770	By overdraft By Salaries By wages By Bills payable By payment to creditors By Office Expenses By Drawings By Investment By Balance c/d- Cash Bank	500 4,900 1,580 14,300 14,700 800 4,500 1,000   40 450 42,770

 

P.T.O…..

 

 

 

 

1. c) Summary of additional information-

Credit sales                               40,700

Discount to customers                 200

Purchases                                30,000

Discount received                          100

Bills Receivable received         10,900

Bills payable issued                   15,000

Stock of goods on 31-3-2013    5,300

Reserve for doubtful debts at 5% on debtors outstanding and provide depreciation on plant and machinery at 5% and on Land and Building at 5%

Prepare Trading and Profit and Loss account and Balance Sheet

 

 

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