1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – APRIL 2014

B.COM (TRAVEL& TOURISM) – II SEMESTER

FINANCIAL ACCOUNTING-II

TIME: 3 HOURS                                                                              MAX. MARKS: 100

SECTION – A

1. Answer ALL the questions. Each carries 2 marks.                                (10 x2 = 20)
2. “Maintenance of Accounts is very necessary”—in this context state any two necessities ofmaintaining accounts for hotel industry.
3. 2. On what basis is the following expenses apportioned for the Departments:
4. Insurance on stock b. Power   c. Depreciation d. Work’s manager’s salary.
5. What do you mean by the terms: Cash Price and Down-payment?
6. If cash is paid by Branch on behalf of Head Office, what is the journal entry passed in the books of H.O and the Branch?
7. State any two differences between Hire Purchase System and Instalment Purchase System.
8. Parimala & Co. purchased machinery on 1.1.2014 on hire purchase system paying Rs. 20,000 on signing of the contract and thereafter Rs. 10,000 being paid annually for 3 years. Interest was charged at 5% p.a. Given the present value of an annuity of Re. 1 p.a. at 5% Rs. 2.7232, calculate the cash price of the machinery.
9. “There are different basis of charging room rates depending on the circumstances and convenience”—mention any three basis of charge.
10. Explain the concept of Inter-Department transfers.
11. What are the different ways in which Head Office keeps its Branch Accounts in the books as per Dependent Branches?
12. Calculate the rent to be charged per day for room from the following information for a Five Star Hotel at Delhi, if occupancy rate is (a) 100% and (b) 80%.
13. number of rooms available for occupancy = 40
14. estimated total cost for April, 2013 = Rs. 12,00,000
15. Return expected = 50% on cost.

 

 

SECTION – B

1. Answer ANY FOUR questions. Each carries 5 marks.       (4×5= 20)
2. Arvind occupies a room in a hotel at 9.00 A.M. on 15^th April, 2012 on European Plan at 960 for every night spent plus 10% service charges. Calculate the amount payable by him in each one of the following circumstances:

(i) If he checks out at 6.00 P.M. on 16^th April, 2012;

(ii) If he checks out at 7.00 A.M. on 17^th April, 2012;

(iii) If he checks out at 5.00 P.M. on 17^th April, 2012; and

(iv) If he checks out at 8.00 A.M. on 18^th April, 2012.

12. How should the following expenses be apportioned among various Departments:
13. a) Rent; b) Lighting;    c) Advertisement charges;    d)Carriage Inward;
14. e) Welfare Expenses.
15. From the following information available from Chennai Express Branch, Prepare a Memorandum Branch Debtors Account and find out Closing Debtors.

Particulars	Amount (Rs)
Cash collected from Debtors	16,000
Returns from Debtors	1,000
Allowances to Customers	100
Bad Debts written off	50
Opening Branch Debtors	3000
Credit Sales	15,000

 

14. 14. On 1^st January, 2014, Mr Akash purchased a machinery on Hire Purchase System which provided for an initial payment of Rs. 3000 and the balance in four equal half-yearly instalments of Rs. 4000 each, the first instalment falling due on the 30^th Assume rate of interest of 6% per annum. Determine the Cash Price of the Machinery.
15. Briefly explain the following terms:

(a) Bed Occupancy Rate

(b) Hire Purchase Agreement

16. Bring out the various differences between Departmental and Branch Accounting.

SECTION – C

III. Answer ANY THREE questions.  Each carries 15 marks.                       (3×15=45)

17. The following are the particulars relating to Hire Purchase:

 

 

Purchaser	Shiva & Co.
Seller	Parvathi & Co
Date of Purchase	1.1.2014
Goods purchased	Machinery
Cash price	Rs. 12,894
Payments- Rs. 2000 on signing of the agreement and the balance in three equal annual instalments of Rs. 4000 due on 31st December each year.
Rate of Interest	5% p.a.
Depreciation on the written down value each year	20%

Pass Journal entries using Asset Accrual Method in the books of Shiva & Co. Calculations are to be made to the nearest rupee.

18. A firm is having its Head Office at Delhi and Branch at Chandigarh. The following are the transactions of the Head Office with Branch for the year ended 31.12.2013:

Particulars	Amount (Rs)
Petty cash at branch 1.1.2013	12,500
Stock at branch on 1.1.2013	7,50,000
Furniture at branch on 1.1.2013	4,50,000
Goods supplied to branch during the year	37,75,000
Goods returned by branch	25,000
Cash sales at branch	52,50,000
Cheque sent to branch for:
Establishment expenses	2,50,000
Petty cash	75,000
Salary outstanding on 31.12.2013	25,000
Petty expenses incurred by branch	67,500
Stock at branch on 31.12.2013	10,00,000
Depreciate furniture at 10% per annum

Prepare Branch Account after passing necessary journal entries and also show the relevant items of the branch in the Balance Sheet in the books of the Head Office.

 

19. On 1^st January, 2014, Bhuvan Oil Company purchased an oil machine on the instalment system. The cash price of the machine was Rs. 11,175 and payment was to be made as follows:

Rs. 3,000 was to be paid on the signing of the agreement and the balance in three instalments of Rs. 3,000 each at the end of each year, 5% interest is charged by the Mumbai Manufacturing Company per annum. Bhuvan Oil Company has decided to write off 10% annually on the diminishing balance on the cash price.

Prepare necessary Accounts in the books of purchaser and vendor. Calculations are to be made to the nearest rupee.

 

 

 

20. The following Trial Balance for the year ended 31.3.2013 was extracted from the books of Shree Shakthi Groups:

 

Particulars	Debit (Rs.)	Credit (Rs.)
Capital on 1.4.2012		50,000
Drawings Account	10,000
Stock on 1.4.2012:
Radios	45,000
Watches	21,000
Sales:
Radios		2,94,000
Watches		1,46,000
Purchases:
Radios	2,25,000
Watches	1,15,000
Salaries	12,600
Publicity expenses	8,900
Rent, rates and taxes	3,200
Commission	10,600
Miscellaneous expenses	5,000
Furniture & fixtures	12,400
Sundry Debtors	16,800
4% govt. of India loan	10,000
Sundry creditors		8,800
Interest		400
Provision for bad and doubtful debts		800
Cash balance	4,500
Total	5,00,000	5,00,000

Prepare the Departmental Trading & Profit & Loss Account for the year ended 31st March, 2013 after taking into account the following:

31. The stock as on 31.3.2013 was: Radios Rs. 30,000; Watches Rs. 24,000
32. An amount of Rs. 1,200 out of sundry debtors has to be written off as bad and the provision for doubtful debts has to be increased thereafter to 10 % of the debts outstanding.
33. The following expenses are outstanding as on 31^st March, 2013: Publicity Rs. 1,300; Salaries Rs. 1,200 and commission Rs. 1,700.
34. Provide 10% depreciation on furniture and fixtures.
35. Revenue items to be allocated in the ratio of 2:1 as between Radios and Watches.

Ignore fractions of a rupee in calculations.

 

21. (A) From the following particulars pertaining to four rooms in a Hotel, draw up a suitable Ledger.
22. Room rent for each room Rs. 500 + 15% tax.
23. Room 1: Breakfast Rs. 45, Laundry Rs. 50, Local Phone Calls Rs. 15.
24. Room 2: Lunch Rs. 85, STD Calls Rs. 125, Wine Rs. 60, previous day’s outstanding amount Rs. 1250.
25. Room 3: Private taxi hired from hotel Rs. 400, STD Calls Rs. 350, Dinner Rs. 125, and Whisky Rs. 100. Deposit with the hotel Rs. 3500.
26. Room 4: Opening due from the guest Rs. 575, Laundry Rs. 30, Lunch Rs. 120.
27. The guest in Room 3 is a regular visitor and is entitled to a discount of 20% on Room Rent.

All the foregoing transactions pertain to a single day.              (10 Marks)

(B) Write down the Journal Entries for Interest Suspense Account in the books of the Hire buyer and Hire Seller.                                                                              (5marks)

SECTION – D

1. IV) Compulsory question.   (1×15=15)
2. Following are the balances obtained from the ledger of Hotel Gangothri on 31^st March, 2013:

Particulars	Amount	Particulars	Amount
Capital	1,50,000	Purchases :
Freehold Premises	1,00,000	Provisions & Stores	10,000
China Glass and Plates	10,000	Liquors	15,000
Furniture and Fixtures	25,000	Cigarettes	1,000
Drawings	2,500	Coal	5,000
Wages and salaries	40,000	Sales:
Rates and Insurance	12,500	–          Food items	40,000
Laundry Charges	4,000	–          Beverages	10,000
Linen and Beddings	10,000	–          Liquors	25,000
Electricity Light	6,500	–          Cigarettes	1,500
General Expenses	6,000	–          Rent from Rooms	1,00,000
Visitor’s Account	5,000	Repairs and Renewals of Premises	10,000
Sundry Creditors	7,500	Depreciation:
Stock on 1.4.2012:		–          On Premises	10,000
–          Liquors	20,000	–          On furniture	2,500
–          Cigarettes	500	–          Glass & Plates	1,000
–          Provision & Stores	4,000	–          Linen & Beddings	1,500
–          Coal	1,000	Cash in Hand	5,000
Cash at Bank	26,000

Adjustments:

31. Stock on 31.3.2013: Provisions & Stores = Rs. 5,000; Liquors = Rs. 7,500, Cigarettes = Rs. 250 and Coal = Rs. 1,500.
32. A sum of Rs. 5000 representing accommodation and Rs. 4000 representing meals is to be charged to the proprietor.
33. Insurance paid in advance Rs. 500
34. Outstanding salaries Rs. 2,500.

From the above, Prepare Final Accounts of the Hotel for the year ended 31.3.2013.

 

 

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