| ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS) |
| END SEMESTER EXAMINATION – SEPT/OCT. 2015 |
| B.COM. (T.T.) – I SEMESTER |
| C2 15 MC 101: FINANCIAL ACCOUNTING |
| Duration: 3 Hours Max. Marks: 100 |
| SECTION – A |
| I) |
Answer ALL the questions. Each carries 2 marks. (10×2=20) |
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1. |
Mention any FOUR types of errors in accounting. |
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2. |
What is a Suspense Account? Why is it prepared? |
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3. |
Why do we prepare Trading Account? What type of expenses and incomes do we consider in its preparation? |
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4. |
Resignation of an efficient employee is not accounted in the books of account. Why? Which accounting principle is followed here? |
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5. |
Mention any FOUR Accounting Conventions. |
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6. |
Ram commenced business with:
| Cash |
Rs. 2,000 |
Machinery |
Rs. 19,000 |
| Stock |
Rs. 25,000 |
Creditors |
Rs. 5,000 |
You are required to pass the Opening Journal Entry. |
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7. |
Under what heading and sub-heading do we classify the following items:
| a |
Goodwill |
b |
Term Loan |
| c |
Computers |
d |
10% Preference Shares |
|
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8. |
Determine the Gross Profit from the following:
| Cost of goods sold |
Rs. 12,00,000 |
| Gross Sales |
Rs. 15,85,000 |
| Return inwards |
Rs. 3,000 |
| Return outwards |
Rs. 2,000 |
|
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9. |
In which subsidiary books do you record the following transactions:
| a |
Purchase of goods on credit |
b |
Provision for Depreciation |
| c |
Purchase of Plant on credit |
d |
Bills Receivable discounted with the bank. |
|
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10. |
What Journal Entry do you pass for goods lost by fire worth Rs. 10,000? |
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SECTION – B |
| II) |
Answer any FOUR questions. Each carries 5 marks. (4×5=20) |
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11. |
X Ltd. earned a profit of Rs. 28,00,000 for the year ending 31st March, 2015 after making provision for depreciation and taxation. Rs. 12,80,000 profit was brought forward from last year to this year. Following recommendations were made by the directors of the company to appropriate this profit:
a. To transfer to General Reserve Rs. 8,40,000.
b. To propose dividend at 12% on the Equity shares.
c. To transfer Rs. 60,000 to Development Rebate Reserve.
d. To transfer Rs. 2,00,000 to Capital Redemption Reserve.
e. To transfer Rs. 60,000 to dividend equalization reserve.
f. To transfer Rs. 50,000 to debenture redemption fund account
g. Provide for Corporate Dividend Tax at 20.358%
Company’s capital consisted of 2,00,000 equity shares of Rs. 10 each fully paid. Prepare Profit and Loss Appropriation Statement for the year ended 31st March, 2015.
|
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12. |
Pass Rectification Entries for the following transactions:
| a |
Sale of goods worth Rs. 10,000 wrongly passed through Purchases book. |
| b |
Salary paid to Mohan Rs. 30,000 was debited to Mohan’s personal Account. |
| c |
Installation charges Rs. 3,500 paid for the installation of Machinery is debited to General Expenses Account. |
| d |
Goods worth Rs. 5,000 withdrawn by the proprietor for personal use have not been recorded in the books. |
| e |
Commission Received Rs. 2,000 is wrongly credited to Sales Account. |
|
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13. |
The following is the Trial Balance prepared by an in-experienced person. You are required re-draft it correctly.
| Heads of Accounts |
Debit (Rs.) |
Credit (Rs.) |
| Salary paid |
|
25,000 |
| Printing and Stationery |
3,500 |
|
| Plant |
1,00,000 |
|
| Furniture |
|
50,000 |
| Debtors |
|
1,50,000 |
| Creditors |
|
80,000 |
| Return inwards |
2,000 |
|
| Return outwards |
3,000 |
|
| Carriage inwards |
|
5,500 |
| Carriage outwards |
|
7,000 |
| Drawings |
1,000 |
|
| Capital |
2,77,200 |
|
| Opening Stock |
2,500 |
|
| Wages |
|
1,500 |
| Depreciation |
300 |
|
| Goodwill |
|
5,000 |
| Advertisement |
|
6,000 |
| Sundry Expenses |
900 |
|
| Suspense Account |
|
60,400 |
| Total |
3,90,400 |
3,90,400 |
|
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14. |
Prepare Ram’s Account from the following details. Balance the account and explain what it means.
| Date |
Particulars |
Rs. |
| 2015 |
|
|
| Sep. 1 |
Opening balance (Dr.) |
8,600 |
| Sep. 12 |
Sold goods to him |
40,000 |
| Sep. 14 |
Goods returned by him |
1,000 |
| Sep. 16 |
Received cash from him |
10,000 |
| Sep. 20 |
Received a cheque from him |
15,000 |
| Sep. 20 |
Discount allowed to him |
300 |
|
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15. |
Prepare a Trading Account from the following particulars for the year ended 31st March., 2015.
| Particulars |
Amount |
Particulars |
Amount |
| Opening Stock |
25,000 |
Purchases Returns |
2,200 |
| Purchases |
70,000 |
Sales Returns |
3,600 |
| Sales |
1,80,000 |
Custom Duty |
1,500 |
| Wages |
20,600 |
Gas, Fuel and Power |
6,000 |
| Carriage Inwards |
3,400 |
Dock Charges |
800 |
| Carriage Outwards |
2,000 |
Factory Lighting |
9,600 |
| Manufacturing Expenses |
24,800 |
Office Lighting |
500 |
Closing Stock is valued at Rs. 60,000. |
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16. |
Explain briefly the Business Entity Concept and Going Concern Concept. |
| SECTION – C |
| III) |
Answer any THREE questions. Each carries 15 marks. (3×15=45) |
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17. |
Prepare the Daily Balance Sheet for the following transactions:
a) Manoj started business with Cash Rs. 2,80,000; Goods costing Rs. 1,50,000; Building Rs. 2,50,000; Creditors – Krish Rs. 50,000.
b) He purchased goods for cash Rs. 50,000
c) He sold goods costing Rs. 20,000 for Rs. 35,000 for Cash.
d) He purchased goods from Rahul Rs. 55,000
e) He sold goods to Varun (costing Rs. 52,000) for Rs. 60,000
f) He paid cash to Rahul in full settlement Rs. 53,000
g) Received cash from Varun in full settlement Rs. 59,000
h) Rent outstanding Rs. 3,000
i) Prepaid insurance Rs. 2,000
j) Commission received by him Rs. 13,000
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18. |
From the following Trial Balance of M/S Akshay & Co., prepare Trading and Profit and Loss Account for the year ended 31st March 2015 and Balance Sheet as on that date:
| Particulars |
Debit (Rs.) |
Credit (Rs.) |
| Purchases and Sales |
2,75,000 |
5,20,000 |
| Returns Inwards |
15,000 |
|
| Returns Outwards |
|
9,000 |
| Carriage Inwards |
12,400 |
|
| Wages and salaries |
58,600 |
|
| Trade expenses |
2,200 |
|
| Rent |
|
13,000 |
| Insurance |
2,000 |
|
| Audit fees |
1,200 |
|
| Debtors and creditors |
1,10,000 |
62,100 |
| B/R and B/P |
3,300 |
2,200 |
| Printing and advertising |
5,500 |
|
| Commission |
|
1,000 |
| Opening stock |
36,000 |
|
| Cash in hand |
12,800 |
|
| Cash at bank |
26,800 |
|
| Bank loan |
|
20,000 |
| Interest on loan |
1,500 |
|
| Capital |
|
2,50,000 |
| Drawing |
15,000 |
|
| Fixed assets |
3,00,000 |
|
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|
|
| Total |
8,77,300 |
8,77,300 |
Adjustments:
a) Stock at Cost Price is Rs. 60,000 and at Market Price is Rs. 50,000.
b) Depreciate Fixed Assets by 10%. |
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19. |
Enter the following transactions in a Three Column Cash Book.
| 2015 |
|
Rs. |
| June 1 |
Commenced business with cash |
1,00,000 |
| June 2 |
Opened a current account in Central Bank and deposited |
80,000 |
| June 3 |
Further capital introduced Rs. 50,000, out of which Rs. 40,000 deposited into the bank. |
|
| June 3 |
Purchased goods from Gopal on credit. |
50,000 |
| June 4 |
Paid to Gopal by cheque |
36,000 |
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Discount received |
500 |
| June 6 |
Received a cheque from Sudesh and deposited into bank on 7th June. |
12,500 |
| June 8 |
Sold goods to Ram on credit |
7,500 |
| June 10 |
Received cheque from Ram in full settlement of his account. The cheque was banked the same day. |
7,230 |
| June 11 |
Commission paid to agent. |
650 |
| June 15 |
Office furniture purchased in cash from Modern Furniture House. |
12,000 |
| June 18 |
Drew cheque for personal use. |
2,000 |
| June 19 |
Withdrew cash for personal use |
1,000 |
| June 30 |
Paid salary by cheque. |
8,000 |
|
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20. |
Pass Journal Entries for the following transactions in the books of Mr. Abhay.
| 2015 |
|
| Sep. 1 |
Abhay started business with Cash Rs. 80,000; Goods Rs. 40,000 and Furniture Rs. 20,000. |
| Sep. 2 |
Sold goods to Nandlal of the list price of Rs. 20,000 at trade discount of 10%. |
| Sep. 4 |
Nandlal returned goods of the list price of Rs. 4,000. |
| Sep. 8 |
Received from Nandlal Rs. 14,150 in full settlement of his account. |
| Sep. 10 |
Purchased goods from Brijesh of the list price of Rs. 10,000 at 15% trade discount. |
| Sep. 13 |
Returned goods to Brijesh of the list price of Rs. 1,000. |
| Sep. 16 |
Settled the account of Brijesh by paying cash under a discount of 4%. |
| Sep. 18 |
Purchased goods from Anil Rs. 5,000 and Sunil Rs. 10,000. |
| Sep. 19 |
Paid cash to Anil Rs. 1,900 and discount received Rs. 100. |
| Sep. 20 |
Paid Rs. 9,800 to Sunil in full settlement of his account. |
| Sep. 20 |
Bought a table fan for Rs. 1,200 for the domestic use of Abhay. |
| Sep. 25 |
Sold goods for cash of the list price of Rs. 8,000 at 10% trade discount and 3% cash discount. |
| Sep. 29 |
Goods lost by fire Rs. 2,000. |
| Sep. 30 |
Paid Rent Rs. 800; Trade Expenses Rs. 700 and Travelling Expenses Rs. 380. |
|
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21. |
a) Write the Format of Statement of Profit and Loss as per Schedule III of the Companies Act, 2013. (10 Marks)
b) Write a brief note on Accounting concepts. (5 Marks)
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| SECTION – D |
| IV) |
Case Study (1×15=15) |
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22. |
a) Mr. Balu, the new accountant of Vishnu and Co. Ltd. has prepared the following Balance Sheet.
Vishnu and Co. Ltd.
Balance Sheet as at 31.03.2015
| Liabilities |
Amount |
Assets |
Amount |
| 80,000 Equity Share Capital of Rs. 10 each |
8,00,000 |
Goodwill |
50,000 |
| General Reserve |
50,000 |
Building |
6,00,000 |
| Profit and Loss A/c |
75,000 |
Furniture |
14,400 |
| 6% Debentures |
6,00,000 |
Plant and Machinery |
5,94,000 |
| Term Loans |
2,28,000 |
Investments |
95,000 |
| Bills payable |
76,000 |
Stock |
1,10,000 |
| Sundry Creditors |
1,00,000 |
Debtors |
1,65,300 |
| Provision for tax |
10,000 |
Cash in hand |
15,500 |
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|
Cash at Bank |
2,79,800 |
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|
Bills Receivables |
15,000 |
| Total |
19,39,000 |
Total |
19,39,000 |
The Director of the Co., is of the view that the Balance Sheet is not as per the requirements of the Company Act.
You are required to redraft the Balance Sheet as per Schedule III of the Companies Act, 2013. (12 Marks)
b) Explain Money Measurement Concept. (3 Marks)
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