St. Joseph’s College of Commerce (Autonomous)

End Semester Examination- MARCH / April 2015

B.Com (T. t.) – ii semester

C2 13 201: FINANCIAL ACCOUNTING – II

Duration: 3 Hours Max. Marks: 100

SECTION – A

Answer ALL the questions. Each carries 2 marks. (10×2=20)

What are hotel guests charged for under the American Plan?

Name the various types of Branches for an organization.

What is a departmental Store?

If a Hotel charges room rates on the basis of 24 hrs, what will a customer be charged if the rate is Rs.1,000 per day plus 10% service charges. He checks in at 10 a.m. on 24^th March and checks out at 2 p.m. on 26^th March?

Name the account which needs to be opened to take care of profit margin when goods are invoiced at Selling Price to the Branch.

Why are departmental accounts prepared?

What are two main sources of cash for a dependent branch which must be sent periodically to the Head Office?

Hire Purchase price is Rs.25,000, Cash Down price = Rs.23,700/- What is the Interest charged?

Goods are invoiced at Cost plus 33 1/3%. Opening stock at Invoice price is equal to 16,000. What is the cost price?

10.

Where are Bad debts and Discount allowed to Debtors entered in the Memorandum Debtors Account?

SECTION – B

II)

Answer any FOUR questions. Each carries 5 marks. (4×5=20)

11.

The following information is available to you:

Sales of Dept A = 1,00,000	Sales of Dept B = 75,000
Purchases of Dept A = 60,000	Purchases of Dept B = 30,000
Staff appointed in Dept A = 16	Staff appointed in Dept B = 24
Area occupied by Dept A = 800 sq ft	Area occupied by Dept B = 1600 sq ft

Allocate the following expenses between the two depts:

Salaries to office staff Rs.50,000
Rent and taxes Rs.9,000
Discount allowed Rs.7,000
Discount received Rs.5000
Carriage Outwards Rs.2,800

12.

On 1^st Jan, Hari purchased a machine on Hire Purchase on the following terms:

Cash Price of the machine Rs.10,000/- of which Rs.4,000 to be paid on signing the contract.

Balance to be paid in three equal annual installments plus interest on the outstanding balance at 10% per annum.

You are required to calculate the interest payable by Mr. Hari

13.

(a). A hotel has 179 rooms in all, out of which 15 rooms are used for operational purposes and 4 rooms are occupied by the general manager and the departmental managers. 136 rooms are occupied by the guests on 24^th Oct. Calculate the room occupancy rate for the day.

(b). A hotel in Mysore has 200 lettable rooms. The hotel has single bed rooms as well as double bed rooms. On 15^th Oct. 180 rooms were occupied by 240 guests. Calculate the double occupancy rate on 15^th Oct.

14.

Swastic Products Ltd., opened a branch at Belgaum on 1^st Jan. The branch sells goods only for cash. From the following particulars, prepare Branch Account and find out the profit or loss at Branch for the period ending 31^st Dec.

	Rs.	Rs.
Good sent to Branch		40,000
Cash remittance to branch for:
Salaries	5,000
Office rent	1,200
Office Expenses	800	7,000
Cash sales by Branch (remitted to H.O)		55,000
Stock on 31^st Dec		5,000

15.

State five differences between Dependent and Independent Branches.

16.

Mr. Ravi checks into a hotel at 10 a.m. on 11^th Oct on a European Plan at Rs.1,800/- for a stay of every 24hrs. Service charge is also payable at 10%. Calculate the amount payable by Mr. Ravi in the following circumstances.

(1) If he checks out at 5 p.m. on 11^th Oct.

(2) If he checks out at 9 a.m. on 12^th Oct.

(3) If he checks out at 2 p.m. on 12^th Oct.

(4) If he checks out at 10 a.m. on 13^th Oct.

SECTION – C

III)

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

17.

The following is the Trial Balance of the Courier Ltd. Bangalore as on 31^st December, 2014. Prepare the Final Accounts of the Hotel.

Purchases	`	`
Liquor	54,500
Provisions	45,800
8,500 5% Preference Shares		85,000
14,000 Equity shares fully paid		1,40,000
Sales: Food Liquor		62,630 78,620
Apartment rents		83,430
Miscellaneous Income		8,235
4% Mortgage Debentures		2,00,000
Buildings	3,50,000
Furniture and Fittings	57,830
Investments	50,690
Goodwill at cost	1,08,640
Reserve Fund		72,120
Profit and Loss 1 Jan.2014		15,100
Creditors		49,800
Debenture interest	7,500
Wages and salaries	52,300
Hotel Expenses and Establishment charges	6,780
General Administrative expenses	29,450
Repairs	2,080
Stock 1^st Jan: Liquor Provisions Cash Book debts	21,280 3,200 1,240 1,520
Interim dividend for preference shares for half year	2,125
	7,94,935	7,94,935
Nominal Capital. 10,000 5% Preference Shares of Rs.10. 15,000 Equity shares of Rs.10 Adjustments to be made: Stock on 31^st December: Liquor Rs.25,200; Provisions Rs.1,640. Depreciate Furniture by 5%. Wages unpaid Rs.1,280 Provide for debenture interest. Appropriation of profits. a. To declare the balance of preference dividend b. To declare a 10% dividend for equity shares.

18.

(a). Shri Chakravarty of Kolkata has a branch at Mumbai. Goods are supplied to the branch at cost. The branch sells goods for cash and on credit. The expenses of the branch are paid from Kolkata and the branch keeps a sales journal and the debtors ledger only. From the following information supplied by the branch, prepare Branch Account in the books of Head Office:

	Rs.
Opening stock (1^st April)	24,000
Closing stock (31^st March)	18,000
Credit sales	41,000
Cash Sales	17,500
Receipt from debtors	37,900
Sundry debtors on 31^st March	9,160
Goods received from Head Office	30,000
Goods in transit from Head Office on 31^st March	3,600
Expenses paid by the Head Office for the Branch	10,400

(b). What are adjusting or reconciliation entries which are passed in the books of the Head Office? Give five occasions when such entries are to be passed. (10+5)

19.

From the following information, prepare the departmental trading and profit and loss account for the year ending 31^st Dec.

Particulars	Dept X	Dept Y	Total
Particulars	Rs.	Rs.	Rs.
Opening stock	6,000	5,000	11,000
Purchases	62,000	31,000	93,000
Sales	1,01,500	76,000	1,77,500
Purchase Returns	2,000	1,000	3,000
Wages	4,000	7,500	11,500
Sales Returns	1,500	1,000	2,500
Salary to office staff			25,000
Rent and taxes			4,500
Discount allowed			3,500
Discount earned			2,500
Carriage outwards			1,400
General expenses			4,200

Other Information:

a) Office staff appointed: Dept X 8 persons and Dept Y 12 persons

b) Area occupied: Dept X 400 sq. ft. and Dept Y 800 sq. ft.

c) Depreciation on machinery worth Rs.50,000 at 10% and on furniture worth Rs.15,000 at 20% to be distributed between the departments equally.

d) Stock of goods on 31^st Dec: Dept. X Rs.8,000 and Dept. Y Rs.4,000

e) Inter-departmental transfers: Dept X to Dept Y Rs.10,000 which is not included in the above information.

f) Exclude the inter-departmental transfers for calculation of ratio.

g) Sales Ratio to be calculated on Net Sales i.e., Sales less Returns

h) Purchase Ratio to be calculated on Net Purchases i.e., Purchase less Returns.

20.

On 1^st January, Arun purchased from Bava a machine on the hire purchase system for Rs.2,730 to be paid as follows:

On delivery Rs.800, at the end of the first year Rs.760, second year Rs.600 third year Rs.350 and fourth year Rs.220. Interest included in Rs.2,730 is charged on the cash value of the machine at 10% per annum. Ascertain the interest for each installment and also the cash price of the machine.

21.

Hindustan Publishing Co., proposes to acquire a printing machines of the cash value of Rs.27,300/- on Installment. Rs.6,000 was to be paid immediately and the balance in four equal annual installments of Rs.6,000. The vendors charge interest at 5% per annum. Depreciation to be provided at 10% per annum on diminishing method. Prepare Ledger Accounts in the books of Hindustan Publishing Company, after showing the calculation for Interest and depreciation.

SECTION – D

IV)

Compulsory question. (15marks)

22.

(a) State the basis on which the following items will be apportioned between departments:

(1) Discount allowed to customers.

(2) Electricity charges

(3) Discount received

(4) Rent

(5) Salaries

(6) General Expenses

b) From the following information prepare Memorandum Branch Debtors Account

Opening stock		6,000
Opening Debtors		8,000
Goods sent to Branch		45,000
Cash sales		22,000
Credit Sales		52,000
Collections from Debtor		42,000
Returns from customers		2,000
Discount allowed during the year		2,000
Bad debts		1,000
Cheques sent by Head office for Branch Expenses:
Salaries	5,000
Rent	2,500
Petty Expenses	500	8,000
Closing Stock		9,000

c) State 3 differences between Hire Purchase and Installment selling

(6+6+3)

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