# Loyola College B.Sc. Mathematics April 2008 Fin. Accounts & Fin. Stat. Analysis Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Sc.,B.A. DEGREE EXAMINATION – MATHEMATICS & ECONOMICS

# RO 13

FOURTH SEMESTER – APRIL 2008

# CO 4205 / 4201 – FIN. ACCOUNTS & FIN. STAT. ANALYSIS

Date : 24/04/2008                Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

# SECTION A

Answer all questions:                                                              10 x 2 =20 marks

1. What is Overdraft?
2. How does one treat recovery of bad debts in accounts?
3. Differentiate between Cash discount and Trade discount?
4. a. Only __________transactions are recorded in the Single Column Cash Book
1. A ___________is a short explanation of the transaction.
1. What is a voucher?
2. Who are non- profit seeking concerns?  Give examples
3. List any two advantages of Subsidary books?
4. Why is a Trial balanace prepared?
5. Ascertain  purchases from the following figures:

Cost of goods sold                  Rs. 80,700

Opening Stock                        Rs.   5,800

Closing stock                          Rs.   6,000

1. Calculate the Capital fund by preparing Balance sheet:

Rs.                                                    Rs

Cash                                       6,000               Bank balance               35,000

Subscription outstanding        2,000               Furniture                     20,000

Building                             1,00,000               Salaries outstanding      4,000

### SECTION B

Answer any  five questions:                                                    5 x 8 = 40 marks

1. What are Assets? Discuss the various types of assets?
2. Write a brief note on the importance of ratio analysis.
3. Briefly explain the concepts which form the backbone of Accounting.
1. Moon Ltd had a balance of Rs.75,000 in its Profit & Loss account on 1st April 2006.  During 2006-2007, its profit before tax amounted to

Rs. 7,62,500.  The income tax provision for the year amounted to be

Rs. 3,47,500.  The company decided to transfer Rs. 60,000 to General Reserve, Rs. 87,500 to sinking fund for redemption of debentures, to pay a dividend for the financial year at the rate of 10%.  The company’s share capital consisted of 3,00,000 shares of Rs. 10 each.  Draw up the Profit & Loss Appropriate account.

1. Statement of the financial position of Mr. Ram is given below:

Liabilities         2006      2007         Assets           2006         2007

Creditors            2,900     2,500       Cash               4,000       3,000

Capital              73,900   61,500       Debtors           2,000      1,700

Stock                 800       1,300

Building        10,000       8,000

Land              60,000     50,000

———   ———                             ———-    ———

76,800     64,000                            76,800     64,000

(i)  There were no drawings

(ii)  There was no purchase or sales of either building or other fixed      assets.

Prepare a Statement of cash flow.

1. Journalise the following transactions in the books of Mr. Hari for the month of January 2008

Rs.

1          Hari started business with capital                   2,50,000

5          Purchased goods from Shankar                         24,000

7          Purchased goods for cash                                    4,000

8          Purchased chairs                                                  1,500

10        Proprietors drawings                                            1,000

11        Paid rent to the landlord , Mr. Ram                     1,700

15        Sold goods to Suresh                                           4,000

20        Paid to Shankar  Rs.23,500 and discount received Rs.500

22        Paid salary to the Manager, Mr. Arun                             2,000

1. Prepare a bank reconciliation statement from the following:

Rs.

Bank balance as per Cash Book                                             18,500

Cheques deposited but not collected by the bank                    6,000

Cheques issued but not presented for payment                        4,500

Bank charges debited in the pass book                                        150

Dividend collected by bank not entered in the cash book       1,200

Insurance premium paid by the bank not entered in the

Cash book                                                                               350

1. M/s Sathish & Co furnishes the following information for the month of January 2008. Prepare a Cash book with Cash and Bank columns:

Jan                                                                                 Rs.

1        Balance in Hand                                             1,000

Bank Overdraft                                               3,000

3        Issued a cheque to Sharma                                500

5        Received a cheque from Mr. Charles and

Deposited into bank                                      1,000

7        Drew from bank for office use                          500

9        Paid Life insurance premium in cash                 250

15        Bank collected dividend                                    500

# SECTION C

Answer any  five questions:                                                    2 x 10 =40 marks

1. The following is the summary of cash transactions of Chennai Literary Club for the year ended 31st December 2007

Receipts                    Rs.              Payments                  Rs.

To Balance from last year  3,190        By Rent & Rates         1,680

To Entrance fees                 2,250       By Wages                    2,450

To Subscription                 16,000       By Lighting                    720

To Donations                      1,650       By Lecture fees           4,350

To Life membership fee       2,500      By Books                    2,130

To Interest                              140       By Office expenses     4,500

To Sale of furniture                             By Placed on 6%

(Book value Rs. 500)           720          fixed deposit                        8,000

By Cash at bank          2,420

By Cash in hand            200

——–                                          ——–

26,450                                         26,450

——–                                          ——–

At the beginning of the year, the Club possessed Books worth Rs.20,000 and Furniture worth Rs.8,500.  Furniture worth Rs. 500 was sold on 1.1.07 for

Rs. 720 as shown in the above cash summary. Ordinary Subscription in arrears at the beginning of the year amounted to Rs. 350 and at the end of the year Rs. 450.

Prepare Income and Expenditure Account of the Club for the year ended 31st December, 2007 and a Balance sheet at that date after writing off Depreciation at 5% per annum on Furniture and 10% per annum on Books.

Entrance fees and Donations to be capitalized.

1. From the following Trial Balance of M/s Ram & Sons, Prepare Trading and Profit and Loss Account for the year ending on 31st December 2007 and the Balance Sheet as on that date

Dr.                   Cr.

Purchases and Sales                            21,750             35,000

Discount                                                1,300

Wages                                                   6,500

Salaries                                                  2,000

Travelling expenses                                 400

Commission                                            425

Carriage inwards                                     275

Interest                                                                250

Building                                              5,000

Furniture                                                 200

Debtors                                               4,250

Capital                                                                         13,000

Cash                                                    7,045

Creditors                                                                       2,100

———             ———

50,100             50,100

Stock on 31st December 2007, was Rs. 6,000.  Depreciate building by 20%.  Create a  provisions  for bad debts at 10% on debtors.  Outstanding wages

Rs. 475.

1. Using the following data, complete the balance sheet below:

Gross profit ratio                                             20%

Current ratio                                                    1.8

Stock turnover ratio                                        4times

Debt collection period                                                20 days

(360 days year)

Long-term debt to equity                                40%

Total assets turnover ratio

(on sales)                                                 0.3 times

Credit sales to total sales                                80%

Gross profit                                                     Rs. 1,08,000

Share capital & Reserves and Surplus            Rs. 12,00,000

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