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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Sc. DEGREE EXAMINATION –STATISTICS
SECOND SEMESTER – APRIL 2007
CO 2101/CO 3101 – FINANCIAL ACCOUNTING & FIN. STATE. ANALYSIS
Date & Time: 23/04/2007 / 9:00 – 12:00 Dept. No. Max. : 100 Marks
SECTION A
ANSWER ALL THE QUESTIONS 10 X 2 = 20
- Explain (a) Cash discount (b) Trade discount?
- Give any two advantages of subsidiary books?
- What is deferred revenue expenditure?
- What do you mean by Contra entries? Illustrate with example.
- Define Ledger
- What is overdraft?
- Prepare a Bank Reconciliation Statement from the following:
(a) Bank overdraft as per Pass book Rs.80,000
(b) Cheque issued but not presented for payment Rs. 3,000
(c) Cheque deposited but not yet collected by the bank Rs. 2,000
(d) Bank charges not yet recorded in cash book Rs. 300
- From the following information calculate income from subscriptions to be presented in Income and Expenditure account for the year ending 31 – 3 – 07
Subscriptions received during 2006- 2007 Rs. 75,000
Subscriptions received during 2005 –2006
For the year 2006 – 2007 Rs. 8,000
Subscriptions outstanding on 31 – 3 – 07 Rs. 15,000
Subscriptions for the year 2007 – 2008 included
In the collections for 2006 – 2007 Rs. 10,000
- Fill in the blanks:
Goodwill is an _______ asset.
A journal is known as a book of _________ entry.
- From the following particulars, write up a Single column cash book;
2003
Jan 1 Cash in hand Rs. 1,600
Jan 2 Paid for postage Rs. 50
Jan 5 Sold goods to Babu for cash Rs. 1,000
Jan 8 Purchased furniture Rs. 600
SECTION B
ANSWER ANY FIVE 5 X 8 = 40
- What do you mean by Bank Reconciliation Statement ?
- Distinguish between Receipts and Payments Account and Income and Expenditure Account?
- What are accounting conventions? Name and explain them in detail?
- Enter the following transactions in proper subsidiary books of Mr. Raja:
2006
Mar 1 Purchased 500 bags of wheat from Paul at Rs. 900 per bag, less
Trade discount 10%
- Bought 300 bags of rice from Kamal at Rs. 1,000 per bag, less trade discount 5%
- Sold to Lalitha 120 bags of rice 1,100 per bag less trade
Discount 5%
7 Returned to Paul 15 bags of wheat which were purchased on 1 – 3 – 06
- Sold to Harris 200 bags of wheat 1,250 per bag less trade discount 10%
15 Harris returned wheat worth Rs. 4,500
- Returned 40 bags of rice to Kamal
- Bought of Shankar 300 bags of rice at Rs. 900 per bag
- Purchased from Dayalan 200 bags of wheat at Rs. 700 per bag
- Record the following in Journal, the transactions for April 2006 is as follows:
2006
Apr 1 Commenced business with cash Rs. 1,00,000
2 Purchased goods from David Rs. 2,400
3 Sold goods to Bosco Rs. 950
5 Cash paid to David Rs. 2,400
7 Paid for postage stamps Rs. 25
9 Received from Bosco in full settlement Rs. 900
10 Withdrew cash for personal use Rs. 500
12 Cash deposited into bank Rs. 10,000
- (a) During the year a machine costing Rs. 10,000 (accumulated depreciation Rs. 3,000) was sold for Rs. 5,000. Calculate profit or loss on sale of machinery.
(b) Capital of a Sole trader on 1- 4 – 06 was Rs. 1,25,000 and on 31 – 3 – 07 was Rs. 1,53,000. Net profit earned during the year was Rs. 45,000. Compute Drawings.
- From the following Balance Sheet of Arth Ltd., Calculate (a) Debt Equity Ratio (b) Fixed assets to Currents assets
BALANCE SHEET
LIABILITIES Rs. ASSETS Rs.
Equity share capital 2,00,000 Goodwill 1,20,000
Reserve 40,000 Fixed assets(at cost) 2,80,000
P & L Account 60,000 Stock 60,000
Secured loan 1,60,000 Debtors 60,000
Creditors 1,00,000 Advances 20,000
Provision for tax 40,000 Bank 60,000
————— ————-
6,00,000 6,00,000
————— ————–
- From the following balances you are required to calculate Cash from operating activities:
31 – 12 – 05 31 – 12 -06
Rs. Rs.
P & L Account 50,000 3,10,000
Debtors 90,000 84,000
Creditors 40,000 52,000
Bills Receivable 24,000 30,000
Prepaid expenses 3,200 2,800
Bills payable 30,000 32,000
Outstanding expenses 2,400 3,200
Outstanding income 1,600 1,800
Income received in advance 500 600
SECTION C
ANSWER ANY TWO 2 X 20 = 40
- From the following Trial balance as on 31 – 12 – 2006, Prepare Trading , Profit and Loss Account and Balance sheet as on that date:
TRIAL BALANCE
Particulars Dr. Cr.
Balances Balances
Stock 1-1-06 5,840
Cash on hand 192
Drawings 2,840
Rent 480
Machinery 3,800
Tax 600
Bad debts 888
General expenses 1,760
Purchases 41,448
Debtors 16,800
Sales returns 840
Provision for bad debts 420
Capital 17,000
Interest 320
Bank overdraft 960
Sales 47,624
Creditors 8,000
Purchase returns 1,164
———— ———-
75,488 75,488
———— ———-
Adjustments:
- Depreciation on machinery @ 10% p.a
- Rent outstanding Rs. 500
- Tax prepaid Rs. 100
- Provision for bad debts is to be increased to 5 % debtors
- Closing stock Rs. 3,500
- The following is the Receipts and Payments of Delhi football association for the first year ending 31st December 2006:
Receipts and Payments Account
Receipts Rs. Payments Rs.
To Donation 50,000 By Pavillion office
(constructed) 40,000
To Reserve fund By expenses in
(Life membership fees connection with
And entrance fee matches 900
Received) 4,000 By furniture 2,100
To receipts from football By investments
Matches 8,000 at cost 16,000
Revenue receipts Revenue payments
To subscription 5,200 By salaries 1,800
To locker rents 50 By wages 600
To interest on securities 240 By insurance 350
To sundries 350 By telephone 250
By electricity 110
By sundry expenses 210
By balance on hand 5,520
——— ———
67,840 67,840
——— ———
Additional information:
- Subscriptions outstanding for 2006 are Rs. 250
- Salaries unpaid for 2006 are Rs. 170
- Wages unpaid for 2006 are Rs. 90
- Outstanding bill the sundry expenses is Rs. 40
- Donations received have to be capitalized
Prepare from the details given above Income and Expenditure A/c for the year ended 31 – 12 – 2006 and the Balance Sheet of the association as on that date.
- With the following ratios and further information given below prepare a Trading Account , Profit and Loss Account and a Balance Sheet of Shri Nataraj:
- Gross profit ratio 25 %
- Net profit/ sales 20%
- Stock turnover ratio 10
- Net profit / Capital 1/5
- Capital to Total liabilities ½
- Fixed assets / Capital 5/4
- Fixed assets / Total current assets 5/7
- Fixed assets 10,00,000
- Closing stock 1,00,000
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