LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.C.A. DEGREE EXAMINATION – COMPUTER APPLICATION

KP 08

THIRD SEMESTER – April 2009

CO 3104 / 3102 – ACCOUNTS & BUSINESS APPLICATIONS

 

 

 

Date & Time: 27/04/2009 / 9:00 – 12:00  Dept. No.                                              Max. : 100 Marks

PART –A                              Answer ALL Questions

(10 x 2 = 20)

1. What do you understand by dual aspect concept?
2. What are ‘Nominal Accounts’? Give examples.
3. Briefly explain the term “Current Assets”.
4. What is meant by Compensating error?
5. Define Cash Flow Statement.
6. Siva bought a machine on 1.1.2006 for Rs.50000. This is expected to last for 5 years. The estimated residual value at the end of five years is Rs.12000. Calculate the rate of depreciation under Original Cost Method.
7. From the following details of a trader calculate “Gross profit Ratio”

Sales Rs.200000, Return outwards Rs.30000, Opening Stock Rs.40000, Purchases Rs.120000, Return inwards Rs.20000 & Closing Stock Rs.13000

8. Rectify the following errors:

• Purchase of old furniture Rs.5000 was passed through purchase book.
• 20000 received from Raja has been wrongly entered as from Raju.

9. Prepare Cash account from the details:

Date	Particulars	Amount (Rs.)
1/1/2009	Started business with cash	50000
5/1/2009	Paid into Bank	10000
12/1/2009	Purchased goods for Cash	20000
21/1/2009	Sold goods for Cash	30000
29/1/2009	Withdrew from business for own use	5000

 

 

 

 

 

 

 

 

10. Enter the following transactions in the Purchase Book of Mr.Pandian:

Date	Particulars	Amount (Rs.)
1/1/2009	Bought goods from Basheer	50000
5/1/2009	Banu sold goods to us	20000
20/1/2009	Bought goods from Anto for Cash	100000
25/1/2009	Sold goods to Kannan on credit	15000

 

PART –B                 Answer any FIVE Questions

(5 x 8 = 40)

11. Prepare a bank reconciliation statement from the following data as on 31.3.2009

Particulars	Amount (Rs.)
Balance as per cash book	25000
Cheques  issued but not presented for payment	1800
Cheques  deposited in bank but not collected	2400
Bank paid insurance premium as per the standing instruction	1000
Direct deposit made by a customer	1600
Interest on investment collected by bank	400
Bank charges	200
A wrong credit relating to some other account was found in the Pass book	2400

12. On 1.4.2000, Mr. Suresh bought a machine for Rs.8000 and spent Rs.3000 on its installation. Depreciation is written off @10% p.a. on the original cost. On 30.6.2003, the machine was found to be unsuitable and sold for Rs.6500. On the same date, another machine was bought for Rs.10000. Prepare Machinery account and depreciation account from 2000 to 2003 assuming that the accounts are closed on 31^st December every year.

 

13. Enter the following transactions in Gopal’s cash book with discount and cash columns:

Date	Particulars	Amount (Rs.)
2009, Mar  1	Cash balance	50000
5	Cash sales	30000
8	Bought goods from Davis for cash	5000
12	Cash sales to Manoj	20000
15	Sold goods to Mohan on credit	10000
18	Cash withdrawn from business for own use	3000
21	Bought goods from Cherian on credit	20000
22	Paid into bank	7000
24	Cash received from Mohan as final settlement	9950
25	Drew a cheque for office use	1000
28	Final settlement made to Cherian	19500
30	Cash Purchases	2000
30	Paid for advertising	500
31	Received commission	3500

 

14. Saleem is not an expert in accounting. He has prepared the following trial balance. You are requested to correct it and prepare a corrected Trial balance.

S.No	Name of Account	LF	Debit (Rs.)	Credit (Rs.)
1	Capital			15560
2	Sales			27560
3	Sales returns			980
4	Drawings		5640
5	Debtors			5300
6	Premises		7410
7	Purchases		12680
8	Return outwards		2640
9	Loan from Sharma			2500
10	Creditors		5280
11	Legal charges		7840
12	Cash		1420
13	Bills payable		1000
14	Wages		5980
15	Opening stock			2640
16	Factory expenses		4650
			54540	54540

15. The following information is extracted from the books of Mr. Panner:

Total Sales Rs.100000, Cash Sales Rs.20000, Sales returns Rs.7000, Debtors (31.12.2008) Rs.9000 Bills Receivable (31.12.2008) RS.2000, Provision for bad debts Rs.1000, Total purchases Rs.200000 Cash Purchases Rs.20000, Purchase returns Rs.34000, Creditors (31.12.2008) Rs.70000 Bills Payable (31.12.2008) Rs.40000. You are required to calculate: (a) Debtors Turnover ratio   (b)Average collection period   (c) Creditors turnover ratio    (d)Average payment period

16. What are the objectives of accounting?
17. How do you classify accounting conventions?
18. Write a note on common size statements.

PART –C                                       Answer any TWO Questions   (2 x 20 =40)

19. X started business on 1.1.2009. Following were the transactions for one month. You are required to pass journal entries.

Date	Particulars	Amount (Rs.)
2009,     Jan 1	Started business with:       Cash	50000
	Furniture	30000
	Goodwill	20000
3	Bought goods from Shankar on credit	10000
5	Sold goods to Raman for Cash	20000
7	Paid into Bank	5000
9	Received cheque from Shaji and banked at once	15000
10	Paid Commission	500
11	Sales returns made	3000
12	Returned goods to Shankar	2000
15	Final Settlement made to Shankar by cheque	7500
16	Withdrew from bank	1000
18	Goods withdrawn for own use	1500
19	Paid for stationery	500
21	Received interest	750
24	Bought a second-hand computer for Cash	7500
28	Paid salaries by cheque	6000
31	Received rent	4000

20. Summarized balance sheet of Karun Ltd. as on 31.3.2008 and 31.3.2009 are as follows:

Liabilities	31.3.2008(Rs.)	31.3.2009(Rs.)	Assets	31.3.2008(Rs.)	31.3.2009(Rs.)
Share Capital	450000	450000	Fixed Asset	400000	320000
General Reserve	300000	310000	Investment	50000	60000
P & L account	56000	68000	Stock	240000	210000
Creditors	168000	134000	Debtors	210000	455000
Tax Provision	75000	10000	Bank	149000	197000
Mortgage Loan	—	270000
	1049000	1242000		1049000	1242000

Additional Details:

• Investment costing Rs.8000 were sold for Rs.8500
• Tax provision made during the year was Rs.9000
• During the year, part of the Fixed Asset costing Rs.10000 was sold for Rs.12000 and the profit was included in P& L account.

You are required to Prepare Cash Flow Statement for the year ending 31-3-2009.

 

21. From the following trial balance of Kumar, prepare Trading and Profit & Loss account for the year ended 31-3-2009, and a Balance Sheet as on that date:

S.No	Name of Account	LF	Debit (Rs.)	Credit (Rs.)
1	Opening stock		13500
2	Cash in hand		1250
3	Cash at Bank		3750
4	Power		300
5	Furniture		2250
6	Purchases		70500
7	Machinery		22500
8	Drawings		1800
9	Capital			22500
10	Salaries		5400
11	Sales			126225
12	Wages		6000
13	Carriage Inwards		750
14	Carriage Outwards		450
15	Rent		1350
16	Creditors			5750
17	Provision for bad & doubtful debts			60
18	Printing charges		840
19	General expenses		180
20	Goodwill		4500
21	Discount		105
22	Insurance		210
23	Debtors		18900
			154535	154535

 

Adjustments:

• Stock as on 31-3-2009 was Rs.50000
• Wages unpaid Rs.1500
• Depreciate Furniture @10% p.a. and Machinery @ 5% p.a.
• Charge interest on Capital @2% p.a.
• Write off bad debts Rs.900 and provide for bad & doubtful debts @5% on remaining debtors.

 

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