LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
SUPPLEMENTARY SEMESTER EXAMINATION – JUN 2006
B.Sc. DEGREE EXAMINATION
CO 2101 – FINANCIAL ACCOUNTING & FIN. STATE. ANALYSIS
Date & Time : 27/06/2006/9.00 – 12.00 Dept. No. Max. : 100 Marks
SECTION-A
Answer all questions 10*2=20
- What is double entry system of book keeping?
- State any two merits of subsidiary books?
- What is ledger?
- Why is suspense account opened ?
- Why is bank reconciliation prepared?
- What is earning per share ?
- What is depreciation ?
- Give any two non cash items?
- State the rules for debiting and crediting .
- What is meant by convention of conservatism ?
SECTION-B
Answer any five questions 5*8=40
- Explain the advantages and limitations of ratios.
- Discuss the fundamental concepts of double entry system
- Distinguish between single entry and double entry.
- An old machine worth Rs.12,400 was purchased on 1.1.1999 . Rs.8000 was spent on repairs and Rs.3,600 for installation of the same . Depreciation was to be charged @ 30% p.a under diminishing balance method. The said machine was sold as scrap for Rs.3,600 at the end of 2001. show machinery a/c upto 2001.
- Enter the following transations in a purchase book or in sales book as the case may be.
1st Sep.2001 ,100 tonnes of coal @ Rs.577.50 per tone from A &CO.
5TH 200 tones of soft coke @Rs.465 ,less trade discount 5%.
10th 200 tones of hard coke @Rs.522.5 ,less trade discount 5%.
19th 10 tones of soft coke sold to B&CO @Rs.500 less 2.5% trade discount.
30th 400 tones of coal @Rs.532.5 sold to XY&CO ,less discount5%.
16.Enter the following transaction in a triple column cash book .
Jan 1 cash balance inhand 400
Cash at bank 1650
- received from somu Rs.180 ,discount allowed Rs.5
- paid for stationary in cash 35
- paid ganesh by cheque Rs.315 ,discount Rs.8
- sundry expenses in cash 17
- Robbin settled his a/c for Rs.400 less 5% discount
- withdrew from bank for office 50
- bought goods by cheque 250
- sold goods for cash 150
- paid into the bank 350.
17.Journalise the following transaction.
Started business with cash Rs.50,000
Purchased goods for cash Rs.10,000
Sold goods for cash Rs.15,000
Purchased goods from X on credit Rs.5000
Sold goods to B for Rs.6000
Bought a furniture Rs.14,000
Paid wages Rs.400
18.From the ledger balances given below ,draw up the trial balance.
Rs. Rs.
Capital 8950 drawings 1050
Stock 3725 purchases 23100
Sales 39425 wages 6205
Lighting and heating 310 equipment 3600
Carriage outward 230 carriage inward 105
Returns outward 290 discount allowed 285
Provision for doubtful debts 350, cash 110, rent 1115,
Discount received 315 motor vehicle 1475
Creditors 4925, debtors 13920 ,bank overdraft 975.
SECTION-C
Answer any two questions: 2*20=40
- The following is the trial balance of Mr.Maria for the year ended 31st dec 2001.
Compile the final a/c for him, after incorporating the adjustments.
Dr(Rs.) Cr(Rs.)
drawings and capital 4,000 65,000
purchase and returns outward 25,000 4,000
sales — 71,000
stock on 1.1.2001 9,000 —
salary 10,000 —
wages 3,000 —
cash in hand 6,100 —
rent and rates 5,500 —
bank loan — 14,000
discounts 400 500
building 35,000 —
machinery 50,000 —
debtors and creditors 10,000 6,000
———- ———
160500 160500
Adjustments:
- wages of Rs.1000 and salaries of Rs.2000 are not paid.
- Included in the salaries is a figure of Rs.1000 taken by the proprietor
For personal expenses.
- stock on 31.12.2001 is Rs.30,000
- depreciate building by 2% and machinery by 10%.
- From the following information ,make out a balance sheet.
Current ratio 2.5
liquid ratio 1.5
proprietary ratio 0.75(fixed assets/prop.fund)
Working capital Rs.60,000.
Reserve and surplus Rs.40,000
Bank overdraft Rs.10,000
There is no long term loan or fictitious assets.
21.From the following balance sheet ,you are required to prepare a cash flow
statement.
Liabilities 1999 2000 Assets 1999 2000
Share capital 2,00,000 2,50,000 cash 30,000 47,000
Creditors 70,000 45,000 debtors 1,20,000 1,15,000
Profit &lossa/c 10,000 23,000 stock 80,000 90,000
Land 50,000 66,000
———- ———— ———- ———
2,80,000 3,18,000 2,80,000 3,15,000
——— – ——– ———- ———–
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