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

 

1. What is double entry  system of book keeping?
2. State any two merits of  subsidiary books?
3. What is ledger?
4. Why is suspense account opened ?
5. Why is  bank reconciliation prepared?
6. What is earning per share ?
7. What is depreciation ?
8. Give any  two non cash items?
9. State the rules for debiting and crediting .
10. What is meant by convention of conservatism ?

 

SECTION-B

 

Answer any five questions                                          5*8=40

 

1. Explain the advantages and limitations of ratios.
2. Discuss the fundamental concepts of double entry system
3. Distinguish between single entry and double entry.
4. 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.

 

1. Enter the following transations in a purchase book or in sales book as the case may be.

1^st Sep.2001  ,100  tonnes of coal @ Rs.577.50 per tone  from A &CO.

5^TH                   200 tones of soft coke @Rs.465 ,less trade discount 5%.

10^th                  200 tones of hard coke @Rs.522.5 ,less trade discount 5%.

19^th                  10 tones of soft coke sold to B&CO @Rs.500 less 2.5% trade  discount.

30^th                  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

 

19. The following is the trial balance of Mr.Maria for the year ended 31^st 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:

1. wages of Rs.1000 and salaries of Rs.2000  are not paid.
2. Included in the salaries is a figure of Rs.1000 taken by the proprietor

For personal expenses.

31. stock on 31.12.2001 is Rs.30,000
32. depreciate building by 2% and machinery by 10%.

 

 

20. 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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