Loyola College B.Com Corporate & Secretaryship April 2007 Financial Accounting Question Paper PDF Download

                LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SECRETARYSHIP

HO 03

SECOND SEMESTER – APRIL 2007

BC 2500 / CR 2501 – FINANCIAL ACCOUNTING

 

 

 

Date & Time: 20/04/2007 / 1:00 – 4:00 Dept. No.                                              Max. : 100 Marks

 

 

PART – A

Answer ALL the questions.                                        (10 ´ 2 = 20 marks)

 

  1. Specify any four groups interested in ‘Accounting Information’?
  2. What is the need for providing depreciation?
  3. Write a short note on ‘Imprest System’?
  4. What should be the basis of allocation for the following expenses under
    ‘Departmental Accounts’?

(i) Carriage inwards   (ii) Factory manager’s salary

  1. What do you mean by ‘Indemnity Period’ in Fire Insurance?
  2. Mention the ‘Journal Entry’ required when goods are repossessed under ‘Debtors system’?
  3. A machine was purchased for Rs.50000 on 1.1.2005. The useful life of the machine is five years and the residual value is Rs.10000.

Find out the amount of depreciation to be provided every year under the straight line method?

  1. M/s STAR & Co., purchased a plant on 1.1.2002. The cash price being Rs.25,000.  The purchase is on hire purchase system.  10000 has to be paid on the signing of the contract and thereafter, Rs.10000 has to be paid annually for two years.  Interest was charged at 5%.

Prepare Hire-vender account to show the interest payable?

  1. Calculate the amount of Drawings from the following information?

Opening capital Rs.6,00,000;  Closing capital Rs.15,60,000 and

profits Rs.2,40,000.

  1. Net profit Rs.1,00,000; Fixed expenses (including depreciation) Rs.1,60,000 and G.P. ratio is 25% on turnover.

What is cost of sales?

 

PART – B

Answer any FIVE  questions.                                     (5 ´ 8 = 40 marks)

 

  1. Distinguish between Hire Purchase and Instalment purchase systems?
  2. Write short notes on the following:

(i) Royalty                   (ii)  Inter-departmental transfers

(iii)Final accounts        (iv) Book Debts

  1. What are the advantages of ‘Double Entry System’ of Book Keeping?

 

  1. M/s GOODLUCK & COMPANY purchased a plant on 1.4.2005 for Rs.70000.  On 1.10.2005, further plant was purchased for Rs.40000.  On 1.7.2006, the plant purchased on 1.4.2005 having become obsolete, was sold off for Rs.50000.  Depreciation has to be charged at 15% on the original cost of the plant assuming that the accounts are closed every year on 31st

Prepare

(i) Plant Account         (ii)  Provision for Depreciation Account

 

 

 

  1. From the following details, prepare Creditors Ledger Adjustment a/c in the General Ledger and General Ledger Adjustment account in the Debtors Ledger as on 31.1.2002.

Rs.

Debtors Balance (1.1.2002)                            …                    35,250

Creditors Balance (1.1.2002)                          …                    48,750

Transactions  for the month of January:

Credit purchases                                             …                    30,500

Credit sales                                                     ….                    20,700

Return Inwards                                               …                         600

Return outwards                                             …                         800

Cash received from customers                        …                    34,000

Discount allowed to customers                       …                         700

Cash paid to creditors                                     …                    48,000

Discount received from creditors                   …                         800

Acceptance received from Debtors                …                    10,000

Creditors Bills accepted                                  …                    14,000

B/R returned dishonoured                              …                      2,000

B/P returned dishonoured                               …                      4,000

Bad debts written off                                     …                      1,000

Sundry charges debited to customers             …                         400

Allowance from creditors                               …                         300

  1. The following purchases were made by business house having three departments.

Dept. x                        :  852 units

Dept. y                        :  768 units                  at a total cost of Rs.20000

Dept. z                        :  594 units

 

Sales were as follows:

Dept. x                        :  53 units

Dept. y                        :  48 units

Dept. z                        :  61 units

Sales were as follows:

Dept. x                        :  864 units @ Rs.10.35 each

Dept. y                        :  715 units @ Rs.11.25 each

Dept. z                        :  583 units @ Rs.12.40 each

The rate of gross profit is same in each department.

Prepare Departmental Trading Account.

 

  1. A Calcutta head office has a branch at Bombay to which goods are invoiced at cost plus 20%

From the following particulars, prepare the Branch Account in the head office.

books.                                                                               Rs.

Goods sent to branch                          …                    1,20,000

Total sales                                           …                    1,50,000

Cash sales                                            …                       50,000

Cash received from branch Drs.         …                       40,000

Branch Drs on 1.1.2005                      …                       15,000

Branch Stock on 1.1.2005                  …                       60,000

Branch Stock on 31.12.2005              …                       36,000

 

 

 

 

 

  1. A fire occurred in the premises of Mr. B. Rao on 7th June 2003.

In order to make a claim on their fire policies in respect of the stock,  calculate the amount of claim from the following information.  The stock salvaged was Rs.15,200.

2000           2001             2002            2003

(Rs)           (Rs)               (Rs)             (Rs)

 

Opening Stock                       64,000         60,000          64,000         72,000

Purchases                            1,64,000      1,88,800       2,26,400      3,12,000

Sales                                    2,40,000      2,64,000       3,12,000      3,96,000

Closing stock                         60,000         64,000          72,000           ?

 

PART – C

Answer any TWO questions.                                      (2 ´ 20 = 40 marks)

 

  1. The under mentioned balances appeared in the books on

M/s PROSPERITY & COMPANY as on 31.12.2005.

Rs.                                                        Rs.

Share Capital                          6.00,000   Manufacturing Expenses   3,59,000

(Authorised and                                       Establishments                     26,814

issued 60000                                      General charges                    31,078

shares of                                             Machinery                          2,00,000

Rs.10 each)                                         Motor Vehicles                    15,000

General Reserve                      2,50,000    Furniture                                5,000

Unclaimed dividends                   6,526    Stock (1.1.2005)               1,72,058

Trade creditors                           36,858   Book Debts                        2,23,380

Buildings                                 1,00,000   Interim Dividends                  15,000

Purchases                                5,00,903   Interest (Cr)                             8,544

Sales                                        9,83,947   P & L A/c (Cr) (1.1.2005)     16,848

Investments                             2,88,950   Staff Provident Fund              37,500

Depreciation Reserve                 71,000

Cash Balance                              72,240

Directors Fees                              1,800

 

Adjustments:

 

  • The stocks on 31.12.2005 were valued at Rs.1,48,680.
  • Provide Rs.10,000 for depreciation on blocks and Rs.1500 for the Company’s contribution to the staff provident fund.
  • Interest accrued on investment amounted to Rs.2,750.
  • A claim of Rs.2,500 for workmen compensation is being disputed by the company.
  • Establishment includes Rs.6,000 paid to the manager who is entitled to remuneration at 5% on net profit ascertained after charging such remuneration according to the companies Act subject to a maximum of Rs.10,000 per annum.

 

 

 

 

 

 

 

 

 

  1. On 1.1.2002, M/s RIGHT & COMPANY purchased from M/s WRONG & COMPANY five trucks costing Rs.80,000 each on the hire purchase system.

It was agreed that Rs.1,00,000 should be paid immediately and the balance in three instalments of Rs.1,20,000 each at the end of each year.

M/s WRONG & COMPANY charges interest @ 10% p.a.  The buyer depreciates trucks at 20% p.a. on the diminishing balance method.  The buyer paid cash down and two instalments but failed to pay the last instalment.  Consequently, M/s WRONG & COMPANY repossessed three trucks leaving two trucks with the buyer and adjusting the value of three trucks against the amount due.

The trucks repossessed were valued on the basis of 30% depreciation p.a. on the written down value.  M/s WRONG & COMPANY sold the trucks repossessed for Rs.1,20,000 after necessary repairs amounting to Rs.20,000.

Prepare necessary ledger accounts in the books of the both the parties.

 

  1. M/s NORMAL & COMPANY took from M/s ABNORMAL & COMPANY  a lease of a Coal field for a period of 10 years from 1st January 1980 on a royalty of 40 paise per tonne of coal got with a ‘Dead Rent’ of Rs.5000 a year and a power to recoup shortworkings during the first 5 years of the lease.

The annual outputs were as follows:

 

Year                Outputs

1980                  3000 tonnes

1981                  7000 tonnes

1982                15000 tonnes

1983                20000 tonnes

1984                25000 tonnes

Prepare ledger accounts in the books of M/s NORMAL & COMPANY.

 

 

X         X         X

 

 

 

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