LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Sc. DEGREE EXAMINATION – STATISTICS
SECOND SEMESTER – APRIL 2008
CO 2104 / 2101 – FINAN.A/C & FINANCIAL STATEMENT ANALYSIS
Date : 25/04/2008 Dept. No. Max. : 100 Marks
Time : 1:00 – 4:00
SECTION A
Answer all questions: 10 x 2 =20 marks
- Classify the following accounts into Personal, Real and Nominal:
- a) Cash account b) Dividend account c) Goodwill account
- d) Chennai Cricket Club Account
2.a The subdivisions of a journal into various books are called ___________ books.
- A _________ organisation is a legal and accounting entity whose main objective’s are to provide service to the members or beneficiaries.
- Give any two advantages of cash flow analysis.
- What are Bad debts and how are they treated?
- What is imprest system of cash book ?
- List out any four direct expenses.
- Write short note on Legacy
- What is Proprietory fund?
- Calculate cost of goods sold: Opening stock – Rs. 2,500, Purchases – Rs.50,000 Closing stock – Rs. 7000
- Compute the Profit or loss on sale of Land: Original cost – Rs. 10,000 Accumulated Depreciation – 5,000 Sale value Rs.5,500.
SECTION B
Answer any five questions: 5 x 8 =40 marks
11 What is Bank Reconciliation Statement? Why should it be prepared periodically?
- Distinguish between Trial balance and Balance sheet.
- Describe the advantages and disadvantages of accounting.
- M/s Praveen Furniture Mart purchased the following items during the month of December 2007
5 Purchased from M/s Goodwill furniture
200 Chairs @ Rs. 100 per chair
25 Tables @ Rs. 200 per table
11 Purchased from M/s Nithya motors
One Maruti car for Rs. 1,40,000
One Scooter for Rs. 14,000
- Cash purchases from Dilip furniture:
4 Sofa sets @ Rs. 5,000 per set
1 Computer table @ Rs. 2,500
20 Purchased from Ram & Co
24 Dining chairs @ Rs. 200 per chair
4 Dining tables @ Rs. 2,000 per table
Less : 15% trade discount
Prepare purchases book and show ledger posting of purchases book.
- From the following balances, prepare the Balance sheet of a Company in the prescribed format, Goodwill Rs. 1,50,000; Investments Rs. 2,00,000; Share capital Rs. 5,00,000 ; Reserves Rs. 1,10,000; Share premium Rs. 15,000; Preliminary expenses Rs. 10,000; Profit and Loss A/c (Cr) Rs. 25,000; Debentures Rs. 2,50,000, Plant and Machinery Rs. 2,70,000; Land Rs. 2,00,000; Stock Rs. 80,000; Debtors Rs. 60,000; Bank balance Rs. 30,000; Unsecured loan Rs. 65,000; Sundry creditors Rs. 35,000
- From the following Receipts and Payments account of Chennai Club for the year ended 31-3 – 2007. Prepare Income and Expenditure Account.
Receipts and Payments Account for the year ended 31-3-07
Receipts Rs. Payments Rs.
To Balance b/d 3,485 By Books 6,150
To Entrance fees 650 By Printing and
To Donations 6,000 Stationery 465
To Subscribtions 6,865 By Newspapers 1,110
To Interest on By Sports Materials 5,000
Investments 1,900 By Repairs 650
To Sale of furniture 685 By Investments 2,000
To Sale of old By Furniture 1,000
Newspapers 465 By Salary 1,500
To Proceeds from By balance c/d 3,165
Entertainments 865
To Sundry receipts 125
_____ _______
21,040 21,040
Additional information:
- Capitalise Entrance fees and Donations
- Sports Materials valued at Rs. 4,000 on 31-3-07.
- Given the following figures:
Sales Rs. 15,00,000
Gross profit 20% on sales
Current assets 4,00,000
Current liabilities 2,00,000
Fixed assets (Gross) 5,00,000
Less: Depreciation 1,00,000 4,00,000
Calculate : (i) Capital turnover ratio (ii) Fixed assets turnover ratio
- Working capital turnover ratio
- X Ltd made a profit of Rs. 4,00,000 after considering the following items:
(i) Depreciation on fixed assets Rs. 15,000
(ii) Writing off preliminary expenses Rs. 6,000
(iii) Loss on sale of furniture Rs. 900
(iv) Provision for taxation Rs. 75,000
(v) Transfer to general reserve Rs. 5,000
(vi) Profit on sale of buildings Rs. 10,000
The following additional information is also supplied to you:
Particulars 31-12-06 31-12-07
Rs. Rs.
Sundry Debtors 15,000 20,000
Sundry Creditors 12,000 17,000
Bills receivable 14,000 17,500
Bills payable 9,500 6,000
Outstanding expenses 3,000 2,000
Prepaid expenses 100 200
You are required to ascertain the amount of cash from operations.
SECTION C
Answer any two questions: 2 x 20 =40 marks
- From the following Trial Balance of Thiru. Raj as on 31st March 2007, Prepare Trading and Profit & Loss A/c and Balance Sheet taking into account the adjustments:
Debit balances Rs. Credit balances Rs.
Land and Buildings 42,000 Capital 62,000
Machinery 20,000 Sales 98,780
Patents 7,500 Return outwards 500
Stock 1-4-2006 5,760 Sundry Creditors 6,300
Sundry debtors 14,500 Bills payable 9,000
Purchases 40,675
Cash in hand 540
Cash at bank 2,630
Return inwards 680
Wages 8,480
Fuel and power 4,730
Carriage on sales 3,200
Carriage on purchases 2,040
Salaries 15,000
General expenses 3,000
Insurance 600
Drawings 5,245
______ ______
1,76,580 1,76,580
Adjustments
- Stock on 31-3-2007 was Rs. 6,800
- Salary outstanding Rs. 1,500
- Insurance Prepaid Rs. 150
- Depreciate machinery @ 10% and patents @ 20%
- Create a provision of 2% on debtors for bad debts.
- From the following transactions, prepare Three- Column cash book of Akash for the month of Aug 2007
Aug
2007 Rs.
1 Cash balance 20,000
Bank balance 23,000
3 Paid rent by cheque 5,000
4 Cash received on account of cash sales 6,000
6 Payment for cash purchases 2,000
8 Deposited into bank 8,000
9 Bought goods by cheque 3,000
10 Sold goods to Naresh on credit 7,120
12 Received cheque from Mohan 2,900
Discount allowed to him 100
13 Withdrew from bank for office use 4,350
14 Purchased furniture by cheque 1,260
15 Received a cheque for Rs. 7,000 from
Naresh in full settlement of his account,
Which is deposited into bank
16 Withdrew for personal use from bank 1,200
18 Suresh our customer has paid directly
Into our bank 4,000
- Prasad settled his account for Rs. 1,250
By giving a cheque for 1,230
- Prasad’s cheque sent for collection
- Using the following information, construct a Balance Sheet:
Gross profit (20% on sales) Rs. 6,00,000
Shareholder’s equity Rs. 5,00,000
Credit sales to total sales 80%
Total assets turnover(on sales) : 3 times
Average collection period (360 days in a year) : 18 days
Current ratio 1.6
Long term debt to equity 40%
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