BCA Accounts & Business ApplicationsQuestion Paper 2007

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

MS 25

B.Sc. / BCA DEGREE EXAMINATION – Comp. Sci. / Comp. App.

FOURTH SEMESTER – APRIL 2007

CO 4203 / CO 3102/CA 3101- ACCOUNTS AND BUSINESS APPLICATIONS

 

 

Date & Time: 26/04/2007 / 1:00 – 4:00          Dept. No.                                                     Max. : 100 Marks

 

 

 

SECTION – A

Answer  ALL the questions:                                                        (10 x 2 = 20 marks)

1. What is meant by sundry debtors?
2. Explain depreciation.
3. Distinguish between cash discount and trade discount.
4. What do you mean by the term “debit note”?
5. Define “Accounting”.
6. Following is the list of various accounts. Find out which are real , nominal or personal account:

1. a) Commission account            b)Freight account
2. c) Machinery account d) Bank account

1. Prepare Single column cash book of Mr.Karan

April 2005

1        Cash in hand                            Rs. 5,000

9         Bought goods for cash            Rs. 2,000

16        Sold goods to Nikil for cash   Rs. 8,000

23       Purchased furniture                 Rs. 5,000

26       Received Interest                    Rs. 400

30       Paid Rent                                Rs. 1,500

1. Prepare trial balance from the following:

Opening stock     — 10,600         Wages               — 2,200        Carriage inward     —      200

Purchases            — 12,000        Trade expenses   — 1,020

Rent& Repairs    —      960            Furniture       — 2,600        Cash in hand         —    1,200

Debtors               —  3,000             Drawings      — 1,200        Sales                    —  25,350

Discount received —     400             Capital                     — 7,000        Creditors               —    2230

1. Rectify the following errors with suspense A/c:

1. a) Sales book was undercast by Rs. 400
2. b) Wages paid to workers Rs.2,000 has been wrongly posted as 3,000 in

Cash a/c

1. Mr. Samuel bought a plant for Rs. 40,000 and spent Rs. 400 for its installation.  The machine is expected to have a life of  5 years and the estimated scrap value is Rs.1,200 at the end of its life.  Calculate the rate of depreciation.

 

SECTION – B

Answer any FIVE Questions:                                                                  (5 x 8 = 40 marks)

 

1. a)   What is meant by “Business entity concept”?

1. What are the three golden rules of accounting?
2. What is a trial balance?
3. What is error of principle?

 

1. Journalise the following transactions in books of Mr. Jayakumar

 

2004 April    1   5 9 13 17 21 27 30

Started business with cash Rs.2,00,000 , building Rs.2,00,000 and Machinery Rs. 4,00,000 Purchased goods from Kamesh Bros., for cash  Rs. 40,000 Paid into bank Rs.10,000 Sold goods to  Srikanth on credit Rs.15,000 Bought Furniture from M/s Modern Furn on credit Rs.30,000 Final settlement made by Srikanth Rs.14,900 Withdrew cash from bank for personal use Rs.7,000 Paid Salaries Rs.20,000; 30% paid by cash and 70% by cheque

1.  Prepare a double column cash book with cash and discount of Mr. Samuel

May 2004 1 4 6 8 12 16 22 26 28 29 30

Cash in hand  Rs. 8,000 Purchased goods for cash  Rs.4,000 Received cash from Lalitha  Rs.2,500 Sold goods to Santhosh on credit Rs. 13,000 Purchased goods from Ram on credit Rs. 20,000 Santhosh settled his account in full Rs. 12,850 Purchased furniture for cash Rs. 19,000 Settled Ram by cash Rs.19,800 and discount received Rs.200 Sold good to Mahesh for cash Rs.26,000 Sold old Machinery to M/s Varun & Co on credit Rs. 36,000 Received cash from Mahesh Rs.10,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. From the particulars given below draw the stores ledger card:

 

2000 July 1	Opening stock     3000 units   @ Rs.10 each
3	Issued                  1,250 units
9	Purchased               750 units  @ Rs. 12.50 each
11	Issued                  1,250 units
23	Purchased            3,000 units  @ Rs. 14 each
24	Issued                  2,000units
28	Issued                     800 units
30	Purchased               450 units  @ Rs. 10.50 each

 

 

 

 

 

 

 

 

 

Adopt the FIFO method of issue and determine the value of closing stock

 

1. Jasmine manufacturing company has drawn up the following P & L A/c  for the year ended 31^st March 2006

Particulars	Rs.	Particulars	Rs.
To opening stock To Purchases To Wages To Manufacturing expenses To Gross profit     To Selling expenses To Administration expenses To Distribution expenses To Interest on loan To Net Profit	26,000 80,000 24,000 16,000 52,000	By Sales By closing stock           By gross profit By compensation for acquisition of land	1,64,000 38,000
	1,98,000		1,98,000
	4,000 22,800 1,200 800 28,000		52,000     4,800
	56,800		56,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculate the following ratios:   a) Gross profit ratio       b) Net profit ratio

1. c) Selling & distribution expenses ratio
2. d) Finance expenses ratio

1. Prepare a bank reconciliation statement from the following data as on 31-1-2004:

• Debit Balance as per cash book as on 30-11-2004 Rs.30,400
• Cheque issued on 30-11-2004 but not yet presented to bank for payment Rs.6,450
• Cheque deposited in to bank on 28^th November 2004 but not yet credited into the account Rs.1,500
• Bank interest debited in the pass book only Rs.560
• A periodic payment made to telephone department for Rs.2,300 under standing instruction not entered in cash book.
• A cheque deposited into bank is dishonoured, but no entry made in cash book. Rs. 2,900
• 3,000 deposited by a customer, Mr. Daniel directly into bank
• Interest on investment received by the bank Rs.1,150 and entered in the pass book but not recorded in cash book.

 

 

 

 

1. M/s Jackson & Co bought a machinery for Rs. 1,00,000 on 1.1.2002 and spent Rs. 20,000 on installation, 10,000 on other charges immediately after the purchase.  On 1^st September 2004 it sold the plant & machinery for Rs. 95,000 and on the same date another machinery was purchased costing Rs. 1,50,000.  It charges depreciation @ 10% p.a. under written down value method and the accounts are closed on 31^st December every year.  Prepare machinery a/c and depreciation account for 3 years.

 

1. Prepare  ledgers for the following transactions in the books of Mr. George

2005 March   3 8 11 16 24 27 30

Mr. George invested capital Rs.70,000 Bought furniture for cash Rs.10,000 Sold goods to Anjali  for cash Rs.15,000 Purchased goods from Good Luck & Co for Rs.17,000 Opened a current in Indian Bank Rs.5,000 Paid Good Luck & Co Rs.10,000 Paid Salaries    Rs.6,500

 

SECTION – C

Answer any TWO questions:                                                                   (2 x 20 = 40 marks)

 

1. From the following Trial Balance extracted from the books of  Mr. Kamal  prepare Trading and

Profit & Loss A/c and Balance Sheet for the year ended 31-12-2005

 

Debit balances	Rs.	Credit balances	Rs.
Cash at bank Good will Land & Buildings Loose tools Opening stock Carriage outwards General expenses Sundry debtors Purchases Interest on loan Carriage outwards Salaries Bad debts Repairs Power Insurance Printing & Stationery Customs duty Packing charges	5,000 10,000 12,000 3,000 9,000 1,250 1,050 11,000 10,200 120 1,800 4,000 1,000 950 2,700 850 2,150 1,000 1,150	Sales Bank Loan Capital Sundry creditors Discount received Commission received	25,000 4,000 40,000 7,000 300 1,920
	78,220		78,220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

• Closing stock on 31-12-2005 Rs.15,000
• Depreciate Plant & Machinery at 10%

(c)   Provide provision for bad and doubtful debts at 5%

(d) Outstanding salaries Rs. 200

(e) Provide Interest on capital 2%

(f) Commission received in advance Rs. 320

 

 

 

 

 

 

 

1. Record the following transactions for the month of January 2006 in the proper Subsidiary books of

M/s New & Sons:

 

Jan 1       Jan 4     Jan 6 Jan 9 Jan 11   Jan 12     Jan 15           Jan 19 Jan 22 Jan 24   Jan 27     Jan 31

Purchased from M/s Brown & Co: 20 Calculators @ Rs. 550 each 10 dozen Scientific Calculators @ Rs.1,250 each Trade discount on all the above items @ 10% Sold to M/s Rahul Bros: 50 scientific calculators @ Rs.1500 each and trade discount  @ 5% 20 dozens of ball pen @ Rs.72 per dozen Returned 10 scientific calculators to M/s Brown & Co Purchased 10 dozen ball point pen @ Rs. 12 each for cash M/s Rahul  Bros returned: 1 dozen scientific calculators and 2 dozens of ball pen Sold to M/s Gopal & Co: 10 dozen accounts notebook at Rs.18 each 5 gross ink pen at Rs. 60 per dozen Purchased from M/s Vimal printers: 10 gross of 192 pages notebooks @ Rs.240 per dozen Less trade discount 5% with invoice no: 35 5 gross digital diaries @ Rs.1,000 each less trade discount 2% with invoice no: 43 3 dozen rewritable CD @ Rs. 35 each with invoice no: 49 Credit note sent to M/s Gopal & Co for Rs. 250 being over charged Sold old furniture to M/s JFA furniture mart on credit Rs. 12,000 Returned to Vimal printers: 2 gross notebooks and 3 Digital diaries bought on Jan 15 Sold to M/s Pravesh Traders: 4 dozen of 192 pages notebooks @ Rs. 300 per dozen 2 gross digital diaries @ Rs.14,400 per dozen Sent a debit note to M/s. Brown & Co  for Rs. 2000 for goods damaged in transit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. The following are the summarized balance sheet of Madan industries Ltd.,

as on 31^st December, 2005 and 2006:

Liabilities	2005 Rs.	2006 Rs.	Assets	2005 Rs.	2006 Rs.
Capital: Preference shares Equity shares General reserve Profit & Loss A/c Debentures Current liabilities: Creditors Provision for tax Proposed dividend Bank overdraft	– 40,000 2,000 1,000 6,000   12,000 3,000 5,000 12,500	10,000 40,000 2,000 1,200 7,000   11,000 4,200 5,800 6,800	Fixed assets Less: Depreciation     Current assets: Debtors Stock Prepaid expenses Cash	41,000 11,000	40,000 15,000
				30,000     20,000 30,000 300 1,200	25,000     24,000 35,000 500 3,500
	81,500	88,000		81,500	88,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepare: (i) Statement showing changes in the working capital

(ii) A statement of sources and applications of funds.

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