LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.C.A. DEGREE EXAMINATION – COMPUTER APPLICATION
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THIRD SEMESTER – April 2009
CO 3104 / 3102 – ACCOUNTS & BUSINESS APPLICATIONS
Date & Time: 27/04/2009 / 9:00 – 12:00 Dept. No. Max. : 100 Marks
PART –A
Answer ALL Questions |
(10 x 2 = 20)
- What do you understand by dual aspect concept?
- What are ‘Nominal Accounts’? Give examples.
- Briefly explain the term “Current Assets”.
- What is meant by Compensating error?
- Define Cash Flow Statement.
- Siva bought a machine on 1.1.2006 for Rs.50000. This is expected to last for 5 years. The estimated residual value at the end of five years is Rs.12000. Calculate the rate of depreciation under Original Cost Method.
- From the following details of a trader calculate “Gross profit Ratio”
Sales Rs.200000, Return outwards Rs.30000, Opening Stock Rs.40000, Purchases Rs.120000, Return inwards Rs.20000 & Closing Stock Rs.13000
- Rectify the following errors:
- Purchase of old furniture Rs.5000 was passed through purchase book.
- 20000 received from Raja has been wrongly entered as from Raju.
- Prepare Cash account from the details:
Date | Particulars | Amount (Rs.) |
1/1/2009 | Started business with cash | 50000 |
5/1/2009 | Paid into Bank | 10000 |
12/1/2009 | Purchased goods for Cash | 20000 |
21/1/2009 | Sold goods for Cash | 30000 |
29/1/2009 | Withdrew from business for own use | 5000 |
- Enter the following transactions in the Purchase Book of Mr.Pandian:
Date | Particulars | Amount (Rs.) |
1/1/2009 | Bought goods from Basheer | 50000 |
5/1/2009 | Banu sold goods to us | 20000 |
20/1/2009 | Bought goods from Anto for Cash | 100000 |
25/1/2009 | Sold goods to Kannan on credit | 15000 |
PART –B
Answer any FIVE Questions |
(5 x 8 = 40)
- Prepare a bank reconciliation statement from the following data as on 31.3.2009
Particulars | Amount (Rs.) |
Balance as per cash book | 25000 |
Cheques issued but not presented for payment | 1800 |
Cheques deposited in bank but not collected | 2400 |
Bank paid insurance premium as per the standing instruction | 1000 |
Direct deposit made by a customer | 1600 |
Interest on investment collected by bank | 400 |
Bank charges | 200 |
A wrong credit relating to some other account was found in the Pass book | 2400 |
- On 1.4.2000, Mr. Suresh bought a machine for Rs.8000 and spent Rs.3000 on its installation. Depreciation is written off @10% p.a. on the original cost. On 30.6.2003, the machine was found to be unsuitable and sold for Rs.6500. On the same date, another machine was bought for Rs.10000. Prepare Machinery account and depreciation account from 2000 to 2003 assuming that the accounts are closed on 31st December every year.
- Enter the following transactions in Gopal’s cash book with discount and cash columns:
Date | Particulars | Amount (Rs.) |
2009, Mar 1 | Cash balance | 50000 |
5 | Cash sales | 30000 |
8 | Bought goods from Davis for cash | 5000 |
12 | Cash sales to Manoj | 20000 |
15 | Sold goods to Mohan on credit | 10000 |
18 | Cash withdrawn from business for own use | 3000 |
21 | Bought goods from Cherian on credit | 20000 |
22 | Paid into bank | 7000 |
24 | Cash received from Mohan as final settlement | 9950 |
25 | Drew a cheque for office use | 1000 |
28 | Final settlement made to Cherian | 19500 |
30 | Cash Purchases | 2000 |
30 | Paid for advertising | 500 |
31 | Received commission | 3500 |
- Saleem is not an expert in accounting. He has prepared the following trial balance. You are requested to correct it and prepare a corrected Trial balance.
S.No | Name of Account | LF | Debit (Rs.) | Credit (Rs.) |
1 | Capital | 15560 | ||
2 | Sales | 27560 | ||
3 | Sales returns | 980 | ||
4 | Drawings | 5640 | ||
5 | Debtors | 5300 | ||
6 | Premises | 7410 | ||
7 | Purchases | 12680 | ||
8 | Return outwards | 2640 | ||
9 | Loan from Sharma | 2500 | ||
10 | Creditors | 5280 | ||
11 | Legal charges | 7840 | ||
12 | Cash | 1420 | ||
13 | Bills payable | 1000 | ||
14 | Wages | 5980 | ||
15 | Opening stock | 2640 | ||
16 | Factory expenses | 4650 | ||
54540 | 54540 |
- The following information is extracted from the books of Mr. Panner:
Total Sales Rs.100000, Cash Sales Rs.20000, Sales returns Rs.7000, Debtors (31.12.2008) Rs.9000 Bills Receivable (31.12.2008) RS.2000, Provision for bad debts Rs.1000, Total purchases Rs.200000 Cash Purchases Rs.20000, Purchase returns Rs.34000, Creditors (31.12.2008) Rs.70000 Bills Payable (31.12.2008) Rs.40000. You are required to calculate: (a) Debtors Turnover ratio (b)Average collection period (c) Creditors turnover ratio (d)Average payment period
- What are the objectives of accounting?
- How do you classify accounting conventions?
- Write a note on common size statements.
PART –C
Answer any TWO Questions (2 x 20 =40) |
- X started business on 1.1.2009. Following were the transactions for one month. You are required to pass journal entries.
Date | Particulars | Amount (Rs.) |
2009, Jan 1 | Started business with: Cash | 50000 |
Furniture | 30000 | |
Goodwill | 20000 | |
3 | Bought goods from Shankar on credit | 10000 |
5 | Sold goods to Raman for Cash | 20000 |
7 | Paid into Bank | 5000 |
9 | Received cheque from Shaji and banked at once | 15000 |
10 | Paid Commission | 500 |
11 | Sales returns made | 3000 |
12 | Returned goods to Shankar | 2000 |
15 | Final Settlement made to Shankar by cheque | 7500 |
16 | Withdrew from bank | 1000 |
18 | Goods withdrawn for own use | 1500 |
19 | Paid for stationery | 500 |
21 | Received interest | 750 |
24 | Bought a second-hand computer for Cash | 7500 |
28 | Paid salaries by cheque | 6000 |
31 | Received rent | 4000 |
- Summarized balance sheet of Karun Ltd. as on 31.3.2008 and 31.3.2009 are as follows:
Liabilities | 31.3.2008(Rs.) | 31.3.2009(Rs.) | Assets | 31.3.2008(Rs.) | 31.3.2009(Rs.) |
Share Capital | 450000 | 450000 | Fixed Asset | 400000 | 320000 |
General Reserve | 300000 | 310000 | Investment | 50000 | 60000 |
P & L account | 56000 | 68000 | Stock | 240000 | 210000 |
Creditors | 168000 | 134000 | Debtors | 210000 | 455000 |
Tax Provision | 75000 | 10000 | Bank | 149000 | 197000 |
Mortgage Loan | — | 270000 | |||
1049000 | 1242000 | 1049000 | 1242000 |
Additional Details:
- Investment costing Rs.8000 were sold for Rs.8500
- Tax provision made during the year was Rs.9000
- During the year, part of the Fixed Asset costing Rs.10000 was sold for Rs.12000 and the profit was included in P& L account.
You are required to Prepare Cash Flow Statement for the year ending 31-3-2009.
- From the following trial balance of Kumar, prepare Trading and Profit & Loss account for the year ended 31-3-2009, and a Balance Sheet as on that date:
S.No | Name of Account | LF | Debit (Rs.) | Credit (Rs.) |
1 | Opening stock | 13500 | ||
2 | Cash in hand | 1250 | ||
3 | Cash at Bank | 3750 | ||
4 | Power | 300 | ||
5 | Furniture | 2250 | ||
6 | Purchases | 70500 | ||
7 | Machinery | 22500 | ||
8 | Drawings | 1800 | ||
9 | Capital | 22500 | ||
10 | Salaries | 5400 | ||
11 | Sales | 126225 | ||
12 | Wages | 6000 | ||
13 | Carriage Inwards | 750 | ||
14 | Carriage Outwards | 450 | ||
15 | Rent | 1350 | ||
16 | Creditors | 5750 | ||
17 | Provision for bad & doubtful debts | 60 | ||
18 | Printing charges | 840 | ||
19 | General expenses | 180 | ||
20 | Goodwill | 4500 | ||
21 | Discount | 105 | ||
22 | Insurance | 210 | ||
23 | Debtors | 18900 | ||
154535 | 154535 |
Adjustments:
- Stock as on 31-3-2009 was Rs.50000
- Wages unpaid Rs.1500
- Depreciate Furniture @10% p.a. and Machinery @ 5% p.a.
- Charge interest on Capital @2% p.a.
- Write off bad debts Rs.900 and provide for bad & doubtful debts @5% on remaining debtors.