Financial Accounting II

1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – MARCH/APRIL 2013

 B.COM – II SEMESTER (Travel & Tourism)

FINANCIAL ACCOUNTING – II

Duration: 3 Hours                                                                                   Max. Marks: 100

 

SECTION – A

 

1. Answer any TEN of the following questions.                ( 10 x 2  = 20)

1. What do you understand by the term ‘Mark up or Loading’ in invoicing goods in Branch accounts?
2.  Shyam sundar’s goods costing Rs.50,000 were destroyed by fire, stock saved was Rs.5,000. He had insured his goods for Rs.2,00,000, but the actual stock on the date of fire was Rs.1,50,000. Is average clause applicable for calculating claim, give reasons? What is the amount of claim?
3. What do you understand by the term ‘Independent Branches’ in Branch Accounting ?
4. How is the Credit sales ascertained during conversion of single entry into double entry?
5.  What is the difference between Branch Debtors system and Branch Final account system?
6. Calculate the missing figure
   Opening Capital ?
   Closing Capital Rs. 36,400;  Capital Introduced Rs. 9,400; Drawings Rs. 5,600; Loss Rs. 2,800

7. Calculate Sales; if Opening Debtors – Rs. 10,000; Cash Received From Debtors &

B/R – Rs. 20,000; Opening Balance of B/R – Rs. 4,000 and Closing Balance

of B/R –   Rs. 2,000; Closing Balance of Debtors – Rs. 16,000

 

8. Write the journal entry for bills receivable dishonored?
9. Calculate Purchases:

Cost of goods sold Rs.4,00,000, opening stock Rs.50,000 and closing stock           Rs.60,000.

10. A trader had taken a Fire Insurance Policy for  Rs.3,42,000 with an average           clause. The stock on date of fire is Rs.4,56,000 and the stock salvaged was      Rs.56,000.  Calculate the claim.
11. The Gross Profit for the year ending 31/3/06 was 40% of sales. The selling price

has been reduced by 10% in order to increase sales from 1/4/06.  What would be

the expected Gross Profit percentage?

 

 

 

 

 

 

 

SECTION – B

1. II) Answer any FOUR of the following      ( 4 x 5  = 20)

 

12. 12. Fire occurred in the premises Janatha Enterprises on 30-9-2009 and stock of the value of Rs.1,01,000 was salvaged and the books of accounts were saved. The following information is given:

Purchases during the year ended 31-3-2009               Rs.7,00,000

Sales during the above period                                     Rs.10,00,000

Purchases from 1-4-2009 to 30-9-2009                      Rs.2,40,000

Sales from 1-4-2009 to 30-9-2009                              Rs.3,60,000

Stock on 31-3-2008                                                    Rs.3,00,000

Stock on 31-3-2009                                                    Rs.3,40,000

Stock on 31-3-2009 as over valued by Rs.20,000.  Calculate the fire claim based on the rate of profit for the previous year.

 

13. 13. A head office in Mangalore had branches at Puttur and Udupi. Give entries in the books of the head office to rectify or adjust the following, assuming the books are closed on 31^st March 2007.
14. Expenses of Rs.4,800 to be charged to Udupi Branch for work done on its behalf by the Head office
15. Puttur Branch paid Rs.3,600 salary to a visiting Head office official. The Branch has debited the amount to salaries account.
16. Depreciation at 10% p.a. is to be charged on Furniture at Puttur costing Rs.10,000, the account of which is in the Head office.
17. Goods costing Rs.2,400 purchased by the Head office from D’souza Brothers, but the payment was made by Puttur Branch.
18. A remittance of Rs.3,750 made by Udupi Branch to the Head office on 28^th March 2007, was received by the latter on 1^st April 2007.

 

14. Prepare the Debtors account and Bills receivable account from the following ON 31/03/2005 .

 

Debtors on 31-3-2005	40,000	B/R as endorsed dishonoured	2,000
Bills receivable 31-3-2005	30,000	Discount allowed	1,000
Stock on 31-3-2005	30,000	Discount received	2,000
B/R dishonoured	5,000
B/R endorsed to creditors	15,000

 

 

15. A head office in Madras sends goods to its branch in Kannur. Prepare Branch Account and calculate the profit.

	Rs.
Debtors on 1st July 2004	12,000
Stock on 1st July 2004	10,000
Goods sent to Branch	32,000
Cash sales	16,000
Cash received from Debtors	29,000
Goods returned to Head office	1,920
Cheques sent to Branch for expenses	14,510
Stock on 31st March 2005	12,000
Debtors on 31st March 2005	22,500

 

16. What are the differences between Single Entry system and Double Entry system of

Book keeping?

 

17. Explain the salient features of Branch Accounting?

 

SECTION – C

 

III) Answer any THREE of the following questions.                                ( 3 x 15  = 45)

 

18. Hameed enterprises suffered loss of stock due to fire on May 15,2010. From the following information, prepare a statement showing the claim to be lodged.

Stock on 1-1-2009                                                 Rs.38,400

Purchases during 2009                                           Rs.1,60,000

Sales during 2009                                                  Rs.2,02,600

Closing stock on 31-12-2009                                 Rs.31,800

Purchases from 1-1-2010 to 15-5-2010                 Rs.54,000

Sales from 1-1-2010 to 15-5-2010                         Rs.61,400

An item of stock purchased in 2008 at a cost of Rs.10,000 was valued at Rs.6,000 on 31^st. December 2008.  Half of this stock was sold in 2009 for Rs.2,600 the remaining was valued at Rs.2,400 on 31-12-2009.  One fourth of the original stock was sold in March  2010 for Rs.1,400 and the remaining stock was considered to be worth 60% of the original cost.  Salvage was Rs.12,000.  The amount of the policy was Rs.30,000 and there was an average clause in the policy.

 

19. Manikchand carries on business as retail merchant.  He does not maintain regular account books.  From cash sales effected by him he effects business and other payments, always retain cash of Rs.1,000 on hand and deposits the balance in the bank account.  The stock inventories for the year ended 31st December 2005 are lost.  However, he informs you that he has sold goods invariably at a price, which yields him a profit of 33 1/3% on cost.  From the following additional information supplied to you prepare necessary final accounts for the year ended 31st December 2005.

Assets and Liabilities	1st Jan. 2005	31st Dec. 2005
Cash in hand	Rs.1,000	Rs. 1,000
Sundry Creditors	4,000	9,000
Cash at Bank	N.A.	8,000
Sundry Debtors	10,000	35,000
Stock of Goods	28,000	N.A.

(N.A. = not available)

 

Analysis of the Bank Pass book reveals the following information:

Payment to Creditors	Rs.70,000
Payment for Business Expenses	12,000
Receipts from Debtors	75,000
Loans from Azad taken on 1st Jan., 2005 @ 10% p.a.	10,000
Cash deposited in the Bank	10,000

In  addition, he paid to the creditors for goods Rs.2,000 in cash and salaries Rs.4,000 in cash.  He also withdrew Rs.8,000 cash for his personal expenses.

20. A shoe company of Kanpur has its branch at Mangalore. Goods are invoiced to the branch at cost plus 25%.  Branch has been instructed to deposit daily all cash received by it in the H.O except the petty cash expenses, which are met by the branch manager from the petty cash amount sent by the H.O. from time to time.  From the following particulars, prepare Mangalore Branch Account in the books of the H.O at  Kanpur.  The branch sells goods at the invoice price only.

Stock on 1st April 2000 at invoice price Sundry debtors on 1st April 2000 Cash on hand on 1st April 2000 Office Furniture on 1st April 2000	Rs.30,000 18,000 800 2,400	Cash sales	1,00,000
		Credit sales	60,000
		Expenses paid by the H.O for Rent                 2,400 Salary              4,800 Printing and stationery            600	7,800
Goods invoiced from H.O (invoice price)	1,60,000
Goods returned form the H.O (invoice price)	2,000
Cash received form debtors	60,000
Discount allowed by debtors	600	Petty expenses paid by the branch manager	560
Goods returned by debtors	960
Depreciation to be provided on branch furniture at 10% p.a.

21. Greenply has 2 departments P and Q, Department P sells goods to Department Q at normal selling prices. From the following particulars, prepare Departmental Trading and P&L account for the year ended 31-3-2004 and ascertain the profit to be transferred to Balance sheet.

Particulars	Dept P	Dept Q
Opening stock	1,00,000	Nil
Purchases	23,00,000	2,00,000
Goods from Department P	———	7,00,000
Wages	1,00,000	1,60,000
Traveling expenses	10,000	1,40,000
Closing stock at cost to the Dept	5,00,000	1,80,000
Sales	23,00,000	15,00,000
Printing and stationery	20,000	16,000

 

The following expenses incurred for both the departments were not apportioned between the departments.

1. Salaries Rs.2,70,000
2. Advertisement expenses Rs.90,000
3. General expenses Rs.8,00,000
4. Depreciation @ 25% on the machinery value of Rs.48,000

Advertisement expenses are to be apportioned in the turnover ratio, salaries in 2:1 and depreciation in 1:3 ratio, between the Departments P and Q. General expenses are to be apportioned in the ratio of 3:1

 

22. Following is the trial balance of Bangalore Branch as on 31-3-2005

	Debit	Credit
Furniture	1,400
Cash at bank & on hand	1,780
Office expenses	470
Rent	960
Debtors & creditors	3,700	1,850
Salaries	1,500
Goods supplied to Head office		6,000
Sales		38,000
Goods received from head office	8,000
Purchases	18,800
Stock on 1st April 2004	6,000
Head office account	3,240
	45,850	45,850

 

Closing stock was valued at Rs.2,700. The Branch Account in the Head office books stood at Rs.400 (Dr). Goods worth Rs.2,500 sent by Head office and remittance of Rs.1,200 sent by Branch to Head office was in transit.

You are required to incorporate the above trial balance in the Branch in Head office  and to prepare the  Bangalore Branch account in the books of the Head office.

SECTION – D

1. IV) Compulsory question     (15 marks)
2. A trader, who has not kept a complete set of books, asks you to prepare his final accounts for the year ended 31st December 2005.  You are, however, able to obtain the following information:

SUMMARY OF HIS CASH BOOK:

	Rs.
Balance of Cash on 1st January, 2005	51,700
Receipt from Debtors	4,20,500
Personal Drawings	30,000
Payment to Creditors	3,24,000
Salaries	25,000
Rent	12,000
Electricity Charges	3,500
Printing and Stationery	2,500
Advertising	4,500

Additional Information:

	31/12/04 (Rs.)	31/12/05 (Rs.)
Debtors	33,500	51,000
Creditors	14,000	35,000
Rent Outstanding	1,000	1,000
Electricity Charges Outstanding	200	150
Advertising Outstanding		2,500

The stock on 31st December 05 was valued at Rs.45,000, but the trader has no record of the Stock on 31st December 04.  He informs you, however, that he invariably sells, his goods at cost plus 33 ¹/₃  percent.

Prepare his Trading and Profit and Loss Account for the year ending 31st December 05 and his Balance Sheet as on that date.  Give detailed working of arriving at the different unknown figures.

 

ST.JOSEPH COLLEGE OF COMMERCE (Autonomous)

SUPPLEMENTLARY Examination – April 2013

B.com – II Semester

FINANCIAL ACCOUNTING-II

Time: 3 hrs.                                                                                                    Max. Marks 100

                                                            Section-A

1. Answer all the questions.  Each question carries 2 marks                       (10 x 2  = 20)
2. What is average clause?
3. How can claim for loss of stock will be calculated when average clause is
4. What is salvage?
5. State any two objectives of conversion of single entry to double entry system?
6. Mention any two differences between Statement of Affairs and Balance Sheet.
7. Distinguish between cost price and loaded price in branch accounts.
8. State any two advantages of Departmental Accounts.
9. What is the base of apportionment of the following expenses in case of departmental accounts?-
   1. Labour welfare expenses  ii) Power consumption
10. What do you mean by accounting Standard?
11. Name the title of the accounting standard for AS 6 and AS 10

                                                                   Section- B

1. II) Answer any four of the following. Each question carries 5 marks (4 x 5 = 20)
2. A fire broke out in the premises of a merchant on 30-09-2012. He desires to file a claim with the insurance company for loss of stock and gives the following information.

Final account of the merchant were prepared on 31-12-2011

Sundry creditors on 31-12-2011 were Rs. 25,000

Sundry creditors on 30-09-2012 were Rs. 20,000

Stock on 31-12-2011 was Rs. 15,000

Sales from 1-1-2012 to 30-09-2012 Rs. 1, 34,000

Cash paid to creditors Rs. 1, 30,000

Normal rate of gross profit on sales was 20% and salvage was Rs. 2,800

Prepare a statement of claim.

12.From the following information you are required to calculate total sales-

 

Bills Receivable in the beginning                                   7,800

Debtors in the beginning                                          30,800

Bills receivable received during the year                   20,900

Cash received from debtors                                     70,000

Bad debts written off                                                2,800

Bills Receivable at the end                                        6,000

Debtors at the end25,500

Cash Sales (as per cash book) 60,000

 

13. Bangalore H.O. has a branch in Hyderabad to which goods are invoiced by the H.O. at cost + 25%, cash received by the branch is daily remitted to H.O. All the expenses of branch are paid from Bangalore H.O. From the following details prepare Hyderabad Branch Account in H.O. Books-

Stock on 1-1-2012 at invoice price                                                    12,500

Debtors on 1-1-2012                                                                          12,000

Goods sent from Bangalore at invoice price                                     40,000

Remittances to Bangalore H.O. —     Cash Sales:   16,000

Cash from debtors:  29,500

­­­­­­­­———–                    45,500

Goods returned to H.O. at invoice price                                             2,400

Cash received from Bangalore H.O. for-

Wages and salaries   11,000

Rent                             3,000

Sundry expenses           510

————-                   14,510

Stock on 30-6-2012 at invoice price                                                     15,000

Debtors on 30-6-2012

22,500

14. From the information prepare departmental trading account in the columnar form for the period ending 31-3-2012

Department A     Department B

Opening Stock                                                                       5,000                7,000

Purchases                                                                            42,000               52,000

Sales                                                                                     80,000               93,000

Purchase Returns                                                                  2,000                 2,000

Sales Returns                                                                                2,000                 2,000

 

Power Rs.6,000, Wages Rs.11,000 and Carriage –in-wards Rs.4,500 are for both the departments. Closing stock of Department A Rs.2, 000 and B Rs. 9000 and the wages are allocated in the ratio of 5:6 and the number of units consumed by Department A and Department B are in the ratio of 1:2.

 

15. Give the differences between single entry system and double entry system.

 

16. Explain any two accounting standards?

 

 

Section-C

1. Answer any Three of the following. Each question carries 15 marks. (3 x 15 = 45 )

 

17. The premises and stock of a merchant were totally destroyed by fire on 31-3- The records saved from the fire shows the following information.

Particulars	2010	2011	201	2013
Opening stock as valued	27,090	32,400	36,000	36,900
Purchases less returns	74,900	80,000	81,000	6,000
Sales less returns	1,20,000	1,32,000	1,40,000	12,000
Wages	17,400	19,000	20,900	2,000
Closing stock as valued	32,400	36,000	36,900	—

Stock has been valued always at 10% less than cost. Prepare a statement for submission to the Insurance Company in support of the company for loss of stock.

18. X commenced business on 1-4-2012 with Rs. 15,000 of his own and Rs.10,000 borrowed from his friend Joseph. He purchased a building for Rs. 10,000, Furniture Rs. 2, 000, Machinery Rs. 8,000 and deposited Rs. 2,500 in a bank as fixed deposit at 10% interest p.a. The balance of cash was retained as working capital. The following is the cash transactions during the year-

Collection from debtors                                                         15,000

Cash Sales                                                                              20,000

Cash Purchases                                                                     10,000

Payment to creditors                                                               6,000

Purchase of motor bike                                                           3,000

Purchase of cycle for his son                                                      500

Salary                                                                                       1,500

Business expenses                                                                    2,000

Mr Joseph’s loan was repaid together with interest at 6% p.a. as on 31-3-2013.  On 31-3-2013 his position was as follows-

Debtors                 12,500            Bills Payable      2,500

Creditors               17,500

Bills Receivable      5,000

There was no record of closing stock, but in this type of business the Gross Profit is 50% on sales. During the year purchases returns were Rs. 1,000, Sales Returns were Rs. 2,000, bad debts Rs, 500, outstanding salaries Rs. 250 and prepaid expenses Rs. 50.

Prepare Final Accounts.

19. A Bangalore Trader has a branch at Chennai to which the goods are supplied at cost price. The Chennai Branch keeps its own sales ledger and transmits all cash received to the Head Office every day. All the expenses of the Branch are paid from the Head Office. The transactions for the branch were as follows-

Stock as on 1-4-2012                                                              22,000

Debtors as on 1-4-2012                                                                200

Petty cash on 1-4-2012                                                                 400

Cash Sales                                                                                  5,300

Goods sent to Branch                                                              32,000

Cash received from Debtors                                                   42,000

Goods returned to H.O.                                                               480

Bad debts                                                                                       600

Allowances to debtors                                                                   500

Sales Returns                                                                              1,000

Cheque sent to Branch —

Rent                         1,200

Wages                         400

Salaries                    1,800

______                                                                                          3,400

Stock on 31-3-2013                                                                    20,800

Debtors on 31-3-2013                                                                  4,000

Petty cash on 31-3-2013                                                                  200

Miscellaneous Income                                                                       50

Prepare Branch Trading, Profit and Loss account for the year ended 31-3-2013 in the books of H.O.

20. From the particulars given below, prepare Departmental Trading, Profit and Loss Account and Balance Sheet in the books of John Traders

Particulars	Department  A	Department  B
Stock on 1-1-2012 Purchases Sales Wages Rent, Taxes & Insurance Sundry expenses Salaries Lighting & Heating Discount allowed Discount Received Advertising Carriage Inwards Furniture Plant & Machinery Sundry Debtors Sundry Creditors Capital Drawings Cash	17,400 35,000 60,000 8,200 9,390 3,600 3,000 2,100 2,220 650 3,680 2,340 3,000 21,000 6,060 30,650 47,660 4,500 10,070	14,700 30,000 40,000 2,700

 

Additional Information:

1. Rent, Taxes & Insurance, sundry expenses, lighting and heating, salaries and carriage inwards to be apportioned in the ration of 2:1 to A & B, advertising to be apportioned equally.
2. Discount allowed and Discount received to be apportioned asper sales and purchases(ignoring transfers)
3. Depreciation at 10% p.a. on furniture and plant and machinery to be charged in the ratio of 3:1 to department A & B.
4. Services rendered by B department to A  department included in wages of B  Department Rs. 500
5. Stock on 31-12-2012 were- Department A—Rs. 16,740

Department      B-  Rs.  12,050

6. Internal transfer of goods from department A to Department B at cost price Rs.420

 

21. What do you mean by Independent Branches? List out the various journal entries while accounting for Independent Branches
22. a) In the books of Head office b) In the books of branch office.

                                             

Section- D

 

• Answer the Compulsory question carries 15 marks             (1 x 15 = 15)

 

22. You are given-
23. a) Balance Sheet of Peter on 1-4-2012
24. b) The cash transactions for the year up to March 2013
25. c) A summary of additional information

Balance Sheet of Peter as on 1-4-2012

Liabilities	Rs.	Assets	Rs.
Bank overdraft Sundry Creditors Bills payable Capital	500 3,600 1,600 20,000   __________ 25,700	Cash on hand Bills Receivable Sundry debtors Stock of goods Plant and machinery Land and Building	70 2,500 3,900 7,530 4,700 7,000 25,700

 

 

1. b) Cash transactions upto march 2013

 

Receipts	Rs.	Payments	Rs.
To balance b/d To Receipts from debtors To Bills Receivable To Cash Sales	70 29,000 10,000 3,700             ___________ 42,770	By overdraft By Salaries By wages By Bills payable By payment to creditors By Office Expenses By Drawings By Investment By Balance c/d- Cash Bank	500 4,900 1,580 14,300 14,700 800 4,500 1,000   40 450 42,770

 

P.T.O…..

 

 

 

 

1. c) Summary of additional information-

Credit sales                               40,700

Discount to customers                 200

Purchases                                30,000

Discount received                          100

Bills Receivable received         10,900

Bills payable issued                   15,000

Stock of goods on 31-3-2013    5,300

Reserve for doubtful debts at 5% on debtors outstanding and provide depreciation on plant and machinery at 5% and on Land and Building at 5%

Prepare Trading and Profit and Loss account and Balance Sheet

 

 

1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – APRIL 2014

B.COM (TRAVEL& TOURISM) – II SEMESTER

FINANCIAL ACCOUNTING-II

TIME: 3 HOURS                                                                              MAX. MARKS: 100

SECTION – A

1. Answer ALL the questions. Each carries 2 marks.                                (10 x2 = 20)
2. “Maintenance of Accounts is very necessary”—in this context state any two necessities ofmaintaining accounts for hotel industry.
3. 2. On what basis is the following expenses apportioned for the Departments:
4. Insurance on stock b. Power   c. Depreciation d. Work’s manager’s salary.
5. What do you mean by the terms: Cash Price and Down-payment?
6. If cash is paid by Branch on behalf of Head Office, what is the journal entry passed in the books of H.O and the Branch?
7. State any two differences between Hire Purchase System and Instalment Purchase System.
8. Parimala & Co. purchased machinery on 1.1.2014 on hire purchase system paying Rs. 20,000 on signing of the contract and thereafter Rs. 10,000 being paid annually for 3 years. Interest was charged at 5% p.a. Given the present value of an annuity of Re. 1 p.a. at 5% Rs. 2.7232, calculate the cash price of the machinery.
9. “There are different basis of charging room rates depending on the circumstances and convenience”—mention any three basis of charge.
10. Explain the concept of Inter-Department transfers.
11. What are the different ways in which Head Office keeps its Branch Accounts in the books as per Dependent Branches?
12. Calculate the rent to be charged per day for room from the following information for a Five Star Hotel at Delhi, if occupancy rate is (a) 100% and (b) 80%.
13. number of rooms available for occupancy = 40
14. estimated total cost for April, 2013 = Rs. 12,00,000
15. Return expected = 50% on cost.

 

 

SECTION – B

1. Answer ANY FOUR questions. Each carries 5 marks.       (4×5= 20)
2. Arvind occupies a room in a hotel at 9.00 A.M. on 15^th April, 2012 on European Plan at 960 for every night spent plus 10% service charges. Calculate the amount payable by him in each one of the following circumstances:

(i) If he checks out at 6.00 P.M. on 16^th April, 2012;

(ii) If he checks out at 7.00 A.M. on 17^th April, 2012;

(iii) If he checks out at 5.00 P.M. on 17^th April, 2012; and

(iv) If he checks out at 8.00 A.M. on 18^th April, 2012.

12. How should the following expenses be apportioned among various Departments:
13. a) Rent; b) Lighting;    c) Advertisement charges;    d)Carriage Inward;
14. e) Welfare Expenses.
15. From the following information available from Chennai Express Branch, Prepare a Memorandum Branch Debtors Account and find out Closing Debtors.

Particulars	Amount (Rs)
Cash collected from Debtors	16,000
Returns from Debtors	1,000
Allowances to Customers	100
Bad Debts written off	50
Opening Branch Debtors	3000
Credit Sales	15,000

 

14. 14. On 1^st January, 2014, Mr Akash purchased a machinery on Hire Purchase System which provided for an initial payment of Rs. 3000 and the balance in four equal half-yearly instalments of Rs. 4000 each, the first instalment falling due on the 30^th Assume rate of interest of 6% per annum. Determine the Cash Price of the Machinery.
15. Briefly explain the following terms:

(a) Bed Occupancy Rate

(b) Hire Purchase Agreement

16. Bring out the various differences between Departmental and Branch Accounting.

SECTION – C

III. Answer ANY THREE questions.  Each carries 15 marks.                       (3×15=45)

17. The following are the particulars relating to Hire Purchase:

 

 

Purchaser	Shiva & Co.
Seller	Parvathi & Co
Date of Purchase	1.1.2014
Goods purchased	Machinery
Cash price	Rs. 12,894
Payments- Rs. 2000 on signing of the agreement and the balance in three equal annual instalments of Rs. 4000 due on 31st December each year.
Rate of Interest	5% p.a.
Depreciation on the written down value each year	20%

Pass Journal entries using Asset Accrual Method in the books of Shiva & Co. Calculations are to be made to the nearest rupee.

18. A firm is having its Head Office at Delhi and Branch at Chandigarh. The following are the transactions of the Head Office with Branch for the year ended 31.12.2013:

Particulars	Amount (Rs)
Petty cash at branch 1.1.2013	12,500
Stock at branch on 1.1.2013	7,50,000
Furniture at branch on 1.1.2013	4,50,000
Goods supplied to branch during the year	37,75,000
Goods returned by branch	25,000
Cash sales at branch	52,50,000
Cheque sent to branch for:
Establishment expenses	2,50,000
Petty cash	75,000
Salary outstanding on 31.12.2013	25,000
Petty expenses incurred by branch	67,500
Stock at branch on 31.12.2013	10,00,000
Depreciate furniture at 10% per annum

Prepare Branch Account after passing necessary journal entries and also show the relevant items of the branch in the Balance Sheet in the books of the Head Office.

 

19. On 1^st January, 2014, Bhuvan Oil Company purchased an oil machine on the instalment system. The cash price of the machine was Rs. 11,175 and payment was to be made as follows:

Rs. 3,000 was to be paid on the signing of the agreement and the balance in three instalments of Rs. 3,000 each at the end of each year, 5% interest is charged by the Mumbai Manufacturing Company per annum. Bhuvan Oil Company has decided to write off 10% annually on the diminishing balance on the cash price.

Prepare necessary Accounts in the books of purchaser and vendor. Calculations are to be made to the nearest rupee.

 

 

 

20. The following Trial Balance for the year ended 31.3.2013 was extracted from the books of Shree Shakthi Groups:

 

Particulars	Debit (Rs.)	Credit (Rs.)
Capital on 1.4.2012		50,000
Drawings Account	10,000
Stock on 1.4.2012:
Radios	45,000
Watches	21,000
Sales:
Radios		2,94,000
Watches		1,46,000
Purchases:
Radios	2,25,000
Watches	1,15,000
Salaries	12,600
Publicity expenses	8,900
Rent, rates and taxes	3,200
Commission	10,600
Miscellaneous expenses	5,000
Furniture & fixtures	12,400
Sundry Debtors	16,800
4% govt. of India loan	10,000
Sundry creditors		8,800
Interest		400
Provision for bad and doubtful debts		800
Cash balance	4,500
Total	5,00,000	5,00,000

Prepare the Departmental Trading & Profit & Loss Account for the year ended 31st March, 2013 after taking into account the following:

31. The stock as on 31.3.2013 was: Radios Rs. 30,000; Watches Rs. 24,000
32. An amount of Rs. 1,200 out of sundry debtors has to be written off as bad and the provision for doubtful debts has to be increased thereafter to 10 % of the debts outstanding.
33. The following expenses are outstanding as on 31^st March, 2013: Publicity Rs. 1,300; Salaries Rs. 1,200 and commission Rs. 1,700.
34. Provide 10% depreciation on furniture and fixtures.
35. Revenue items to be allocated in the ratio of 2:1 as between Radios and Watches.

Ignore fractions of a rupee in calculations.

 

21. (A) From the following particulars pertaining to four rooms in a Hotel, draw up a suitable Ledger.
22. Room rent for each room Rs. 500 + 15% tax.
23. Room 1: Breakfast Rs. 45, Laundry Rs. 50, Local Phone Calls Rs. 15.
24. Room 2: Lunch Rs. 85, STD Calls Rs. 125, Wine Rs. 60, previous day’s outstanding amount Rs. 1250.
25. Room 3: Private taxi hired from hotel Rs. 400, STD Calls Rs. 350, Dinner Rs. 125, and Whisky Rs. 100. Deposit with the hotel Rs. 3500.
26. Room 4: Opening due from the guest Rs. 575, Laundry Rs. 30, Lunch Rs. 120.
27. The guest in Room 3 is a regular visitor and is entitled to a discount of 20% on Room Rent.

All the foregoing transactions pertain to a single day.              (10 Marks)

(B) Write down the Journal Entries for Interest Suspense Account in the books of the Hire buyer and Hire Seller.                                                                              (5marks)

SECTION – D

1. IV) Compulsory question.   (1×15=15)
2. Following are the balances obtained from the ledger of Hotel Gangothri on 31^st March, 2013:

Particulars	Amount	Particulars	Amount
Capital	1,50,000	Purchases :
Freehold Premises	1,00,000	Provisions & Stores	10,000
China Glass and Plates	10,000	Liquors	15,000
Furniture and Fixtures	25,000	Cigarettes	1,000
Drawings	2,500	Coal	5,000
Wages and salaries	40,000	Sales:
Rates and Insurance	12,500	–          Food items	40,000
Laundry Charges	4,000	–          Beverages	10,000
Linen and Beddings	10,000	–          Liquors	25,000
Electricity Light	6,500	–          Cigarettes	1,500
General Expenses	6,000	–          Rent from Rooms	1,00,000
Visitor’s Account	5,000	Repairs and Renewals of Premises	10,000
Sundry Creditors	7,500	Depreciation:
Stock on 1.4.2012:		–          On Premises	10,000
–          Liquors	20,000	–          On furniture	2,500
–          Cigarettes	500	–          Glass & Plates	1,000
–          Provision & Stores	4,000	–          Linen & Beddings	1,500
–          Coal	1,000	Cash in Hand	5,000
Cash at Bank	26,000

Adjustments:

31. Stock on 31.3.2013: Provisions & Stores = Rs. 5,000; Liquors = Rs. 7,500, Cigarettes = Rs. 250 and Coal = Rs. 1,500.
32. A sum of Rs. 5000 representing accommodation and Rs. 4000 representing meals is to be charged to the proprietor.
33. Insurance paid in advance Rs. 500
34. Outstanding salaries Rs. 2,500.

From the above, Prepare Final Accounts of the Hotel for the year ended 31.3.2013.