- JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH / APRIL 2014
BBM – II SEMESTER
FUNDAMENTALS OF ACCOUNTING
Duration: 3 Hours Max. Marks: 100
SECTION – A
- Answer ALL the following questions. Each carries 2 marks. (10 x2 = 20)
- What is a debit note? Give an example.
- What is accounting? State any two branches of accounting.
- Define Accounting concepts and Accounting convention?
- What do mean by journalising and posting?
- Name the various types of cash books maintained in a business?
- What is contra entry? Give an example.
- Distinguish between balance sheet and trial balance – any two.
- What is meant by Rectification of errors? Mention any two types of errors.
- Classify the following accounts:
Wages Account, Capital Account, Interest Account, and Stock Account.
- Mention any four uses of final accounts.
SECTION – B
- Answer any FOUR Each carries 5 marks. (4 x 5 = 20)
- What is double entry system? Briefly explain the rules of double entry system.
- Show the accounting equation on the basis of the following transactions:
- Rajesh started business with cash Rs 9000
- Purchased equipment for cash Rs 7400
- Purchased goods on credit Rs 2,650
- Paid Rs 300 to creditors
- Sold goods for cash Rs 2,000 (cost price Rs 1,200)
- From the following balances, prepare a trial balance
Particulars | Amount | Particulars | Amount |
Drawings | 2000 | Bad debts | 550 |
General expenses | 4740 | Loan to Ramesh | 7880 |
Buildings | 20000 | Sales | 68000 |
Stock | 16540 | Purchases | 40000 |
Wages | 8515 | Bank overdraft | 10000 |
Debtors | 6280 | Capital | ? |
Creditors | 2500 |
14) A) Mr. A had a capital of Rs 45,000 on 31/3/2007. He had also goods amounting Rs 25,000, which he had purchased on credit and the payment, had not been made. Find out the value of the assets.
- B) After a period of one month he came to know that he had suffered a loss of Rs 2,500 he withdrew Rs 1,500 for his personal use. Find out his capital and assets of the business.
- Enter the following transactions in the simple petty cash book.
Date | Particulars | Amount |
1/8/2007 | Received a cheque to open petty cash book | 1,000 |
5/8/2007 | Bought postage stamps | 50 |
8/8/2007 | Paid for stationery | 80 |
10/8/2007 | Sent telegram | 70 |
12/8/2007 | Paid for cartage | 50 |
14/8/2007 | Paid tiffin charges for customers | 130 |
20/8/2007 | Balance due to Mr B paid | 60 |
25/8/2007 | Paid auto charges of the salesmen | 70 |
28/8/2007 | Paid coolie | 90 |
29/8/2007 | Purchased paper clips | 40 |
31/8/2007 | Paid electric charges | 80 |
- You are required to rectify these errors which were located before the preparation of the final accounts
- An amount of Rs 37,500 posted to the cashbook as against cash sales of Rs 3,75,000.
- An amount of Rs 5,000 spent towards wages for installation of a machine posted to wages account.
- Rs 10,000 received from Mr S posted to Mr R’s Account.
- Sale to Mr S has been wrongly posted to purchase book for goods worth Rs 28,000
- Repairs to plant amounting to Rs 567 had been charged to plant and machinery account.
SECTION – C
- Answer any THREE Each carries 15 marks (3x 15 = 45)
- Enter the following transactions in the subsidiary books of Soundarya Saree Shop for the month May 2013.
May 1 | Purchased from Pathi Silk Kendra 100 silk sarees at Rs 250 each |
May 5 | Purchased from NSR and Co 200 Silk Sarees Rs 1,000 each |
May 7 | Sold to Mr Kumar on account 50 printed sarees at Rs 300 and 100 silk sarees at Rs 1,000 each. |
May 8 | Claimed for damages from Pathi Silk Kendra Rs 500 |
May 9 | Returned damaged goods to NSR and Co 5 silk sarees. |
May 12 | Purchased from Sudharshan silks 150 Mysore silk at Rs 250 each, 100 handloom sarees at Rs 750 less trade discount at 10% |
May 15 | Sold to Mr. Kala on account 20 printed sarees at Rs 300 each, 25 silk sarees at Rs 1,300 each, and 20 mysore silk saree at Rs 300 each less trade discount 5%. |
May 20 | Sold to kusum 40 handloom sarees at Rs 1,000 each |
May 21 | Kumar returned 10 printed sarees and 20 silk sarees. |
May 25 | Returned to Sudharshan’s silk 25 mysore silk |
May 27 | Returned from Kusum 10 handloom sarees. |
May 30 | Purchased from Nandi Silk 400 sarees at Rs 500 each. |
- Journalise the following transaction in the books of Ravi for the month of Jan 2007
Date | Particulars | Amount |
Jan 1 | Started business with cash | 1,00,000 |
Jan 1 | Paid into bank | 50,000 |
Jan 2 | Goods purchased for cash | 30,000 |
Jan 3 | Purchased furniture paid by cheque | 10,000 |
Jan 5 | Sold goods for cash | 20,000 |
Jan 8 | Sold goods to Ramesh | 10,000 |
Jan 10 | Purchased goods from Ajay | 15,000 |
Jan 12 | Goods returned to Ajay | 1,000 |
Jan 15 | Goods returned by Ramesh | 5,00 |
Jan 18 | Cash received from Ramesh
Discount allowed to him |
9,300
200 |
Jan 21 | Withdrew from bank for personal use
Withdrew from bank for office use |
2,000
12,000 |
Jan 25 | Paid telephone rent for one year | 1,200 |
Jan 28 | Cash paid to Ajay in full settlement of his account | 13,700 |
Jan 31 | Paid for stationery Rs 4,400 rent Rs 2,000 and salaries to staff Rs 5,000 |
- Draw the two-column cashbook from the transaction for the month of March 2012.
March 1 | Balance of cash in hand Rs 6000 |
March 2 | Received cash from Sohan Rs 1000 |
March 4 | Paid into bank Rs 1800 |
March 6 | Paid to Mohan for goods purchased Rs 2000 |
March 7 | Received Rs 1800 from cash sales |
March 8 | Paid for cash purchases Rs1920 and received Rs 80 as discount. |
March 8 | Withdrew for personal use Rs 1000 |
March 10 | Received Rs 1160 from Kapoor and allowed Rs 40 as discount |
March 12 | Drew from bank for office use Rs 800 |
March 15 | Paid cash for electricity charges Rs 120 |
March 20 | Paid rent Rs 320 |
March 24 | Cash sales Rs 1400 |
March 27 | Deposited in bank Rs 1000 |
March 30 | Paid cash for advertisement Rs 80 |
March 31 | Paid salaries in cash Rs 140 |
- Prepare ledger account from the following transaction for the month of April 2004
Date | Particulars | Amount |
April 1 | Mr. Ram started business with a capital | 50,000 |
April 2 | Purchased furniture | 5,000 |
April 3 | Bought goods on credit from Mr. Vinod | 8,000 |
April 14 | Sold goods to Mr. Sham | 5,000 |
April 15 | Received cash from Mr. Sham | 3,000 |
April 18 | Purchased goods for cash | 12,000 |
April 25 | Sold goods for cash | 8,000 |
April 28 | Paid rent Rs 1,200 | 1,200 |
April 31 | Paid Mr. Vinod | 3,000 |
- From the following particulars taken from the books of Suresh and Co prepare the bills receivables and bills payable book and post them to ledger for the month of March 2012.
Date | Particulars |
1/3 | Acceptance received from Roy payable three months after date for Rs 6500 |
5/3 | Accepted Subhash’s draft for Rs 4000 for 2 months |
12/3 | Drew a bill on Yusuf for Rs 2500 for 3 months |
20/3 | Gave Rajesh our acceptance for Rs 5000 payable 4 months after date |
22/3 | Roy’s acceptance for Rs 6500 was retired under a rebate of Rs 100 |
25/3 | Received a bill from Naresh for Rs 1000 for 1 month |
28/3 | Accepted bill of Patel for Rs 4500 for 2 months |
30/3 | Accepted Subhash’s draft for Rs 2000 for 1 month |
30/3 | Drew a bill on Yusuf for Rs 2000 for 2 months and accepted by him payable at Bank of India, Bangalore. |
SECTION – D
- Compulsory Question. (1 x 15 = 15)
- From the following trial Prepare trading and profit and loss account for the year ended 31st March 2007 and Balance sheet as at that date from the following particulars.
Particulars | Debit (Rs) | Credit (Rs) |
Capital | —— | 30000 |
Drawings | 5000 | —— |
Purchases | 40000 | —— |
Carriage outwards | 500 | —— |
Returns outwards | —— | 1000 |
Sundry expenses | 800 | —— |
Bad debts | 300 | —— |
Sales | —— | 60000 |
Postage | 200 | —— |
Wages | 1000 | —— |
Bills payable | —— | 3000 |
Discount | 500 | —— |
Land | 18000 | —— |
Machinery | 7500 | —— |
Sundry creditors | —— | 8500 |
Sundry debtors | 10500 | —— |
Salary | 1500 | —— |
Investments | 3000 | —— |
Opening stock | 13200 | —— |
Cash in hand | 500 | —— |
TOTAL | 102500 | 102500 |
Adjustments: Closing stock Rs 10300, make a provision for bad debts at 5%, depreciation machinery by 6%, outstanding salary Rs 400, interest accrued on investments Rs 90, wages paid in advance Rs 50.
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- JOSEPHS’ COLLEGE OF COMMERCE (AUTONOMOUS)
BBM – II SEMESTER
FUNDAMENTALS OF ACCOUNTING – SCHEME OF VALUATION
SECTION A
- 1+1
- 1+1/2 each
- 2 marks
- 1+1
- ½ marks each
- 1+1
- 1+1
- 1+1/2 each
- ½ each
- ½ each
SECTION B
- 2 + 1 each
- 1 each
- ANSWER Capital Rs 26005 (steps 1+ 1/4 each +Ans 1)
- ANSWER 70000, 41000, 66000 (1+2+2)
- ANSWER 280 (1/2 each)
- 1 each
SECTION C
- Purchase Book 526250, sales book 197275, PR book 11750, SR book 33000 (5+5+3+2)
- 1 each
- Cash balance 3780 (1 each)
- 2 each
SECTION D
- Gross profit 17150, Net profit 12065, Balance sheet 48965 (5+5+5)