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Loyola College B.B.A. Business Administration April 2007 Financial Accounting Question Paper PDF Download

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A.

MS 04

DEGREE EXAMINATION –BUSINESS ADMINISTRATION

SECOND SEMESTER – APRIL 2007

BU 2500 – FINANCIAL ACCOUNTING

 

 

Date & Time: 20/04/2007 / 1:00 – 4:00            Dept. No.                                                     Max. : 100 Marks

 

 

 

PART – A

 

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

 

  1. List out any two causes for Depreciation.
  2. Write short notes on:
  3. a) Short sales b) Standing turnover
  4. What is meant by General ledger?
  5. What is ‘Royalty’?
  6. Pass necessary adjustment entries for the following adjustments:
  7. a) Insurance unexpired is Rs. 5,000
  8. b) The proprietor has withdrawn goods worth Rs. 3,000 from stock.

 

  1. What should be the basis of allocation for the following expenses under Departmental Accounts?
  2. a) Carriage inward b) Maintenance of premises.

 

  1. From the following particulars, calculate closing branch debtor’s balance:

Branch Debtors (1.1.2005)                 Rs.   6,300

Credit sales                                         Rs. 39,000

Cash received from debtors                Rs. 41,200

 

  1. Sonu purchased a typewriter on hire-purchase system. As per terms, he is required to pay Rs. 800 down, Rs. 400 at the end of the first year Rs. 300 at the end of the second year and Rs. 700 at the end of the third year. Interest is charged at 5% p.a. Calculate the total cash price of the typewriter and the amount of interest payable on each instalment.

 

  1. Compute short workings recovered from the following particulars assuming short workings are recoupable in the following two years:

Royalty: Rs. 5 per ton

Dead rent: Rs. 45,000 p.a.

Output: 2000 – 10,000 tonnes, 2001 – 16,000 tonnes, 2002 – 20,000 tonnes.

 

  1. From the following information ascertain opening stock (i.e., on 1.1.2004)

Rs.

Purchases made during year 2004                  2,50,000

Sales made during year 2004                          3,25,000

Stock on 31.12.2004                                          60,000

Wages                                                                              3,000

Rate of gross profit on cost                                   25%

 

 

 

 

 

PART – B

 

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

 

  1. Distinguish between Hire purchase system and Instalment purchase system.

 

  1. What is single entry? What are its salient features?

 

  1. From the following balances as at 31st Dec. 2005 of a trader, prepare a Trading and

Profit & loss A/c for the year 2005 and a Balance Sheet as on that date.

Rs.                                                                     Rs.

——————————————————————————————————–

Salaries                                  5,500     Creditors                                             9,500

Rent                                      1,300     Sales                                                  32,000

Cash                                      1,000     Capital                                               30,000

Debtors                               40,000      Loans                                               10,000

Trade expenses                         600

Purchases                            25,000

Advances                              2,500

Bank balances                      5,600

———–                                                         —————

81,500                                                              81,500

————                                                         —————Adjustment:

(i)  The closing stock amounted to Rs. 9,000.  (ii)  One month’s salary is outstanding

(iii)   One month’s rent has been paid in advance, (iv) Provide 5% for doubtful debts.

 

  1. Amol started business on 1-1- 1990 and he purchased a machine for Rs. 70,000. He purchased further machinery on 1st August 1991 costing Rs. 15,000 and on 30th September 1994 costing Rs. 20,000. He adopted a policy of charging 15% p.a. depreciation under Diminishing Balance Method.

On 1-1-1994 it was decided to change the method and rate of depreciation to 10% on straight line basis with retrospective effect from 1-1-90. The accounts are closed every year on 31st December. Calculate the differences in depreciation to be adjusted in the machinery account on 1-1-1994 and show the ledger account for the years 1990 to 1994.

 

  1. A fire occurred in the business premises of Ranjit on 19.7.89. From the following particulars ascertain the loss of stock and prepare a claim for insurance.

Rs.

Stock on 1.1.88                                                36,720

Stock on 31.12.88                                            32,400

Sales for 1988                                               2,16,000

Purchases for 1988                                        1,46,400

Purchases from 1.1.89 to 19.7.89                 1,76,400

Sales from 1.1.89 to 19.7.89                         1,80,000

 

The stocks were always valued at 90% of cost. The stock saved from fire was worth Rs.21,600. The amount of the policy was Rs.75,600 and included an average clause.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. The proprietor of a large retail store wished to ascertain approximately the net profit of the X, Y, and Y departments separately for the three months ended 31st March 1996. It if found impracticable actually to take stock on the date, but an adequate system of departmental accounting is in use, and the normal rates of gross profit for the three departments concerned are respectively 40%, 30% and 20% in turnover before charging the direct expenses. The indirect expenses are charged in proportion to departmental turnover.

The following are the figures for the departments:

——————————————————

X                        Y                       Z

Rs.                     Rs.                      Rs.

——————————————————

Opening stock (1-1-96)                                      10,000                 14,000                7,000

Purchases                                                           12,000                 13,500                9,700

Sales                                                                   20,000                 18,000              16,000

Direct expenses                                                    2,000                   1,500                   700

 

The total indirect expenses for the period (including those relating to other departments) were Rs. 5,400 on the total turnover of Rs. 1,08,000.

Prepare a statement showing the approximate net profit, making a stock reserve of 10% for each department on the estimated value on 31-3-96.

 

  1. From the following detail, prepare the purchase ledger adjustment A/c in General ledger and General ledger Adjustment A/c in purchase ledger for the year 2005.

 

Purchase Ledger balance on 1.1.2005 (Cr)                 1,20,000

Purchase Ledger balance on 1.1.2005 (Dr)                   10,000

Purchases from creditors                                            1,80,000

Bills payable accepted                                                   40,000

Cash paid to creditors                                                             1,00,000

Cheques paid to creditors                                              30,000

Cheques dishonoured                                                                  1,000

Goods returned to creditors                                           10,000

Discount allowed by creditors                                         2,000

Interest on suppliers accounts due                                   1,000

Bills payable dishonoured                                                4,000

 

  1. On 1.1.1982, Sona Collieries Ltd., leased a piece of land agreeing to pay a minimum rent of Rs. 2,000 in the first year, Rs. 4,000 in the second year and thereafter Rs. 6,000 per annum, merging into a royalty of 40 paise per tonne, with power to recoup short workings over the first three years only.

The figures of annual output for the four years to 31st December 1985 were 1,000, 10,000, 18,000 and 20,000 tonnes respectively. Prepare the analytical table, and also the Shortworkings A/c and Landlord’s A/c in the books Sona.

 

 

 

 

 

PART – C

 

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

 

  1. Mohan commenced business on 1.1.2005 with a capital of Rs. 25,000. He immediately bought furniture for Rs. 4,000. During the year, he borrowed Rs. 5,000 from his wife and introduced a further capital of Rs. 3,000. He has withdrawn Rs. 600 at the end of each month for family expenses. From the following particulars obtained from his books, you are required to prepare Trading and P& L A/c and Balance Sheet on 31.12.2005.

Rs.

Sales (including cash sales of Rs. 30,000)                                      1,00,000

Purchases (including cash purchases of Rs. 10,000)                         75,000

Carriage                                                                                                   700

Wages                                                                                                                 300

Discount allowed                                                                                    800

Salaries                                                                                                 6,200

Bad debt written off                                                                            1,500

Trade expenses                                                                                     1,200

Advertising                                                                                          2,200

 

Mohan has used goods worth Rs. 1,300 for private purposes and paid Rs. 500 to his son which is not recorded anywhere. On 31.12.2005, his debtors were worth Rs. 21,000 creditors Rs. 15,000 and stock in trade Rs. 10,000. Furniture to be depreciated at 10% p.a.

 

 

  1. A head office invoices goods to its branch at cost plus 25%. Branch remits all cash received to the head office and all expense are met by the H.O. From the following particulars of the branch, prepare Branch Stock A/c, Branch Debtors A/c and Branch

P & L A/c.

Rs.                                                                         Rs.

——————————————————————————————————–

Stock on 1.1.2004                    16,000       Total amount deposited

(invoice price)                                                       in the H.O. A/c                 1,27,000

Returned of goods to H.O                    5,000

Stock on 31.12.2004                17,000                       (invoice price)

(invoice price)

Debtors on 1.1.2004                12,000        Salaries paid                                         6,000

Debtors on 31.12.2004            14,000        Rent paid                                              4,000

Cash sales                                60,000        Discount allowed to customers            2,000

Bad debts written off                 1,000       Spoilage                                                2,000

 

  1. On 1.1.90 National Transport Company purchased from Metro Motors five trucks costing Rs. 40,000 each on the hire purchase system. It was agreed that Rs. 50,000 should be paid immediately and the balance in three installments of Rs. 60,000 each at the end of each year. The Metro charges interest @ 10% p.a. The buyer depreciates trucks at 20% p.a. on the diminishing balance method. The buyer paid cash down and two installments but failed to pay the last installment.

Consequently, the Metro Motors repossessed three trucks leaving two trucks with the buyer and adjusting the value of 3 trucks against the amount due. The trucks repossessed were valued on the basis of 30% depreciation p.a. on the written down value. The trucks repossessed were sold by Metro Motors for Rs. 60,000 after necessary repairs amounting to Rs. 10,000. Open the necessary ledger accounts in the books of both the parties.

 

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Loyola College B.B.A. Business Administration April 2008 Financial Accounting Question Paper PDF Download

by

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

AP 3

 

SECOND SEMESTER – APRIL 2008

BU 2500 – FINANCIAL ACCOUNTING

 

 

 

Date : 23-04-08                  Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

PART – A

Answer ALL questions.                                                                    (10 x 2 = 20marks)

  1. What is Balance Sheet?
  2. Purchased a machinery on 1.7.2005 for Rs. 40,000; sold on 1.8.2007 for Rs. 28,000; Depreciation on WDR @ 10% p.a Calculate profit or loss. Books are closed on 31st Dec.
  3. Calculate Capital introduced from the following details: Capital in the beginning Rs.5000; Capital at the end Rs.13,000; Profit made during the year Rs.2000.
  4. What are Self-balancing ledgers?
  5. Write a note an Dependent branch.
  6. What is the meaning of Inter-Departmental transfer?
  7. Write a note on Hire-Purchase trading Account?
  8. Calculate short workings, if Minimum Rent in Rs.10,000; and actual Royalty is Rs. 8,000.
  9. How is the loss of stock computed?
  10. Explain Average clause in insurance policy.

 

PART – B

Answer any FIVE questions.                                                           (5 x 8 = 40 marks)

  1. Distinguish between Hire purchase and instalment.
  2. Alfred maintains books on single entry system. He gives you the following information:

Rs.

Capital on January 1, 2007                 15,200

Capital on 31st Dec 2007                    16,900

Drawings made during 2007                4,800

Capital introduced on Aug 1, 2007      2,800

 

Calculate Profit made by Alfred.

 

  1. Below are given particulars from the books of a trader for the month of January.

Rs.                                                      Rs.

Jan. 1   Opening balance         30,000 Bills receivable dishonored     1500

Jan 31  Total Sales (Jan)          90,000 Discount allowed

to Debtors                                400

Sales Returns                               500 Bad debts                                  350

Cash from Debtors                  40,000 Transfers from

other ledger                              750

B/R received                           15,000

Prepare Debtors Ledger Adjustment a/c in general Ledger.

  1. M/s. Thomas & Co invoiced goods to their branches at cost. From the following details, relating to branch, prepare Branch Account for 2007 and Calculate profit.

Rs.                                                        Rs.

Debtors on 31st Dec. 2007      2000    Discounts to Customers              40

Goods sent to Branch             7000    Stock (1.1.2007)                     2000

Goods Returned by Branch      800    Stock (31.12.2007)                 1600

Goods Returned by Customers

to Branch          150    Bad debts                                    70

Cash Sales                               4300    Rent Paid by Head office       1300

Credit Sales                             6000    Insurance by Head office       1800

Cash remitted to H.O           11300    Salaries & Wages by

Head office                 2800

  1. The following purchases were made by a business hense having three departments:

Department A — 1000 units

Department B — 2000 units   @ a total Cost of Rs. 1,00,000

Department C — 2400 units

 

Stock on 1st January were:

Department A — 120 units

Department B —   80 units

Department C — 152 units

 

The sales were

Department A —1020 units    at Rs. 20/- per unit

Department B— 1920 units    at Rs. 22.50/- per unit

Department C— 2496 units    at Rs. 25/- per unit

 

Prepare Departmental Trading Account.

 

  1. Mr. A bought a machine under Hire purchase agreement, the cash price of the machine being Rs. 18000. As per the terms, the buyer has to pay Rs. 4000 on signing the agreement and the balance in four instalments of Rs. 4000 each, payable at the end of each year. Calculate the interest chargeable at the end of year.
  2. Ram Tiles Ltd., obtained a lease of land from Landlord for a period of four years from Jan. 1, 2004, paying a minimum Rent of Rs. 8000 per annum, merging in a Royalty of 50 paise per ton of clay raised. The lease contains a clause to the effect that if the minimum Rent paid in any year exceeds royalty for the year, the amount of excess can be recouped by the lessee out of the royalty payable in the following year only. Clay is raised as follows:

2004 à 2000 tons;      2006 à 20,000 tons

2005 à 10,000 tons;   2007 à 32,000 tons

Show the ledger Accounts including Minimum Rent A/C.

  1. A fire broke a out in a company on 1st April 2007 and short sales remained for a period of six months; Total sales during this period amounted to Rs. 80,000, while in previous year form 1st April 2006 to 30th Sep. 2006 were of Rs. 2,00,000. Sales have increased by 10% in 2007 in the period from 1st January 2007 to 1st April 2007. Find out short Sales during this period of six maonths of 2007.

 

PART – C

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

  1. ‘A’ carries on a small business, but he does not maintain a complete set of account books. He banks all receipts and makes all payments only by means of cheques. He maintains properly a cash book, a sales ledger and a purchase ledger. He also makes a proper record of the assets and liabilities as at the close of every accounting year. From such records you are able to gather the following facts:

Receipts                         Rs.                Payments                     Rs.

From Sundry Debtors             17625  New plant purchased                 625

Cash Sales                                 4125  Drawings                                 6725

Paid in by the Proprietor           2500  Wages                                     6725

Salaries                                    1125

Interest paid                                 75

Telephone                                   125

Rent                                        1200

Light & Power                                       475

Sundry Expenses                    2125

Sundry Creditors                    7625

(Purchase ledger Accounts)

 

Assets and Liabilities:             31.12.2006                  31.12.2006

Rs.                               Rs.

Sundry Creditors                        2525                            2400

Sundry Debtors                           3750                            6125

Bank                                              625                               –

Stock                                           6250                            3125

Plant                                            7500                            7315

From the above data, prepare profit & loss a/c for the year ending 31.12.2007 and

a Balance Sheet as on that data.

  1. S & Co has its Branch at Kanpur, Goods are invoiced to the branch at selling price being cost plus 25% (on cost). From the following details prepare Branch Stock A/C; Branch expenses A/C; Branch Debtors A/C; Branch Adjustment A/C, Goods supplied to Branch A/C, Stock Reserve A/C.

Rs.                                                  Rs.

Cash Sales                   17400  Cash reveived from Debtors     5000

Credit Sales                   3600  Goods Supplied to Branch     19000

Rent & Rates                  900  Wages (Paid by Head Office)                760

(Paid by Head Office)                        Discount allowed to customers   200

Sundry Expenses            100  Goods returned by Customers    100

(Paid by Head Office)                        Opening Stock                                      3000

Goods Spoiled                              50

Opening Debtors           2000

  1. ‘P’ purchased an asset on Hire-purchase system for Rs. 56000 payment to be made, Rs. 15000 down and 3 instalments of Rs. 15000 each at the end of each year. Rate of interest is charged at 5% per annum. Buyer is depreciating the asset at 10% per annum on written down value method.

Because of financial difficulties P after having paid down payment and first instalment at the end of 1st year, could not pay second instalment and seller took possession of the asset. Seller after expending Rs. 357 on repairs of the asset sold it for Rs. 30,110.

Prepare ledger Accounts in the books of both parties to record the transactions.

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Loyola College B.B.A. Business Administration April 2009 Financial Accounting Question Paper PDF Download

by

      LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

JQ 03

SECOND SEMESTER – April 2009

BU 2501 / 2500 – FINANCIAL ACCOUNTING

 

 

 

Date & Time: 23/04/2009 / 1:00 – 4:00   Dept. No.                                                  Max. : 100 Marks

 

 

SECTION     A

      Answer ALL                                                                                    (10 x 2 = 20)

 

  1. State the objectives of providing depreciation.
  2. What is the difference between a branch and a department?
  3. Tick the correct answers:

(i) What type of account goodwill is? — Fictitious / Intangible

(ii) On which side of the balance sheet is unexpired insurance shown?–Assets / Liability

  1. State whether the following statement is true or false:

Interest on capital and salary to a sole trader are incomes and hence are shown on the

credit side of profit and loss account. Justify your answer.

  1. What is meant by average clause?
  2. How do you allocate the following expenses in departmental accounts:

(i) Carriage inwards

(ii) Advertising

(iii) Lighting

(iv) General manager’s salary

  1. Prepare branch account from the following figures:

Rs.

Stock on 1-4-2008                                                                      14,900

Goods sent to branch                                                                  80,700

Expenses for branch                                                                     3,560

Cash sales at the branch                                                          1,10,330

Stock on 30-3-2009                                                                    18,640

  1. If the net profits and sales for the last accounting year are Rs. 15,000 and Rs.1,00,000 respectively and standing charges are Rs.15,000 out of which Rs. 5000 is uninsured, what is the gross profit ratio?
  2. From the following particulars of Mr. Bean, under single entry system, ascertain the total sales:

Opening stock Rs. 1,20,000, purchases  Rs. 6,00,000 , wages Rs.70,000 , closing stock Rs. 1,50,000,

the rate of gross profit on sales  20%.

  1. From the following details find out the credit purchases :

Rs.

Cash Purchases                            29,000

Creditors (opening)                      20,000

Creditors (closing)                       28,000

Allowances from creditors               800

Purchase returns                           1,500

Cash paid to creditors                  25,000

 

SECTION    B                                                                                                          

      Answer any FIVE only                                                                     (5 x 8 = 40)

  1. Explain the step to be taken to convert single entry on to double entry

12.. Explain the steps involved in arriving at the claim for loss of profits under consequential loss

policy.

  1. On 01.01.2004machinery was purchased for Rs. 80,000. On 01.07.2006 the

Machinery was replaced by new machinery costing Rs. 60,000 the vendor taking the old machine in part exchange at a valuation of Rs. 16,000. Show the machinery A/c upto 31.12.2007 assuming that the business charges depreciation @ 10% on the diminishing value of the machinery .

  1. Mr. Williams acquired vehicle from Moped Ltd. on hire purchase system on

1.1.1999 payable Rs. 1,000 down and the balance as under:

Rs. 1,300 at the end of first year.

Rs. 1,200 at the end of second year

Rs. 1,100 at the end of third year.

Interest is charged at 10% p.a. Write off depreciation at 20% on the diminishing balance method.

Ascertain the cash price and prepare vehicle account and Moped Ltd. account in the books of

Mr. Williams.

 

  1. The Sandur Iron Co. has taken on lease a mine on a royalty of Rs2 per tonne of iron ore raised

with a minimum rent of Rs. 40,000 per year, and power to recoup shorworkings during the first

three years was as under:

1st year 10,000 tonnes, 2nd year 24,000 tonnes, 3rd year 40,000 tonnes, 4th year 90,000 tones.

Prepare Minimum Rent A/c, Royalty A/c, Shortworking A/c and Landlord’s A/c in the books

     of the company. 

16.. Mr. Mano keeps his books of accounts under single entry system. His financial position on 31.12.2007and 31.12.2008 was as follows:

 

               Particulars: 2007

Rs.

 2008

Rs.
Cash 9,860 800
Stock in trade 38,520 57,020
Plant & Machinery 54,420 61,000
Bills Receivable – 16,480
Sundry Debtors 24,840 43,940
Sundry Creditors 72,040 80,000
Furniture 4,960 5,220
Drawings – 5,000

 

During the year he introduced additional capital of Rs. 20,000. From the above particulars prepare a statement of Profit and Loss of Mr.Madan for the year ended 31.12.2008.

  1. Due to heavy fire in the godown of a company on15.06.2000, the entire stock was burnt except

some costing Rs. 3,500.  The books were, however, saved from which the following particulars

were obtained:

 

Rs.
Stock at cost 01.01.1999 36,750
Stock at cost 31.12.1999 39,800
Purchases for 1999 1,99,000
Wages for 1999 23,200
Sales for 1999 2,43,500
Purchases from 01.01.2000 to 15.06.2000 81,000
Sales from 01.01.2000 to 15.06.2000 1,15,600
  • The wages for the period amounted to Rs. 7,200
  • The company insured the stock for Rs. 20,000
  • The policy had an average clause.

Prepare a statement of insurance claim.

 

  1. A merchant sells goods at hire purchase system, the price being cost plus 50%. From

The following prepare the hire purchase trading account for the year ending  31.12.2001:

Stock at the shop at cost pricing (opening)                                              10,000

Stock with the customers at hire purchase price(opening)                       30,000

Installments due & unpaid (opening)                                                      13,000

Cash received from customers during the year                                     1,00,000

Goods repossessed during the year(installments due Rs. 4,000)

Valued at                                                     3,000

Goods sent to customers during the year at hire purchase price           1,20,000

Installments due and unpaid (closing)                                                      35,000

Stock with customers at hire purchase price (closing)                              21,000

Stock at the shop at cost (closing)                                                            12,000

 

                                                            SECTION      C

Answer any TWO only                                                                     (2 x 20 = 40)

 

  1. Prepare Trading, Profit & Loss A/c and Balance Sheet from the following Trial Balance of M. Madan.
Debit Balances Rs. Credit Balances Rs.
Sundry Debtors 92,000 Madan’s Capital 70,000
Plant & Machinery 20,000 Purchase Returns 2,600
Interest 430 Sales 2,50,000
Rent, Rates, Taxes & Insurance 5,600 Sundry Creditors 60,000
Conveyance charges 1,320 Bank Overdraft 20,000
Wages 7,000
Sales Returns 5,400
Purchases 1,50,000
Opening Stock 60,000
Madan’s Drawings 22,000
Trade Expenses 1,350
Salaries 11,200
Advertising 840
Discount 600
Bad debits 800
Business premises 12,000
Furniture & Fixtures 10,000
Cash in hand 2,060
4,02,600 4,02,600

Adjustments:

  1. Stock on hand on 31- 12 -06 ,Rs. 90,000
  2. Provide depreciation on premises at 2.5%; Plant & Machinery at 7.5% and furniture & Fixtures

at 10%.Write off Rs. 800 as further bad debts.

  1. Provide for doubtful debts at 5% on sundry debtors.
  2. Outstanding rent was Rs. 500 and outstanding wages Rs. 400. Prepaid insurance Rs. 300 .

 

  1. Bangalore head office has a branch at Chennai The goods are invoiced to the branch at cost

plus 50% .  From the following particulars prepare the necessary accounts in the books of the head

office under “Stock and Debtors System”

 

Stock on     1.1.2008 (at invoice price)                             12,000

Debtors on 1.1.2008                                                           6,000

Goods sent to branch (at invoice price)                            60,000

Cash sales                                                                          21,400

Credit sales                                                                       34,000

Cash received from debtors                                              29,200

Discount allowed to debtors                                                  800

Goods returned from debtors                                             2,000

Goods returned by branch to head office                           3,000

Cash sent to branch for: Salary                   4,000

Rent                      2,000

Sundry expenses      600              6,600

Deficit in goods at branch (at invoice price)                         600

Stock on 31.12.2008 (at invoice price)                            15,000

 

21.. From the following particulars furnished by a merchant who keeps his ledgers on self-balancing

system, prepare the Debtors Ledger Adjustment Account and Creditors Ledger Adjustment

Account as they would appear in General Ledger.

 

2007

Jan 1    Balance of  Trade Debtors

Balance of Trade Creditors

Jan 31  Credit Sales

Credit Purchases

Returns Inwards

Returns Outwards

Received Cash from Debtors

Discount allowed thereon

Cash paid to Creditors

Discount allowed by them

Received Bills Receivable

Accepted Bills Payable

Allowances to Debtors

Allowances from Creditors

Transfer from creditors ledger to debtors ledger

Bad Debts

Bills Receivable dishonoured

Interest charged on dishonoured bills

Balance of Trade Creditors(Dr)

   Rs.

30,000

20,000

1,20,000

75,000

5,000

800

40,000

1,000

60,000

1,200

70,000

10,000

500

50

150

450

2,000

500

200

 

 

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Loyola College B.B.A. Business Administration Nov 2012 Financial Accounting Question Paper PDF Download

by

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

FIRST SEMESTER – NOVEMBER 2012

BU 1502 – FINANCIAL ACCOUNTING

 

 

 

Date : 08/11/2012             Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

 

SECTION A (10X2=20Marks)

ANSWER ALL THE QUESTIONS

  1. What is amortization?
  2. What is a statement of affairs?
  1. What do you mean by independent system of branch accounting?
  2. Give the meaning of the term “Average Clause” in fire insurance.
  1. Single entry is
    1. considering one aspect of a transaction
    2. calculating the profit of sole proprietorship
    3. considering dual aspect of a transaction
    4. considering multiple aspect of a transaction
  2. Provision is a charge against ——————–
  3. Depreciation is provided to
    1. To increase the value of the asset
    2. To find out the book value of the asset
    3. To find out the market value of the asset
    4. To find out the actual value of the asset
  4. Which method of depreciation is accepted by income tax authorities———————
  5. Why statement of affairs is prepared?
  6. Who is a hire vendor?

Section-B(5 x 8=40)

Answer any five of the following

  1. A commenced business on 1st january, 2010 with a capital of Rs.25,000. He immediately bought furniture for Rs.6,000. During the year he borrowed Rs.15,000 from his wife and introduced a further capital of his own amounting to Rs.9,500. He had withdrawn Rs.900 at the end of each month for family expenses. On 31st December,2010, his position was as follows:

Cash in hand- Rs.600, Cash at bank- Rs.7,800, Sundry Debtors- Rs.14,400, Stock- Rs.20,400, Bills Receivable- Rs.4,800, Sundry Creditors- Rs.1,500, Rent due Rs.450. Furniture to be depreciated by 10%. Ascertain the profit or loss made by Mr.A during 2010.

  1. On 1st Jan 2007, Mr.Sagayam purchased a machine on hire purchase under a hire purchase agreement which provided for an initial payment of Rs.1, 500 and the balance in 4 equal half- yearly instalments of Rs. 2,000 each, the first instalment falling due on 30th June 2007. Assuming the rate of interest of 6% p.a. Determine the cash price of the machine.

 

  1. Distinguish Hire Purchase System from Installment Purchase.

 

  1. A company purchased a second-hand plant for Rs.30,000. It spent Rs.5,000 immediately for improving the productivity. The plant was put to use on 1.1.2001. after using the plant for 6 years it was sold for Rs.15,000. Prepare the plant account for all the six 6 years. Provide depreciation 10% on original cost.
  2. A fire occurred in premises of unlucky Ltd.. on 20th Feb, 2002. The company has taken out a fire insurance policy of Rs. 1,00,000 covering its stock in trade and the policy was subject to average clause. Compute the claim to be made by the company.

Rs.

  • Stock on 1st Jan 2001 90,000
  • Purchases made during the period 2001 3,65,000
  • Purchase returns during the period 2001 5,000
  • Stock as on 31st Dec,2001 1,26,000
  • Sales for the year 2001 4,10,000
  • Sales returns made during the year 2001 10,000
  • Purchases from 1-1-2002 to the date of fire 84,000
  • Sales from 1-1-2002 to date of fire 1,03,000
  • Sales returns from 1-1-2002 to date of fire 4,000
  • Value of stock saved 19,800
  • It was the practice of the concern to value stocks at cost less 10%
  1. Discuss the different methods of providing depreciation.
  2. From the following transactions prepare the Chennai branch account for the year ended 31st December, 2010.
  • Stock at branch 1st jan 2010 -Rs.36,200
  • Stock at branch31st dec 2010 -Rs.33,140
  • Branch debtors 1st jan 2010   -Rs.11,300
  • Branch debtors 31st dec 2010            -Rs.6040
  • Petty cash1st jan 2010 -Rs.220
  • Petty cash 31st dec 2010        -Rs.140
  • Goods sent to branch –           1,56,680
  • Branch expenses met by H.O.- Rs.7,000
  • Cash sent by H.O. to branch to meet petty expenses – Rs.1040
  • Cash sales- Rs.1,68,200
  • Cash received from branch debtors – Rs.27,700.
  1. A firm had two departments, Cloth and Garments. The garments were made by the firm itself out of cloth supplied by the cloth department at its usual selling price. From the following prepare departmental trading and profit and loss account.
Particulars Cloth dept.

Rs.

 Garments dept.

Rs.
Opening stock 2,50,000 60,000
Purchases 12,50,000 40,000
Sales 16,00,000 5,00,000
Transfer to Garments dept. 2,50,000 –
Expenses:

Manufacturing

Selling

  

–

30,000

  

30,000

10,000
Closing stock 1,50,000 50,000

 

The stock in the Garments Deptt. may be considered as consisting of 60% cloth and 40% other expenses. The cloth deptt. earned Gross profit at the rate of 20%. General expenses of the business as a whole amounted to Rs.1,00,000.

 

SECTION-C(2 x 20 =40)

Answer any two of the following

  1. What do you mean by single entry system? State the features of single entry system.

Why it is not accepted by Income tax authorities?

 

  1. FROM THE FOLLOWING TRIAL BALANCE PREPARE FINAL ACCOUNTS OF Ms. Vidhya Vilas Ltd…as on 30th june 2002.
Particulars Debit Credit
Capital & drawing 10,550 1,19,400
Bills receivable 9,500
Purchase and sales 2,56,590 3,56,430
Return inwards 2780
Stock as on 1st july 89,680
Commission 5640
Plant & Machinery 28,800
Salaries 11,000
Travelling expenses 1,880
Debtors(including mohan for dishonoured cheque Rs.1,000) 62,000
Stationery 2,000
Telephone charges 1370
Interest & discount 5870
Bad debts 3620
Fixtures & Fittings 8970
Creditors 59,630
6% loan 20,000
Wages 40,970
Cash in hand 530
Cash at bank 18,970
Insurance (including premium of Rs.300 per annum paid upto 31st dec,2002) 400
Rent & taxes paid 5620
5,61,100 5,61,100
  • Stock in trade as on 30th june, 2002 was 1,28,960.
  • Write off half of mohan’s cheque
  • Create a provision of 5% on debtors
  • Manufacturing wages includes Rs.1,200 for erection of new machinery purchased last year.
  • Depreciate plant & machinery by 5% fixtures & fittings by 10%
  • Commission accrued Rs.600
  • Interest on loan for the last 2 month is not paid.

 

  1. Rapid engineering works sold pratap industries a machine of the each value of Rs.31,360, on hire purchase basis on 1st April, 1995. A sum of Rs.9,000 was paid at the time of delivery. The balance was payable in three equal annual instalments  of Rs.9,000 each payable on 31st March of every year. Interest was charged @10% per annum. The purchaser charged 10% depreciation per annum on the diminishing balances of the machine.

Pratap industries failed to pay the instalment due on March 31, 1997. Rapid engineering works obtained the permission of the court to repossess the machine as a result of default  by the purchaser and having completed all statutory requirements took possession  of the machine on May 31, 1997.

Prepare necessary ledger accounts in the books of hire-purchaser.

 

 

 

 

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