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Loyola College B.Com Corporate & Secretaryship April 2007 Financial Accounting Question Paper PDF Download

                LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SECRETARYSHIP

HO 03

SECOND SEMESTER – APRIL 2007

BC 2500 / CR 2501 – FINANCIAL ACCOUNTING

 

 

 

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

 

 

PART – A

Answer ALL the questions.                                        (10 ´ 2 = 20 marks)

 

  1. Specify any four groups interested in ‘Accounting Information’?
  2. What is the need for providing depreciation?
  3. Write a short note on ‘Imprest System’?
  4. What should be the basis of allocation for the following expenses under
    ‘Departmental Accounts’?

(i) Carriage inwards   (ii) Factory manager’s salary

  1. What do you mean by ‘Indemnity Period’ in Fire Insurance?
  2. Mention the ‘Journal Entry’ required when goods are repossessed under ‘Debtors system’?
  3. A machine was purchased for Rs.50000 on 1.1.2005. The useful life of the machine is five years and the residual value is Rs.10000.

Find out the amount of depreciation to be provided every year under the straight line method?

  1. M/s STAR & Co., purchased a plant on 1.1.2002. The cash price being Rs.25,000.  The purchase is on hire purchase system.  10000 has to be paid on the signing of the contract and thereafter, Rs.10000 has to be paid annually for two years.  Interest was charged at 5%.

Prepare Hire-vender account to show the interest payable?

  1. Calculate the amount of Drawings from the following information?

Opening capital Rs.6,00,000;  Closing capital Rs.15,60,000 and

profits Rs.2,40,000.

  1. Net profit Rs.1,00,000; Fixed expenses (including depreciation) Rs.1,60,000 and G.P. ratio is 25% on turnover.

What is cost of sales?

 

PART – B

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

 

  1. Distinguish between Hire Purchase and Instalment purchase systems?
  2. Write short notes on the following:

(i) Royalty                   (ii)  Inter-departmental transfers

(iii)Final accounts        (iv) Book Debts

  1. What are the advantages of ‘Double Entry System’ of Book Keeping?

 

  1. M/s GOODLUCK & COMPANY purchased a plant on 1.4.2005 for Rs.70000.  On 1.10.2005, further plant was purchased for Rs.40000.  On 1.7.2006, the plant purchased on 1.4.2005 having become obsolete, was sold off for Rs.50000.  Depreciation has to be charged at 15% on the original cost of the plant assuming that the accounts are closed every year on 31st

Prepare

(i) Plant Account         (ii)  Provision for Depreciation Account

 

 

 

  1. From the following details, prepare Creditors Ledger Adjustment a/c in the General Ledger and General Ledger Adjustment account in the Debtors Ledger as on 31.1.2002.

Rs.

Debtors Balance (1.1.2002)                            …                    35,250

Creditors Balance (1.1.2002)                          …                    48,750

Transactions  for the month of January:

Credit purchases                                             …                    30,500

Credit sales                                                     ….                    20,700

Return Inwards                                               …                         600

Return outwards                                             …                         800

Cash received from customers                        …                    34,000

Discount allowed to customers                       …                         700

Cash paid to creditors                                     …                    48,000

Discount received from creditors                   …                         800

Acceptance received from Debtors                …                    10,000

Creditors Bills accepted                                  …                    14,000

B/R returned dishonoured                              …                      2,000

B/P returned dishonoured                               …                      4,000

Bad debts written off                                     …                      1,000

Sundry charges debited to customers             …                         400

Allowance from creditors                               …                         300

  1. The following purchases were made by business house having three departments.

Dept. x                        :  852 units

Dept. y                        :  768 units                  at a total cost of Rs.20000

Dept. z                        :  594 units

 

Sales were as follows:

Dept. x                        :  53 units

Dept. y                        :  48 units

Dept. z                        :  61 units

Sales were as follows:

Dept. x                        :  864 units @ Rs.10.35 each

Dept. y                        :  715 units @ Rs.11.25 each

Dept. z                        :  583 units @ Rs.12.40 each

The rate of gross profit is same in each department.

Prepare Departmental Trading Account.

 

  1. A Calcutta head office has a branch at Bombay to which goods are invoiced at cost plus 20%

From the following particulars, prepare the Branch Account in the head office.

books.                                                                               Rs.

Goods sent to branch                          …                    1,20,000

Total sales                                           …                    1,50,000

Cash sales                                            …                       50,000

Cash received from branch Drs.         …                       40,000

Branch Drs on 1.1.2005                      …                       15,000

Branch Stock on 1.1.2005                  …                       60,000

Branch Stock on 31.12.2005              …                       36,000

 

 

 

 

 

  1. A fire occurred in the premises of Mr. B. Rao on 7th June 2003.

In order to make a claim on their fire policies in respect of the stock,  calculate the amount of claim from the following information.  The stock salvaged was Rs.15,200.

2000           2001             2002            2003

(Rs)           (Rs)               (Rs)             (Rs)

 

Opening Stock                       64,000         60,000          64,000         72,000

Purchases                            1,64,000      1,88,800       2,26,400      3,12,000

Sales                                    2,40,000      2,64,000       3,12,000      3,96,000

Closing stock                         60,000         64,000          72,000           ?

 

PART – C

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

 

  1. The under mentioned balances appeared in the books on

M/s PROSPERITY & COMPANY as on 31.12.2005.

Rs.                                                        Rs.

Share Capital                          6.00,000   Manufacturing Expenses   3,59,000

(Authorised and                                       Establishments                     26,814

issued 60000                                      General charges                    31,078

shares of                                             Machinery                          2,00,000

Rs.10 each)                                         Motor Vehicles                    15,000

General Reserve                      2,50,000    Furniture                                5,000

Unclaimed dividends                   6,526    Stock (1.1.2005)               1,72,058

Trade creditors                           36,858   Book Debts                        2,23,380

Buildings                                 1,00,000   Interim Dividends                  15,000

Purchases                                5,00,903   Interest (Cr)                             8,544

Sales                                        9,83,947   P & L A/c (Cr) (1.1.2005)     16,848

Investments                             2,88,950   Staff Provident Fund              37,500

Depreciation Reserve                 71,000

Cash Balance                              72,240

Directors Fees                              1,800

 

Adjustments:

 

  • The stocks on 31.12.2005 were valued at Rs.1,48,680.
  • Provide Rs.10,000 for depreciation on blocks and Rs.1500 for the Company’s contribution to the staff provident fund.
  • Interest accrued on investment amounted to Rs.2,750.
  • A claim of Rs.2,500 for workmen compensation is being disputed by the company.
  • Establishment includes Rs.6,000 paid to the manager who is entitled to remuneration at 5% on net profit ascertained after charging such remuneration according to the companies Act subject to a maximum of Rs.10,000 per annum.

 

 

 

 

 

 

 

 

 

  1. On 1.1.2002, M/s RIGHT & COMPANY purchased from M/s WRONG & COMPANY five trucks costing Rs.80,000 each on the hire purchase system.

It was agreed that Rs.1,00,000 should be paid immediately and the balance in three instalments of Rs.1,20,000 each at the end of each year.

M/s WRONG & COMPANY 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 instalments but failed to pay the last instalment.  Consequently, M/s WRONG & COMPANY repossessed three trucks leaving two trucks with the buyer and adjusting the value of three trucks against the amount due.

The trucks repossessed were valued on the basis of 30% depreciation p.a. on the written down value.  M/s WRONG & COMPANY sold the trucks repossessed for Rs.1,20,000 after necessary repairs amounting to Rs.20,000.

Prepare necessary ledger accounts in the books of the both the parties.

 

  1. M/s NORMAL & COMPANY took from M/s ABNORMAL & COMPANY  a lease of a Coal field for a period of 10 years from 1st January 1980 on a royalty of 40 paise per tonne of coal got with a ‘Dead Rent’ of Rs.5000 a year and a power to recoup shortworkings during the first 5 years of the lease.

The annual outputs were as follows:

 

Year                Outputs

1980                  3000 tonnes

1981                  7000 tonnes

1982                15000 tonnes

1983                20000 tonnes

1984                25000 tonnes

Prepare ledger accounts in the books of M/s NORMAL & COMPANY.

 

 

X         X         X

 

 

 

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Loyola College B.Com Corporate & Secretaryship April 2008 Financial Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

      B.Com. DEGREE EXAMINATION – CORPORATE SECRETARYSHIP

GF 3

 

SECOND SEMESTER – APRIL 2008

BC 2500/ CR 2501 – FINANCIAL ACCOUNTING

 

 

 

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

Time : 1:00 – 4:00

PART – A

Answer ALL the questions                                                                          (10×2=20 Marks)

  1. Specify any two functions of ‘Financial Accounting’?
  2. How are ledgers made ‘Self-Balancing’?
  3. Write a short note on ‘Shortworkings Lapsed’?
  4. How are ‘Inter-Departmental transfers treated’?
  5. What is ‘Average clause’ in a Fire insurance policy?
  6. Mention the ‘Journal Entry’ required for goods returned by branch to head office under ‘Stock and Debtors System’?
  7. A machine was purchased for Rs. 1,00,000 on 1-1-2004. The usual life of the machine is five years and the residual value is Rs. 20,000.

Find out the amount of depreciation to be provided every year under the straight line method?

  1. M/S Grace & Co., purchased a truck on 1-1-2001. The cash price being Rs.1,00,000. The purchase is on hire-purchase system. Rs. 30,000 has to be paid on the signing of the contract and thereafter, Rs. 40,000 has to be paid annually for two years interest was charged at 6%. Calculate the interest payable.
  2. Calculate the amount of Drawings from the following information?

Profits Rs. 1,20,000; Closing Capital Rs. 3,80,000 and opening Capital Rs.3,00,000.

  1. Net profit Rs.50,000; Fixed expenses [including depreciation] Rs. 80,000 and G.P.Ratio on turnover is 25%. What is Cost of Sales?

 

PART – B

Answer any FIVE questions                                                                        (5×8=40 Marks)

  1. Distinguish between HIREPURCHASE AND INSTALMENT.
  2. Write short notes on the following:
  1. Consequential loss policy
  2. Hire purchase Trading Account
  3. General Ledger Adjustment Account
  4. Repossessed Stock
  1.  Differentiate single entry system from Double Entry system?
  2. Machinery Account in the books of M/s HONESTY & Co., was as follows:

Balance as at 1-1-1986 Rs. 14,900

Purchase of machinery on 1-7-1986 Rs. 4,400

Sale of machinery on 1-10-1986 Rs. 1000.

The original Cost of machinery sold was Rs. 6000 on 1-7-1983.

Machinery is being depreciated at 10% p.a. on diminishing balance of the asset.

The books are closed on 31st Dec each year books .

Prepare the machinery account for the year endry 31st Dec 1986.

  1.  From the following details, prepare Debtors Ledger Adjustment A/c in the General Ledger and General Ledger Adjustment A/C in the Creditors Ledger as on 31-12-1976.

Rs.

Debtors Balance as on 1-12-1976       ————————      45,750

Creditors Balance as on 1-12-1976 ————————–       54,900

Transactions for the month of December:

Credit purchases                     ——————————–        20,500

Credit Sales                             ——————————–        22,700

Return Inwards                       ——————————–             400

Return Outwards                    ——————————–             600

Cash received from customers            ———————–       25,000

Discount allowed to customers           ———————–            550

Cash paid to creditors                         ———————–       30,700

Discount received from creditors       ———————–            670

Acceptance received from Debtors    ———————–         8,700

Creditors bills accepted                      ———————–       12,000

B/R returned dishonoured                  ———————–         1,200

B/P returned dishonoured                   ———————–         3,000

Bad debts written off                         ———————-           2,500

Sundry charges debited to customers ———————-              345

Allowances from creditors                  ———————-              275

 

  1. Mr. S. Vasanth and Mr. X. Peter started business on 1-1-2005 with capitals in the ratio of 2:3.

Their assets and liabilities on 1-1-2005 and on 31-12-2005 were as follows:

1-1-2005

(Rs.)

31-12-2005

(Rs.)

Cash in hand & at bank …………………………. 5,000 6,000
B/R …………………………………………………….. 3,000 4,000
Sundry-in-trade…………………………………….. 30,000 25,000
Stock-in-trade………………………………………. 4,000 5,000
Fixed Assets ……………………………………….. 70,000 60,000
Creditors …………………………………………… 8,000 5,000

The partners share profits in the ratio of 2:3 after charging interest on capital in the beginning @ 6% p.a. and after providing interest on Drawings @ 5% p.a.

Drawings on an average of 6 months are Rs. 10,000 for Mr. S. Vasanth and Rs. 15,000 for Mr. X. Peter.

Calculate profits and also ascertain the share of net profits after charging interest on capital and after providing interest on Drawings.

  1.  A Bombay head office has a branch at Madras to which goods are invoiced at cost plus 25%.

From the following particulars, prepare the Branch A/c in the head office books:

 

 

Goods sent to branch ————————

Rs.

2,00,000

Total sales ———————————— 3,00,000
Cash sales ———————————— 1,00,000
Cash received from branch Drs ———– 1,80,000
Branch Drs on 1-1-2006 ——————- 30,000
Branch stock on 1-1-2006 —————– 1,00,000
Branch stock on 31-12-2006 ————– 70,000

 

  1. A fire occured in the premises of Mr. R. Chandran on 10th May 2006. In order to make a claim on their fire policies in respect of the stock, calculate the amount of claim from the following data. The stock salvaged was Rs. 7600
2003

(Rs)

2004

(Rs)

2005

(Rs)

2006

(Rs)

Opening Stock —————— 32,000 30,000 32,000 36,000
Purchases            —————- 82,000 94,400 1,13,200 1,56,000
Sales             ——————— 1,20,000 1,32,000 1,56,000 1,98,000
Closing Stock  ——————- 30,000 32,000 36,000 ?

 

PART – C

Answer any TWO questions                                                                        (2×20=40 Marks)

  1. Prepare Trading and Profit & Loss Account for the year ended 31st December 2006 and the Balance Sheet as at that date from the following particulars.
DEBIT

BALANCES

Rs. CREDIT

BALANCES

Rs.
Purchases ——————— 40,000 Capital ———————- 50,000
Return Inwards ————– 1,500 Return outwards ———– 1,000
Carriage Inwards ————- 7,500 Sales ———————— 1,00,000
Carriage Outwards ———– 8,000 Discount Received ——– 5,000
Office Expenses ————– 10,000 Sundry Creditors ———- 42,500
Rent for office —————- 4,000
Buildings ———————- 50,000
Furniture & Fixtures ——– 20,000
Sundry Drs ——————- 15,000
Cash in hand —————– 1,000
Cash at Bank —————– 5,000
Opening stock ————— 10,000
Salaries ———————– 12,500
Discount allowed ———– 4,000
Drawings ——————– 10,000
1,98,500 1,98,500

Adjustments:

  1. Stock on hand on 31-12-2006 was estimated at Rs. 40,000 (including stationery stock Rs. 1000).
  2. Office expenses include stationery purchased Rs. 3000.
  3. Allow interest on capital @ 12% p.a.
  4. Carriage inwards include carriage paid on purchase of furniture Rs. 500.
  5. Stock destroyed by fire was Rs. 5000 and the insurance company accepted a claim of Rs. 2000.
  6. 1750 paid as rent of the office was debited to Landlord A/c and was included in the list of sundry debtros.

 

  1. On 1-1-2001, M/s RAGAM TRADERS purchased from M/s VASANTHAM BROTHERS five trucks costing Rs. 20,000 each on the hire purchase system.

It was agreed that Rs.25,000 should be paid immediately and the balance in three instalments of RS. 30,000 each at the end of each year.

M/S VASANTHAM BROTHERS charges interest @ 10% p.a. The buyer depreciates trucks @ 20% p.a. on the diminishing balance method.

The buyer paid cash down and two instalments but failed to pay the last instalment. Consequently, M/s VASANTHAM BROTHERS 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.

M/s VASANTHAM BROTHERS sold the trucks repossessed for Rs. 30,000 after necessary repairs amounting to Rs. 5,000.

Prepare necessary ledger accounts in the books of the parties.

 

  1. M/S KIRUBAI & COMPANY took from M/S FAITH & COMPANY a lease of a coal field for a period of 10 years from 1st January 2000 on a royalty of 75 paise per tonne of coal raised with a ‘Dead Rent’ of Rs. 3000 a year and a power to recoup shortworkings during the first 5 years of the lease.

The annual outputs were as follows:

 

Year                Outputs

  • 1000 tonnes
  • 3000 tonnes
  • 8000 tonnes
  • 2000 tonnes
  • 8000 tonnes

Prepare ledger accounts in the books of M/S KIRUBAI & COMPANY.

 

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Loyola College B.Com Corporate & Secretaryship April 2009 Financial Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SECRETARYSHIP

IR 03

SECOND SEMESTER – April 2009

BC 2501/ BC 2500 – FINANCIAL ACCOUNTING

 

 

 

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

 

 

PART – A

Answer ALL questions:                                                                               (10 x 2 = 20)

  1. What are the differences between straight line method and Diminishing balance method of depreciation?
  2. If Mr. A had taken a lease of quarry from Mr. B for five years with a commitment of minimum rent Rs. 40,000 per annum, his out put for three years were Rs.25,000, Rs. 42,000 and 75,000, what would be Journal entries he had to pass in his books for the second year.
  3. The books of Mr. X for the year ending 31 March 2008 show Opening stock Rs. 60,000, Closing stock Rs. 40,000. Purchases Rs.4,00,000; Wages Rs.10,000. Rate of gross profit on sales 20%. Calculate sales for the year.
  4. What are the limitations of Single entry system of accounting?
  5. On what basis you will apportion the following expenses in Departmental accounting? Building rent, electric power, welfare expenses and advertising expenses.
  6. Give journal entries in the books of Head office for the following transactions:
  7. Expenses paid by the Head office for its X branch Rs. 40,000, for Y branch Rs. 60,000 not yet adjusted in the accounts.
  8. Goods sent by branch X to Y branch Rs. 30,000 are yet to be recorded.
  9. X tells you that his capital on 31 March 2007 is Rs. 1,87,000 and his capital on 1 April, 2006 was Rs. 1,92,000. He further informs you that during the year he gave a loan of Rs.35,000 to his brother on private account and withdrew Rs.3000 per month for personal expenses. He also had a flat for his personal use the rent of which at the rate of Rs.1,000 per month and electricity charges at an average of Rs.100 per month were paid from business account. He once sold his 7.5% Government Bond Rs.2,00,000 at 2% premium and brought that money into the business. Besides that there is no other information. You are required to prepare a statement of profit for the year 2006-07.
  10. What is the significance of an Average clause in an insurance policy?
  11. How is an agreement of Hire Purchase different from an instalment sale?
  12. What do you understand by the Terms: Dead Rent and Short workings?

 

PART – B

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

  1. A company purchased Machinery for Rs. 60,000 on 1 October 2004. It was decided to depreciate it at 10% per annum on diminishing balance method. On 1 April 2006 it was decided to depreciate at 10% per annum on straight line method and to adjust the difference in depreciation arising from the change of method to Profit and Loss a/c for the year 2006-07. Show Machinery account for three years ending 31 March 2005, 2006 and 2007.
  2. Arul purchased machinery under the hire purchase system from Mr. Balu. The cash price of the machinery was Rs.15,000. The payment for the purchase is to be made as follows: on signing the agreement Rs. 3,000; end of the first year Rs.5,000 and end of the second year Rs. 5,000 and end of third year Rs. 5,000. Calculate the amount of interest included in each instalment.
  3. From the following particulars prepare Branch Account showing the profit or loss of the branch:

Opening stock at the Branch Rs. 30,000

Goods sent to Branch             Rs. 90,000

Sales (Cash)                            Rs. 1,20,000

Expenses: Salaries                   Rs. 10,000

Other expenses                        Rs. 4,000

Closing stock could not be ascertained but it is known that the branch usually sells at cost plus 20%. The branch manager is entitled to a commission of 5% on the profit of the Branch before charging such commission.

  1. The following purchases were made by a firm having three departments. Dept A 1000 units, Dept B 2000 units and Dept C 2400 units at Total cost of Rs.1,00,000.
Department Opening stock (Units) Sales (Units)
Dept A 120 1020 units at Rs. 20 each;
Dept B 80 1920 units at Rs. 22.50;
Dept C 152 2496 units at Rs. 25 each;

The rate of Gross profit is the same in each case. Prepare the Departmental Trading Account.

  1. The following particulars ascertain the amount of credit sales for the year ended 31 March 2008.

On 1.4.2007 Total debtors Rs. 7,00,000 Bill receivables Rs.60,000.

On 31.3.2008 Total debtors Rs.8,80,000 and Bills receivables Rs.1,80,000.

During the year 2007-08 Cash received from customers Rs.14,50,000. Received for Bills receivables Rs.80,000;

Discount allowed to customers Rs.20,000

Sales Returns Rs.60,000 and Bad debts Rs.30,000.

  1. Rohit Industries Ltd had taken out an insurance policy on stock for Rs. 30,000 with an average clause. On 15 October 2002 there was fire as a result of which the whole of the stock with the exception of that valued at Rs. 10,000 was destroyed. From the following information ascertain the claim that can be lodged against the Insurance company:

Stock on 1-4-2002 Rs. 27,000 (at 10% less than cost)

Purchase from 1-4-2002 to 15-10-2002 Rs. 90,000

Wages for the period Rs.20,000

Sales for the period Rs.1,30,000.

The company sells goods at cost plus 30% assuming that the claim as calculated by you is settled by the Insurance company give journal entries in the books of Rohit Industries Ltd.

  1. Explain the following: a) Stock and Debtors system of Branch accounting
  2. b) Self Balancing Ledgers
  3. Give the necessary journal entries in connection with royalties payable / receivable, dead rent, short workings arising, short workings recovered and irrecoverable in the Books of Lesser and Lessee.

 

PART – C

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

  1. Delhi Head office supplied goods to its branch at Kanpur at invoice price which is cost plus 50%. All cash received by the branch is remitted to Delhi and all branch expenses are paid by the head office. From the following particulars relating to Kanpur branch for the year ending 31 March 2008 prepare Branch stock a/c, Branch debtors a/c, Branch expenses a/c and Branch adjustment a/c in the books of the head office so as to find out the gross profit and net profit made by the Branch.

Rs.

Stock with branch on 1.4.2007                       60,000

Branch debtors                        “                      12,000

Petty cash balance       “                                  100

Goods received from head office                   1,86,000 (at invoice price)

Goods returned to head office                                   13,000

Credit sales less returns                                   86,000

Cash received from debtors                            90,000

Discount allowed to debtors                           2,400

Expenses: cash paid to Head office Rent       2,400

Salaries                                                            24,000

Petty cash                                                        1,000

Cash sales                                                        1,04,000

Stock with branch on 31.3.2008                     54,000 (at invoice price)

Petty cash balance                                           100

  1. Mathew keeping his books under single entry system presents the following facts before you:

1.4.2006          31.3.2007

Rs.                   Rs.

Sundry debtors                                   18,100             19,300

Stock                                                   15,000             14,000

Machinery                                           25,000             –

Furniture                                             4,000               –

Sundry creditors                                 11,000             12,500

Summary of cash transaction for year ending 31 March 2007:

 

Receipts:                                 Rs.       Payments                                             Rs.

Opening balance                     500      Payment to Creditors                          35,000

Cash sales                                6,100   Wages                                                 16,000

Received from Debtors           75,300 Salaries                                                35,000

Miscellaneous receipts            200      Drawings                                             4,000

Loan from David

@ 9% on 1 October 2006       10,000 Expenses                                             11,000

Machinery bought 1 Oct 2006            9,500

Closing balance                                   1,600

Depreciation is provided on furniture and fittings at 10% per annum. No figures are available for total sales. However Moneymaker informs you that he maintains a steady gross profit rate of 25% on sales. Prepare Money maker’s trading profit and loss account for the year ended 31 March 2007 and the Balance sheet as at date.

 

  1. X Transport Ltd. purchased from Manish Motors 3 Tempos costing Rs.1,50,000 each on hire purchase basis on 1 April 2005. 20% of the cost was to be paid down and the balance in 3 equal instalments together with interest at 9% at the end of each year. X Transport Ltd paid the instalment due on 31 March 2006 but could not pay thereafter. Manish Motors agreed to leave one tempo with the purchaser adjusting the value of the other two tempos against the amount due on that date. The tempos recovered were valued on the basis of 30% depreciation annually. X transport Ltd charges depreciation on tempos @ 20% on diminishing balance method. M/s Manish motors incurred Rs.10,000 on repairs of tempos repossessed and resold them at a profit of 5% on total cost.

Write up necessary ledger accounts in the books of both parties giving effect to the above transactions.

 

 

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Loyola College B.Com Corporate & Secretaryship April 2011 Financial Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SEC.

SECOND SEMESTER – APRIL 2011

BC 2501/BC 2500 – FINANCIAL ACCOUNTING

 

 

 

Date : 08-04-2011              Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

 

PART – A

Answer all the questions                                                                                           (10×2=20 Marks)

 

  1. Show the necessary entries to adjust the following:
  2. Outstanding salaries 1,200
  3. Prepaid insurance premium Rs.450
  4. A firm purchased a plant for Rs.40,000. Erection charges Rs.2,000. Effective life of the plant is 5 years.

Calculate the amount of depreciation per year under Straight Line Method.

  1. What is single entry system?
  2. What do you understand by “Self – Balancing System of Ledger”?
  3. The Calcutta Trading Co. Ltd. opened a branch at Bangalore on 1st April 1993. From the following

particulars, prepare Bangalore Branch Account in H.O. Books.

Rs.
Goods sent to Bangalore Branch 40,000
Cheque sent to Branch for:
       Rent 4,000
       Salaries 5,000
       Other expenses 2,000
Cash received from Branch 60,000
Stock on 31st March 1994 8,000
Petty cash on hand, 31st March 1994 150

 

 

 

 

 

 

 

 

 

 

 

  1. From the following information, prepare a departmental Trading account of X Ltd., which has two

departments, A and B.

A B
Rs. Rs.
Opening stock 5,000 4,000
Sales 1,00,000 2,00,000
Purchases 75,000 1,50,000
Sales returns 10,000 8,000
Closing stock 4,000 3,000
Wages 3,000 4,000
Carriage inwards 1,000 2,000

 

  1. What is Instalment purchase system?
  2. What is minimum rent?
  3. From the following, calculate the amount of claim in respect of fire occured in a business on

31.12.02.

Sales from 1.4.02 to 31.12.02   Rs.12,00,000

Purchases from 1.4.02 to 31.12.02  Rs.8,00,000

Stock on 1.4.02  Rs.2,00,000

Gross profit 25% on sales.

 

  1. What is meant by loss of profit policy?

 

PART – B

Answer any FIVE questions                                                                                    (5×8=40 Marks)

 

  1. A second hand machinery was purchased on 1.1.2000 for Rs.30,000 and Rs.6,000 and Rs.4,000 were

spent on its repairs and erection respectively. On 1.7.2001, another machine was purchased for

Rs.26,000. On 1.7.2002, the first machine was sold for Rs.30,000. On the same day, one more machine

was bought for Rs.25,000. On 31.12.2002, the machine bought on 1.7.2001 was sold for Rs.23,000.

Accounts are closed on 31st December every year.

Depreciation is written off at 15% per annum on W.D.V. method, prepare machinery account for 3

years ending 31.12.02.

 

  1. From the following particulars, calculate total purchases:
              (Rs.)
Opening balance of B/P 25,000
Opening balance of creditors 30,000
Closing balance of B/P 35,000
Closing  balance of creditors 20,000
Cash paid to Creditors 1,51,000
B/P discharged during the year 44,500
Return outwards 6,000
Cash purchases           1,29,000

 

  1. 13. What is departmental Accounting? Distinguish between Department and Branch Accounting.

 

  1. 14. From the following details, set out the Hire Purchase Trading A/c in the books of a trader who sells a

number of articles of comparatively small value daily on the hire purchase system, showing his profit

on this department of the business for the year ended 31.12.88. For the purpose of charging his hire

purchase customers, he adds 60% to the cost of the goods.

    1.1.88 Rs.
      Stock in customers hands at selling price 31.12.88 1,620
      Sale of goods on hire purchase during the year at selling price 6,534
     Cash received from hire purchase customers at selling price 2,100
     Stock in customers’ hand at selling price 4,674
     Goods repossessed (Instalments due Rs.1,000) valued at 250

 

  1. Mr. N wrote a book on Management and got it published with M/s Nachiar publications on the terms

that royalties will be paid @ Rs.5 per copy sold subject to a minimum amount of Rs.15,000 with a

right of recoupment of short workings over the first three years of the lease.

From the following prepare

(a) Royalties A/c  and (b ) Mr. N’s A/c. The other details are:

Year    No. of copies printed              Closing stock

1991                2,000                                       100

1992                3,000                                       200

1993                4,000                                       400

1994                5,000                                       500

 

  1. A fire occurred in the premises of Winston on 15.3.2005 destroying his stock for which he maintained

no records. The following information was available from his books.

Year Sales (Rs.) Gross Profit (Rs.)
2001

2002

2003

2004

 5,00,000

8,00,000

9,00,000

8,00,000

       50,000

1,20,000

90,000

1,20,000

 

Value of stock on 1.1.2005                                         Rs.40,000

Purchases from 1.1.2005 to 15.3.2005                             75,000

Sales from 1.1.2005 to 15.3.2005                                    80,000

Stock salvaged                                                                   5,000

Calculate the amount to be claimed from the insurance company.

  1. From the following particulars, prepare Trading and Profit and Loss A/c for the year ending 31.3.2006

and Balance Sheet as on 31.3.2006.

              Trial Balance as on 31.3.2006

Particulars Dr. (Rs.) Cr. (Rs.)
Buildings 1,00,000
Capital 2,00,000
Sales (Cash) 1,50,000
Sales (Credit) 50,000
Salaries 10,000
Debtors 50,000
Opening stock 40,000
Wages 5,000
Purchases (Cash) 50,000
Purchases (Credit) 10,000
Cash in hand 5,000
Creditors 60,000
Discount received 1,000
Commission paid 2,000
Purchase Returns 1,000
Carriage inwards 3,000
Drawings 4,000
Sales returns 6,000
Bad debts 2,000
Carriage outwards 3,000
Advertisement 4,000
Rent paid 46,000
Electricity charges 2,000
Printing expenses 3,000
Interest paid 5,000
Rent received 38,000
Machinery 1,00,000
Furniture 50,000
5,00,000 5,00,000

 

  1. The directors of Departmental Stores Ltd. wish to ascertain approximately, the net profit of the A, B

and C departments separately for the quarter ended 31.3.88. It is found impracticable actually to take

stock on that date but an adequate system of departmental accounts is in use and the normal rates of

gross profit for the departments concerned are 40%, 30% and 20% on turnover respectively. Indirect

expenses are charged in proportion to departmental turnover.

Following are the figures for each department:

Particulars A B C
Rs. Rs. Rs.
Stock as on 1.1.88 30,000 35,000 15,000
Purchases to March 31, 1988 35,000 37,500 23,500
Sales to March 31, 1988 60,000 50,000 30,000
Direct expenses 10,100 7,250 3,550

Total indirect expenses for the period (including those relating to other departments) were Rs.21,000 on total sales of Rs.4,20,000.

Prepare accounts showing gross profit and net profit after making provision for stock at 10% of the closing stock in respect of each department.

 

 

PART – C

Answer any TWO questions                                                                                         (2×20=40 Marks)

[

  1. From the following Trial Balance as on 31.3.2006 and the adjustments given, prepare Trading and

Profit and Loss A/c for the year ending 31.3.2006 and the Balance Sheet as on 31.3.2006.

Particulars Dr. (Rs.) Cr. (Rs.)
Opening Stock 15,000  Capital 25,000
Machinery 30,000  Purchase Returns 1,000
Purchases 40,000  Bills payable 5,000
Sales Returns   2,000  Sales 1,24,000
Wages 10,000  Sundry Creditors 5,000
Salaries   5,000  Provision for doubtful debts 500
Office rent 12,000  Provision for discount on debtors 100
Insurance   6,000
Sundry Debtors 20,000
Cash   4,000
Bank Balance 15,600
Bad debts   1,000
1,60,600 1,60,600

Adjustments:

  1. Closing stock at the year end was Rs.30,000
  2. Further bad debts amounted to Rs.500
  3. 5% of the profit is to be appropriated for creating Reserve fund
  4. Create 5% provision for doubtful debts on debtors
  5. Create 2% provision for discount on debtors
  6. Create 1% reserve on creditors.

 

 

  1. A Company has two branches A and B. Goods are invoiced at cost plus 50%. Branch remits cash

received to the H.O. and all expenses are met by H.O. From the following particulars, prepare the

necessary accounts on the stock and debtors system, to show the profit earned at branches.

A B
Rs. Rs.
Stock on 1.1.85 (invoice price) 9,300 15,600
Debtors on 1.1.1985 6,800 8,700
Goods invoiced to the branch (at cost) 34,000 36,000
Sales at branches:
Cash Sales 25,010 35,000
Credit Sales 31,000 30,100
Cash collected from debtors 30,400 29,800
Goods returned by debtors 1,200 1,500
Goods returned by branch to H.O. 1,500
Goods transfer from B
  to A at invoice price 2,100 2,100
Shortage of Stock 450
Discount to customers 200 350
Expenses at branches 5,400 6,700
Surplus in stock 300

 

 

 

 

 

 

 

  1. Fire occured in the premises of Bad Luck Co. Ltd. on 1.11.1990. The indemnity period lasted for 4

months during which the sales of the company were reduced to Rs.2,00,000 only. The company closes

its account on 30th June every year. The Profit and Loss A/c for the year ended 30th June 1990 is given

below:

Dr.      Profit and Loss A/c for the year ending 30.6.1990      Cr.

 Particulars Rs. Particulars Rs.
To Opening Stock 5,00,000 By Sales 47,50,000
To Purchases 30,00,000 By Closing stock 2,50,000
To Variable expenses 7,87,500
To Standing charges 3,62,500
To Net Profit 3,50,000
50,00,000 50,00,000

The company took a loss of profit policy for a sum of Rs.6,00,000. The sales of the company for   the 12 months ending the date of fire were Rs.50,00,000 and for the months from 1.11.1989 to 28.2.1990 were Rs.15,00,000.

It was noted that the sales for the first four months of the year under indemnity were 20% higher than previous year. Compute the claim for loss of profit.

 

 

 

 

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Loyola College B.Com Corporate & Secretaryship Nov 2012 Financial Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SEC.

FIRST SEMESTER – NOVEMBER 2012

BC 1502 – FINANCIAL ACCOUNTING

 

 

 

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

Time : 1:00 – 4:00

 

PART – A

ANSWER ALL THE QUESTIONS:                                                                                 (10 x 2 =20)

 

  1. What is single entry system?
  2. State the causes of depreciation.
  3. What is default?
  4. Do we need a closing entry for carrying any account to a balance sheet?
  5. Write a short note on independent branch.
  6. On July 1, 2001, Gopal Ltd. Purchased second- hand machinery for Rs. 20,000 and spent Rs. 3,000 on reconditioning and installing it. The company writes off depreciation @ 10% on original cost.  The machinery is sold for Rs. 10,000 on 31st march 2005,  books were closed on 31st December every year.  Calculate profit or loss on sale of machinery.
  7. The hire purchase price of an item is payable in three instalments of Rs. 1,300;Rs. 1,200; and Rs.1,100 respectively. Compute the cash price if the rate of interest is 10%.

 

  1. A trader has his stock insured against fire. Subsequently a fire destroyed a part of his stock which was valued at the date of the fire at RS. 60,000.  The stock was insured subject to average clause.  Stock valued at Rs. 12,000 was salvaged.  Stock was insured for Rs. 36,000. Calculate the amount of claim.

 

  1. Calculate the missing figure:

Capital in the beginning Rs. 5,000; drawings or capital introduced ?; profits made during the year Rs. 2,000; capital at the end Rs. 13,000.

 

  1. How would you apportion the following items between departments: rent and taxes; printing and stationery; general charges; lighting.

 

 

PART – B

ANSWER ANY FIVE QUESTIONS           :                                                                                   (5  x 8=40)

  1. Distinguish between hire purchase system and instalment system.
  2. Briefly describe the procedure to be adopted in the conversion of the books maintained by single entry to double entry.
  3. Mohit purchased 5 trucks from Orient Transport Company on 1-1-2006. The cash price of a truck is Rs. 1,50,000 each. The amount is payable as Rs.50,000 down and the balance in 4 annual instalments of Rs.25,000 each along with interest @ 20% p.a. Mohit depreciates the trucks @ 10% of original cost. He pays the 1st instalment on time but fails to pay the 2nd due on 31-12-2007 and Orient Transport Company seizes all the trucks. Prepare the relevant accounts in the books of Mohit.

Also show necessary ledger accounts in books of hire vendor, assuming that it sells repossessed goods at Rs. 1,10,000 each on 31-12-2007 after overhauling trucks at a cost of Rs. 50,000.

 

  1. From the following information, calculate the branch profits applying stock and debtors system.

Opening branch stock Rs. 15,000, opening branch debtors Rs. 5,000; Goods sent to branch Rs. 80,000; cash sent for expenses Rs. 4,000; Cash sales Rs. 25,000; credit sales Rs. 55,000(Excess over invoice price being Rs. 5,000); Goods returned by branch to head office Rs. 5,000; goods received from other branches Rs. 15,000, actual branch expenses Rs. 3,800; discount allowed to branch debtors Rs. 1,000; cash received Rss. 73,000 and closing branch cash Rs. 200.

Goods are invoiced to branch at cost plus 25% of cost.

  1.  On 1st April 2012, the Godown of  H Ltd was destroyed by fire.  From the books of accounts, the following particulars are gathered:

Stock at cost in 1st Jan 2011               Rs.       75,000

Stock as on 31st Dec 2011                               80,000

Purchases during 2011                                  3,10,000

Purchases from 1st Jan to 31st March 2012      75,000

Sales during 2011                                           4,00,000

Sales from 1st Jan to 31st March 2012            1,00,000

Value of goods salvaged                                    5,000

In valuing closing stock of 2011 Rs. 5,000 were written off whose cost was Rs. 4,800.  A part of this stock was sold in 2012 at a loss of Rs. 400 on the original cost of Rs. 2,400.  The remainder of the stock is now estimated at original cost.  The godown and the stock therein was fully insured.  Indicate the amount of the claim to be made against the insurance company.

  1. A firm is willing to change the system of providing for depreciation from diminishing balance method to straight line method with retrospective effect from 1.4.05.  On 1.4.07, the machinery account in the ledger had a debit balance of Rs. 5,67,000.  The rate of depreciation would, however , remain unchanged.  Necessary adjustments for depreciation due to change in method should be made in the year 2007-08.  Rate of depreciation 10%p.a.

You are further informed that new machinery were purchased on 1.10.2007 at a cost of Rs. 60,000.  Show the machinery account.

 

  1. You are required to prepare Departmental Trading and profit and loss account, after adjusting the unrealized department profits, if any.

Dept. A (Rs.)                          Dept. B (Rs.)

Opening stock                                     50,000                             40,000

Purchases                                          6,50,000                          9,10,000

Sales                                                10,00,000                        15,00,000

General expenses incurred for both the departments were Rs. 1,25,000 and you are also supplied with the following information : a)  closing stock of Dept. A Rs. 1,00,000 including goods from Dept. B for Rs. 20,000 at cost of Dept. A; b) closing stock of Dept. B Rs. 2,00,000 including goods from Dept. A for Rs.30,000 at cost to Dept. B.  c) Opening stock of Dept. A and B include goods of the value of Rs. 10,000 and Rs. 15,000 taken from Dept. B and A respectively at  cost to transferee departments; d) the gross profit is uniform from year to year.

  1. Pass Adjusting entries:
  1. Private purchases amounting to Rs. 300 had been included in the purchases day book
  2. A manufacturer of medicines used for personal purposes medicine worth Rs. 200, distributed as samples worth Rs. 1500 and gave to his staff worth Rs. 800 for their personal use.
  3. Goods sold on ‘sale or return’ basis and recorded as sale not consented upto 31st December Rs. 6,000
  4. A machinery purchased for Rs. 50,000 but the amount was wrongly posted to furniture account as Rs. 5,000.
  5. Stock of Rs. 10,000 was burnt by fire and claim of Rs. 4,000 is acceptable by the insurance company.

SECTION C

ANSWER ANY TWO QUESTIONS                                                                                 (2 x20=40)

 

  1. From the following Trial Balance of Thiru. Rehman as on 31st March 1995, prepare Trading and Profit & Loss A/c and Balance Sheet taking into account the adjustment:

Debit balance              Rs.                   Credit Balances                      Rs.

Land and Buildings      42, 000                        Capital                                                 62, 000

Machinery                   20, 000                        Sales                                        98, 780

Patents                                       7, 500                        Return Outwards                            500

Stock 1-4-1994                          5, 760                        Sunday Creditors                       6, 300

Sundry debtors                        14, 500                        Bills payable                              9, 000

Purchases                     40, 675

Cash in hand                      540

Cash at Bank                 2, 630

Return Inwards                              680

Wages                            8, 480

Fuel & power                 4, 730

Carriage on Sales           3, 200

Carriage on Purchases   2, 040

Salaries                                    15, 000

General Expenses          3, 000

Insurance                           600

Drawings                       5, 245

————–                                                                    ————

1, 76, 580                                                               1, 76, 580

 

Adjustments:

  • Stock on 31-3-1995 was Rs. 6, 800.
  • Salary outstanding Rs. 1, 500.
  • Insurance Prepaid Rs. 150.
  • Depreciate machinery @ 10% and patents @ 20%.
  • Create a provision of 2% on debtors for bad debts.

 

 

  1. A submits to you the following figures, relating to his business in respect of the year, ending 31st

December 2012.  You are required to prepare a trading and profit and loss account for the year ended.

Any difference in the cash balance is assumed to be drawings.

Rs.

Cash paid into bank                                                                1,50,000

Private dividends paid into bank                                                 2,000

Private payments out of bank                                                    26,000

Payments for goods out of bank                                             1,22,000                                                                 Cash received from debtors                                                  2,50,000                                                         Payments for goods by cash and cheques                             1,60,000

Wages                                                                                                  40,000                                                             Delivery expenses                                                                       7,000                                                                Rents & Rates                                                                               2,000                                                            Lighting and heating                                                                            1,000

General expenses                                                                     4,600

 

 

The assets and liabilities are as follows:

Assets and liabilities                           1st Jan              31st Dec

Stock                                                20,000             15,000

Bank balance                                      8,000             12,000

Cash in hand                                                     300                  400

Debtors                                              14,000             20,000

Creditors                                            27,300             30,000

Investments                                         50,000             50,000

 

  1. The following purchases are made by Good Luck Co. having three departments:

Department A : 1,500 units

Department B:  2,500 units        at a total cost of Rs. 1,18,000

Department C:  3,000 units

Stock on 1st April 2011.

Department A : 150  units

Department B: 200  units

Department C: 250 units

Sales during 2011-12

Department A : 1400 units @ Rs. 18 each

Department B: 2400 units  @ Rs. 24 each

Department C: 2700 units @ Rs. 30 each

The rate of gross profit is the same in each

Other expenses were:

Salaries                                    Rs. 18,200

Printing                               4,550

Rent                                    2,000

Interest paid                        2,730

Depreciation                        3,640

Allocate rent in the ratio of 2:2:1 and other expenses in the ratio of departmental gross profits.  Prepare Departmental Trading and profit and loss account.

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Loyola College B.Com April 2008 Financial Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

           B.Com. DEGREE EXAMINATION – COMMERCE

RO 1

FIRST SEMESTER – APRIL 2008

CO 1500 – FINANCIAL ACCOUNTING

 

 

 

Date : 03-05-08                  Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

 

PART – A

Answer ALL Questions                                                                     (10 x 2 = 20 marks)

  1. What is Trial balance?
  2. Explain the term ‘Depreciation’.
  3. Calculate the Sales: Cost of goods sold Rs. 1,00,000 & Rate of gross Profit on sale 20%?
  4. What are Self-balancing ledgers?
  5. Write a note on Stock and Debtors System.
  6. What is the meaning of Departmental Accounts?
  7. Calculate Cash price if Hire Purchase is Rs. 1,00,000 and Interest is Rs. 25,000.
  8. Calculate Short working, if minimum Rent is Rs.5000 & Royalty Rs. 3000.
  9. What is loss of profit insurance?
  10. How is the loss of stock computed?

 

PART – B

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

  1. Differentiate between Hire Purchase & Instalment System.
  2. From the following details Calculate Capital in the beginning?

Rs.

Profit made during the year                2,400

Drawings                                             1,200

Capital at the end                                8,000

Capital introduced during the year     2.000

  1. ‘A’ keeps General ledger. Prepare Debtors Ledger Adjustment a/c & Creditor Ledger Adjustments as they would appear in General Ledger from the following particulars.

Rs.

Jan.1    Creditors’ balance                   40,000

Jan.1    Debtors’ balance                     50,000

Transactions during the month of January were as under:

Rs.                                                   Rs.

Credit Sales                             20,000             Discount

Received from Creditors        200

Sundry Charges debited to

Customers            300             Bills Receivable dishonoured    400

Cash received from customers18,000             Bills payable                            3000

Discount allowed                         200             Bills payable dishonoured          300

Bills Receivable received

from Debtors               10,000

Paid cash to creditors              25,000

Credit purchases                     21,000

Purchase Returns                         500

Sales Returns                               200

Allowances from Creditors          100

Bad debts                                  1,000

  1. Mr. R of Cochin has opened a branch at Chennai which sells goods for cash only. The following are the transactions between Branch Office and the Head office for the year ended 31.12.2007.

Rs.                                                                            Rs.

Opening Stock                                    2,00,000          Cash Sent to Branch for Rent             2000

Goods supplied to Branch      5,00,000          Cash Sent to Branch for other

Expenses                     1000

Cash received from Branch    6,00,000          Closing Stock                                1,50,000

Petty Cash balance on 31.12.2007       100

Prepare Chennai Branch Account.

 

 

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

Dept.               X         —        1000 units

Dept.               Y         —        2000 units

Dept.               Z          —        2400 units

Stock on 1st Jan were

Dept.               X         —        120 units

Dept.               Y         —        80 units

Dept.               Z          —        152 units

The Sales were:

Dept.               X         —        1020 units @ Rs. 20 each

Dept.               Y         —        1920 units @ Rs. 22.50 each

Dept.               Z          —        2496 units @ Rs. 25 each

Prepare Department Trading Account.

 

  1. On 1st Jan 2004, ‘A’ bought a television from a seller under Hire purchase system, the cash price of which being Rs.10,450 as per the following terms.
  • 3000 to be paid on signing the Agreement.
  • Balance to be paid on three equal installments of Rs. 3000 at the end of each year.
  • The rate of Interest charged by the seller is 10% p.a

Calculate Interest paid by the buyers to the seller each year.

 

  1. A company leased a colliery on 1st Jan 2004 at a Minimum Rent of Rs. 20,000 per year, merging into a royalty of Rs. 1.50 per ton with a power to recorp short workings over the first 3 years of the lease. The output of the colliery for the first four years:

2004→ 9000 tons                   2006 → 16,000 tons

2005→12000 tons                  2007→20,000 tons

 

Pass Journal entries.

 

  1.  Fire occurred in the premises on 1.1.2008 and the business books and records were saved. The following information was obtained.

Rs.

Purchases for the year ending 30.06.2007                  60,000

Sales for the year ending 30.06.2007                         90,000

Sales from 1.7.2007 to 31.12.2007                             35,000

Purchase from 1.7.2007 to 31.12.2007                       50,000

Stock on 30.06.2007                                                   28,000

Stock on 30.06.2007                                                   28,000

Stock on 30.06.2006                                                   40,000

Calculate the amount of claim to be presented to the insurance company in respect of the loss by fire.

 

PART – C

 

Answer any  TWO  of the following Questions                               (2 x 20 = 40 marks)

  1. Thomas does not maintain his books in the Double entry system and Bank Accounts. From the following information.

Prepare P/L a/c and Balance Sheet as at June 30, 2005

(A) Assets and Liabilities                               30-06-2004                  30-06-2005

Rs                                Rs

Stock                                                      19,800                      1,13,200

Creditors                                                31,000                         14,500

Debtors                                               1,18,000                      1,25,000

Premises                                                 90,000                         90,000

Furniture                                                11,000                         11,500

Air-Conditioner                                     15,000                         15,000

(B) Creditors as on 30-06-2004 includes Rs.15000 for purchase of Air-Conditioner.

(C) Cash transactions:                                          Rs.

Cash as at July 1, 2004                          15,000

Collections form customers                1,60,800

Payments to Creditors (Trade)            1,44,000

Rent, Rates & Taxes                              11, 000

Salaries                                                1,12,000

Sundry expenses                                    18,000

Sundry Income                                      16,500

Drawings by Thomas                             30,000

Loan from Mrs. Fernandes                    23,000

Capital introduced                                 12,000

Cash sales                                               11,500

Cash purchases                                       15,000

Paid to creditor for Air-Conditioner      15,000

(D) Bad debts written off                                    1,200

  1.  Crown Industries, Mumbai has a branch at Madurai to which goods are invoiced at cost plus 25%. The branch makes sales both for cash and on credit. Branch expenses are paid direct from head office and the branch remits all cash to head office.

From the following details, prepare the necessary ledger accounts in Head Office books to calculate branch profits as per the Stock and Debtors System.

 

Goods received from H.O at invoice price                                         60,000

Returns to H.O at invoice price                                                            1,200

Branch stock on April 1, 2002 at invoice price                                     6,000

Cash sales                                                                                            20,000

Credit sales                                                                                         36,000

Branch debtors on April 1, 2002                                                          7,200

Cash collected from debtors                                                               32,000

Discount allowed to debtors                                                                    600

Bad debts in the year                                                                               400

Goods returned by debtors to branch                                                      800

Rent, rate and taxes at branch                                                                          1,800

Branch office expenses                                                                            600

Branch stock at invoice prince on March 31, 2003                             12,000

 

  1. The M & Co. acquired 5 machines on Hire-purchase system from the V & Co. _____ the cash price for each machine being Rs. 5000. The price was payable in five(5) installments of Rs. 1100 each, every year, the first being paid on signing the contract and the installments included interest charged at 5% per annum. The M & Co decided to provide depreciation at 10% per annum calculated on the diminishing balance method. It paid the first installment due at the end of the first year but could not pay the next.

Give the necessary ledger Accounts in the books of both parties for two years if the V & Co agreed to leave 3 machines with the M & Co adjusting the value of the other 2 machines against the amount due. The machines were valued on the basis of 20% depreciation annually. The Hire vendor spent Rs. 400 on getting the machines thoroughly overhauled and sold them for Rs. 8,800.

 

˜v™

 

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Loyola College B.Com Nov 2008 Financial Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

QB 01

 

   B.Com. DEGREE EXAMINATION – COMMERCE

FIRST SEMESTER – November 2008

CO 1500 – FINANCIAL ACCOUNTING

 

 

 

Date : 12-11-08                     Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

SECTION     A

      Answer ALL                                                                                    (10 x 2 = 20)

  1. What are the limitations of single entry system.
  2. State the advantages of departmental accounts.
  3. State, with reasons in brief, whether the following statement is true or false : The provision for discount

on debtors is calculated after  deducting the provision for doubtful debts from debtors.

  1. What is an average clause in a insurence policy?
  2. Distinguish between straight line and diminishing balance methods of depreciation.
  3. Give journal entries for the following: (i) Goods used for personal consumption- 5,000;

(ii) Stock destroyed by fire-Rs. 50,000-covered fully by insurance.

  1. Calculate cash price of the asset taking into consideration the following particulars: Down payment

Rs. 15,000; first, second and third instalments at the end  of each  year Rs. 25,000, Rs. 25,000, and

Rs. 15,000  respectively.  Interest is reckoned at 10% p.a.

  1. Find the amount of claim under average clause if a stock of Rs. 3,00,000 is insured for Rs. 2,00,000 and

the loss amounts to Rs. 1,50,000.

  1. From the following particulars of Mr. Bhat, under single entry system, ascertain the total sales:

Opening stock Rs. 12,000, purchases  Rs. 60,000, wages Rs. 7,000 closing stock Rs. 15,000, the rate of

gross profit on sales  20%.

  1. Madras Traders opened a branch at Bangalore on 1.1.2006. From the following particulars prepare

branch account in the books of Head Office: Goods sent to branch Rs. 20,500,  Cash sent to branch – for

salary Rs. 4,000; for rent Rs. 1,000, Goods returned by branch Rs. 2,000;  Cash received from branch

during the year Rs. 20,000; stock on 31st December  2006-Rs. 10,000.

 

SECTION    B

Answer any FIVE only                                                                     (5 x 8 = 40)

  1. Explain the steps involved in arriving at the claim for loss of profits under consequential loss policy.
  2. What do you understand by hire purchase? How does it differ from a purchase on instalment basis?
  3. A firm has two departments-cloth and readymade clothes departments. The readymade clothes are

made by the firm itself out of the cloth supplied by the cloth  department at its usual selling price.  From

the following figures, prepare departmental trading and profit and loss account for the year ended 31st

March, 2004.

 

Particulars                                            Cloth Deptt.              Readymade Clothes Deptt.

Opening Stock                                     Rs. 2,40,000                          Rs. 48,000

Purchases                                                 18,00,000                                 24,000

Sales                                                         20,00,000                              6,00,000

Transfer to readymade clothes dept.          4,00,000                                   —

Manufacturing expenses                                  —                                     68,000

Selling expenses                                            40,000                                   4,000

Closing stock                                              3,00,000                                 60,000

The stock in readymade clothes department may be considered as consisting  80% cloth and rest as

other expenses.  The cloth department earned a gross profit of  25% in 2002-2003.

 

  1. Show the relevant adjustment accounts in General Ledger under self-balancing Ledgers.

Rs.

Total balances of Trade Debtors as on 1st January, 2007                      18,700

Total balances of Trade Creditors as on 1st January, 2007                    23,560

Transaction during January 2001

Credit Sales                                                                                            19,700

Cash received from Trade Debtors                                                          9,800

Discount Allowed to Trade Debtors                                                           200

Bills Receivable received from Trade Debtors                                      12,000

Bills Receivable received from Trade Debtors dishonoured                   1,000

Credit Purchases                                                                                     25,560

Cash paid to Trade Creditors                                                                  28,800

Discount received from Trade Creditors                                                  1,200

 

  1. Nila Ltd. which depreciates its machinery @ 10% per annum according to diminishing balance method,

had on 1st April, 2006 Rs. 4,86,000 balance in its machinery account. During the year ended 31st March,

2007, the machinery  purchased on 1st April, 2004for Rs. 60,000 was sold for Rs. 40,000 on 1st October,

2006 and a new machinery costing Rs. 70,000 was purchased and installed on the same date; installation

charges being Rs. 5000.

The Company wants to change its method of depreciation from diminishing  balance method to

straight line method w.e.f. 1st April, 2004and adjust the difference  before 31st March, 2007, the rate of

depreciation remaining the same as before.

Show the machinery account for the year ended 31st March, 2007.

 

  1. The Sandur Iron Co. has taken on lease a mine on a royalty of 50 paise per tonne of iron ore raised

with a minimum rent of Rs. 20,000 per year, and power to recoup shorworkings during the first four

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. 

 

  1. Quick Movers Ltd. acquires two Motor Vans each costing Rs. 18,650 from Karnatak Motors Ltd. on

hire purchase system.  Payment to be made Rs. 10,000 down and the balance in three equal instalments

of Rs. 10,000 each at the end of each year.  The  interest charged is at 5% p.a.  Depreciation to be

provided is at 10% p.a. on diminishing balance method.

Quick Movers Ltd. after having paid the advance and the first instalment at the end of first year, failed

to pay the second instalment because of financial difficulties. Karnatak Motors Ltd. took possession of

theVans and sold them for Rs. 21,998 after spending Rs. 400 on repairs.

Write up the necessary ledger accounts in the books of Quick Movers Ltd.

 

  1. Due to heavy fire in the godown of a company on 1st October, 2005, the entire stock was burnt except

some costing Rs. 35,000.  The books were, however,  saved.

From the information available it was found that:

  • The Company’s average gross profit was 25% on sales.
  • The stock on 31st March, 2005 valued at 10% above cost was Rs. 1,10,000.
  • The purchases and sales from 1st April 2005, upto the date of fire were

Rs. 1,50,000 and Rs. 3,40,000 respectively.

  • The wages for the period amounted to Rs. 72,000
  • The company insured the stock for Rs. 60,000
  • The policy had an average clause.

You are required to prepare a statement showing the amount of stock lost by fire and the amount

of claim to be lodged with the Insurance Company.

 

SECTION      C

Answer any TWO only                                                                                        (2 x 20 = 40)

  1. Following is the trial balance of Nathan & Co. as on 31st March, 2007

Rs.                                Rs.

Capital Account                                                                            80,000

Drawing Account                                     6,000

Stock(1.4.2006)                                      45,000

Purchases                                             2,60,000

Sales                                                                                            3,10,000

Furniture                                                 10,000

Sundry Debtors                                       40,000

Freight and Octroi                                     4,600

Trade expenses                                             500

Salaries                                                      5,500

Rent                                                           2,400

Advertising expenses                                5,000

Insurance Premium                                      400

Commission                                                                                  1,300

Discount                                                       200

Bad Debts                                                  1,600

Provision for Bad Debts                                                                   900

Creditors                                                                                      20,000

Cash in hand                                              5,200

Bank                                                           5,800

Goodwill(at cost)                                     20,000____________________

_4,12,200                       4,12,200__

 

Adjustments:

  • Stock on 31st March, 2007 was valued at Rs. 53,000
  • Salaries paid have been only for 11 months
  • Unexpired insurance included in the figure of Rs. 400 appearing in trial balance is Rs. 100
  • Commission earned but not yet received amounting to Rs. 122 is to be recorded in books of account
  • Provision for bad debts is to be brought upto 3% of sundry debtors.
  • Manager is to be allowed a commission of 10% of net profits after charging such commission
  • Furniture is depreciated @ 10% per annum .
  • Only 1/4th of advertising expenses are to be written off.

Prepare trading and profit and loss account for the year ended 31st March, 2007and balance sheet as on that date

 

  1. Southern Traders have opened a branch at Nagpur on 1.1.2000. The goods were sent by the head office

to the branch and invoiced at selling price to the branch which was 125% of the cost price of the head

office.  The following are the  particulars relating to transactions of Nagpur Branch.

Rs.              Rs.

Goods sent to Branch(at cost)                                                                2,80,800

Sales:  Cash                                                                     1,25,000

Credit                                                                    1,75,000         3,00,000

Cash collected from debtors                                                                   1,56,000

Discount allowed                                                                                         4,000

Stock on 31.12.2000

(at invoice price)                                                         55,000

Cash sent to branch for:

Wages                                                                                  3,000

Freight                                                                                11,000

Other expenses                                                                     6,000             20,000

Spoiled good written off(at invoice price)                                                      500

Prepare the necessary accounts in the books of Head Office under   Stock and Debtors System. 

 

    

21.Shri Ramdas commenced business on 1 April, 2006 with a capital of Rs. 45,000  he immediately

purchased furniture of Rs. 24,000.  During the year he borrowed from his father a sum of Rs. 5,000.  He

had withdrawn Rs. 600 per month for his household expenses.  He had no bank account and all dealings

were in cash.  He did not maintain any books but following information is given:

Rs.

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

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

Carriage inwards                                                                                700

Wages                                                                                                 300

Discount allowed to debtors                                                            1,200

Salaries                                                                                            6,200

Bad debts written off                                                                       1,100

Trade expenses                                                                                1,200

Advertisements                                                                                2,200

 

He used goods worth Rs. 1,300 for his personal use and paid Rs. 500 to his son for

examination and college fees.

 

On 31st March 2007, his debtors were worth Rs. 21,000 and creditors Rs. 15,000.  Stock in trade was

valued at Rs. 10,000.  Furniture to be depreciated by 10% p.a.

Prepare Trading and Profit & Loss Account and the Balance Sheet for the year

ended 31st  March 2007.

 

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Loyola College B.Com April 2009 Financial Accounting Question Paper PDF Download

         LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – COMMERCE

KP 01

FIRST SEMESTER – April 2009

CO 1500 – FINANCIAL ACCOUNTING

 

 

 

Date & Time: 20/04/2009 / 1:00 – 4:00  Dept. No.                                                            Max. : 100 Marks

 

 

                                                                  SECTION – A

Answer ALL questions:                                                                                  10 x 2 = 20     

  1. Choose the correct answer:

Income Tax paid by a sole trader is shown:

  • On the debit side of Trading Account
  • On the debit side of Profit & Loss Account
  • By way of deduction from the capital in the balance sheet.
  1. Fill in the blanks:

The difference between cash sent accounts appearing in the two trial balances i.e. branch trial balance and head office trail balance is called _______________.

  1. Royalty account is in the nature of ___________________ account.
  2. True of False

If the goods are transferred form department X to department Y at selling price which includes a profit of 25% on the cost, the amount of stock reserve on such closing stock(Valued at Rs.60,000) of department Y will be Rs. 15,000.

  1. Ascertain purchases from the following figures:
Cost of goods sold Rs. 80,700
Opening stock 5,800
Closing stock 6,000
  1. Mahendra and Narendra purchased two assets, particulars of which are given as under:
Cost Scrap value Estimated life
Furniture Rs. 73,200 Rs. 480 6 years
Plant Rs. 1,52,800 3,280 8 years

You are required to determine the amount of depreciation to be written off in each case. Assume the company has adopted straight-line method of depreciation.

  1. Calculate the missing figure:
Capital in the beginning? Capital at the end Rs. 1,82,000
Capital introduced Rs. 47,000 Drawings Rs. 28,000
Loss Rs. 14,000
  1. Calculate bills received from customers:
Opening balance of bills Rs. 7,000 Bills received endorsed to creditors Rs. 1000
Bills dishonoured by customers Rs. 2,000 Bills collected Rs. 13,000
Closing balance of bills Rs. 6,000
  1. Calculate cash price of Machine from the following information:
Down payment Rs. 10,000 Rate of Interest 5% p.a
4 annual Instalments at the end of each year Rs. 10,000
  1. Stock of Rs. 80,000 of M/S Kailash chand & sons has been insured for Rs. 70,000. Loss due to fire is assessed at Rs. 20,000. Calculate what claim M/s Kailash Chand & Sons will get from the Insurance company.

SECTION – B

Answer any FIVE questions:                                                             5 x 8 = 40

  1. What causes depreciation? Discuss them.
  2. Distinguish between hire-purchase and Instalment-purchase system.
  3. Explain in brief the procedure of calculation of total stock and claim for stock lost on the date of fire.
  4. Naresh commenced business in March 2000. He acquired some machines for Rs. 2,00,000 on April 1, 2000. He acquired another machine for Rs. 50,000 on March 1, 2002. He sold Machines, original cost of which was Rs. 60,000 for Rs. 35,000 on October 31, 2001. Assuming depreciation @ 15% under written down value basis, compute the depreciation for the year ended March 31, 2001 and March 31, 2002. Depreciation to be calculated to the nearst rupee.
  5. The following details were extracted from the books of a company for six months ended 31st March, 2003.

2002 Oct 1 Total balances of accounts of                   2002 Oct 1 Provision for

customers Rs. 3,72,000                                                          doubtful debts Rs. 25,000

The transactions for six months ended 31st March, 2003:

Credit Sales Rs. 7,30,000 Returns from customers Rs. 7,400
Cash received by customers Rs. 7,08,000 Cheques dishonoured Rs. 2,800
Bills accepted by customers Rs. 26,000 Bills dishonoured Rs. 3,600
Bills endorsed Rs. 7,000 Bad debts written off Rs. 6,300
Carriage charged to customers Rs. 1,200 Cash paid to customers for returns 5,000
Cash discount allowed Rs. 17,800 Bad debts previously written off recovered 1,200
Transfer from bought Rs. 3,000

Prepare sales ledger adjustment account in general ledger.

  1. The super cycles has a branch at Chennai. Goods are invoiced to the branch at cost plus 25%. Branch is instructed to deposit cash every day in the head office account in the bank. All expenses are paid by cheque by the head office except petty cash expenses which are paid by the Branch manager. From the following particulars, prepare branch account in the books of head office:
Stock on 1st January 2002 Rs. 2,500 Stock on 31st December 2002 Rs. 3,000
Sundry debtors on 1st January 2002 Rs. 1,400 Sundry debtors on 31st December 2002 Rs. 1,800
Cash sales for the year Rs. 10,800 Credit sales for the year Rs. 7,000
Cash remitted to the head office Rs. 15,000 Furniture purchased by the Br. Manager Rs. 1,200
Goods invoiced from the head office Rs. 18,200 Expenses paid by head office Rs. 1,640
Expenses paid by the Branch Rs. 120 Cash remitted by H.O to the Branch for purchase of safe Rs. 1,300
  1. A company leased a mine of 1st January, 1999 at a minimum rent of Rs. 20,000 merging into a royalty of Rs. 1.50 per ton with power to recoup shortworkings over the first three years of the lease. The output of the mine for the first three years was 9000 tons, 12000 tons, and 16000 tons respectively.

Pass the necessary journal entries for each of the three years in the books of the company.

  1. Fire occured in the premises of Mr. Srinivasan on May 1, 2003 and the stock was destroyed. Following information was available from the records:
Purchases for the year 2002 Rs. 8,88,000 Sales for the year 2002 Rs. 11,60,000
Purchases form Jan 1, 2003 to May 1, 2003  

Rs. 1,82,000

Sales from Jan 1, 2003 to May 1, 2003 Rs. 2,40,000
Stock on January 1, 2002 Rs. 1,44,000 Stock on December 31, 2002 Rs. 2,42,000
Wages paid during 2002 Rs. 1,00,000 Wages paid during Jan 1, 2003 to May 1, 2003 Rs. 18,000

The stock salvaged was Rs. 25,000. A fire insurance policy for Rs.2,00,000 was taken to cover the loss by fire.

There was a practice in the concern to value the stock at cost less 10%. But this practice was changed and stock on December 31, 2002 was valued at cost plus 10%.

Calculate the amount of claim to be submitted with the Insurance Company for stock lost by fire.

SECTION – C

Answer any TWO questions:                                                             2 x 20 = 40

  1. Komco Ltd carries on its business through five departments A,B,C,D and E. The following information for 2002 is made available:
  • Salaries Rs. 11,020; Rent Rs.5,800; Insurance Rs.1,160; Miscellaneous Expenses Rs. 2,610 All these expenses are chargeable to each department in proportion to the cost of articles sold in respective department.
  • The following balances as at 31.12.2002 were ascertained.
            Particulars A B C D E
Rs. Rs. Rs. Rs. Rs.
Opening stock at cost 10,000 6,000 15,000 8,000 9,000
Purchases 1,00,000 60,000 20,000 52,000 60,000
Sales 96,000 62,000 19,000 46,000 60,000
Closing Stock 23,000 8,000 6,000 2,000 11,000

Prepare the profit & loss account to show the result of each department and also the combined

results with respective % on sales.

  1. Thiru Thomas does not maintain his books in the Double Entry System. From the following information, prepare Trading, Profit & Loss A/C and Balance Sheet as at March 31, 2003:

(i)

Assests and liablilities 31.3.2002 31.3.2003
Rs. Rs.
Stock 19,800 1,13,200
Creditors 31,000 14,500
Debtors 1,18,000 1,25,000
Premises 90,000 90,000
Furniture 11,000 11,500
Air-Conditioner 15,000 15,000

(ii)  Creditors as at 31.3.2002 include Rs. 15,000 for purchase of Air-Conditioner.

(iii)

Cash transactions: Rs.
Cash as at April 1, 2002 15,000
Collections from customers 1,60,800
Payments to creditors (Trade) 1,44,000
Rent, rates and taxes 11,500
Salaries 1,12,000
Sundry expenses 18,000
Sundry Income 16,500
Drawings by Thomas 30,000
Loan from Mrs. Fernandes 23,000
Capital introduced 12,000
Cash sales 11,500
Cash purchases 15,000
Payment to creditor for Air-conditioner 15,000

(iv) Bad debts written off                                1,200

  1. X purchased five trucks on hire purchase basis on October 1, 2001. The cash price of each truch was Rs. 5,50,000. X was to pay 20% of the cash price at the time of delivery and 25% of the cash price at the end of each of the four subsequent half years beginning from March 31, 2002.

On X’s failure to pay the instalment due on September 30, 2002, it was agreed that X could keep three trucks on the condition that the value of the two trucks would be adjusted against the amount due, the trucks being valued at cost less 25% depreciation.

Show the relevant accounts in the books of X, assuming that the books of account are

closed every year on March 31, and depreciation @ 15% is charged on the original cost of the trucks.

 

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Loyola College B.Com Nov 2010 Financial Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

   B.Com. DEGREE EXAMINATION – COMMERCE

FIRST SEMESTER – NOVEMBER 2010

CO 1500 – FINANCIAL ACCOUNTING

 

 

 

Date : 10-11-10                     Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

 

SECTION – A

Answer All questions:                                                                                   (10 x 2 = 20 Marks)

 

  1. What do you mean by cost of goods sold?
  2. Give the adjusting entries for the following appearing under the Trial balance:

(i)      Prepaid Insurance                     (ii) Depreciation on Machinery

(iii)    Closing stock                            (iv) Goods issued as samples

 

  1. Depreciation is a process of : (Choose the correct answer)

(a) Valuation of asset                                            (b) Allocation of cost

(c) Both valuation of asset and allocation of cost   (d) None of these

 

  1. Bills receivable endorsed are debited to: (Choose the correct answer)

(a) B/R  A/c.                    (b) B/P A/c            (c) debtors A/c.     (d) Creditors A/c.

 

  1. Calculate the missing figure: Opening Capital Rs.1,50,000, Profits Rs.60,000,

Closing capital Rs.3,90,000,  Drawings or Capital introduced Rs. ________.

 

  1. Explain the terms: Goods in Transit, Cash in Transit.

 

  1. What is ‘inter-departmental transfer’ and how is this treated in accounts?

 

  1. Calculate total interest when cash price is Rs.5,00,000 and down payment is Rs.1,25,000. Three annual instalments are of Rs.1,21,000, Rs.1,33,100 and Rs.1,46,410 are to be paid.

 

  1. What is minimum rent?

 

  1. It is given that short sales were Rs.2,04,000 and that of gross profit on sales was 25%. Hence the loss of profit will be equal to: (choose the correct answer)

(a)     Rs.40,800                                (b)     Rs.51,000

(c)     Rs.68,000                                (d)     Rs.55,000

SECTION – B

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

 

  1. State the features and defects of single entry system.
  2. What are the special terms used in hire-purchase? Explain in detail.
  3. Define depreciation. What factors do you consider for calculating depreciation?
  4. Gopal purchased a machine for Rs.8,000 on 1st April 2001. He spent Rs.3,500 on its repair and installation.  Depreciation is written off @ 10% p.a. on the Diminishing balance Method.  On 30th June 2004 the machine was found to be unsuitable and sold for Rs.6,500.  Prepare the machine account from 2001 to 2004 assuming that the accounts are closed on 31st December every year.

 

  1. From the following details, write General Ledger adjustment accounts as on 31.12.2008.

Rs.                                                              Rs.

Debtors (1.1.2008) Dr       1,74,250      Bills accepted for Creditors                   74,000

Debtors (1.1.2008) Cr            3,200      Discount allowed to debtors          2,150

Creditors(1.1.2008)Cr       2,74,080      Discount allowed to debtors

Creditors(1.1.2008) Dr           2,040      but later on disallowed                   1,000

Purchases                         2,52,000      Cash received from debtors          87,000

Sales                               2,82,090      Discount allowed by creditors      10,200

Sales Returns                       2,080      Cash paid to debtors                         250

Purchases returns                  7,140      Transfer from debtors to               12,420

Cash paid to Creditors       1,27,000     creditors ledger

Bills received from debtors    93,000      Cash purchases                            43,200

Bills dishonoured                    2,000     Cash sales                                  74,000

Bad debts written off              2,150

 

  1. From the data, prepare Departmental Trading, Profit & Loss account and thereafter the combined income account revealing the concern’s true result for the year ended 31.12.2008.

Dept. A                          Dept.B

   Rs.                                  Rs.

Stock (January)                                 40,000                                –

Purchase from outside                     2,00,000                           20,000                  Wages                                                10,000                             1,000                  Transfer of goods from Dept.A               –                                 50,000

Stock (Dec 31st) at Cost of the Deptt. 30,000                           10,000

Sale of outsiders                              2,00,000                           71,000

 

B’s entire stock represents goods from Deptt.A which transfers them at 25% above its cost.  Administrative and selling expenses amount Rs.15,000 which are to be allocated between departments A and B in the ratio 4:1 respectively.

 

 

 

 

 

 

 

  1. Rajan took licence from Golden Flask Co. for production and sale of flasks at a royalty of Rs.0.50 per piece sold subject to a minimum rent of Rs.6000. short working is recoverable within 3 years of agreement. Pass journal entries in the books of Rajan.

     Year                    I                  II                III             IV

Production             8000           11000                   14000                   6000

Closing Stock         2000             1600                     3000                   4000

 

  1. A fire occurred in the premises of a company on 15.10.2008. From the following data, ascertain the loss of stock and prepare a claim for Insurance.

Rs.

Stock on 1.1.2007                                                             30,600

Purchases from 1.1.2007 to 31.12.2007                         1,22,000

Sales from 1.1.2007 to 31.12.2007                                1,80,000

Stock on 31.12.2007                                                         27,000

Purchases from 1.1.2008 to 15.10.2008                         1,47,000

Sales from 1.1.2008 to 15.10.2008                                1,50,000

Value of stock salvaged was                                              18,000

Amount of policy was                                                         63,000

Stocks were always valued at 90% of cost

 

There was an average clause in the Policy.

 

SECTION  – C

 

Answer any TWO Questions:                                                                 (2×20=40marks)

 

  1. A head office invoices goods to its branch at cost plus 50%. Branch remits all cash received to the head office and all expenses are met by the H.O. From the following particulars, prepare the necessary accounts on the stock and debtors system to show the Profit or loss at the branch.

Rs.                                                             Rs.

Stock on 1.1.2008          27,900        Goods returned by debtors       3600

(Invoice price)

Debtors on 1.1.2008       20,400        Goods returned to H.O.by branch    4500

Goods invoice to the                          Shortage of stock                     1350

Branch (Invoice Price)   1,53,000       Discount allowed                        600

Cash sales                      75,000        Expenses at the branch           16200

Credit sales                     93,000        Bad Debts                                   600

Cash collected from

Debtors                           91,200

 

  1. Mohan purchased a machine on hire purchase system on 1.1.2008. The terms of payment are four annual instalment of Rs.12,690 at the end of each year.  Interest is charged @ 5% and is included in the annual payment of Rs.12690. Show machinery account and hire vendor account in the books of Mohan who defaulted in the payment of the third yearly payment whereupon the vendor repossessed the machinery.  Mohan provides depreciation on the machinery @ 10% p.a. on the reducing balance.

 

  1. The Position of Manohar’s business as on 1.1.2008 was as under: Sundry Creditors Rs.1,70,000 ; Freehold premises Rs.5,00,000 ; Stock Rs.2,50,000 ; Sundry debtors Rs.2,00,000; Furniture Rs.20,000.

An abstract of the cash book is appended below

       Receipts            Rs.                    Payments                            Rs.

Sundry Debtors     1,50,000               Overdraft(1.1.2008)        1,00,000

Cash sales             8,00,000               Expenses                         5,00,000

Drawings                             30,000

Sundry Creditors               2,00,000

Cash in hand                       20,000

Cash at bank                    1,00,000

 

9,50,000                                                       9,50,000

The following additional information is available: Closing Stock Rs.3,00,000; Closing Debtors Rs.2,50,000 ; Closing Creditors Rs.1,20,000. No additions were made during the year to premises and furniture but they are to be depreciated @ 10% and 15% respectively.  A bad debts provision of 2.5% is to be raised.

 

Prepare a Trading and profit and loss account for the year ended 31.12.2008, and a balance sheet as on that date.

 

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Loyola College B.Com April 2012 Financial Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – COMMERCE

FIRST SEMESTER – APRIL 2012

CO 1500 – FINANCIAL ACCOUNTING

 

 

 

Date : 28-04-2012              Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

 

PART – A

Answer ALL the questions:                                                                                     (10×2=20 Marks)

 

  1. What do you understand by “Self – Balancing System of Ledger”?
  2. State any four objectives of preparing departmental accounts.
  3. What is minimum rent?
  4. Under stock and debtor system, cost of shortage is debited to
  5. a) Branch adjustment a/c    b) Branch stock a/c
  6. c) Branch profit & loss a/c d) Goods sent top branch a/c
  7. Hire purchaser is in the position of a ———— with regard to goods obtained on hire purchase
  8. a) Creditor     b) Debtor    c) Bailor         d) Bailee
  9. Salary paid to manager must be debited to:
  10. a) Manager’s A/c b) Office expenses A/c c) Salaries A/c             d) Trading A/c
  11. A firm purchased a plant for Rs.60,000. Erection charges Rs.5,000. Effective life of the plant is 13 years. Calculate the amount of depreciation per year under Straight Line Method.
  12. A fire occurred in a firm on 10th Value of stock on that date was Rs.80,000, but it was insured for only Rs.56,000. Stock destroyed by fire was Rs.50,000. Find the claim.
  13. A purchased a machine on hire-purchase basis. The cash price of the machine was Rs.22,350. As per the terms, the buyer had to pay Rs.6,000 on signing the agreement and the balance in three annual instalments of Rs.6,000 each. Vendor charges interest at 5% p.a. Calculate the interest amount for the first instalment.
  14. Calculate debtors’ balance at the end:

Opening debtors Rs.40,000

Total sales Rs.1,60,000

Cash sales Rs.20,000

Cash received from customers Rs.60,000

Bad debts Rs.4,000

Returns inward Rs.1,000

Bills received from customers Rs.18,000.

 

PART – B

Answer any FIVE questions:                                                                                   (5×8=40 Marks)

 

  1. Distinguish between a Trail Balance and a Balance Sheet.
  2. State the advantages of “Self – Balancing System of Ledger.
  3. Give the differences between hire purchase and instalment purchase system.
  4. On 1st April 2001, Kumar purchased a secondhand machine for Rs.80,000 and spent Rs.20,000 on its

cartage, repairs and installation. The residual value at the end of its expected useful life of 4 years is

estimated at Rs.40,000. On 30th September 2003, this machine is sold for Rs.50,000. Depreciation is

to be provided according to straight line method. The Books are closed on 31st December every year.

Prepare Machinery Account.

 

 

  1. From the following particulars, calculate credit sales and credit purchases.
              (Rs.)
Debtors as at 31.3.2002 28,000
Debtors as at 31.3.2001 24,000
Sales returns 1,000
Cash received from Debtors 74,800
Bills receivable drawn 26,000
Discount allowed 1,000
Bad debts 1,000
Cheques received from debtors 10,000
Bills receivable dishonoured 4,000
Cheque dishonoured 6,000

 

              (Rs.)
Balance of creditors on 31.3.2001 5,000
Returns outwards 3,000
Cash paid to creditors 25,000
Discount allowed by creditors 1,000
Bills accepted 5,000
Balance of creditors on 31.3.2002 10,000

 

  1. Trading and Profit and Loss A/c of Janaki Radio and Gramophone Equipment Co. for the six months

ended 31.3.1993 is presented to you in the following form:

Particulars Rs. Particulars Rs.
Purchases Sales
Radio (A) 1,40,700 Radio (A) 1,50,000
Gramophones (B) 90,600 Gramophones (B) 1,00,000
Spare parts ( C) 64,400 Spare parts ( C) 25,000
Salaries & wages 48,000 Stock as on 31.3.93
Rent 10,800 Radio (A) 60,100
Sundry expenses 11,000 Gramophones (B) 20,300
Profit 34,500 Spare parts ( C) 44,600
4,00,000 4,00,000

 

Prepare departmental accounts for each of the three departments A, B and C mentioned above

after taking into account the following:

  1. i) Radios and Gramophones are sold at the show room and spare parts at workshop.
  2. ii) Salaries and wages comprise as follows: Show rooms ¾ and workshop ¼.

It was decided to allocate the show room salaries and wages in the ratio of 1:2 between the

departments A and B.

iii) The work shop rent is Rs.500 per month. The rent of show room is to be divided equally

between the departments A & B.

  1. iv) Sundry expenses are to be allocated on the basis of the turnover of each department.

 

  1. X purchased a type writer 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 installment.

 

 

 

 

 

 

  1. A fire occurred in the premises of Mr. Bean on 5.9.2002. All stocks were destroyed except to the

extent of Rs.5,000. From the following figures, ascertain the loss of stock suffered by him.

Rs.
Stock on 1.1.2001 30,000
Purchases during 2001 1,50,000
Sales during 2001 2,00,000
Stock on 31.12.2001 40,000
Purchases during 2002 upto the date of fire 1,40,000
Sales during 2002 upto the date of fire 1,70,000

 

 

PART – C

Answer any TWO questions:                                                                                   (2×20=40 Marks)

 

  1. From the following Trial Balance as on 31.3.2006 and the adjustments given, prepare Trading and

Profit and Loss A/c for the year ending 31.3.2006 and the Balance Sheet as on 31.3.2006.

Particulars Dr. (Rs.) Cr. (Rs.)
Opening Stock 15,000  Capital 25,000
Machinery 30,000  Purchase Returns 1,000
Purchases 40,000  Bills payable 5,000
Sales Returns 2,000  Sales 1,24,000
Wages 10,000  Sundry Creditors 5,000
Salaries 5,000  Provision for doubtful debts 500
Office rent 12,000  Provision for discount on debtors 100
Insurance 6,000
Sundry Debtors 20,000
Cash 4,000
Bank Balance 15,600
Bad debts 1,000
1,60,600 1,60,600

Adjustments:

  1. Closing stock at the year end was Rs.30,000
  2. Further bad debts amounted to Rs.500
  3. 5% of the profit is to be appropriated for creating Reserve fund
  4. Create 5% provision for doubtful debts on debtors
  5. Create 2% provision for discount on debtors
  6. Create 1% reserve on creditors.

 

  1. Madras Ltd., invoices goods to its branch at cost plus 331/3%. From the following particulars prepare

the Branch Stock Account the Branch Stock Adjustment Account and Branch Profit & Loss Account

as they would appear in the books of Head Office:

Rs.
Stock at Commencement at Branch at invoice price 1,50,000
Stock at Close at Branch at invoice price 1,20,000
Goods sent to branch during the year at invoice price
(including goods invoiced at Rs. 20,000 to branch on
31.3.95 but not received by branch before close of the Year) 10,00,000
Return of goods to Head Office (invoice price) 50,000
Cash sales at Branch 9,00,000
Credit Sales at Branch 50,000
Invoice value of goods pilfered 10,000
Normal loss at Branch due to shortage and deterioration
    of stock ( at invoice price) 15,000
Madras Ltd. closes its books on 31st March, 1995
Goods lost in transit 10,000
Claim from insurance Co. 8,000

 

  1. Mr. N wrote a book on Management and got it published with M/s Nachiar publications on the terms

that royalties will be paid @ Rs.5 per copy sold subject to a minimum amount of Rs.15,000 with a

right of recoupment of short workings over the first three years of the lease. From the following

prepare

(a) Royalties A/c, (b) Short working A/c and (c) Mr. N’s A/c.

The other details are:

Year    No. of copies printed              Closing stock

1991                2,000                                       100

1992                3,000                                       200

1993                4,000                                       400

1994                5,000                                       500.

 

 

 

 

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Loyola College B.Com Nov 2012 Financial Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – COMMERCE

FIRST SEMESTER – NOVEMBER 2012

CO 1500 – FINANCIAL ACCOUNTING

 

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

Time : 1:00 – 4:00

PART – A

Answer ALL questions:                                                                                                                   (10 X 2 = 20 MARKS)

  1. How do you arrive at Gross profit?
  2. What is single Entry System?
  3. Explain the term “Depreciation”
  4. Choose the correct alternative:

The loss on sale of old motor car is debited to

  1. Profit & loss Account
  2. Motor car Account
  3. Depreciation Account
  4. None of the above
  5. Indicate if the following statement is true or false:

Net profit is equal to capital at the end + Drawings + Fresh capital introduced – capital in the beginning.

  1. In Departmental Accounts, Rent and Rates are allotted to different departments on the basis of

—————————————.

  1. Calculate the capital at the beginning of the year:

Rs

Capital at the end of the year                                              70,000

Drawings during the year                                                      10,000

Capital introduced during the year                                      5,000

Profit during the year                                                              20,000

 

  1. From the following particulars, calculate closing branch debtors balance:

Rs

Branch Debtor (1-1-08)                                                       6,300

Credit Sales                                                                                 39,000

Cash received from debtors                                                  41,200

  1. Calculate insurance claim from the following facts assuming that the insurers met their liability under the policy on ‘average basis’. A trader’s stock valued at Rs. 20,000 was totally destroyed. The stock in the godown was insured for Rs. 15,000 subject to average clause. The balance of stock, left after fire, appeared in the books at Rs. 12,000.

 

  1. On 01.01.2005, x bought some trucks under hire – Purchase System for Rs. 51,000 payable by three equal installments combining principal and interest, the latter being a normal rate of 5% P.a. Calculate the cash price. (The present value of an annuity of one rupee for three years at 5% is Rs. 2.72325).

PART- B

Answer any FIVE questions:                                                                                                       (5X8=40 MARKS)

  1. What are the features of Dependent Branches?
  2. What is average clause? How do you compute claim for loss of stock when there is average clause in the contract?
  3. How profit or loss is ascertained under the net worth method in single Entry System?
  4. A manufacturing concern, whose books are closed on 31st December every year, purchased machinery for Rs 50,000 on 1.1.2000 Additional machinery was acquired for Rs. 10,000 on 1.7.2001 and for Rs. 16,061 on 1.1.2004. Certain machinery purchased for Rs. 10,000 on 1.1.2000 was sold for Rs. 5,000 on 30.6.2003.

Give the machinery account for 5 years writing off depreciation at 10% p.a on written down value.

  1. The following particulars have been extracted from the books of Mr.A. you are required to prepare the sales ledger Adjustment Account as June 30,2004.

Rs

Balance as on January 1,2004                                                                                                55,842

Credit Sales                                                                                                                                  98,602

Cash Sales                                                                                                                                     53,250

Cash received from Debtors                                                                                                 88,753

Discount allowed                                                                                                                            480

Bills accepted                                                                                                                                7,120

Returns Inwards                                                                                                                          5,430

Bills Receivable Dishonored                                                                                                    1,120

Bad debts written off                                                                                                                3,890

Amount received against bad debts written off last year                                                             175

Sundry charges debited to customers                                                                                 378

Transfers to Bought ledger                                                                                                      100

  1. A fire occurred in the godown of a company on 20th March, 2005. All stocks were destroyed except to the extent of Rs. 13,000. From the following figures ascertain the claim amount in respect of loss of stock by fire:

Rs

Stock on 01.01.04                                                                                                       40,000

Purchases during 2004                                                                                          1,40,000

Sales during 2004                                                                                                    2,00,000

Stock on 31.12.04                                                                                                       24,000

Purchases during 2005 up to the date of fire                                               1,46,000

Sales during 2005 up to the date of fire                                                         1,60,000

Stock was always valued at 80% of the cost.

  1. Behavar coal company has taken a mine on lease. Royalty has been fixed at Rs. 0.50 per tonne. Minimum Rent is Rs 30,000. The right to recoup royalty is 5 years. The details of production for the first three years are as follows:
Year Quantity Produced

(Tones)

 

I

 

II

 

III

15,000

 

50,000

 

75,000

 

Prepare minimum rent account, Royalty account and Short workings Account.

  1. G Purchased machinery under hire purchase arrangements from Mr. B. The cash price of the machinery was Rs 15,500 Payment for the purchase is to be made as under:

On signing the agreement Rs 3,000; First years end Rs 5,000; second year end Rs 5,000; Third year end Rs 5,000. Depreciation is charged at 10% on diminishing balance method. Show the asset account and the hive vendor account in the books of the Purchases.

PART – C

Answer any TWO Questions:                                                                                                     (2X20=40 MARKS)

  1. The following Trial Balance of Mr. Arumugam as at December 31,2004 is given to you:

 

Debit Balances Rs Credit Balances Rs
Stock on 1.1.04

Furniture

Cycle

Lorry

Sundry Debtors

Cash in hand

Cash at Bank

Purchases

Bad debts

Returns Inwards

Salaries

Wages

Rent

Discount allowed

Commission

Postage

36,000

2,000

600

60,000

32,000

1,200

4,800

1,80,000

1,000

10,000

16,000

22,000

7,200

1,800

1,400

800

Sundry Creditors

Loan

Capital

Sales

Returns outwards

Discount earned

Bills payable

 

30,000

14,000

50,000

2,60,000

4,000

2,200

16,600

3,76,800 3,76,800

 

Taking into account the following adjustments, prepare Trading and profit and loss account and Balance sheet as on that date:

  • Depreciate Furniture at 10% ; Cycle at 5% ; Lorry at 20%
  • Create a Reserve of 5% on sundry debtors for bad and doubtful debts and 1% reserve for discount on sundry creditors
  • Outstanding salaries Rs 3,000.
  • Closing stock was valued at Rs 48,000,
  • Provide for 5% interest on capital.

 

  1. A Trader keeps his books under single entry system. From the following details, prepare trading and profit & loss A/C and Balance sheet:

 

As on 01.01.05

Rs

As on 31.12.05

Rs

Creditors

Furniture

Cash

Debtors

Stock

37,500

2,500

6,250

62,500

25,000

43,750

2,500

10,000

87,500

12,500

 

Other details:

Drawings Rs 10,000 ; Bad debts Rs 1,250 ; Discount received Rs 3,750 ; Discount allowed Rs 2,500 ; sundry expenses Rs7,500 ; payment to creditors Rs 1,12,500 ; collections from debtors Rs 1,33,750 ; Sales Returns Rs 3,750 ; Purchase Returns Rs 1,250 ; charge 5% Depreciation on furniture.

  1. A head office invoices goods to its branch at cost plus 50% Branch remits all cash received to the head office and all expenses are met by the Head office.  From the following particulars, prepare the necessary accounts on the stock and debtors system to show the profit or loss at the branch.
Rs. Rs.
Stock on 1.1.05 (invoice Price) 27,900 Shortage of stock 1,350
Debtors on 1.1.05 20,400 Discount allowed 600
Goods invoiced to branch (invoice price) 1,53,000 Expenses at the Branch 16,200
Cash Sales 75,000 Bad debts 600
Credit Sales 93,000
Cash collected for Debtors 91,200
Good returned by Debtors 3,600
Good returned to Head office by branch 4,500

 

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Loyola College B.Com Nov 2012 Financial Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – COMMERCE

FIRST SEMESTER – NOVEMBER 2012

CO 1502 – FINANCIAL ACCOUNTING

 

 

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

Time : 1:00 – 4:00

 

PART – A

 

ANSWER ALL THE QUESTIONS:                                                                            (10×2=20)

 

  1. What are the different types of branches?
  2. [a] Hire Vendor may take away only a portion of goods on which there is default of

installment___________

[b] ________________is the advance payable by the buyer while signing hire purchase agreement.

  1. Say True or False:

[a] Single entry is an incomplete system of accounting because here only personal accounts are

maintained.

[b] Depreciable assets are expected to be used for an accounting period.

  1. Match the following:

[a] Fixed assets          –      Mines, quarries

[b] Nominal assets    –      Bills Receivable

[c] Liquid assets         –      Building

[d] Wasting asset      –       Discount on shares.

  1. What is the need for Departmental Accounting?
  2. From the following data calculate Capital at the beginning of the year.

Capital at the end of the year             –   Rs.70,000

Drawings during the year                    –   Rs.10,000

Capital introduced during the year   –   Rs.5,000

Profit made during the year               –   Rs.20,000

  1. In what basis the following expenses apportioned in departmental accounting?

[a] Selling expenses                [b] Canteen expenses

[c] Depreciation                       [d] Carriage inwards

  1. Cash Price of the Machinery Rs.20,000. Down payment Rs.5,000, four annual installments of Rs.5,000 each. Calculate interest for each of the four years.
  2. Why do you prepare a Statement of Affairs ?
  3. Why do you prepare a Trading account?

 

PART – B

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

  1. State the various methods of depreciation.
  2. Distinguish between Statement of Affairs and Balance Sheet.

 

  1. Define HRA. Enumerate the advantages of HRA.

 

  1. On 01.01.2002, X purchased a machine for Rs.50,000. On 01.07.2003 additions were made for

Rs.10,000. On 01.04.2004, Rs.6,400 worth of additions were made. On 31.12.2004, 1/4th of the first

machine purchased on 01.01.2002 was sold for Rs.7,000. Show machinery account from 2002 to 2004

in the books of X under diminishing balance method at 10% per annum.

 

  1. From the following details, prepare Departmental Account:
Particulars Department A Rs. Department B Rs.
Opening stock

Total Purchases

Total sales

Closing stock

Credit purchases

Credit sales

9,000

27,000

42,000

10,800

17,000

5,000

8,400

21,600

36,000

4,800

10,600

6,000

 

Transfer of goods from Departments A to B  Rs.4,000

 

Transfer of services from Departments B to A Rs.500

 

  1. The Calcutta Commercial Company invoiced goods to its Jamshedpur Branch at cost. The Head

Office paid all the expenses from its bank except petty cash expenses which were paid by the branch.

From the following details relating to the Branch, prepare,

1) Branch stock A/c       2) Branch Debtors A/c   3) Branch Expenses A/c   4) Branch P&L A/c

 

Rs Rs
Stock ( Opening )

Debtors ( Opening )

Petty cash ( Opening )

Goods sent from HO

Goods returned to HO

Cash sales

Advertisement

Cash received from Debtors

Stock ( Closing )

Allowance to customers

21,000

37,800

600

78,000

3,000

52,500

2,400

85,500

19,500

600

Discount to customers

Bad debts

Goods returned to branch by customers

Salaries & Wages

Rent & Rates

Debtors(Closing)

Petty cash ( Closing )

Credit sales

 

4,200

1,800

1,500

 

18,600

3,600

29,400

300

85,200

 

 

 

 

 

 

 

 

 

  1. From the following information calculate credit purchases and total purchases:
  Rs.
Cash purchases

Opening balance of bills payable

Opening balance of creditors

Closing balance of Bills payable

Closing balance of creditors

Cash paid to creditors

Cash paid to bills payable in the relevant year

Purchase returns

Allowance from creditors

Bills payable dishonoured

29,000

7,500

20,000

2,500

18,000

25,000

10,500

1,500

800

300

 

  1. From the following information you are required to ascertain

[a] cost of sales    [b] Closing inventory as per CPP method,

when the firm follows LIFO method for inventory valuation.

Inventory on  1/4/1996                                  Rs.1,20,000

Purchases during   1996 – 97                         Rs.72,000

Inventory on  31/3/1997                                Rs.1,80,000

The firm has decided to adopt retail price index which was as follows:

On 1/4/1996 = 100;   on 31/3/1997 = 140;     Average during 1996 – 97 =125

 

PART – C

 

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

 

  1. Raja maintains his books under Single Entry system . From the following information prepare Trading

Profit and Loss A/c for the year ending 31.12.1991 and also Balance sheet as on that date.

Cash in hand on 01.01.1991 was Rs.4,250.

Asset and Liabilities

1.1.1991        31.12.1991

Debtors                                                                  16,300            21,250

Stock                                                                        8,330             11,220

Furniture                                                                     850                  850

Creditors                                                                  5,100               3,780

 

Other transactions:

Cash received from debtors       52,680              Cash sales                            1,275

Cash paid to creditors                37,400              Cash Purchases                   4,250

Salaries                                       10,200               Discount received                  595

Rent & Rates                               1,275                Discount allowed                  255

Other expenses                            1,530               Returns inward                      850

Drawings                                     2,550                Returns outward                   680

Additional capital                        1,700               Bad debts                               170

Adjustments:

 

Write off depreciation @5% on furniture.  Provide doubtful debts @ 1%  on debtors.

 

  1. Kevin purchased a truck for Rs.1,60,000 from Pranesh on 1.1.93 payment to be made Rs.40,000

down,Rs.46,000 at the end of first year, Rs.44,000 at the end of second year and Rs.42,000 at the end

of third year. Interest was charged at 5% and Kevin depreciates the truck at 10% per annum on written

down method.

Kevin, after having paid down payment and first installment at the end of first year, could not pay

second installment. The seller took possession of the truck and after spending Rs.4,000 on repairs of

the asset, sold it away for Rs.91,500.

Give journal entries and ledger accounts in the books of both parties.

 

  1. From the following trial balance as on 31.12.2000 prepare Trading, Profit and Loss Account and a

Balance Sheet as on that date.

 

Particulars Debit  Rs. Credit Rs.
Stock as on 01.01.2000

Cash in hand

Drawings

Rent

Machinery

Tax

Provision for bad debts

Bad debts

Capital

Interest

General Expenses

Bank overdraft

Purchases

Debtors

Sales

Creditors

Sales return

Purchase return

5,840

192

2,840

480

3,800

600

 

888

 

 

1,760

 

41,448

16,800

 

 

840

 

 

 

 

 

 

420

 

17,000

320

 

960

 

 

47,624

8,000

 

1,164

75,488 75,488

 

Adjustments:

 

  1. Depreciation on machinery 10% p.a
  2. Rent outstanding Rs.500
  3. Tax prepaid Rs.100
  4. Provision for bad debts is to be increased to 5% on debtors
  5. Closing stock Rs.3,500.
  6. Discuss the Social Responsibility Accounting in detail.

 

 

 

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

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A.

MS 04

DEGREE EXAMINATION –BUSINESS ADMINISTRATION

SECOND SEMESTER – APRIL 2007

BU 2500FINANCIAL 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

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

      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

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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