B.C.A. (Semester (CGPA) Examination, 2017
FUNDAMENTALS OF FINANCIAL ACCOUNTING
Day Date: Monday, 17-04-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
N.B. Q.1 and Q.7 are compulsory.
Attempt any two questions from Q. 3 and 4.
Attempt any one question from Q. 5 and 6.
Figures to the right indicate full marks.
Use of calculator is allowed.
Q.1 Select the correct alternatives: 07
LIFO stands for
Last In First Out Last In Firm Out
Least In First Out None of the above
Debit the expenses and losses and Credit the incomes and
gains is a rule of
Real account Nominal account
Personal account None of the above
Fixed assets are valued at cost less
Expenses Selling price
Depreciation Repairs
When salary paid in cash amount is credited.
Salary Cash
Employees Profit and Loss account
Carriage inward is debited to the
Trading account Profit and Loss account
Cash account Capital account
is an explanation of the journal entry passed.
Transaction Voucher
Invoice Narration
Closing stock appears on side of Balance Sheet.
Liabilities Assets
Income Expenditure
Q.1 State whether the following statements are True or False: 07
An amount of net profit is debited to the capital account.
A list of balances of all the ledger accounts is called as
Journal.
FIFO is a method of charging depreciation.
Trade discount is not recorded in the books of account.
Accrual is a fundamental accounting assumption.
Amount withdrawn from business for personal use is called
as capital.
Gross profit is revealed by trading account.
Q.2 Write short notes (Any two) 14
Difference between book keeping and accountancy.
Methods of Inventory valuation
Accounting concept
Q.3 Journalize the following transactions in the books of Shankar
Co.
14
2013 Rs.
June 1 Started business with a capital of 60,000
June 2 Paid into bank 30,000
June 4 Purchased goods from Kamal on credit 10,000
June 6 Paid to Shiram 4,920
June 6 Discount allowed by him 80
June 8 Cash Sales 20,000
June 12 Sold to Hameed 5,000
June 15 Purchased goods from Bharat on credit 7,500
June 18 Paid Salaries 4,000
June 20 Cash received from Prem 2,480
June 20 Allowed him discount 20
June 25 Withdrew from bank for office use 5,000
June 28 Withdraw for personal use 1,000
June 30 Paid Hanif by cheque 3,000
Q.4 Write short notes (Any one) 07
Merits and demerits of Diminishing Balance Method of
Depreciation.
Define accounting and explain internal and external user of
accounting.
From the following particulars ascertain the balance that would
appear in the Bank Pass Book of A on 31st December, 2011.
07
The bank overdraft a per Cash Book on 31st December, 2011
`6,340.
Interest on overdraft for 6 months ending 31st December,
2011 `160 is entered in Pass Book.
Bank charges of `30 are debited in Pass Book entry.
Cheques issued but not cashed prior to 31st December,
2011, amounted to `1,168.
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Cheques paid into bank but not cleared before 31st
December, 2011 were for `2,170.
Interest on investments collected by the bank and credited in
the Pass Book `1,200.
Q.5 Objectives of Accounting. 07
Difference between Journal and Ledger. 07
Q.6 The following are the details of a spare part of Sriram mills: 14
1-1-2011 Opening Inventory Nil
1-1-2011 Purchases 100 units `30 per unit
15-1-2011 Issued for consumption 50 units
1-2-2011 Purchases 200 units `40 per unit
15-2-2011 Issued for consumption 100 units
20-2-2011 Issued for consumption 100 units
Find out the value of Inventory as on 31-3-2011 if the company
follows First in first out basis.
Q.7 Mr. Mohan gives you the following trial balance and some other
information.
14
Trial Balance as on 31st March, 2011
Dr.

Cr.

Capital 6,50,000
Sales 9,70,000
Purchases 4,30,000
Opening Inventory 1,10,000
Freights Inward 40,000
Salaries 2,10,000
Other Administration Expenses 1,50,000
Furniture 3,50,000
Trade receivables and Trade payables 2,10,000 1,90,000
Returns 20,000 12,000
Discounts 19,000 9,000
Bad debts 5,000
Investments in Government Securities 1,00,000
Cash in Hand and Cash at Bank 1,87,000
18,31,000 18,31,000
Other Information:
1. Closing Inventory was
2. Depreciate Furniture 10% p.a.
You are required to prepare Trading and Profit and Loss Account for
the year ended on 31.3.2011 and Balance Sheet of Mr. Mohan as on
that date.