DISTANCE EDUCATION
B.Com. (Co operation) DEGREE EXAMINATION,
DECEMBER 2017.
FINANCIAL ACCOUNTING
Time Three hours Maximum 100 marks
PART A — x 8 40 marks)
Answer any FIVE questions.
1. State the golden rules of Accounting.
2. State the method of preparing Bank Reconciliation
statement.
3. Kannan purchased goods from Raman, the due dates for
payments in cash being as follows:
Rs.
Mar 15 1,000 Due 18th April
Apr 21 1,500 Due 24th May
Apr 27 500 Due 30th June
May 15 600 Due 18th June
Raman agreed to draw a bill for the total amount due on
the average due date. Ascertain the date.
4. What is consignment? What are its main features?
5. What is Income and Expenditure account? Explain the
steps required units preparation.
Sub. Code
15
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6. Following is the Balance Sheet of Mohan and Madan on
31st Dec 1990 after adjustment of profit for 1990 and
drawings.
Rs. Rs.
Capitals
Mohan 40,000
Madan 48,000
88,000
Land 16,000
Creditors 32,000 Building 72,000
P L Appropriation
A/C
24.000 Other Assets 48,000
Madan's
Drawings 8,000
1,44,000 1,44,000
During the year 1990.
Profits were Rs. 40,000
Drawings of Madan were Rs. 12,000
Interest to be charged p.a. on opening capitals
Calculate Interest on capital of Mohan and Madan.
7. Jai Ltd invited applications for 50,000 shares of Rs.10
each. Payable as on application Rs. on allotment
Rs. 5. The entire issue was applied for and the amount
was received in full. Pass Journal entries in the books of
company.
8. Tirupati Bank discounted a four month bill of
Rs. 1,00,000 on 9th Feb 2016. The discount rate was 12%.
Calculate the discount received in advance (Rebate on
bills discounted). The accounting year of the banks ends
on 31st March 2016.
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PART B — × 15 60 marks)
Answer any FOUR questions only.
9. From the following Trial Balance of Ravi prepare Trading
and Profit and Loss a/c for the year ended Dec. 31st 1993
and a Balance Sheet as on that date.
Trial balance
Particulars Debit Credit
Capital 40,000
Sales 25,000
Purchases 15,000
Salaries 2,000
Rent 1,500
Insurance 300
Drawings 5,000
Machinery 28,000
Bank Balance 4,500
Cash 2,000
Stock 1.1.93 5,200
Debtors 2,500
Creditors 1,000
66,000 66,000
Stock on 31.12.93 Rs. 4,900
Salaries unpaid Rs. 300
Rent paid in advance Rs. 200
Insurance prepaid Rs. 90
10. What is meant by consignment and Joint venture?
Distinguish between consignment and Joint venture.
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11. Following particulars, prepare Income and Expenditure
A/C of the Central Sports Society for the twelve months
from Apr. 1998. (Date of inception to Mar 31, 1999)
Particulars Received
paid
Outstanding
on
March 31,
1999
Subscription from members 4,600
Subscription from affiliated
societies 1,400 200
Life subscription (10 years) 2,000
Gift received 3,000
Interest received 160
Committee Expenditure
Executive
Planning
Tournament
1,500
1,440
420
200
640
120
Printing, Postage
Stationery 1,140 160
Office Furniture 2,000
Investment Purchased 3,000
12. F and G are partners sharing Their position
statement was as follows
Liabilities Assets
Capital A/c D
E
90,000
60,000
Cash Bank 4,500
Sundry creditors 1,20,000 Machinery 1,32,000
Bank loan 60,000 Stock 60,000
Debtors 1,20,000
Capital Accounts F
G
10,500
3,000
3,30,000 3,30,000
The firm is dissolved. All assets realised Rs. 2,46,000.
The sundry creditors and Bank loan were paid
Rs. 1,77.000 in full satisfaction. The expenses of
dissolution are Rs. 1,800 G became insolvent and F paid
only Rs. 9,000. Prepare Ledger accounts under Garner
Vs. Murray account to close the books of the firm.
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13. A and B are partners sharing P L in the ratio of 3:1.
Their Balance Sheet stood as under on 31.3.2004.
Liabilities Rs. Assets Rs.
Salary due 5,000 Stock 10,000
Creditors 40,000 Prepaid Insurance 1,000
Capital A
B
30,000
20,000
Drs
Provision
8,000
500 7,500
Cash 18,500
Machinery 22,000
Building 30,000
Furniture 6,000
95,000 95,000
C is admitted as a new partner introducing a capital of
Rs. 20,000 for his 1/4th share in future profits.
Following revaluation are made.
Stock be depreciated by
Furniture be depreciated by 10%
Building be revalued Rs.45,000
Provision for doubtful debts should be increased to
Rs. 1,000. Prepare Revaluation a/c and Balance
Sheet after admission.
14. Sri Lakshmi Ltd., issued 1,00,000 equity shares of Rs. 10
each, at a premium of Rs. 5 per share. The amount was
payable as follows. on application Rs. 3 On allotment
Rs. 7 (including premium) on fist call Rs. 5.
The issue was fully subscribed. All the instalments were
duly received. Give journal entries and Balance sheets in
the book of Sri Lakshmi Ltd.
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15. From the following information you are required to
prepare the Profit Loss account of the Mahalakshmi
Bank for the year ended 31st March, 2016.
Interest on loans 2,60,000
Interest on cash credits 2,25,000
Interest on over drafts 56,000
Discount on bills discounted 2,00,000
Commission 9,000
Interest on fixed deposits 2,80,000
Interest on savings bank deposits 70,000
Interest on current accounts 45,000
Establishment expenses 56,000
Rent Taxes 20,000
Auditor's Director's fees 4,000
Postage, Telephone 2,000
Sundry charges 2,000
Advertisement Printing 3,000
Rebate on bills discounted 20,000