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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.B.A. DEGREE EXAMINATION BUSINESS ADMINISTRATION
FIRST SEMESTER NOVEMBER 2017
BU 1502 FINANCIAL ACCOUNTING
Date: 04-11-2017 Dept. No. Max. 100 Marks
Time: 01:00-04:00
PART A
ANSWER ALL THE QUESTIONS (10 x 2 20)
1. What are contingent liabilities? Give suitable examples?
2. What is the need for providing depreciation?
3. Bring out the types of branches?
4. What do you understand by hire purchase system?
5. Distinguish between department and branches?
6. Prepare Trading A/c. Rs.
Opening Stock
Purchases
Freight
Closing Stock
Sales
Carriage outwards
7. A machine was purchased for Rs.50,000/- on 01.01.2009. This is expected to last for 5 years.
Its estimated scrap value at the end of 5 years is Rs.5,000/-. Find out the amount of
depreciation under straight line method.
8. Find out profit from the following data
Rs.
Capital at the beginning of the year
Drawings
Capital at the end of the year
Capital introduced during the year
9. How will you apportion the following expenses among various departments?
1. Rent 2. Lighting 3. Selling Expenses
10. Cash price of machinery Rs. down payment Rs. four annual instalments of
Rs.5,000/- each. Calculate interest for each of the four years.
PART B
ANSWER ANY FOUR QUESTIONS x 10 40)
11. Elaborate the salient features of single entry system?
12. "Departmental accounting are useful for business" Explain.
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13. A Company purchased machine for Rs.45,000/- on 1st January 2008. On 30.06.2008 another
machinery was purchased for Rs. on 31.12.2008 part of the machine was sold for
Rs.1,650, which had a cost price of Rs.2,000/- on 01.01.2008. Prepare machinery account
after providing depreciation at 10% on Straight Line Method
14. From the following information calculate credit purchases and total purchase:
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
Bill payable dishonoured
15. The Madras Trading Co. purchased a motor car from Bombay Motor Co. on hire purchase
agreement on 01.01.1980, Down payment to be made as follow: Rs.10,000/- and further
three instalments of Rs.10,000/- each on 31st December each year. The cash price of the car
is Rs.37,250/- and the Bombay Motor Co. charges interest at P.A.
The Madras Trading Co. write off 10% p.a. as depreciation on the reducing balance method.
You are required to prepare ledger accounts in the books of hire purchaser only.
16. The following purchases were made by a business house having three departments
Department A 1000 units at a Total Cost
Department B 2000 units of Rs.1,00,000/-
Department C 2,400 units
Stock on 1st January were
Department A 120 units
Department B 80 units
Department C 152 units
The sales were
Department A 1,020 units at Rs. each
Department B 1,920 units at Rs. 22.50/- each
Department C 2,496 units at Rs. each
The rate of gross profit is same in each case. Prepare department trading account.
17. A fire occurred in the godown of a factory on 02.04.1999 and destroyed the stocks. From the
following particulars calculate the amount to be received from the insurance company.
Rs.
Stock on 01.01.1999
Purchases upto date of fire
Wages
Manufacturing expenses
Sales upto the date of fire
3
Gross profit ratio 15%
Stock saved
Amount of insurance
PART C
ANSWER ANY TWO QUESTIONS x 20 40)
18. Distinguish between hire purchase and installment system?
19. Prepare final accounts with the help of following trial balance as on 31.12.2007
Particulars
Debit
Rs.
Credit
Rs.
Capital 4,250
Drawings 710
Machinery 950
Opening Stock 1,460
Purchases and Sales 10,362 11,906
Purchase return and Sales return 210 291
General Expenses 440
Rent 120
Rates 200
Apprentice Premium 80
Bank Over draft 240
Bad Debts 172
Debtors Creditors 4,200 2,000
Cash 48
Bad Debts Provision 105
18,872 18,872
Adjustments
1. Write depreciation 10% on machinery
2. Increase provision for bad debts on debtors to
3. Accrued Rent Rs.
4. Rates prepaid Rs.
5. Value of closing stock on 31.12.2007 was Rs.
6. Apprentice ship premium prepaid was Rs.20/-
20. The Calcutta Commercial and Co. invoiced goods to its Jamshedpur branch at cost. The hard
office paid all the branch 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.
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4. Branch P/L A/c.
Rs. Rs.
Opening Stock 21,000 Discount to Customers 4,200
Opening Debtors 37,800 Bad Debts 1,800
Opening Petty Cash 600 Goods returned by
Customers to branch
1,500
Goods sent from Head
Office
78,000 Salaries and Wages 18,600
Goods returned to
Head Office
3,000 Rent Rates 3,600
Cash Sales 52,500 Closing Debtors 29,400
Advertisements 2,400 Closing Petty cash 300
Cash Received from
Debtors
85,500 Credit Sales 85,200
Closing Stock 19,500
Allowances to
Customers
600
21. The trading and profit and loss account by TV and Radio Equipment company on the period
ending 31.03.2001 is presented to you.
Rs. Rs.
Purchases Sales
TV 14,07,000 TV 15,00,000
Radio 9,06,000 Radio 10,00,000
Spare Parts 6,44,000 Servicing Receipts 2,50,000
Salaries Wages 4,80,000 Closing Stock
Rent 1,08,000 TV 6,01,000
Sundry Expenses 1,10,000 Radio 2,03,000
Profit 3,45,000 Spare Parts 4,46,000
40,00,000 40,00,000
Prepare Departmental Trading and Profit and Loss Account for the three Departments
and C. After taking into Account the following for 31.03.2001.
1. TV Sets and Radio sets are sold at show room, servicing and radio repair and done at
workshop.
2. Salaries and Wages to be shared
Show room ¾
Workshop ¼
Between Departments of A and Salaries and wages are to be shared in the ratio of 1:2.
3. The workshop rent in Rs.5,000/- per month. The rent of show room is to be divided equally
between department A and B.
4. Sundry Expenses are to be shared on the basis of Sales of each department.