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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.C.A.DEGREE EXAMINATION COMPUTER APPLICATIONS
THIRDSEMESTER APRIL 2018
16UCO3AL03- BUSINESS ACCOUNTING
Date: 03-05-2018 Dept. No. Max. 100 Marks
Time: 01:00-04:00
PART A
Answer ALL the questions: (10X2 Marks =20 Marks)
1. Define the term accounting.
2. State the golden rules for passing journal entry.
3. Write a short note on ledger.
4. What is liquidity?
5. List out the current assets and current liabilities.
6. What is key factor?
7. How does the BEP calculated?
8. Find out Margin of Safety: Sales Rs.4 Lakhs; Profit Rs.20,000 and P/V Ratio 20%.
9. What is meant by the Enterprise Resource Planning in accounting?
10. State any two uses of TALLY Accounting package.
PART B
Answer any FOUR questions: (4x10 Marks =40 Marks)
11. Journalize the following transactions and prepare Cash
Date
Transactions
Rs.
April 1
April 3
April 7
April 20
April 25
April 30
April 30
Started business with cash
Sold Goods to Rohan through online
Goods purchased from Ashok through debit card
Paid Rent
Commission Received
Machinery purchased
Rohan settled his account by paying cash
500,000
400,000
200,000
5,000
2,000
100,000
395,000
12. Bring out the significance of ratio analysis in business.
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13. From the following ledger accounts, draw up a Trial Balance in the books of Smt.Antonyammal as on 31st March,2018:
Name of the accounts
Rs.
Name of the accounts
Rs.
Plant and Machinery
Prepaid expenses
Income received in advance
Bills Payable
Sundry debtors
Bank Overdraft
Long-term loan
Capital
Land
Drawings
Cash-in-hand
Income tax paid
60,000
600
1,200
1,800
60,000
6,000
60,000
120,000
6,000
6,000
3,000
600
Furniture and fittings
Accrued income
Outstanding expenses
Bills receivable
Sundry creditors
Investment in shares
Machinery
Building
Goodwill
Interest received
Cash at bank
12,000
1,200
600
1,200
59,400
6,000
51,000
60,000
6,000
36,000
11,400
14. Calculate the Debtors and Creditors turn over ratios and comment on the receivables management of the following companies:
Details
X Ltd
Rs.
Y Ltd
Rs.
Sales
Sales returns
Purchases
Purchase returns
Debtors
Bills Payable
Bills Receivable
Creditors
440,000
90,000
250,000
50,000
50,000
20,000
25,000
80,000
800,000

540,000
40,000
100,000
25,000

25,000
15. From the following information, calculate P/V Ratio BEP Margin of Safety
Details
Rs.
Total sales
Selling price per unit
Variable cost per unit
Fixed costs
360,000
100
50
100,000
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16. A factory produces 10 units of a commodity. The cost of production is:
Details
Rs.
Details

Direct Materials
Direct Wages
Direct Expenses
1,000
500
100
Factory overheads
Office overheads
Profit
125% on wages
20% on works cost
25% on sales
Calculate the price to be fixed per unit by preparing a cost sheet.
17. Briefly describe the uses and limitations of computerized accounting system.
PART C
Answer any TWO questions: (2X20 Marks 40 Marks)
18. From the following Trial Balance of Radhe Shyam Trading and Profit and Loss A/c for the year ending 31st December, 2017 and Balance Sheet as on that date. The Closing Stock on 31st December, 2017 was valued at Rs. 2,50,000.
Debit Balances
Amount
Credit Balance
Amount
Stock
2,00,000
Sundry Creditors
1,50,000
Purchases
7,50,000
Purchases Return
30,000
Sales Return
80,000
Sales
25,00,000
Freight and Carriage
75,000
Commission
33,000
Wages
3,65,000
Capital
17,00,000
Salaries
1,20,000
Interest on Bank Deposit
20,000
Repairs
12,000
B/P
62,000
Trade Expenses
40,000
Rent and Taxes
2,40,000
Cash in Hand
57,000
B/R
40,000
Sundry Debtors
5,50,000
Plant and Machinery
16,00,000
Withdrawals (Drawings)
1,66,000
Bank Deposit
2,00,000
Total
44,95,000
Total
44,95,000
19. The following is the Balance Sheet of Salman Industries Limited for the year ended 31.12.2017:
BALANCE SHEET as on 31st December, 2017
Liabilities
Amount
Assets
Amount
Bank overdraft
1,80,000
Cash in Hand
20,000
Bills payable
60,000
Bills receivable
1,00,000
Creditors
2,40,000
Investments (Short-term)
80,000
Capital
15,00,000
Debtors
3,20,000
Add: Net Profit
6,20,000
Closing Stock
4,00,000
21,20,000
Furniture
1,50,000
Less:Drawings
1,30,000
Plant Machinery
8,00,000
19,90,000
Land Building
6,00,000
Total
24,70,000
Total
24,70,000
Other details: Total sales Rs. 25,00,000; Total purchases Rs.18,00,000; Opening stock Rs.20,000; Closing stock Rs.4,00,000 and Gross Profit Rs.7,00,000.
Comment on the activity (turn over) and profitability status of the company.
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20. Comment on the profitability of each product when the key factor is:
Raw material; Labour hour; Sales quantity; Sales value; Low demand.
Details
Product A
Per Unit
Product B
Per Unit
Selling price
Materials (Rs. 20 per kg)
Labour (Rs.10 per hour)
Variable overheads
Maximum productions for the period
200
2 Kg
5 Hrs
20
1200 units
500
8 Kg
10 Hrs
40
800 units
The total fixed overheads Rs. 15,000.
21. A manufacturing company submits to you the following details about the various expenses incurred by it during the year ended 31st December 2017:
Details
Rs.
Details
Rs.
Raw materials
Samples
Depreciation on plant and machinery
Salary to factory workers
Legal expenses
Supervisor's salary
Factory rates and insurance
Carriage outwards
Wages
250,000
10,000
15,000
60,000
3,000
55,000
10,000
15,000
200,000
Bad debts
Office stationery
Rent of factory
Office salary
Commission on sales
Audit fees
Income tax
Donation to charitable institutions
Purchase of new plant
3,000
2,000
25,000
100,000
40,000
3,000
15,000
5,000
100,000
Classify the above expenses under the various heads of cost, showing separately the total expenditure under each head.