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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.C.A.DEGREE EXAMINATION COMPUTER APPLICATIONS
FIRSTSEMESTER APRIL 2018
BC 1101- BUSINESS ACCOUNTING
Date: 30-04-2018 Dept. No. Max. 100 Marks
Time: 01:00-04:00
PART A
Answer ALL the questions: (10 x 2 20)
1. What is 'Current Assets'?
2. State the rules for debiting and crediting.
3. What is 'Drawings'?
4. What are Subsidiary books?
5. Journalise the following transactions:
a. Paid Alan, the director his Commission of Rs.20,000.
b. Paid Rent of Rs. 200.
6. What is 'Trial Balance'?
7. What is Sinking fund?
8. What do you mean by Closing Stock?
9. What is 'Acid test ratio'?
10. A company purchased machinery for Rs. 10,00,000 and installation charges were Rs.1,00,000. Its
estimated life is 5 years and it's scrap value Rs. 50,000. Calculate its rate of depreciation.
PART B
Answer any FOUR questions: X 10 40)
11. Differentiate between Book-keeping and Accounting
12. Ramji had the following transactions. Use accounting equation to show their effect on his
assets, liabilities and capital
Ramji started business with Rs. 1,00,000
Goods purchased for cash Rs. 13,000
Goods purchased on credit Rs. 12,000
Goods sold(Costing rs.10,000) for Rs.12,000
Furniture purchased on credit Rs.2,000
Cash paid to a creditor Rs.5,000
Rent outstanding Rs.1,000
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13. The following balances are extracted from the books of Mr.Senthil. Prepare Trial Balance as
on 30.06.2017.
Particulars
Rs.
Particulars
Rs.
Capital
4,70,200
Machinery
1,58,800
Cash in hand
6,000
Sundry Debtors
48,000
Building
3,20,000
Repairs
5,400
Stock
33,000
Insurance premium
3,300
Sundry creditors
26,000
Sales
2,90,000
Commission paid
750
Telephone charges
6,450
Rent Taxes
6,300
Furniture
11,000
Purchases
1,65,000
Discount earned
1,100
Salaries
70,600
Loan from Mohammed
51,000
Discount allowed
650
Reserve fund
5,900
Drawings
5,000
Bills receivable
8,600
Bad debts
1,350
Bills payable
6,000
14. Explain briefly the need for providing Depreciation.
15. A firm bought a machinery on 1.1.2016 for Rs.5,00,000. On 31.12.2017 the machinery was
sold for Rs.3,90,000. The firm charges depreciation at the rate of 10% per annum on
Diminishing Balance Method. The books are closed on 31st March every year.
Prepare Machinery account and Depreciation account.
16. Enter the following transactions in a single column cash book of Mr.Murugavel.
2018 Jan 1
Started business with cash
Rs. 1,000
3
Purchased goods for cash
Rs. 500
4
Sold goods
Rs. 1,700
5
Cash received from Siva
Rs. 200
12
Paid Balan
Rs. 150
14
Bought furniture
Rs. 200
15
Purchased goods from Kala on credit
Rs. 2,000
20
Paid electric charges
Rs. 225
24
Paid salaries
Rs. 250
28
Received commission
Rs. 75
17. Prepare Profit and Loss Account, from the following balances of Mr. Sandan for the year ending
31.12.2017.
Particulars
Amount
Particulars
Amount
Office rent
Rs. 30,000
Salaries
Rs. 80,000
Printing expenses
Rs. 2,000
Stationeries
Rs. 3,000
Tax Insurance
Rs. 4,000
Discount allowed
Rs. 6,000
Advertisement
Rs. 36,000
Travelling expenses
Rs. 26,000
Gross Profit
Rs.2,50,000
Discount received
Rs. 4,000
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PART C
Answer any TWO questions: X 20 40)
18. Describe the Various Stakeholders of Accounting Information and their requirements.
19.From the Trading Profit Loss Account of Fashion World Ltd., ascertain the profitability
ratios.
Trading and Profit Loss Accountfor the year ending 31.3.17
Particulars
Rs.
Particulars
Rs.
To Opening Stock
20,000
By Sales
1,60,000
To Purchases
1,20,000
By Closing Stock
32,000
To Gross Profit
(transferred to profit &loss
52,000
1,92,000
1,92,000
To Administration expenses
12,000
By Gross Profit
52,000
To Selling expenses
8,000
By Dividend
400
To Finance expenses
4,000
To Loss on sale of furniture
500
To Net Profit
27,900
52,400
52,400
20. Enter the following transactions in the Triple Column Cash Book of Mr.Raja.
2017
Particulars
Rs.
May 01
Cash balance
6,000
1
Bank balance
4,000
2
Withdrew from Bank
2,000
3
Abdulla directly paid into our bank account
3,000
4
Cheque received from Daniel Rs.5,000 sent to bank.
7
Cheque received from Ramakrishnan for sales
8,000
8
Received cash from Subramaniyam
2,800
8
Discount allowed
200
10
Ramakrishnan's cheque sent to bank for collection.
14
Paid to Balu by cheque
13,900
14
Discount received
100
17
Withdrew cash for personal use Rs.1,500 and by cheque 12,500
27
Rent paid
2,000
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21. The following are the balances extracted from the books of Mrs.Suguna as on
31st March, 2017.
Debit Balances
Rs.
Credit Balances
Rs.
Drawings
40,000
Capital
2,00,000
Cash at Bank
17,000
Sales
1,60,000
Cash in hand
60,000
Sundry Creditors
45,000
Wages
10,000
Purchases
20,000
Stock (31.03.16)
60,000
Buildings
1,00,000
Sundry debtors
44,000
Bills Receivable
29,000
Rent
4,500
Commission
2,500
General Expenses
8,000
Furniture
5,000
Suspense Account
5,000
4,05,000
4,05,000
Adjustments:
1. Closing Stock Rs.40,000 valued as on 31.03.17.
2. Interest on Capital at to be provided.
3. Interest on Drawings at to be provided.
4. Depreciate buildings at the rate of 10% per annum.
5. Write off Bad debts Rs.1,000.
6. Wages yet to be paid Rs.500.