GUG/W/18/10586 1 P.T.O
Bachelor of Business Administration (CBCS Pattern) First Semester CBCS+Old Course
UCB1C05 192 Financial Accounting I
P. Pages 5 GUG/W/18/10586
Time Three Hours Max. Marks 80

Notes 1. All questions are compulsory.
2. All questions carry equal marks.
1.

Difference between Book-Keeping and Accountancy.
8

Journalise the following transactions in the books of Mr. Anup.
2010
Jan 1 Sangita having no capital of his own started business with Rs. 50,000 borrowed
from his friend Mr. Varsha 10% p.a.
Jan 5 Purchased goods for cash Rs. 5,000
Jan 12 Received invoice at 10% trade discount from Akash Sons and supplied these goods to Mr. Mahindra, listed at Rs. 3,000
Jan 20 Mr. Mahindra is declared insolvent and 25% is recovered in full settlement. Jan 25 Purchased goods for Rs. 1,000 from Mr. Naresh and supplied it Mr. Anil for
Rs. 1300 Mr. Anil returned goods worth Rs. 390 which is turn returned to Mr. Naresh
Feb 9 Purchased a house for Rs. 1500 and a cost for Rs. 2,000 for delivering goods to the customers.
Feb 25 The horse bought on Feb 9 died and its carease (dead body) was sold for Rs. 200
Feb 28 Supplied goods for Rs. 300 to Mr. Sangita for domestic use.
March 8 Rs. 400 were paid to Mr. Akash out of business funds for the repair of Mr. Sangita household furniture.
8
OR

The following trial balance of Shri Kumarswami, although it adds upto the same total on both sides is incorrect.
Trial Balance at 31st March 2012
Dr.
Cr.
Capital on 1st April 2011
8,950

Drawings

1,050
Stock, 1st April 2011
3,725

Purchases
23,100

Sales

39,425
Wages Salaries
6,205

Lighting Heating
310

Equipments
3,600

Carriage outwards

230
Return Inwards
105

Return outwards

290
Provision for bad debts
350

Discount allowed
285

Discount received

315
Rent, Rates Insurance
1,115

Motor Vehicles
1,475

Cash in hand
110

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GUG/W/18/10586 2
Sundry Creditors
4,925

Sundry Debtors

13,920
Bank Overdraft
975

55,230
55,230
Draw up a correct trial balance.
2.

Prepare Balance Sheet of Vinayak Ltd. with following balance.
Goodwill 50,000
Building 72,000
Plant Machinery 80,000
Issued and paid up share capital 3,00,000
Calls in Arrears 20,000
Forfeited shares 10,000
Closing stock 1,20,000
General Reserve (Previous year's balance) 1,50,000
General Reserve (Current year's provision) 20,000
Furniture 40,000
Investment 60,000
Sundry Creditors 1,80,000
Bills Payable 20,000
Debtors 1,50,000
Bills Receivable 50,000
Dividend Fund 7,000
Cash in hand and at Bank 58,000
Prepaid Rent 2,000
Preliminary expenses 10,000
Outstanding Insurance 5,000
Education fund 12,000
Debentures 8,000
Additional information
Contingent liabilities Rs. 50,000
ii) Authorised share capital Rs. 5,00,000
8

From the following balance on of Hind Trading Co. Ltd. prepare Trading and Profit Loss A/c for the year ended 31-3-2010.
Opening Stock
60,000
Printing Stationary
12,000
Purchase
2,40,000
Buildings
80,000
Sales
3,80,000
Bad-Debts
10,000
Purchase Returns
10,000
Plant Machinery
2,00,000
Sales Returns
20,000
Insurance
25,000
Interest on Investment
12,000
General Reserve
40,000
Salary
20,000
Freight
15,000
Audit Fees
10,000
Wages
50,000
Director Fees
15,000
Additional Information
Closing stock Rs. 1,20,000
ii) Change depreciation 10% on Building.
iii) Transfer Rs. 20,000 to Reserve Fund.
8
OR
GUG/W/18/10586 3 P.T.O

The Aradhna Co. Ltd. was registered with a authorized capital of Rs. 30,00,000 in equity share of Rs. 10 each. The following is the list of balance extracted from its books on 31st March 2010.
Calls in Arrears
37,500
Purchase
9,25,000
Building
15,00,000
Preliminary Exp.
20,000
Plant Machinery
16,50,000
Direct Wages
4,19,325
Interim dividend paid 1st Nov. 2009
1,96,250
Return Inwards
20,000
General Expenses
34,175
Stock on 1st April 2009
3,75,000
Freight Carriage
65,575
Furniture
36,000
Indirect wages
72,500
Sundry Debtors
4,35,000
Directors fees
28,625
Goodwill
1,25,000
Bad debts
10,550
Cash in hand
3,750
Interest paid on
debentures
90,000
Cash at Bank
1,99,500
12% Debentures
15,00,000
Share Capital
20,00,000
P L Account
1,31,250
Bills Payable
1,85,000
Sundry Creditors
2,00,000
Sales
20,75000
General Expenses
1,20,000
Provision for Bad Debts April 2009)
17,500
Return outwards
15,000
Prepare Trading and Profit Loss Accounts and Balance Sheet after making the following adjustments
Depreciate Plant Machinery by 15%
ii) Write off Rs. 2,500 from preliminary expenses.
iii) Provide for half years debentures interest due.
iv) Make provision for bad doubtful debts at on sundry debtors.
Provide for Income Tax 50%
vi) Stock on 31st March 2010 was Rs. 4,74,900.
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3.

Shri Khobragade is a management consultant his Receipts and Payment is as follows
Receipts Payment A/c for the year ended 31st March 2012
Receipts
Rs.
Payment
Rs.
To Cash in hand b/d
5,000
By Rent
18,000
To Cash at Bank b/d
25,000
By Salary to office staff
12,000
To Consultancy fees received
45,000
By Electricity charges
2,400
To Fees from other accounting works
30,000
By Purchase of journals professional periodicals
2,000
To interest on house hold investments
4,000
By Motor Car Exp.
10,000
By Printing Stationary
3,000
By Household Exp.
40,000
By Cash in hand c/d
5,600
By Cash at Bank c/d
16,000
1,09,000
1,09,000
Other Information
Shri Khobragade decides in a flat consisting of 4 rooms of equal size one of which is
exclusively used for professional purpose.
ii) 60% of car expenses related to household purpose.
iii) The office staff devote 25% of their time to be household work of Shri Khobragade.
iv) 1/3rd of Electricity charges relate to his profession.
Prepare profit and loss account for his profession for the year ended 31/12/2012.
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GUG/W/18/10586 4

Mr. Vinod a practicing solicitor submits the following particular regarding the year end 31st March 2014.
Capital 2,00,000
Interest free loan from Mr. Swapnil 50,000
Drawings for the year 2013-14 1,60,000
Salaries to staff 40,000
Furniture 60,000
Clients Deposit Accounts 20,000
Liabilities for expenses 20,000
Rent 20,000
Client's Disbursement 15,000
Work in progress 20,000
Cost (Profit) 2,50,000
Clients control A/c 1,00,000
Bank Account of clients 55,000
Bank Account of office 5,000
Cash in hand 10,000
Unrealised profits 50,000
Library Books 1,05,000
Adjustments
Work-in-Progress not yet completed Rs. 20,000
ii) Out of the balance is disbursement Rs. 5,000 had been paid and credited to clients
Deposit Account.
iii) Furniture and library books are to be depreciated by 20%.
iv) Provision at 100% against unrealized profits has to be made.
Prepare profit loss account.
8
OR

The following Trial Balance is presented by Mr. Satpute an advocate for the year ended 31st Dec. 2014 you are asked to prepare an Income and expenditure Account for the year 31st Dec. 2014 and a Balance Sheet as on that date.
Particulars
Rs.
Particulars
Rs.
Drawings
12,000
Capital
10,000
Furniture
10,000
Provision for unrealized profit
18,000
Salaries
7,000
Rent
4,000
Client's Deposits A/c
13,000
Work-in-Progress (opening)
3,000
Costs (Profit)
60,000
Clients Disbursement
4,000
Office Expenses
6,000
Clients Control A/c for bill of costs delivered
15,000
Bank (clients)
15,000
Library
8,000
Bank (Office)
13,000
Cash in Hand
4,000
1,01,000
1,01,000
Additional Information
Work not yet completed as on 31st Dec. 2014 amounted to Rs. 4,000.
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GUG/W/18/10586 5 P.T.O
ii) Client's Disbursement Account should be Rs. 5,000
iii) Out of the balance of disbursement account a sum of Rs. 800 has been paid and credited to client's Deposit Account.
iv) Depreciation is to be charged on Furniture 10% p.a. and on library 20% p.a.
He makes 100% provision for unrealized profit.
vi) The bill of costs sent to client's includes on amount small disbursement debited
to the office expenses amount.
4.

Rajesh Co. of Nagpur consigned goods costing Rs. 80,000 to their agent Amit of Chandrapur on which they pay freight, insurance and charges Rs. 5,000 drawing a bill on him at 90 days for Rs. 60,000. They discount the bill with bank being charged Rs. 600 there you.
After two months they received from their agent an 'Account Sales' informing that the entire consignment has been sold for Rs. 1,10,000 that expenses amounting to Rs. 1,800 have been incurred and showing as a deduction they agreed commission of on the amount realised. A draft on the bank of Maharashtra was enclosed for the balance due.
Show consignment account and Amit Account in the books of Rajesh Co.
8

Anurag Products, Chandrapur sent on consignment to Manohar Brother of Nagpur 200 tables costing Rs. 500 each. The consignees were allowed a commission of on sales. They accepted a bill of Rs. 30,000 at 3 months as an advance. The consignor discounted the bill immediately at p.a. Anurag products paid Rs. 3000 for freight and Rs. 2,000 for wages on sending the goods Manohar paid Rs. 4,000 as expenses and took the delivery of the goods. Manohar Brothers sent an account sales stating that 140 tables were sold at Rs. 800 each and another Account sales sent after a month stated that the remaining tables were sold at Rs. 760 each. The consignee sent a bank draft for the balance after deducting their commission.
Prepare consignment A/c and Manohar Brother's A/c In the books of Anurag Product, Chandrapur.
8
OR

Hindustan Petroleum Ltd. Consigned 6000 liters of Petrol to Sharma Oils of Amravati at Rs. 26 per liter. The company paid for freight and insurance Rs. 6,000.
Sharma oils received the consignment and incurred selling expenses Rs. 2,500. The consignee sent on account sales of 5000 liters at Rs. 30 per liter and remitted the amount due by a draft after deducting his expenses and commission 5%. He also reported that Petrol in hand was 950 liters.
Pass the Journal entries and open necessary accounts in the books of Hindustan Petroleum Ltd.
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5.

Write the meaning and objectives of Trial Balance.
4

Write the Household Income expenditure account.
4

Write the kinds of consignment.
4

Write the principles of Double entry system.
4

GUG/W/18/10586 6