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P.T.O.
MAR IVANIOS COLLEGE (AUTONOMOUS)
THIRUVANANTHAPURAM
Reg. No. :.………………… Name :.………………….
Second Semester B.Com. Degree Examination, June 2016
First Degree Programme under CBCSS
Core Course: Commerce IV
AUCO242: Financial Accounting
Time: 3 Hours Max. Marks: 80
SECTION A
Answer ALL questions each in a word or in a sentence.
1. What is Suspense account
2. Define IFRS.
3. What is Capital fund
4. What do you meant by Accounting concepts
5. Define Accounting Standard.
6. What is Secret account
7. What is Legacy
8. What is Journalizing
9. What is down payment
10. What is Amortisation
(10 × 1 10 Marks)
SECTION B
Answer any EIGHT questions, each in a short paragraph not exceeding 50 words.
11. What are the major components of financial accounting
12. What is GAAP
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13. Prepare total debtors account from the following:
Rs.
Opening Debtors 6000
Closing debtors 6700
Credit sales 8950
Cash sales 8000
Cash collected from customers 7500
Discount allowed 450
B R allowed 300
14. What are contingent liabilities
15. What is accounting equation
16. State the use of Trial Balance.
17. Explain the errors of principles. Give examples.
18. Lal Ltd. purchased a machinery for Rs.1500,000 on 1st January 2010.It is expected that the machine will work for 5 years. Prepare Machinery Account charging depreciation under Sum of Digits Method.
19. A portion of the Trial Balance on 31st December 2010 is as follows:
Sundry Debtors Rs. 30,000
Bad Debts Rs. 1200
It is estimated that of sundry debtors is doubtful of recovery and is to be provided for. Give journal entry for the amount of provision and also show how they would appear in the P L account and Balance Sheet.
20. Calculate the amount of expenditure appearing in the Receipts and Payments Account.
Expenditure debited to income and expenditure account 4500
Expenses outstanding on closing date 600
Expenses outstanding on opening date 300
Expenses paid in advance on opening date 450
Expenses paid in advance on closing date 220
21. Differentiate Cash Book and Receipts and Payments account.
22. What is posting
× 2 16 Marks)

SECTION C
Answer any SIX questions, each in a paragraph not exceeding 120 words.
23. What is Trading account Prepare a specimen Trading account.
24. What do you meant by Grouping and Marshalling of Assets and Liabilities
25. Distinguish Fixed Instalment system and Reducing Instalment system.
26. Explain the different types of clerical errors.
27. Differentiate self balancing and sectional balancing system.
28. ABC Ltd. purchased a three years lease for Rs.250000 on 1 st January 2011.and decided to make a provision for its replacement by means of an Insurance Policy.The annual premium payable for the policy taken is Rs.75000.Show ledger account assuming that the amount is realized from the Insurance Company or Replacement.
29. Find out opening stock.
Rs.
Total Sales 2,80,000
Purchases 2,05,000
Closing Stock 38,000
Gross Profit ratio 20% on cost
30. Prepare Total creditors account.
Opening creditors 8,200
Closing creditors 8,500
Credit purchases 25,300
Cash purchases 25,000
Cash paid to creditors 19,100
Bills payable issued 5,000
Discount received 900
Provision for discount on creditors 100
31. Give adjusting or rectifying entries for the following:
i). Wages paid on erection of a machinery debited in the wages account Rs. 3000.
ii). Carriage on purchase of machinery debited in the carriage account Rs. 3500.
iii). Goods bought by the owner for domestic use debited in purchase account Rs. 1800.
iv). Rent paid to Landlord debited in Landlord's account Rs.5000.
× 4 24 Marks)
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SECTION D
Answer any TWO questions, not exceeding four pages.
32. Mention any six methods of providing depreciation.
33. Following Balances are extracted from the books of Mr. Sukhdev.
Rs.
Capital 30000
Drawings 5000
Furniture and Fittings 2600
Bank O.D. 4200
Creditors 13300
Business premises 20000
Stock 1 2015) 22000
Debtors 18000
Rent from tenants 1000
Purchases 110000
Sales 150000
Sales returns 2000
Discount 1600
Discount 2000
Taxes and Insurance 2000
General expenses 4000
Salaries and wages 9000
Commission 1200
Audit fee 500
Legal charges 500
Carriage on purchases 1800
Provision for Bad Debts 500
Bad Debts 800
Stock on December 31, 2015 was estimated at Rs 20060.Write off depreciation on business premises Rs.300 and on furniture and fittings Rs.260. Write off bad debts Rs.500 and make a provision of on debtors for bad debts. Allow interest on capital at 5 p.a. and carry forward Rs.700 for unexpired insurance.
Prepare Trading, P&L a/c for the year ended December 31, 2015 and a Balance Sheet as that date.
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34. The following particulars are extracted from the books of Mr. Ganesh who keeps his books under self balancing system. Prepare sales ledger Adjustment Account and General Ledger Adjustment Account. Also give journal entries for the same.
Rs.
Debtors on 1 7 2015 12000
Transaction for 3 months ended 30 9 2015:
Credit sales 100000
Cash received from debtors 69000
Discount allowed 3000
Returns by debtors 2000
Bills received 31000
Bad debts written off 1200
Allowances to debtors 800
Bills receivable dishonoured 3000
35. The following is the Receipts and Payments Account of Anuj Musical Club for the year ended 31st December 2014.
Dr. Receipts and Payments Account Cr.
Receipts
Rs.
Payments
Rs.
To Balance b/d
Cash in hand 1-1-14
Subscription 2013
" 2014
" 2015
Entertainment receipts
Musical evening receipt
3500
300
9000
200
2000
3000
18000
By Honorarium to Secretary
Printing and Stationery
Musical evening exp.
X'mas Party exp
Furniture
Rent
Balance c/d
2500
500
5000
1500
3000
2500
3000
18000
The Club has 101 members, each paying a subscription of Rs.100 per annum. The Club had furniture of Rs.5000 on 1st January 2014. Stock of printing and stationery on 1st January 2014 and on 31st December 2014 were valued at Rs.150 and Rs.120 respectively. Prepare Income and Expenditure a ccount for the year ended 31st December 2014 and a Balance Sheet as on that date.
× 15 30 Marks)