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P.T.O.
MAR IVANIOS COLLEGE (AUTONOMOUS)
THIRUVANANTHAPURAM
Reg. No. :.………………… Name :.…………………
Fifth Semester B.Com. Degree Examination, November 2016
First Degree Programme under CBCSS
Open Course: Commerce I
AUCO581: Fundamentals of Financial Accounting
Time: 3 Hours Max. Marks: 80
SECTION A
Answer ALL questions in one or two sentences.
1. What is capital
2. What do you mean by error of principle
3. Distinguish between a journal and ledger
4. What are contra entries
5. What do you mean by imprest system
6. What is marshaling
7. What are bad debts
8. What is a debit note
9. What are opening entries
10. What is suspense account
(10 × 1 10 Marks)
SECTION B
Answer any EIGHT questions, each in a short paragraph not exceeding 50 words.
11. Identify the accounts to be debited and credited for the following transactions:-
April 1 2014 Purchased goods for cash 4,500
2 Received from Jose 3,000
4 Paid for advertisement 500
6 Withdrew cash for personal use 2,000
9 Returned goods to Sam 4,000
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12. Distinguish between trade discount and cash discount
13. On 30th June, 2013 the cash book of a trader shows a deposit balance of Rs.4,800. However, on comparison, the following items of differences were found with pass book.
a. Direct payment by a customer to the bank 420
b. Interest on deposit credit by bank 180
c. Insurance premium paid by bank 80
d. Bank charges in pass book 80
Prepare a statement to ascertain the balance as per pass book
14. How will you adjust provision for bad debts in the final accounts
15. Explain in detail the items which result in difference between cash book and pass book
16. Enter the following transactions in the relevant day book
2012 June 1 Purchased from Lekshmy Electricals
80 water heaters @90
30 lectric stoves@80
June 5 Purchased from Syama Electricals
20 ceiling fans@800
10 table fans@1000
June 20 Bought from Philip Agencies
40 transistor radios @500
17. What are accounting conventions
18. What is petty cash book Why is it maintained
19. Pass the opening journal entry with the following information:-
Cash in hand 5,000
Stock 20,000
Building 40,000
Debtors 15,000
Furniture 3,000
Bank Overdraft 8,000
Creditors 12,000
Capital 63,000
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20. What is a contingent liability Give example.
21. Why is cash book called as a journal and ledger
22. Distinguish between book keeping and accounting
× 2 16 Marks)
SECTION C
Answer any SIX questions, each in a paragraph not exceeding 120 words.
23. Prepare a trial balance from the following
Cash in hand 1,700 Cash at bank 2,620
Capital 5,000 Drawings 600
Furniture 1,700 Bills receivable 1,500
Bills Payable 1,500 Purchases 4,200
Sales 5,250 Purchases returns 125
Sales Returns 225 Stationery 50
Rent 150 Salaries 400
Discount allowed 30 Discount received 25
Sundry debtors 575 Sundry creditors 1,850
24. Give rectifying entries for the following:-
a. Furniture purchased for Rs.2,500 was debited to purchases account.
b. Old machine sold on credit for Rs.3,000 was entered in the sales day book.
c. A sum of Rs.75 paid to Bini was debited to Varkey's account
d. Rent paid to landlord Rs.3,000 was debited to landlord's account.
25. Journalise the following transactions and prepare ledger accounts.
Archana started business with cash 12,000
Purchased goods for cash 6,000
Purchased furniture 2,000
Sold goods for cash 8,000
Opened bank account 5,000
Purchased goods and paid
by cheque 4,000
Cash sales 3,000
Paid into bank 2,000
Paid salary by cheque 400
Received commission 200
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26. From the following prepare a petty cash book
January 2013 Balance in hand 12
Cheque received from cashier 88
3 Printing charges 9
5 Postage stamps 11
7 Telegram to supplier 8
11 Stationery 6
14 Taxi fare 13
16 Railway fare 14
21 Advance to attender 10
23 Service charges for typewriter 14
30 Paid for pencils 8
27. Pass adjusting journal entries for the following items
a. Prepaid expenses b. Income received in advance
c. Interest on capital d. Interest on drawings
28. Differentiate a trial balance and balance sheet
29. Explain the various types of errors
30. Describe the types of subsidiary books
31. What are the objectives of accounting
× 4 24 Marks)
SECTION D
Answer any TWO questions, not exceeding four pages.
32. Record the following transactions in a three column cash book
June 2014 Opening balance cash 1,800
Bank 3,000
3 Paid rent by cheque 700
5 Cash sales 3,500
7 Cash purchases 28,900
9 Paid into bank 1,500
13 Received from Shameer Rs.3,800
And allowed him a discount Rs.300
18 paid to Sahir Rs.1,300 and earned a discount of Rs.100
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21 Withdrew from bank 800
27 Purchased typewriter 2,800
30 Paid into bank 700
31 Paid salaries by cheque 800
33. Following is the trail balance of Suresh Sons as on 31st December, 2014:-
Dr. Cr.
Drawings 1,500
Furniture 3,000
Sundry Debtors 2,400
Sundry Creditors 2,000
Freight Carriage 600
Purchases less returns 8,700
Sales less returns 11,500
Rent taxes 500
Rent prepaid 100
Insurance 200
General expenses 500
Opening stock 1,300
Cash in hand 200
General expenses outstanding 100
Commission received 400
Capital 5,000

19,000 19,000
Prepare the final accounts after adjusting the following:-
Insurance prepaid Rs.50
Commission earned but not received Rs.100
Freight Carriage outstanding Rs.200
Closing stock Rs.1,500.
34. What is GAAP Discuss the various categories of GAAP
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35. From the following transactions, pass journal entries, prepare ledger accounts and trial balance:
Ajay started business with cash 8,000
Purchased furniture 1,000
Purchased goods 6,000
Sold goods 7,000
Purchased from Manu 4,000
Sold to Poonam 5,000
Paid to Manu 2,500
Received from Poonam 3,000
Paid interest 200
Received commission 100
× 15 30 Marks)