DISTANCE EDUCATION
B.C.A. DEGREE EXAMINATION, MAY 2017.
ACCOUNTING FUNDAMENTALS
(2003 onwards)
Time Three hours Maximum 100 marks
Answer any FIVE questions.
All questions carry equal marks.
20 100)
1. Distinguish between financial accounting and
management accounting.
2. Briefly explain the basic accounting concepts and
conventions
3. Distinguish between balance sheet and trial balance
Explain the various errors not disclosed by trial
balance.
4. Write short note on accounting standards.
What is meant by ratio analysis? Discuss its
objectives and limitations.
5. The following trial balance of Charan as at 31st December
2015 is given to you prepare final account
Debit balance Rs. Credit balance Rs.
Purchases 11,870 Capital 8,000
Debtors 7,580 Bad debts recovered 250
Return inwards 450 Creditors 1,250
Bank deposit 2,750 Return outwards 350
Sub. Code
15
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2
Debit balance Rs. Credit balance Rs.
Rent 360 Bank overdraft 1570
Salaries 850 Sales 14,690
Traveling express 300 Bills payable 1350
Cash 210
Stock 2,450
Discount allowed 40
Drawings 600
27,460 27,460
Adjustment
The closing stock on 31.12.2015 was Rs. 4,200
Write off Rs. 80 as bad debts and create a reserve
for bad debts at on Sunday debtors.
Three months rent is outstanding.
6. Pass journal entries to rectify the following errors.
Assume that there exists a suspense account
The total of sales book was under cast by Rs. 2,000
The purchase of machinery Rs. 3,000 was entered in
the purchase book
A sale of Rs. 45 to Selva was posted in his account
as Rs. 54
The total of purchase return was overcast by
Rs. 200
The total of sales book Rs. 1,122 was wrongly posted
in the ledger as Rs. 1,222.
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7. The following information given by Mani, prepare
profit and loss a/c for the year ended 31st December 2015
and the balance sheet as on that date. Receipts for the
year ended 31st December 2015
Rs.
From Sunday debtors 1,76,250
Cash sales 41,250
Pain in by Mani 25,000
2,42,500
Payment made during the year 2015
Rs.
New plant purchased 6,250
Drawing 15,000
Wages 67,250
Salaries 11,250
Internet paid 750
Telephone 1,250
Rent 12,000
Light and power 4,750
Sundry expenses 21,250
Sundry creditors 76,250
2,16,000
Assets and liabilities as at 31st Dec. 2014 as at 31st Dec. 2015
Rs. Rs.
Sundry creditors 25,250 24,000
Sundry debtors 37,500 61,250
Bank 6,250
Stock 62,500 31,250
Plant 75,000 73,150
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8. From the following information presented by a firm for
the year ended 31st December, prepare the balance sheet.
Sales to network 5 times
Current liabilities to net worth 50%
Total debts to net worth 60%
Fixed assets to net worth 60%
Current ratio 2
Sales to stock 10 times
Debtors velocity 9 times
Annual sales Rs. 15,00,000
Cash sales 40% of sales