IV – Essay Questions (Answer Any Two Questions)

31)From the following balances extracted from the books of B.N Pai prepare departmental trading and general P&L account for the year ended 31st October 2011 and balance sheet as on that date after adjusting the unrealized departmental profits if any

		Dr	Cr
1. capital 2. land and building 3. furniture 4. opening stock 5. purchase 6. sales 7. general expenses 8. sundry debtors 9.sundry creditors 10.drawings 11.cash & bank	Dept A Dept B Dept A Dept B Dept A Dept B	125000 25000 30000 40000 1000000 1500000 1400000 200000 280000 1000000	300000 2000000 3200000 100000

Additional information

1) Closing stock dept A Rs 130000 including goods from dept B Rs 40000 at cost to dept A Dept B Rs 260000 including goods from dept A Rs 90000 at cost to Dept B

2) Sales of dept A includes transfer of goods to Dept B of the value of Rs 200000 and sales of dept B includes transfer of goods to dept A of the value of Rs. 300000 both at market price to transferor dept.

3) Opening stock of dept A & dept B includes goods of the value of Rs 10000 and Rs 15000 taken from Dept B & Dept A respectively at cost to transferor Dept.

4) Depreciation land & building by 5% and furniture by 10% p.a.                          

       

(2 × 4 = 8 Weightage)

IV – Essay Questions (Answer Any Two Questions)

30)The following is the trial balance of Mr. Ramlal as at 31st Dec 2011

Dr                                            Cr

Ramlals capital                    --‐‐‐‐                                           86690

Stock as on 1st Jan 2011       46800                                    ‐‐‐‐‐

Sales                                       ‐‐‐‐‐‐                                        389600

Return inwards                     8600                                       ‐‐‐‐

Purchases                              321700                                   ‐‐‐‐

Return outwards                  - ‐‐‐‐                                        5800

Freight and carriage            18600                                     ‐‐‐‐

Rent and taxes                       5700                                       ‐‐‐‐

Salary and wages                  9300                                      ‐‐‐‐

Sundry debtors                     24000                                      ‐‐‐‐

Sundry creditors                   ‐‐‐‐                                           14800

Bank loan @ 6% p.a              ‐‐‐‐                                           20000

Bank interest                            9000                                       ‐‐‐‐

Printing and advertisement 14600                                   ‐‐‐‐

Misc income                               ‐‐‐‐‐                                         250

Cash at bank                              8000                                          ‐‐‐‐

Discount earned                    ‐‐‐‐‐                                          4190

Furniture and fittings           5000                                         ‐‐‐‐

Discount allowed                  1800                                         ‐‐‐‐

General expenses                  11450                                       ‐‐‐‐

Insurance                                 1300                                          ‐‐‐‐

Postage and telegram           2330                                         ‐‐‐‐

Cash in hand                           380                                                 ‐‐‐‐

Travelling expenses              870                                               ‐‐‐‐

Drawings                                 40000                                            ‐‐‐‐

‐‐‐‐‐‐‐‐‐‐‐                            ‐‐‐‐‐‐‐‐‐

521330                               521330

======                               ======

                                             

Additional information

a)postage and telegram outstanding Rs 100

b) Provision for bad and doubtful debts be created at 5% and reserve for discount 2% on sundry debtors

c) Depreciation on furniture and fittings at 10%.shall be written off

d) Personal purchases amounting to Rs 600 has been included in the purchase day book

e) Interest on bank loan shall be provided for the whole year

f) A quarter of the amount of printing and advertising is to be carried forward to the next year.

g) Credit purchase invoice amounting to Rs 400 had been omitted from the books

h) Stock on 31-12-2011 was Rs 78600

 Prepare trading and profit and loss account for the year ended 31-12-1987 and balance sheet as on 31 Dec 2011

IV – Essay Questions (Answer Any Two Questions

IV –Essay Questions (Answer Any TwoQuestions)

29)Sunil keeps his books on single entry system. From the following information provided by him prepare a trading and profit and loss account for the year ended 31st December 2011 and a balance sheet on that date.

Particular	31‐12‐2010	31‐12‐2011
Furniture Stock Sundry debtors Prepaid expenses Sundry creditors Outstanding expenses cash	10000 6000 12000 ………... 5000 1400 2400	12000 3000 13000 500 ………. 2200 800

Receipts and payment account during the year was as follows

Received from debtors         40500

Paid to creditors                   19000

Carriage inwards                  4500

Drawings                                10000

Sundry expenses                   12500

Furniture purchased            2000

Other information

There were considerable amount of cash sales. Credit purchases during the year amounted to Rs 24000.create a provision of 10% on debtors for doubtful debts.

III – Short Essay / Paragraph Questions (Answer Any Five Questions)

III –Short Essay / Paragraph Questions (Answer Any Five Questions)

22)      Define revenue expenditure and give two examples

23)     X purchased a radiogram on HP system. He is required to pay Rs 800/- down, Rs. 400/-at the end of first year and Rs. 300/- at the end of second year and Rs.700/- at the end of third year.Interest is charged at 5% p. a. calculate cash price and interest of each instalment

24) Prepare accounting equation and balance sheet on the basis of the following :

Ram started business with cash 60,000

He purchased furniture 10,000

He paid rent 2,000

He purchased goods on credit from Mr.Anil 30,000

He sold goods (cost price Rs.20,000) for cash 25,000

25)Enter the following transactions in the double column cash book of  Mr.Rajesh and balance it.

2003

Aug. 1 Opening Balance : Cash in Hand Rs.4,250  Cash at Bank Rs.13,750

          2            Paid to petty cashier Rs.2,500

          2  Cash sales Rs.1,750

           3 Paid to Arun by cheque Rs.3,750

           3 Received a cheque from Mr.Ram Babu Rs.4,500 paid into bank.

           5 Received cheque from Mr.Jayaraman Rs.6,000 paid into bank

           8 Cash purchases Rs.2,500

           8 Paid rent by cheque Rs. 2,500

           9 Cash withdrawn from bank for office use Rs.2,500

         10 Cash sales Rs.3,750

         14 Stationery purchased Rs.1,000

         20 Cash sales Rs.6750

         21 Paid into bank Rs.10,000

26)Mr. Lal occupied a room in the Sagar Hotel, Trissur on 15 th January 2010. He came at 8 a.m. for accommodation only at a Rent of Rs. 800 per day for every 24 hours or part thereof.

Compute the amount payable by Mr. Lal under each of the following conditions assuming that

service charge levied by the hotel @ 10%

(a) If he checks out at 4.00 p.m. on 15-01-2010

(b) If he checks out at 7.00 a.m. on 16-01-2010

(c) If he checks out at 1.00 p.m. on 16-01-2010

(d) If he checks out at 8.00 p.m. on 17-01-2010

27)What are the adjusting entries passed for the following ?

Salary outstanding Rs 1450

Insurance paid in advance Rs 660

Depreciation on plant and machinery Rs 1750

Interest received in advance Rs 340

Goods distributed as free samples Rs 500

28)From the following data ascertain total sales

Balance of debtors on 1-1-2011                 24000

Sales returns                                                 10000

Cash received from customers                    90000

Discount allowed t them                              6000

B/R received                                     34000

Bad debts                                           3000

B/R dishonoured                              7000

Balance of debtors as on 31-12-2011        20000

Cash sales                                          50000

                                                      (5 × 2 = 10 Weightage)

II – Short Answer Type Questions (Answer All Nine Questions)

II –Short Answer Type Questions (Answer All Nine Questions)

13)     Give two merits of single entry systems.

14)     What is deferred revenue expenditure?

15)     What are intangible Assets?

16)     Name the account prepared by a non-profit organisation.

17)     what are returns inward?

18)     What is down payment?

19)     Define working paper?

20)     What you mean by inter departmental transfer

21)     What is independent branch?                                                                       

  (9 × 1 = 9 Weightage)

Financial Accounting 100%IInd Semester B.Com Degree Examination

I - Answer All Twelve Questions

A - Fill in the Blanks:

1)     Under …………… single entry system no subsidiary books are kept.

2)     Branch stock account is always prepared at ……………… price

3)     Accounting standard 10 deals with accounting for …………………

4)     ……………… ledger is the ledger maintained by a hotel under the tabular system

B - Write the Correct Answer from the Choice Given in the Brackets:

5)     Amount incurred on electric installation of a new building is  (capital receipt, capital expenditure, revenue exp, revenue receipt)

6)     Under instalment system, total interest receivable by the seller is credited (interest suspense account, interest account, sales account, none of these)

7)     Income received in advance is (an income, a liability, an asset, a loss)

8)     Which items enters in the Income and expenditure account? (sale of old newspaper, Closing balance of cash, Tournament fund, None of these)

 

C – Match the items:

9)        Income and expenditure account                        Hotel and restaurants

10)   Visitor’s ledger                                                           Final accounts of sole Trader

11)   Receipts and payment account                            Non-profit organisation

12)   P/L account                                                               prepared from cash book

 (12 × ¼ = 3 Weightage)

Final Accounts of a Hotel

After transactions are recorded in the subsidiary books, entries are posted in the appropriate ledger accounts. After extracting the balances in the ledger accounts a trial balance is prepared at the end of the accounting year to check the arithmetical accuracy. From the trial balance final accounts are prepared in the usual manner. The final accounts consist of Profit and Loss Account and Balance Sheet.