DISTANCE EDUCATION
B.Com. DEGREE EXAMINATION, DECEMBER 2017.
BASIC FINANCIAL ACCOUNTING
(2005 onwards)
Time Three hours Maximum 100 marks
PART A — × 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. What are the various functions of accounting?
2. What do you mean by special purpose subsidiary books?
Name four such books.
3. Journalise the following transactions of Mr. Ragu
2014
Jan 1 Mrs. Ragu commenced business with cash
Rs. 30,000
2 Paid in to Bank Rs. 21,000
3 Purchased goods by cheque Rs. 15,000
7 Drew cash from Bank for office use Rs. 3,000
15 Purchased goods from Siva Rs. 15,000
20 Cash sales Rs. 30,000
25 Paid to Siva Rs. 14,750, Discount received
Rs. 250
31 Paid rent Rs. 500, Paid salaries Rs. 2,000.
Sub. Code
12
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4. What are the differences between Trial balance and
Balance Sheet?
5. From the following details, find out the net credit sales
for the year.
Particulars Rs.
Opening balance of debtors 20,000
Cheque collection during the year 1,80,000
Cash collection during the year 25,000
B/R received during the year 5,000
Closing balance of debtors 24,000
Bad-Debts written off 2,500
Discount allowed 1,000
Goods returned by customers 2,500
Cheque dishonoured 500
6. Find out the average due date
Date of sales Due date Amount Rs.
1.1.2014 10.1.2007 1,000
7.1.2014 25.1.2007 2,000
20.1.2014 15.2.2007 3,000
29.1.2014 20.2.2007 4,000
7. What are the differences between Joint venture and
partnership?
8. On 1st January 2012, a firm purchased five machines at
Rs. 10,000 each. On July 1st, 2014 it bought two
additional machines at the price of Rs. 10,000 each.
Installation charges Rs. 1,000. The accounts are closed
each year on 31st December. Depreciation is provided at
10% p.a. Show the machinery account for 5 years under
Reducing Balance Method.
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PART B — × 15 60 marks)
Answer any FOUR questions.
All questions carry equal marks.
9. The Trial Balance of Mr. Ranjith as on 31.12.2013 were
as follows
Particulars Debit Credit
Rs. Rs.
Purchases 1,65,505
Sales 2,52,400
Reserve for doubtful debts 5,200
Sundry debtors and creditors 47,200 30,526
Bills payable 3,950
Opening stock 26,725
Wages 23,137
Salaries 5,575
Furniture 7,250
Postage 4,226
Fuel 1,350
Trade expenses 5,831
Bad debts 525
Loan at 10% to Vijay on 1.9.2006 3,000
Cash at Bank 10,000
Outstanding wages — 2,000
Trade expenses outstanding — 700
Drawing 4,452
Capital 10,000
Total 3,04,776 3,04,776
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Adjustments
Depreciation 10% on furniture;
Stock at the end Rs. 12,550
Goods of Rs. 1,500 were destroyed by fire and the
insurance company paid Rs. 1,000
Sundry debtors include Rs. 500 due from a customer
who has become insolvent
Reserve for bad and doubtful debts to be maintained
at debtors. Prepare the final accounts.
10. What is Receipts and Payments account? What is income
and expenditure account? State the differences.
11. Raj keeping his books under single entry system has
placed the following fact before you
Statement of Affairs as at 1st January 2013.
Liabilities Rs. Assets Rs. Rs.
Bank Debtors 75,000
over draft 25,000 Less Provisions 3,750 71,250
Creditors 50,000 Bills
Bills payable 3,000 Receivable 18,000
Outstanding Stock 70,000
general charges 2,000 Plant 50,000
Capital Building 20,000
Account 1,52,000 Cash in hand 2,750
2,32,000 2,32,000
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A summary of cash transactions for the year 2013
Particulars Rs. Particulars Rs.
To balance on 1.1.2013 2,750 By payment to
To Bills receivable 50,000 creditors 1,80,000
To debtors 2,18,000 By cash purchases 40,000
To cash sales 41,000 By bills payable 80,000
To Mrs. Raj loan 25,000 By salaries 15,000
By rent 9,000
By general charges 4,500
By drawings 5,400
By balance c/d 2,850
3,36,750 3,36,750
A list of other transactions for the year
Particulars Rs. Particulars Rs.
Total sales 4,02,500 Stock on 31.12.2013 85,000
Total purchases 3,60,000 Outstanding general
Discount allowed 1,000 charges 3,000
Discount received 2,000 Bad debts 2,000
Bills receivable as at Prepaid rent 1,800
31.12.2006 30,000
Bills payable
during the year 93,000
Provide for doubtful debts and 2½% for
discount on debtors. Depreciate building by
and plant by 10%
Prepare Trading, P L a/c and Balance sheet
of Raj.
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12. Mithilesh Co. of Tirunelveli who sent 100 sewing
machines on consigment of Aarthy of Kalpakkam spent
Rs. 250 on packing. The cost of each machine was
Rs. 112 but it was now invoiced at 25% above cost.
One case containing 5 machines was lost in transit.
Aarthy was asked to pay Rs. 475 as freight of the
remaining machines. She had to spend Rs. 95 as carriage
and octroi and duty and Rs. 190 as godown rent. She sold
75 machines Rs. 190. She found 10 machines defective
and therefore returned them to Calcutta at a cost of Rs.
50. Aarthy is entitled to commission of of Invoice
Price. 20% of any excess realised on the Invoice Price and
delcredere commission. Aarthy could not realise sale
proceeds of 5 machines.
Prepare Consignment Account, Consignee
Consignment Stock A/c in the books of Mithilesh Co.
13. Consider the following balances extracted from the books
of Jain as on 31st December 2013.
Rs.
Capital 20,000
Debtors 8,000
Creditors 10,000
Purchases 60,000
Sales 80,000
Opening stock 12,000
Office salaries 6,600
Rent 3,900
Trade expenses 2,300
Furniture 10,000
Cash in hand 2,400
Drawings 4,800
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Adjustments
Salaries outstanding for December 2004 amounting
to Rs. 600
Rent paid in advance for January 2005 Rs. 300
Depreciation on furniture 10% p.a.
Provide interest on capital for the year p.a.
Stock on 31st December 2014 Rs. 14,000. Prepare
Final accounts.
14. Write short notes on the following
Going concern concept
Trading account
Legacy and
Donation.
15. Prepare total accounts, from the following particulars in
General Ledger, Debtors' Ledger and Creditors' Ledger
January 2013.
Particulars Rs.
Balance on Bought Ledger 1,740
Balance on Bought Ledger 23,880
Balance on Sales Ledger 29,240
Balance on Sales Ledger 480
January 31, 2013 Rs.
Purchases 1,32,360
Purchase returns 5,120
Sales 1,74,980
Sales returns 2,340
Cash received from customers 1,52,420
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Particulars Rs.
Discount allowed there on 5,640
Cash paid to suppliers 1,16,860
Discount received there on 3,320
Cash paid to customers 260
Bills receivable 8,240
Bills payable 4,500
Bills receivable dishonoured 500
Bought ledger balances 1,540
Sales ledger balances 36,700
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