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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.Com.DEGREE EXAMINATION -COMMERCE
SECOND SEMESTER APRIL 2018
C 219 FINANCIAL ACCOUNTS
Date: 02-05-2018 Dept. No. Max. 100 Marks
Time: 09:00-12:00
Part A
Answer ALL the Questions (10 2 20 Marks)
1. What is self-balancing ledger?
2. Define depreciation.
3. What is dependent branch?
4. Write a note on minimum rent.
5. What is sub-lease?
6. Find out profit from the following data:
Capital at the beginning of the year Rs. 8,00,000
Drawings during the year Rs. 1,80,000
Capital at the end of the year Rs. 9,00,000
Capital introduced during the year Rs. 50,000
7. How the following will appear in income and expenditure account of sports club for the year 31/12/1999 and in the Balance Sheet on that date?
Stock of sports materials on 01/01/1999 Rs. 800
Stock of sports materials on 31/12/1999 Rs. 1,200
Purchase of sports materials during the year 1999 Rs. 5,000
Sales of old sports materials during the year 1999 Rs. 300
8. From the following particulars, calculate closing branch debtors balance:
Branch Debtors (01/01/1998) Rs. 6,300
Credit Sales Rs. 39,000
Cash received from debtors Rs. 41,200
9. What is debtors system?
10. Apportion the following expenses on the basis of cost of goods sold ratio among the four departments C and
Sales 2,00,000; 1,50,000; 2,00,000; 50,000
G.P. Ratio: 20% on sales
Expenses: Salaries Rs. 6,000
Part B
Answer any FOUR Questions 4 10 40 Marks)
11. Differentiate Hire Purchase and Instalment System.
12. Explain the limitations of single entry system.
13. Find out purchases and sales from the following details by making necessary accounts:
Particulars
Rs.
Opening balance of debtors
30,000
Opening balance of creditors
10,000
Collection from debtors
1,60,000
Discount received
2,500
Bad debts
1,000
Payments to creditors
14,000
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Discount allowed
1,500
Returns inwards
2,000
Returns outwards
3,000
Cash purchases
6,000
Cash sales
10,000
Closing balance of debtors
35,000
Closing balance of creditors
15,000
14. A Madras head office has a branch at Salem to which goods are invoiced at cost plus 20%. From the following particulars, prepare Branch Account in the head office books:
Particulars
Rs.
Goods sent to branch
2,11,872
Total sales
2,06,400
Cash sales
1,10,400
Cash received from Branch debtors
88,000
Branch debtors on 01/01/1996
24,000
Branch stock on 01/01/1996
7,680
Branch stock on 31/12/1996
13,440
15. Mr. X purchased on hire-purchase system. As per terms, he is required to pay Rs. 800 down; Rs. 400 at the end of the first year; Rs. 300 at the end of the second year and Rs. 700 at the end of the third year. Interest is chargeable at p.a. Calculate the total cash price of the typewriter and the amount of interest payable on each instalment.
16. Prepare Receipts and Payments Account of a club for the year ended 31st December 1999 from the following particulars:
Particulars
Rs.
Opening balance of cash
40,000
Receipts of entrance fees
8,000
Subscription received for 1999
16,000
Previous year's subscription received
1,600
Paid salaries
2,000
Paid for miscellaneous expenses
200
Rent paid
1,200
Payment for purchase of cricket balls
500
Payment for purchase of cricket bats
1,600
Payment for stationery in cash
100
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17. A fire occurred at the premises of a trader on 31/05/1994 destroying a greater part of his goods. His stock at 01/01/1994 was Rs. 60,000. The value of stock salvaged was Rs. 13,500. The gross profit on sales was 30% and sales amounted to Rs. 1,53,000 from January to date if fire, while for the same period the purchases amounted to Rs. 1,03,500. Prepare a statement of claim.
Part C
Answer any TWO Questions 20 40 Marks)
18. Mr. Rama commenced business on 01/01/1989 with a capital of Rs. 25,000. He immediately bought furniture for Rs. 4,000. During the year, he borrowed Rs. 5,000 from his wife and introduced a further capital of Rs. 3,000. He has withdrawn Rs. 600 at the end of each month for family expenses. From the following particulars obtained from his books, you are required to prepare Trading and Profit Loss Account and Balance Sheet as on 31/12/1989.
Particulars
Rs.
Sales (including cash sales of Rs. 30,000)
1,00,000
Purchases (including cash purchases of Rs. 30,000)
75,000
Carriage
700
Wages
300
Discount allowed to debtors
800
Salaries
6,200
Bad debts written off
1,500
Trade expenses
1,200
Advertisement
1,200
Mr. Rama has used goods worth Rs. 1,300 for private purposes and paid Rs. 500 to his son which is not recorded anywhere. On 31/12/1989, his debtors were worth Rs. 21,000; Creditors: Rs. 15,000 and Stock-in-trade: Rs. 10,000. Furniture is to be depreciated at 10% p.a.
19. Prepare Trading and Profit Loss Account and Balance Sheet from the following Trial Balance of Mr. M. Mohan:
Debit Balances
Rs.
Credit Balances
Rs.
Sundry Debtors
92,000
Madan's capital
70,000
Plant Machinery
20,000
Purchase returns
2,600
Interest
430
Sales
2,50,000
Rents, Rates, Taxes Insurance
5,600
Sundry Creditors
60,000
Conveyance charges
1,320
Bank overdraft
20,000
Wages
7,000
Sales returns
5,400
Purchases
1,50,000
Opening stock
60,000
Madan's drawings
22,000
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Trade expenses
1,350
Salaries
11,200
Advertising
840
Discount
600
Bad debts
800
Business premises
12,000
Furniture Fixtures
10,000
Cash in hand
2,060
Total
4,02,600
Total
4,02,600
Adjustments:
i. Stock on hand on 31/12/1996 Rs. 90,000
ii. Provide depreciation on premises at Plant Machinery at 7.5% and Furniture Fixtures at 10%.
iii. Write-off Rs. 800 as further bad debts.
iv. Provide for doubtful debts at on sundry debtors.
v. Outstanding rent was Rs. 500 and outstanding wages Rs. 400.
vi. Prepaid insurance Rs. 300 and prepaid salaries Rs. 700.
20. The following purchases were made by a business house having three departments:
Department A 1,000 units
Department B 2,000 units at a total cost of Rs. 1,00,000
Department C 2,400 units
Stocks on 01st January were:
Department A 120 units
Department B 80 units
Department C 152 units
Sales were:
Department A 1,020 units at Rs. 20 each
Department B 1,920 unitsat Rs. 22.50 each
Department C 2,496 unitsat Rs. 25 each
The rate of gross profit is same in each case. Prepare Department Trading Account.
21. On 01/01/1984 five stocks were purchased by Mr.A on hire purchase system. The cash price of each truck is Rs. 55,000. The payment was to be as follows:
10% of cash price down
25% of cash price at the end of each of the 4 subsequent half years.
The payment due on 31/12/1984 could not be made and hence trucks were seized by the vendors. But after negotiations, Mr. A was allowed to keep three trucks on the condition that the value of the other two trucks could be adjusted against the amount due, the trucks being valued at cost less 25% depreciation. Mr. books are closed on 30th June each year and he charges 15% depreciation on trucks on the original cost.
The vendors spent Rs. 6,000 on getting the trucks thoroughly overhauled and sold them for Rs. 95,000. Show the various accounts in the books of both the parties.