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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.Com.DEGREE EXAMINATION -COMMERCE
FIRST SEMESTER APRIL 2018
CO 1502- FINANCIAL ACCOUNTING
Date: 02-05-2018 Dept. No. Max. 100 Marks
Time: 01:00-04:00
SECTION A
Answer ALL the Questions (10 X
1. What is meant by balance sheet?
2. Cost of the asset Rs.8,900
Residual value Rs. 500
Estimated Life 6 yrs
Determine the amount of depreciation to be written off, when straight line method is followed
3. Explain straight line method of depreciation.
4. From the following details calculate the value of opening stock.
Closing stock Rs.68,000, Total sales Rs.4,80,000, Total purchases Rs.3,60,000
Goods sold at a profit of 25% on cost.
5. In departmental accounting, on what basis the following expenses are apportioned Depreciation Rent Freight Carriage inwards
6. Prepare a branch account from the following particulars,
Goods sent to branch Rs.25,000, Cash sales Rs.10,000, Credit sales Rs.18,000, Cash received from Debtors Rs.16,000, Cash sent to branch for expenses Rs.3,500, Closing stock Rs.5,000
7. What is meant by Inter departmental transfers
8. Based on the particulars given below, calculate the cash price
Down payment Rs.20,000, Three annual instalments Rs.20,000 each, Rate of Interest
9. What is meant by Down payment?
10. What is meant by Social Responsibility Accounting
SECTION B
11. Distinguish between Hire Purchase and Instalment Purchase system
12. What are the differences between single entry system and double entry system?
Write a short note on: Provision for bad and doubt full debts Unexpired insurance.
13. Mr. Akash keeps his record under Single Entry System. Assets and liabilities as on 31st December 2011 stood as follows.,
Bank balance Rs.1,000, Stock Rs.7,000, Sundry debtors Rs.15,000, Furniture Rs.3,000, Sundry creditors Rs.3,000
Assets and liabilities as on 31st December, 2012
Cash-Rs.2,000, Bank balance-Rs.10,000, Stock-Rs.10,000, Sundry debtors-Rs.20,000, Furniture-Rs.3,000, Sundry creditors-Rs.6,000. He introduced an additional capital of Rs.3,000 during the year. He withdrew Rs.500 pm for his domestic purpose. Find out the profit.
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14. Trial Balance of Sham Ltd as on 31.12.2012:
Particulars Dr. Rs. Cr. Rs.
Sundry debtors
Provision for bad debts
Bad debts
41,000

750

600

Adjustments:
i. Write off further bad debts Rs.1,000.
ii. Increase provision for bad debts up to 5%.
iii. Create provision for discount on debtors at 1.5%.
Pass journal entries and prepare provision for bad debts account, profit and loss account and balance
sheet for the above transactions.
15. A machinery was purchased on hire purchase basis by agreeing to pay four annual instalments of
Rs.4,230 each at the end of each year commencing from the date of agreement. Interest is charged
at the rate of and is included in annual payments of Rs.4,230. Show the Machinery A/c and Hire
vendor A/c in the books of the hire purchaser. When he committed a default in paying third
instalment, the asset was repossessed. The purchaser provides depreciation on machinery at the
rate of 10% per annum on straight line method.
16. On 01.01.2012, X purchased a machine for Rs.50,000. On 01.07.2013 additions were made for
Rs.10,000. On 01.04.2014 Rs.6,400 worth additions were made. On 31.12.2014, ¼ th of the first
machine purchased on 01.01.2012 was sold for Rs.7,000. Show the machinery A/c from 2012 to
2014 in the books of X under diminishing balance method 10% per annum and assuming that
accounts are closed on 31st December every year.
17. The following information relates to Madurai branch
Particulars Rs. Rs.
Stock on 01.01.2014 11,200
Branch debtors on 01.01.2014 6,300
Goods sent to branch 51,000
Cash sent to branch for
Rent 1,500
Salaries 3,000
Petty cash 500 5,000
Sales at branch
Cheques sent by branch during 2014
Cash 25,000
Credit 39,000 64,000
Cash received from debtors 41,200
Stock on 31.12.2014 13,600
Prepare Branch A/c for the year 2014.
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SECTION C
Answer any TWO questions 2 X 20 40
18. Explain the various methods of Human Resource Accounting.
19. Prepare Trading, Profit and Loss Account and Balance Sheet from the following trial balance of
Mr.Madan
Debit Balance Rs. Credit Balance Rs.
Sundry debtors
Plant and machinery
Interest and Bank charges
Insurance and Tax
Goodwill
Manufacturing Wages
General expenses
Factory fuel and power
Factory lighting
Sales returns
Purchases
Freight on Purchases
Freight on Sales
Opening stock
Motor car
Manufacturing expenses
Salaries
Bad debts
Buildings
Furniture and Fixtures
Cash in hand
Cash at Bank
Total
78,200
20,000
400
4,250
25,000
34,500
8,200
1,280
950
3,100
1,02,000
1,860
2,140
34,200
12,000
9,500
15,850
1,400
24,000
10,000
1,120
4,200
3,94,150
Madan's capital
Purchase returns
Sales
Sundry creditors
Bank loan
Provision for Bad debts
80,000
1,740
2,50,850
44,560
15,000
2,000
3,94,150
Adjustments
Stock on hand on 31st Dec 2015 is Rs.30,500
Provide depreciation on Motor car by Rs.1000 Plant and machinery by 10% Furniture by
Providing for doubtful debts at on sundry debtors
Commission of on gross profit is to be provided to Works Manager
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20. From the following information prepare Departmental Trading Profit Loss A/c of the three
Departments of M/s Sharma Dry Cleaners Ltd.,
Particulars Dry cleaning Rs. Darning Rs. Dyeing Rs.
Stock on 01.01.2016 4,00,000 3,40,000 9,40,000
Stock on 31.12.2016 3,30,000 4,38,000 8,17,000
Purchases 19,59,000 6,97,000 13,73,000
Sales 40,00,000 20,00,000 40,00,000
Wages 7,28,000 3,00,000 2,46,000
Goods were transferred from one Department to another at cost price as follows.,
1. Darning to Dry cleaning Rs.2,400 and to Dyeing Rs.40,200
2. Dyeing to Dry cleaning Rs.25,800 and to Darning Rs.18,000
3. Dry cleaning to Darning Rs.3,000 and to Dyeing Rs.24,000
Apportion equally the following items,
Stationery Rs.5,418, Postage Rs.4,050, General Expenses Rs.2,37,618,
Insurance Rs.10,080, Depreciation Rs.32,598
Rent and Taxes Rs.1,80,000 is to be split in proportion to the space occupied in the ratio of Dry
cleaning 4 Darning Dyeing 2 and other space 2
21. A head office in Chennai Invoices goods to its branch at Trichy at cost. The head office paid all the
branch expenses from its Bank except petty cash expenses which were paid by the branch. From
the following details relating to the branch, prepare Branch stock Branch debtors A/c and
Branch P&L A/c
Particulars Rs. Particulars Rs.
Opening stock 21,000 Discount to customers 4,200
Debtors (Opening) 37,800 Bad debts 1,800
Petty cash (Opening) 600 Salaries and wages 18,600
Goods sent from Head office 78,000 Goods retuned by customers to branch 1,500
Goods returned to HO 3,000 Rent rates 3,600
Cash sales 52,500 Debtors Closing 29,400
Advertisements 2,400 Petty cash (Closing) 300
Cash received from debtors 85,500 Credit sales 85,200
Closing Stock 19,500
Allowances to customers 600