Total No. of Questions 10] [Total No. of Pages 02
B.B.M./B.B.A. DEGREE EXAMINATION, MAY 2018
First Year
FINANCIAL ACCOUNTING
Time 3 Hours Maximum Marks :70
Answer any five questions.
All questions carry equal marks.
Q1) Explain the functions of financial manager.
Q2) Explain various types of errors which an accountant may make while writing the books of
accounts.
Q3) What do you understand by depreciation? Explain methods of depreciation.
Q4) Explain different types of preference shares.
Q5) Explain the accounting concepts in detail.
Q6) The following balance sheet were extracted from the books of Mr. Devaraj as on 31-12-
2015.
Debt Items Amount Credit Items Amount
Furniture A/c 8,000 Capital account 90,000
Building 1,30,000 Creditors 16,000
Purchases 1,50,000 Sales 1,80,000
Carriage on sales 2,000 Bank overdrafts 9,050
Salaries 20,000 Rent received 8,000
Bad debts 800 Loan from Kariyanna 40,000
Cash 400 Reserve for bad debts 1,000
Drawings 9,000
Debtors 15,000
Discount paid 1,800
Travelling expenses 7,050
Total 3,44,050 Total 3,44,050
Adjustments:
Salary payable

2,500
Closing stock as on 31-12-2015

35,000
Depreciation on furnitures 10% p.a.
Rent receivable

1,000
Commission payable

800
Prepare Trading, Profit Loss account and Balance Sheet of Mr. Devaraj as on 31-12-
2015.
Q7) Journalise the following transaction and post them to ledger
2017 April 1st Started business with cash

10,000 and buildings

2,00,000
2017 April 10th Cash deposited into bank

90,000
2017 April 13th Purchase goods for

20,000 and the same paid in cheque
2017 April 16th Sold goods for

25,000
Q8) From the following particulars of XYZ traders and find out the balance of pass book as on
31 Dec., 2015.
1. Balance as per cash book

20,000
2. Pranesh deposited a cheque of

12,000 directly in the XYZ A/c.
3. Out of

10,000 cheques issued, only

6,000 worth of cheque presented for payment till 31-
12-2015.
4. A cheque of

4,000 has been debited in the bank column of cash book but has not been
sent to bank till 31-12-2015.
5. The bank has paid insurance premium

1,000 Rent

1,600 as per standard instruction and
their payments not recorded in cash A/c.
6. Cheque

34,000 had been credited in the pass book out of

64,000.
7. Interest on investment collected by bank

5,000 but not entered in cash book.
8. Wrong credit by bank to XYZ

6,000.
Q9) Cheran, Pallavan are partners with capitals of

60,000 and

20,000 respectively on 1st January,
2015. The trading profit (before taking into account the provision of the deed) for the year ended
31st Dec. 2015 was

12,000. Interest on capital is to be allowed at per annum. Pallavan is
entitled to a Salary of

3,000 per annum. The drawings of the partners were Cheran

2,000 and
Pallavan

1,000, the interest on drawings for Cheran being

100 and for Pallavan

50. Assuming
that Cheran, Pallavan are equal partners, prepare the Profit and Loss appropriation account and the
partners capital account, also assuming that the capitals are fluctuating.
Q10)Charles Company Ltd. Issued 20,000 shares of

10 each at a premium of

2 per share
payable as under.
on application

2
on allotment

5 (including

2 premium)
on first call

3
on first call

2
The company received 30,000 applications for shares.
Applications for 10,000 shares were rejected and refunded the application money. All
money due was received.
Pay Journal entries, prepare ledger accounts for bank share capital securities
premium A/c and also the Balance Sheet.