DISTANCE EDUCATION
B.Com. DEGREE EXAMINATION, MAY 2016.
BASIC FINANCIAL ACCOUNTING
(2005 onwards)
Time Three hours Maximum 100 marks
SECTION A — 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. Define accounting. What are its functions?
2. Define bill of exchange. Explain its special features.
3. Briefly explain various subsidiary books.
4. What is del credere commission? Why is it given? How do
you deal with it in consignment accounts?
5. Journalise the following transactions
Rs.
2013 January 3 Received cash from Ram 15,000
4 Purchased goods 2,500
11 Sold goods to Anbu 3,200
13 Paid Lakshman 1,400
17 Received from Raju 1,100
20 Bought Furniture from Ram 2,200
27 Paid Rent 500
30 Paid Salary 3,000
Sub. Code
12
DE-3302
2
wk14
6. Kumaran drew upon Senthil several bills of exchange due
for payment on different due dates as under
Date Amount Tenure (months)
20.10.2014 600 3
20.10.2014 800 2
10.11.2014 1,000 3
08.12.2014 900 1
16.12.2014 1,200 2
Find out the average due date on which a payment may
be made in one single amount.
7. Explain the accounting treatment for transfer from
debtors' ledger to creditor's ledger.
8. On 1st October 2014, Kamal sold goods to Rajini for
Rs. 6,000 and drew a bill for 4 months, which was duly
accepted by Rajini. Kamal discounted the bill with his
banker on 4th October 2014 at 12% p.a. Rajini met the
bill on the due date. Pass necessary journal entries in the
books of both the parties.
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Explain the accounting concepts and conventions.
10. The Trial Balance of Mr. Ravi 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
DE-3302
3
wk14
Particulars Debit Credit
Rs. Rs.
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 1.9.2013 3,000
Cash at Bank 10,000 —
Outstanding wages — 2,000
Trade expenses outstanding — 700
Drawing 4,452 —
Capital — 10,000
3,04,776 3,04,776
Adjustments
Depreciation 10% on furniture;
Stock at the end Rs. 12,550
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.
11. Arun keeps his books by Single Entry on 1st January
2013. His capital was Rs. 6,900. Analysis of his cash book
for 2013 gives the followings
Debit side Rs.
Received from debtors 6,000
DE-3302
4
wk14
Capital accounts 500
Credit side
Due on bank 1.1.2013 740
Payment to creditors 2,500
General expenses 1,000
Salaries 1,550
Drawings 300
Balance at Bank on 31.12.2013 400
Balance at cash in hand 31.12.2013 10
Assets and Liabilities were
Jan.1 Dec. 31
Debtors 5,300 8,800
Creditors 1,500 1,950
Plant and machinery 2,000 2,000
Furniture's fixtures 140 140
Stock 1,700 1,900
Provide interest on capital (ignore payment in and
drawings) depreciation on plant, furniture and
reserve on debtors. Prepare final accounts and
balance sheet of Arun.
12. The book value of plant and machinery on 1.1.2012 was
Rs. 2,00,000. New machinery for Rs. 10,000 was
purchased on 1.10.2012 and for Rs. 20,000 on 1.7.2013.
On 1.4.2014 a machinery whose book value had been
Rs. 30,000 on 1.1.2012 was sold for Rs. 16,000.
Depreciation has been charged at 10% p.a. on straight
line method. Show the plant and machinery a/c and
depreciation a/c from 1.1.2012 to 31.12.2014.
DE-3302
5
wk14
13. Hari draws a three months bill on Krishna for Rs. 1,000
on 1st January 2012. Krishna accepts the bill and returns
it to Hari who discounts it with his bankers at 5%. On
15th March, 2012. Krishna, not being able to meet the bill,
offers Hari Rs. 400 and asks him to draw another bill for
three months for the balance plus interest at 5%. Hari
aggress to this arrangement but before the second bill
becomes due, Krishna becomes bankrupt. Pass Journal
entries in the books of both parties.
14. Receipts and Payments a/c of Sriram Cricket Club on
31.12.2012.
Receipts Rs. Payments Rs.
To balance b/d 2,000 By rent 6,000
To subscription 50,000 By advertisement 2,600
To collection of
annual day
10,000 By furniture 8,000
To donation for
sports
5,000 By expenditure of
sports day
6,000
To life member fees 1,500 By salary 7,200
To miscellaneous 1,000 By annual day
expenditure
11,000
By miscellaneous exp. 2,000
By investments 25,000
By maintenance 1,200
By balance c/d 500
69,500 69,500
Additional information
Rs. 3,000 for 2011 and Rs. 1,000 for 2013 is included
in the receipts of subscriptions and outstanding
subscription for 2012 is Rs. 2,500
Furniture on 1.1.2012 is Rs. 3,200
Depreciation 10% on furniture
DE-3302
6
wk14
Outstanding salary for 2011 is Rs. 1,000 and for
2012 Rs. 1,500
Interest on investment Rs. 1,200
Prepare Income and Expenditure A/c and the
balance sheet.
15. Prepare total accounts, from the following particulars in
General Ledger, Debtors' Ledger and Creditors' Ledger
January 2012.
January 2012 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, 2012 Rs.
Purchases 1,32,360
Purchase returns 5,120
Sales 1,74,980
Sales returns 2,340
Cash received from customers 1,52,420
Discount allowed thereon 5,640
Cash paid to suppliers 1,16,860
Discount received thereon 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