DISTANCE EDUCATION
B.B.A. (Banking) DEGREE EXAMINATION, MAY 2017.
FINANCIAL ACCOUNTING
(2005 onwards)
Time Three hours Maximum 100 marks
PART A — 8 40 marks)
Answer any FIVE questions.
1. Explain the classification of accounts and golden rules of
double entry system.
2. Give journal entries for the following transactions.
2013
January 1
Started business with Rs. 25,000
2 Deposited into Bank Rs. 23,500
4 Purchased furniture by issuing Cheque
Rs. 2,000
7 Goods worth Rs. 2,500 taken from the shop for
personal use
3. From the following particulars prepare a bank
reconciliation statement as on 31st December 2008.
Balance as per cash book Rs. 5,877
Cheques issued but not presented for payment
Rs. 2,013
Cheques deposited but not cleared up to
31st December 2008 Rs. 1,419
Banker had wrongly debited the firm's a/c of Rs. 225
which was rectified in January.
Sub. Code
15
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4. Distinguish between consignment and joint venture.
5. Explain receipts and payment accounts with its general
format.
6. The net profit of M/s.Gerald Co, is Rs. 11,000. Find out
Geralds commission if it is
10% before charging any commission
10% after charging such commission
7. A Ltd forfeited 300 equity shares of Rs. 10 fully called
up, held by Mr. X for nonpayment of final call Rs. 4
each. However, he paid application money Rs. 2 per
share and allotment money Rs. 4 per share. These
shares were originally issued at par. Give journal entries
for the forfeiture.
8. Write a short note on classification of assets in banking
company.
PART B — 15 60 marks)
Answer any FOUR questions.
9. Prepare a triple column cash book from the following
particulars and balance the same at the end of the
month.
2009
March 1
Cash in hand Rs. 15,000
1 Bank overdraft Rs. 5,000
5 Received a cheque for Rs. 6,000 from
Chandran and allowed him discount Rs. 50
10 Purchased goods for Rs. 4,500 and paid by
cheque
15 Paid into Bank Rs. 10,000
18 Chandran' s cheque was sent for collection
26 Bank informed that Chandran's cheque has
returned and dishonored
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10. The following are the balances extracted from the books
of Thiru. Gokulnath as on 31.12.2010. Prepare Trading
and Profit and Loss a/c for the year ended 31st December,
2010 and a Balance sheet as on that date.
Debit Balance Rs. Credit Balance Rs.
Opening Stock 20,000 Capital 1,00,000
Machinery 40,000 Purchases returns 1,000
Purchases 70,000 Sales 90,000
Sales returns 1,000 Creditors 29,000
Wages 2,000
Salaries 5,000
Office rent 2,000
Insurance 1,000
Debtors 50,000
Cash 4,000
Bank 25,000
2,20,000 2,20,000
Adjustments
Closing stock is valued at Rs. 20,000
Outstanding salaries Rs. 1,000
Prepaid insurance Rs. 500
Bad debts Rs. 1,000
Provide 10 depreciation on machinery.
11. A partner has withdrawn the following sums of money
during the half year ended June 30,2012
10th January 2000
18th February 1200
5th March 600
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12th April 800
21st May 1000
1st June 600
Find out the average Due Date and calculate the interest
to be charged at the rate of 10 percent for the half year
ended June 30, 2012.
12. Distinguish between receipts and payments a/c and
income and expenditure account.
13. Hari and Govind are partners in a firm and they share
profits and losses in the ratio of 3:2. Their capital were
Rs. 60,000 and Rs. 40,000 respectively. They admit Rajan
into partnership and he will get 1/6 share in future
profits. His capital was Rs. 25,000. Calculate the amount
of goodwill and pass journal entries Pre writing that the
goodwill be written off.
14. Describe the SEBI guidelines for issue of shares to the
public.
15. How will you calculate the interest on drawings? Explain
its methods.