DISTANCE EDUCATION
B.Com. DEGREE EXAMINATION, MAY 2017.
BASIC FINANCIAL ACCOUNTING
(2005 onwards)
Time Three hours Maximum 100 marks
PART A — 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. Define accounting. What are its objectives? What are the
types of accounts?
2. Madhu maintains books on single entry system. He give
you the following information
Liabilities Rs. Assets Rs.
Capital on 1.1.2013 15,200 Drawings during
Capital on 1.1.2014 16,900 the period
(1.1.2013 to 1.1.2014) 4,800
Capital introduced on
August 1st 2013 2,000
You are required to calculate his profit.
3. On 1.1.2013 Mr. X draw a 3 months bill on Mr. Y for
Rs. 5,000. It was duly accepted by and returns it to X.
X discounts the bill with his bank at pa. on the due
date the bill was dishonored.
Pass journal entries in the books of Prasana.
4. What is Income and Expenditure account? How it is
prepared?
Sub. Code
12
DE-110
2
SER
5. What are the difference between consignment and joint
venture?
6. What is an account sale? Draw a specimen form of an
account sales.
7. On 1st January 2012, a firm purchased five machines at
Rs.10,000 each. On July 1st, 2014 it bought two
additional machines at the price of Rs.10,000 each,
Installation charges Rs.1,000. The accounts are closed
each year on 31st December. Depreciation is provided at
10% p.a. Show the machinery account for 5 years under
Reducing Balance Method.
8. From the following information calculate the total sales of
the year 2013
Rs.
Debtors (01.01.2013) 17,425
Debtors (31.12.2013) 15,300
Cash received from debtors 49,200
Sales returns 3,700
Bad debts 2,500
Discounts 1,800
Bills receivable 5,000
Cash sales 12,000
PART B — 15 60 marks)
Answer any FOUR questions.
All questions carry equal marks.
9. Explain the differences between Journal and Ledger.
With briefly explain.
10. Write notes on
Personal Accounts
Real Account.
Nominal Account.
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3
SER
11. Define depreciation and explain its causes.
12. X draws a bill for Rs.1,500 and Y accepts the same for the
mutual accommodation of both to the extent of X
3
2 and
Y
3
1 . X discounts the same for Rs.1,410 and remits
3
1 of
the proceeds to Y. Before the due date Y draws another
bill for Rs.2,100 on in order to provide funds to meet
the first bill; the second bill is discounted for Rs.2,040
with the help of which first bill is met and Rs. 360 are
remitted to X. Pass necessary journal entries and prepare
a/c in the books of Y assuming that X becomes
insolvent and Y received a dividend of 50 paise in the
rupee in full satisfaction.
13. Explain the various methods of providing depreciation.
14. From the following Trial balance and additional
information, prepare Trading and Profit and Loss
Account for the year ending 31.12.13 and a balance sheet.
Particulars Debit
Rs.
Credit
Rs.
Particulars Debit
Rs.
Credit
Rs.
Capital and drawings 10,000 1,00,000 Carriage inwards 1,000
Bank 24,000 Debtors 22,500
Machineries 25,000 Creditors 25,000
Bills receivable and Commission 2,000
bills payable 7,500 6,500 Fixed assets 61,000
Purchases 1,02,500 Rent 8,000
Sales 1,75,000 Cash 5,000
Returns inwards
and outwards 2,000 2,500
Wages 10,000
DE-110
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Particulars Debit
Rs.
Credit
Rs.
Particulars Debit
Rs.
Credit
Rs.
Bad debts 3,000
Opening stock 15,000
Discount 500 1,000
Salaries 15,000
Adjustments
Closing stock Rs. 4,000
Wages to be paid Rs. 1,000
Bad debts written off Rs. 500
Provide interest on capital
Charge 10% depreciation on fixed assets.
15. From the following prepare necessary ledger accounts.
Dec. 1 Rajini started business with a capital of Rs. 50,000
2 Purchased furniture Rs. 5,000
3 Bought goods on credit from Vinod Rs. 8,000
14 Sold goods to Suresh Rs. 5,000
15 Received cash from Suresh Rs. 3,000
18 Purchased goods for cash Rs. 12,000
27 Sold goods for cash Rs. 8,000
28 Paid rent Rs. 1,200
31 Paid to Vinod Rs. 3,000