202AF13A Financial Accounting

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Reg. No. : ..........................................

1039 Q.P. Code : [20 CS 01/20 CSCA 01]

(For the candidates admitted from 2020-21 onwards)

B.Com. (CS/CSCA) DEGREE EXAMINATION,


MARCH 2021.

First Semester

Corporate Secretaryship/Corporate Secretaryship with


Computer Applications

FINANCIAL ACCOUNTING – I

Time : Three hours Maximum : 75 marks

SECTION A — (10  1 = 10 marks)


Answer ALL questions.
Each question carries 1 mark.
Choose the correct answer:

1. According to accrual concept of accounting,


financial or business transaction is recorded:
(a) When cash is received or paid
(b) When transaction occurs
(c) When profit is computed
(d) When balance sheet is prepared
2. The business or economic entity concept is
applicable to:
(a) Sole proprietorship form of business
(b) Partnership form of business
(c) Corporate form of business
(d) All of the above

3. When debit balance is equal to credit balance then


the trial balance means
(a) Account balances are correct
(b) Mathematically capital + Liabilities = Assets
(c) No mistake in recording transactions
(d) No mistake in posting entries to ledger
accounts

4. Errors are rectified in this book


(a) Ledger book (b) Trial balance
(c) Journal Proper (d) None of these

5. Which of the options is not an intangible asset?


(a) Land
(b) Patents
(c) Goodwill
(d) Franchise rights

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6. What does the term "credit" mean in business?
(a) It depends upon items
(b) Provide benefits
(c) It has no effect on business
(d) Receiving benefits

7. What is retiring a bill under rebate means?


(a) Making a payment of the bill before the due
date
(b) Dishonoring of a bill
(c) Making a payment of the bill after the due
date
(d) All of the above

8. What are the three additional days know as that a


drawer gives to the drawee for repayment
(a) Conditional days (b) Additional days
(c) Days of grace (d) Days of rebate

9. If the due date is public holiday what will be the


due date of the bill
(a) Preceding day (b) Following day
(c) The same day (d) After two days

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10. Due date of a bill of exchange drawn on 30th
January, 2011 for one month will be:
(a) 5 March (b) 3 March
(c) 29 February (d) 4 March

SECTION B — (5  5 = 25 marks)

Answer ALL questions.

Each question carries 5 Marks

11. (a) List out the characteristics of Accounting


concepts and conventions.

Or
(b) Explain the procedure of `Posting' from
journal to Ledger.

12. (a) Rectify the following errors:


(i) Sales to Sridhar Rs. 152, posted to his
account as Rs. 125
(ii) Purchase goods from Mano Rs. 550,
credited as Rs. 505.
(iii) Received bills receivable from seenu
Rs. 1,000, posted at Rs. 100
(iv) Purchased furniture from Raghu
Rs. 404 on credit debited to as Rs. 440

Or

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(b) From the following particulars, prepare a
Bank Reconciliation statement as on 31st
December, 2000

(i) Bank balance as per cash book as on


31-12-2000, Rs. 5,400

(ii) Cheques issued but not presented for


payment Rs. 515.

(iii) Cheques issued but not presented for


payment Rs. 240.

(iv) Bank charges debited in pass book


Rs. 30

(v) Interest on current account credited by


the bank but not recorded in the cash
book Rs.25

13. (a) From the following details, Calculate gross


profit Opening stock Rs. 6,000; Purchase
Rs. 40,000; Sales Rs. 95,000; Closing stock
Rs. 12,000; Return outwards Rs. 1,000;
Return inwards Rs. 500; Wages Rs. 4,000;
Salaries Rs. 5,500; Advertisement Rs. 8,000;
Interest Rs. 1.000.

Or

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(b) From the following information prepare
Trading and profit and Loss account Opening
stock Rs. 2,600; Purchases Rs. 12,000; Sales
Rs. 24,000; Carriage inwards Rs. 2,000;
Return outwards Rs. 1,800; Depreciation on
Machinery Rs. 800; Return outwards
Rs. 800; Wages paid Rs. 1,600; Wages
outstanding Rs. 400; Indirect expenses
Rs. 2,300; Closing stock Rs. 14,000.

14. (a) On 1-1-2000, Jaya sold goods to Devi on


credit for Rs. 2000 and drew a bill on devi for
Rs,. 2000 (or 3 months after date. Devi
accepted it on 3-1-2000 and returned it to
Jaya. On maturity, the bill was duly honored
by Devi. Pass Journal entries in the books of
drawer.

Or

(b) Distinguish between a Trade bill and


Accommodation bill.

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15. (a) On 1st January 2018, the amount due to from
G to K was Rs. 1,000. During the six months
ended June, the transactions were as follows:
Rs.
2018 February 10 Sold goods to G 2,000
2018 March 15 Purchased goods from G 600
April 20 Cash received from G 800
May 15 Cash paid to G 600

Prepare an account current to be rendered b


K to 6 on 30th June 2018 calculating interest
@12% p.a.
Or
(b) D' purchased goods on credit. His due dates
for payments were as under:
Date of bill Amount of bill Due date
5-3-2005 300 8-4-2005
15-4-2005 200 18-5-2005
10-5-2005 275 13-6-2005
5-6-2005 400 8-7-2005

Find out avg. due date

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SECTION C — (5  8 = 40 marks)

Answer ALL questions. Each question carries 8 Marks

16. (a) " Cash book is both a subsidiary Book as well


as ledger account" – Explain.

Or
(b) "Accounting is the Language of business".
Discuss.

17. (a) Prepare Trial balance


Rs. Rs.
Opening Stock 10,600 Wages 2,200
Carriage 200 Commission (Dr) 300
Purchases 12,000 Returns inward 440
Trade Expenses 580 Rent 200
Plant 2,600 Repairs to plant 460
Cash in hand 200 Cash at bank 1,000
Debtors 3,000 Income Tax 500
Drawings 700 Returns outwards 150
Sales 25,200 Discount received 400
Capital 7,000 Creditors 830
Loan (Cr) 1,400

Or

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(b) Following are the ledger balances of Sri. You
are asked to prepare trail balance as on
31.12.2000.
Rs. Rs.

Opening stock 10,000 Capital 60,000

Salaries 5,000 Creditors 10,000

Bills payable 5,000 Loan from Krishna 25,000

Cash in hand 12,000 Discount allowed 700

Bank overdraft 4,000 Accured interest 5,000


payable

Debtors 15,000 Purchaes 30,000

Cash at bank 18,000 Reserve for bad 1,200


debts

Sales 80,000 Trade expenses 500

Wages 1,000 Outstanding 2,000

Prepaid 2,500 Plant and 90,000


insurance Machinery

Depreciation on 8,000 Outstanding 500


plant interest on OD

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18. (a) From the following trial balance of Mr. Mano
prepare Trading and Profit and Loss account
for the year ended 31st March 2018. And the
balance sheet as on that date.
Particulars Dr.(Rs.) Cr.(Rs.)
Capital 1,20,000
Sales 75,000
Purchases 45,000 –
Salaries 6,000 –
Rent 4,500 –
Insurance Premium 900 –
Drawings 15,000 –
Machinery 84,000 –
Bank 13,500 –
Cash 13,500 –
Stock (1.4.2017) 15,600 –
Sundry Debtors 7,500 –
Sundry Creditors – 10,500
2,05,500 2,05,500
Adjustments Required:
(i) Stock on 31.03.2018 Rs. 14,700
(ii) Salary unpaid Rs. 1,000
(iii) Rent paid in advance Rs. 750
(iv) Create 5% Provision for bad and doubtful
debts on Sundry Debtors.

Or

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(b) From the following Trial Balance, Prepare
Trading and Profit and Loss account for the
year ending 31.12.2018 and the Balance
sheet as on that date
Particulars Dr.(Rs.) Cr.(Rs.)
Capital – 6,40,000
Sales – 4,00,000
Purchases 2,40,000 –
Salaries 32,000 –
Rent 24,000 –
Insurance Premium 4,800 –
Drawings 80,000 –
Machinery 4,48,000 –
Cash and Bank 1,04,000 –
Stock (1.4.2017) 83,200 –
Sundry Debtors 40,000 –
Sundry Creditors – 16,000
10,56,000 10,56,000

Adjustments:
(i) Stock on 31.12.2019 Rs. 78,400
(ii) Salaries outstanding Rs. 4,800
(iii) Rent paid in advance is As. 3,200
(iv) Prepaid insurance Rs. 1,440
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19. (a) Mano sold goods to Man for Rs. 3,000 on
credit on 1-4-2000. For the purpose, Mano
drew a bill on Mani for Rs. 3,000 for 3
months. Mani accepted the same and
returned it to Mano. On Maturity, the bill
was Dishonoured by Mani. Show the entries
in the books of both the parties under each of
the following circumstances.
(i) If Mano retained the bill till maturity.
(ii) If Mano discounted the bill by the bank
at 18% p.a.
(iii) If Mano endorsed the bill to his creditor
Anil
(iv) If mano sent the bill to the bank for
collection.

Or
(b) Mr. R accepted on 1st April 2000 a bill for
Rs. 10,000 drawn by Mr. S 3 months. Mr. S
immediately discounted the bill with his
banker at 7% Mr. R failed to meet the bill on
the due date and an his request Mr. S
renewed the bill for 2 months by adding12%
interest to the amount on Mr. R furnishing
security. Mr. R endorsed two of his
customers' bills for Rs. 7,000 and Rs. 5,400
due on 20th August and 10 September
respectively. Mr. S discounted all the three
bills at 7% with the bankers. On the due date
all the bills were met.
Journalise the above transactions in the
books of 'R' and S'
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20. (a) Sankar had the following transactions with

Sundari, during the year 2014.

Rs.

Jan. 1 Balance due from Sundari 500

Feb. 16 Purchased goods from Sundaul 3,000

Feb. 28 Sold goods to Sundari 5,000

Mar. 16 Received a cheque 1,500

Apr. 20 Sold goods to Sundari (Invoice cr1 May 3) 5,000

June 16 Purchased goods from Sundari (Received on July 16) 7,500

Sept. 23 Paid cash to Sundari 1,500

Oct. 24 Accepted Sundari's bill for 3 months 2,500

Nov. 26 Received Sundari's acceptance for 2 months 4,000

Prepare an account current to be rendered by

Sankar to sundari as on 31.12.2014. Interest

must be calculated 5% p.a. adopting cheque

method.

Or

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(b) Sharma, having accepted the following bills
drawn by his creditor Gambirsingh due on
different dates, approached his creditor to
cancel them all and allow him to accept a
single bill for the payment of his entire
liability on the average due date. You are
required to ascertain the total amount of the
bill and its due date.
Bill Date of Date of Amount Tenure
No. Drawing acceptance
1 16.02.06 20.02.06 16,000 90 days after
sight
2 06.03.06 07.03.06 12,000 2 months after
date
3 24.05.06 31.05.06 4,000 4 months after
sight
4 01.96.06 04.06.06 18,000 1 month

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