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    Financial Accounting

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    Kartik Gurmule
    The document is an exam for a Financial Accounting course. It contains 3 questions asking students to: 1) Prepare financial statements for a company from a trial balance and additional information. 2) Prepare departmental and general trading accounts from sales, expense, and stock information for two departments. 3) Prepare machinery, depreciation, and provision for depreciation accounts from purchase, sale, and depreciation rate information for machinery over multiple years.

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    Financial Accounting

    Uploaded by

    Kartik Gurmule
    251 views2 pages
    The document is an exam for a Financial Accounting course. It contains 3 questions asking students to: 1) Prepare financial statements for a company from a trial balance and additional information. 2) Prepare departmental and general trading accounts from sales, expense, and stock information for two departments. 3) Prepare machinery, depreciation, and provision for depreciation accounts from purchase, sale, and depreciation rate information for machinery over multiple years.

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    The document is an exam for a Financial Accounting course. It contains 3 questions asking students to: 1) Prepare financial statements for a company from a trial balance and additional information. 2) Prepare departmental and general trading accounts from sales, expense, and stock information for two departments. 3) Prepare machinery, depreciation, and provision for depreciation accounts from purchase, sale, and depreciation rate information for machinery over multiple years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    251 views2 pages

    Financial Accounting

    Uploaded by

    Kartik Gurmule
    The document is an exam for a Financial Accounting course. It contains 3 questions asking students to: 1) Prepare financial statements for a company from a trial balance and additional information. 2) Prepare departmental and general trading accounts from sales, expense, and stock information for two departments. 3) Prepare machinery, depreciation, and provision for depreciation accounts from purchase, sale, and depreciation rate information for machinery over multiple years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    SVKM’S NMIMS

    Anil Surendra Modi School of Commerce

    Batch: 2021-2024
    Academic year 2021-22

    Programme: B.B.A Duration: 2 Hours


    Subject: Financial Accounting (Semester I) Marks: 50

    Instructions:
    • All Questions are compulsory.
    • Working notes must form an integral part of your answer.
    • Numbers to the right indicate the maximum marks for each question.
    • Simple and scientific calculators are allowed
    • Make necessary assumptions wherever required.

    Q1. (20 marks)

    The following is the trial balance of Alliance Pvt. Ltd. as at 31st March 2020:
    Amount Amount
    Particulars (Rs.) Particulars (Rs.)
    Opening stock 41,000 Purchase returns 6,000
    10 % Government Bonds (Purchased Share Capital (Authorised:
    on 1.4.2017) 1,00,000 1,00,000 shares of Rs. 10 each) 6,00,000

    Building (addition in mid-year of Rs. 12% Debentures (Issued on


    2,00,000) 8,50,000 1.10.2019) 3,00,000
    Purchases 2,20,000 Sales 4,44,100
    Productive Wages 30,000 Provision for bad debt 7,000
    Repairs & Maintenance expense 30,000
    Debtors 70,000
    Bad debts 9,000
    Carriage Inward 1,100
    Interest on Government Bond
    accrued 6,000
    Total 13,57,100 Total 13,57,100

    The following is the additional information available:

    1) The physical stock in our godown on 31.3.2020 is Rs. 50,000.


    2) On 1.3.2020, goods costing Rs. 80,000 were sent to Mr. Bramha at 20% profit on sales on
    approval basis. The transaction was recorded as a part of sales on 1.3.2020. Out of the total
    goods, Mr. Bramha has approved only 50% by 31.3.2020. The remaining goods will be
    returned back to Alliance Pvt Ltd.
    3) It was decided to transfer 25% of the current year profit to general reserve.
    4) Depreciate Fixed Assets @ 10% p.a.
    5) Create Provision for bad debt @ 10% on debtors.
    6) Provide for Income tax @ 30%.

    Prepare Balance Sheet and Statement of Profit and Loss for Alliance Pvt. Ltd. for the year ended
    31.3.2020 and also relevant notes to accounts as per Schedule III of Companies Act 2013.

    Page 1 of 2
    Q2) (15 Marks)

    A Firm has two departments, Rubber and Tubeless tyres. The Tyres were made by the firm itself out
    of Rubber supplied by the rubber department at its selling price. From the following figures, prepare
    departmental trading and profit and loss Account and General profit & loss account for the year
    ending 31st December 2020.

    Particulars Rubber department Tubeless tyres department

    Opening Stock as on 01/01/2020 3,00,000 50,000


    Purchases 20,00,000 15,000
    Sales 22,00,000 4,50,000
    Manufacturing Expenses - 60,000
    Selling Expenses 20,000 6,000
    Stock as on 31/12/2020 2,00,000 60,000

    Besides, there were certain other expenses incurred during the year the details of the same are shared
    below :

    Bad debts : Rs. 53,000.

    Rent and rates : Rs. 21,000

    Lighting: Rs. 24,000

    General Expenses : Rs. 1,10,000.

    Area Occupied by the two departments is in the Ratio 2:1. General expenses are to be divided in the
    ratio 5:3.

    Goods worth Rs. 3,00,000 were transferred from the Rubber department to the Tubeless tyres
    Department at its selling Price. The stocks in tubeless tyres department may be considered as
    consisting of 75% rubber and 25% other expenses. The rubber department earned a gross profit at the
    rate of 15% in 2019.

    Q3) (15 marks)

    Evergreen Ltd. purchased Machinery on 1st April, 2018, for Rs. 54,00,000 and spent Rs. 5,00,000 on
    import duty and Rs. 1,00,000 on its erection. On 1st October 2020 a part of the machinery which was
    purchased on 1st April 2018 for Rs. 4,00,000 was sold for Rs. 2,25,000

    On 1st October 2020, a new machinery was purchased for Rs. 7,50,000 and spent Rs. 30,000 on its
    carriage.

    Remaining Machinery purchased on 1st April 2018 was destroyed by fire on 31st January 2021 and
    remnants were sold for Rs. 4,00,000. The company charges depreciation @10% p.a. on Written down
    value method.

    You are required to prepare Machinery Account, Depreciation Account and Provision for
    Depreciation Account from 01st April, 2018 to 31st March, 2021.

    Page 2 of 2

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