TKN/KS/16/36

Bachelor of Commerce (B.Com.) Part—I (New)

Examination
FINANCIAL ACCOUNTING—I
Compulsory Paper—III
Time : Three Hours] [Full Marks : 100
N.B. :— (1) ALL questions are compulsory.
(2) All questions carry equal marks.
1. (A) ‘Accounting begins where book-keeping ends’,
examine the statement and distinguish between
the two. 10
(B) Journalise the following transactions in the books
of Shri Madhusudan :
(1) Commenced business with Rs. 3,00,000 cash
and furniture worth Rs. 60,000.
(2) Cash deposited into bank Rs. 2,00,000.
(3) Goods purchased from M/s. Anant Traders
(subject to 5% trade discount) worth
Rs. 1,50,000.
(4) Goods sold to Shri Gopal worth Rs. 1,00,000.
(5) Shri Gopal returned goods worth Rs. 2,000.

MXP(C)—49234 1 (Contd.)
 (6) Commission received Rs. 3,500. Debit Balance Rs. Credit Balances Rs.
(7) Cash received from Shri Gopal after ten days Fuel, Coal & Water 10,000 Bank Overdraft 8,000
for goods sold to him. Purchases 1,40,000 Outstanding Wages 4,000
(8) Withdrawn from bank for personal use Salaries 16,000 Commission 3,600
Rs. 10,000.
Sales Return 8,000
(9) Part payment to M/s. Anant Traders by cheque
Trade Expenses 800
for Rs. 1,00,000.
Bad Debts 1,200
(10) Payment of electric bill in cash Rs. 1,800.
Insurance 1,600
10
Prepaid Salary 4,800
OR
Office Rent 2,400
(C) From the following Trial Balance and additional
information of Mr. Aashish Agarwal, you are Stock on 1-4-2014 40,000

required to prepare Trading and Profit & Loss Building 1,60,000

Account for the year ended 31 March, 2015 and Bills Receivable 4,800
Balance Sheet as on that date : Furniture 24,000
Trial Balance as on 31 March, 2015 5,41,200 5,41,200
Debit Balance Rs. Credit Balances Rs. Additional Informations :
Sundry Debtors 90,400 Capital 2,00,000 (1) Stock as on 31 March, 2015 was valued at
Drawings 20,000 Sales 2,44,000 Rs. 74,800.
General Expenses 6,000 Reserve for (2) Depreciate building by 5% and furniture by
Stationery 5,200 Doubtful Debts 1,600 10%.
Wages 6,000 Sundry Creditors 80,000 (3) Write off bad debts Rs. 2,400 and create
reserve for doubtful debts at 5% on sundry
debtors.
MXP(C)—49234 2 (Contd.) MXP(C)—49234 3 (Contd.)
 (4) Commission of Rs. 1,200 earned but not (C) Shridhar purchased a Diesel engine from Laxmi
received. Traders on 1 April, 2014 on hire-purchase basis.
The hire-purchase price of the engine was Rs.
(5) On 31 March, 2015 the stock of stationery
50,000 and the payments were made as under :
in hand was Rs. 1,200.
Down payment : On 1 April, 2014 Rs. 10,000
(6) Goods worth Rs. 2,000 distributed as free
First Instalment : On 30 Sept., 2014 Rs. 14,000
samples. 20
Second Instalment : On 31 March, 2015 Rs. 12,500
2. (A) Explain the advantages and disadvantages of the
Third Instalment : On 30 Sept., 2015 Rs. 13,500
Hire-purchase System from the point of view of
The hire-purchase price was fixed by charging
the purchaser and the vendor separately. 10
interest @ 16% per annum. Shridhar provided
(B) Mr. Amar Gupta purchased a machine on 1 April, depreciation @ 10% per annum on the cash price
2012 on hire-purchase basis. The cash price of of the engine.
the machine was Rs. 70,000. He paid Rs. 10,000
Prepare :
immediately and the balance is payable in three
annual instalments of Rs. 20,000 each on (1) A Diesel engine A/c and a Laxmi Traders
31st March every year. In addition 5% interest is A/c in the books of Shridhar.
charged annually on the balances. (2) A Shridhar A/c in the books of Laxmi Traders.

As per terms Mr. Gupta also agreed to pay (Books of accounts are closed on 31st March every
an insurance premium of 1% p.a. on the year. Make calculations to the nearest rupee).
outstanding balances alongwith the amount of 20
instalment. All amounts have been duly paid on 3. (A) What do you mean by Branch Accounts ?
the dates due. Differentiate between Dependent Branch and
Prepare an analytical table and a Vendor’s Independent Branch. 10
A/c in the books of Mr. Amar Gupta. 10

OR
MXP(C)—49234 4 (Contd.) MXP(C)—49234 5 (Contd.)
 (B) From the following information, prepare Branch (C) Madras Head Office has a branch at Bangalore.
Debtor’s A/c and Nagpur Branch A/c in the books Goods are sent to the branch by invoicing them
of Head Office for the year ended 31 March, at cost plus 20%. The branch is allowed to sell
goods on credit as well as cash. All the amounts
2015 :
received by the branch are directly paid into the
Rs. Bank in the H.O. account and all expenses of
Unsold Stock (1-4-2014) 22,250 branch are met by the Head Office.
Petty Cash (1-4-2014) 50 From the following information you are
required to prepare Bangalore Branch A/c, Branch
Goods sent to Branch 71,000
Debtors A/c and Branch Trading and Profit &
Cash Sales 39,500 Loss Account in the books of Madras Head Office.
Credit Sales 1,01,000 Particulars Rs. Rs.
Total Petty Cash Expenses 2,475 Branch Stock (1.4.2013) 60,000
Cash received from Debtors 94,750 Branch Debtors (1.4.2013) 20,000
Cash received for Expenses Petty Cash with Branch (1.4.2013) 2,000

Rent 5,000 Goods sent to Branch 4,20,000

Goods returned to H.O. 36,000
Salary 15,000
Cash Sales of Branch 1,50,000
Petty Cash 2,500
Total Sales of Branch 7,00,000
Unsold Stock (31-3-2015) 13,500
Bad debts 5,000
Branch Debtors (31-3-2015) 18,000
Cheque sent to Branch
Goods returned by the Branch 2,000 Rent and Taxes 10,000
10 Salary 35,000
OR Petty Cash 5,000 50,000

MXP—49234(C) 6 (Contd.) MXP—49234(C) 7 (Contd.)

 Cash recovered by branch 15 April : Interest received from X by cheque
from Debtors 4,50,000 of State Bank of India for Rs. 40,000
and deposited into United Bank for
Return Inward 50,000
collection immediately.
Discount Allowed 20,000
24 April : Wages paid Rs. 4,000.
Branch Stock (31.3.2014) 24,000
30 April : Outstanding salary Rs. 10,000.
Petty Cash with Branch (31.3.2014) 1,500
30 April : Prepaid insurance premium Rs. 3,000.
The branch has furniture of Rs. 2,00,000.
30 April : Depreciation charged on furniture
Depreciation is to be charged @ 10%. The branch
Rs. 6,000. 10
manager is allowed a commission at ½% on the
OR
total sales of the branch. 20
(C) From the following information of Trupti
4. (A) Explain the meaning and importance of co-
Co-operative Mills, prepare final accounts :
operative society. 10
Trial Balance as on 31 March, 2015
(B) Prepare a Cash Book of Nagpur Consumers’ Particulars Dr. (Rs.) Cr. (Rs.)
Co-operative Society for April, 2015 :—
Machinery 1,58,540
2015 : Land and Buildings 1,15,384
1 April : Balance b/d Rs. 14,000. Debtors 50,000
3 April : Salary paid by cheque drawn on 6% Govt. Loan 20,000
Maharashtra Bank Rs. 20,000. Trade Expenses 304
6 April : Cash withdrawn from United Bank Postage and Stationery 1,020
Rs. 20,000. Carriage Inwards 400
Share Capital (of Rs. 10 each) 2,50,000
10 April : Rent paid Rs. 12,000.
Reserve Fund 10,000
Profit & Loss A/c 936
MXP—49234(C) 8 (Contd.) MXP—49234(C) 9 (Contd.)
 Particulars Dr. (Rs.) Cr. (Rs.) 5. (A) Seth Brothers consinged 200 wire-bundles costing
Creditors 41,324 Rs. 400 each to Kamal Electricals of Kolhapur.
Reserve for Doubtful Debts 2,000 Consignor spent Rs. 2,000 towards freight and
Interest on Govt. Loan 600 insurance. During transit 10 bundles were badly
Wages 15,000 damaged and the insurance company accepted
Salaries 4,182 the claim for Rs. 3,000 only.
Purchases 1,29,300 Consignee took delivery of the remaining
Bad Debts 680 wire-bundles and spent Rs. 1,900 for octroi and
Director’s Fees 1,300 Rs. 1,600 for indirect expenses. They are entitled
Cash at Bank 3,550 to 5% general commission and 2% del-credere
Investments 9,520 commission.
Power 3,800 Consignee sold 100 bundles @ Rs. 600 each
Bills Payable 1,500 in cash and 60 bundles on credit @ Rs. 650 each.
Stock on 1-4-2014 26,000 There is bad debts of Rs. 1,000.
Rent and Taxes 2,020
Prepare a consignment A/c in the books of
Sales 1,95,840
Seth Brothers. (Note : Working shall be treated
5,21,600 5,21,600
as part of your answer). 10
Adjustments :
(B) Abhay and Sanjay entered into a joint venture
(1) Stock as on 31 March, 2015 was Rs. 27,400.
for purchase and sale of cottage industry articles.
(2) Provide reserve for doubtful debts at 5% on
debtors. They agreed to share profits and losses in the
(3) Dividend to be declared at 9%. ratio of their respective contributions. Abhay
(4) Provide education fund @2% on net profit. contributed Rs. 10,000 in cash and Sanjay Rs.
(5) Transfer to reserve fund as per M.S. 13,000. The whole amount was deposited in a
Co-operative Societies Act, 1960. 20 Joint Bank Account. Goods were purchased by

MXP—49234(C) 10 (Contd.) MXP—49234(C) 11 (Contd.)

 Abhay for Rs. 10,000 and expenses paid by Sanjay ¼ejkBh ekè;e½
amounted to Rs. 2,000. lwpuk %—(1) loZ iz’u vfuok;Z vkgsr
They also purchased goods worth Rs. 15,000 (2) loZ iz’ukauk leku xq.k vkgsr-
through the Joint Bank Account. Total Expenses
1. (v) ^iqLrdikyu ftFks lairs frFkwu ys[kkdekZph lq#okr gksrs*]
on purchase and sale of the articles amounted to
Rs. 6,000 (including those met by Sanjay). Goods
;k fo/kkukps ijh{k.k djk vkf.k iqLrdikyu o ys[kkdeZ
costing Rs. 20,000 were sold for Rs. 45,000 and
;krhy Qjd Li"V djk- 10
the balance was lost by fire. (c ) baxzth ek/;ekuqlkj- 10
Prepare the joint venture A/c and the fdaok
Co-venturers’ A/c closing the venture. 10 (d ) baxzth ek/;ekuqlkj- 20
OR 2. (v) Øsrk vkf.k foØsrk ;kaP;k n‘f"Vdksukrwu Ø;koØ; ¼HkkMs&[kjsnh½
(C) Mr. Kundan of Katol and Mr. Mohan of Malkapur i)rhps Qk;ns o rksVs osxosxGs Li"V djk- 10
entered into Joint Venture business. Mohan is (c ) baxzth ek/;ekuqlkj- 10
allowed a commission on sales @ 10% and profits
are to be shared in the ratio of 2 : 1.
fdaok
(d ) baxzth ek/;ekuqlkj- 20
Kundan provided timber from a stock of
Rs. 1,00,000 and incurred expenses amounting 3. (v) ^’kk[kk [kkrh* ;kiklwu vki.kkl dk; vFkZcks/k gksrks \
to Rs. 10,000. Mohan paid Rs. 10,000 for Lora= ’kk[kk vkf.k vkfJr ’kk[kk ;krhy varj Li"V
unloading and other non-recurring expenses. djk- 10
Kundan drew a bill upon Mohan for Rs. 60,000, (c ) baxzth ek/;ekuqlkj- 10
the bill was accepted by Mohan, Kundan got it fdaok
discounted for Rs. 57,600.
(d ) baxzth ek/;ekuqlkj- 20
Mohan sold 90% of timber for Rs. 1,50,000
and took over the remaining timber at cost plus 4. (v) lgdkjh laLFkspk vFkZ vkf.k egRo Li"V djk- 10
20%. Mohan settled his account by bank draft. (c ) baxzth ek/;ekuqlkj- 10
Prepare a Joint Venture A/c and a Mr. Mohan fdaok
A/c in the books of Mr. Kundan. 20 (d ) baxzth ek/;ekuqlkj- 20

MXP—49234(C) 12 (Contd.) MXP—49234(C) 13 (Contd.)

5. (v) baxzth ek/;ekuqlkj- 10 4. (v) lgdkjh laLFkk dk vFkZ ,oa egRo fo"kn dhft;sA
(c ) baxzth ek/;ekuqlkj- 10 10
fdaok (c ) vaxzsth ek/;e ds vuqlkjA 10
(d ) baxzth ek/;ekuqlkj- 20 vFkok
(d ) vaxzsth ek/;e ds vuqlkjA 20
5. (v) vaxzsth ek/;e ds vuqlkjA 10
¼fgUnh ekè;e½
(c ) vaxzsth ek/;e ds vuqlkjA 10
lwpuk % — (1) lHkh iz’u vfuok;Z gaSA
(2) lHkh iz’uksa ds leku vad gSaA vFkok
1. (v) ^tgk¡ cgh [kkrk fy[kuk lekIr gksrk gS ogha ls ys[kkdeZ (d ) vaxzsth ek/;e ds vuqlkjA 20
dh ’kq:okr gksrh gS*] bl dFku dk ijh{k.k dhft;s rFkk
nksuks esa Hksn n’kkbZ;sA 10
(c ) vaxzsth ek/;e ds vuqlkjA 10
vFkok
(d ) vaxzsth ek/;e ds vuqlkjA 20
2. (v) Øsrk rFkk foØsrk dh n‘f"V ls Ø;k o Ø; ¼HkkVd Ø;½
i)fr ds ykHk ,oa gkfu;ka i‘Fkdr% Li"V dhft;sA
10
(c ) vaxzsth ek/;e ds vuqlkjA 10
vFkok
(d ) vaxzsth ek/;e ds vuqlkjA 20
3. (v) ’kk[kk [kkrksa ls vkidks D;k tkudkjh feyrh gS \ Lora=
¼i‘Fkd½ ’kk[kk ,oa vkfJr ’kk[kk esa Hksn Li"V dhft;sA
10
(c ) vaxzsth ek/;e ds vuqlkjA 10
vFkok
(d ) vaxzsth ek/;e ds vuqlkjA 20
MXP—49234(C) 14 (Contd.) MXP—49234(C) 15 22050