Alagappa University 2007 B.B.M ,(FINANCIAL ACCOUNTING) - Question Paper

(b) Depreciate Machinery @ 10%.
(c) Salaries outstanding Rs. 1,500.
(d) Create a provision of 5% reserve for bad and doubtful debts on sundry debtors.
11. A and D are sharing profits in the ratio of 3:1. Their firm’s balance sheet as on 31.3.2000 was as follows :
Rs. Rs.
Creditors 37,500 Cash at bank 22,500
General reserve 8,000 Bills receivable 13,000
Capital a/cs : – A 60,000 Debtors 16,000
B 32,000 Stock 40,000
Furniture 11,000
Land and Buildings 35,000
Total 1,37,500 Total 1,37,500
They admit G into partnership on 1.4.2000, on the subsequent terms :¬
(a) That G pays Rs. 30,000 as his capital for a 5th share in the future profits.
(b) That a goodwill a/c be raised in the books of the new firm at a value of Rs.40,000
(c) That stock and furniture be decreased by 10% and 5% provision for bad debts to be created on debtors
(d) That the value of land and buildings be appreciated by 20%
(e) That the capital a/cs of the partners be re-adjusted on the basis of their profit-sharing arrangements and any additional amount be debited or credited to their current account.
Show that P/L adjustment a/c, capital accounts of the partners and the opening Balance Sheet of the new firm.
12. A cotton mill at Ahamadabad send regular consignments of cloth to M/s. Lall and sons of Lucknow who are the selling agents and are entitled to a commission of Re. one per kg of cloth sold. This includes del credere commission.
From the subsequent transactions prepare Consignment a/c Lall and sons a/c and show workings of abnormal loss in the books of the cotton mills company books.
Stock of cloth with agents at the beginning 2,000 kg costing Rs. 25,000
Total volume of cloth consigned 16,000 Kg @
Rs. 30 per kg.
Total volume of cloth sold 15,000 Kg @ Rs.37.50
Total cash paid by the agents Rs. 5,10,000
Railway freight paid by the agents Rs. 40,000
Of the sales, Lall and Sons could not collect Rs. 11,000 due to insolvency of a customer.
500 kg of cloth was damaged by the railway for which the agents recovered Rs. 6,000 form railways. The damaged goods were sold @ Rs. 15 per kg.
13. A Ltd. invited applications for 80,000 shares of
Rs. 10 each, at a premium of Rs. 2.50 per share payable as follows : On application Rs. three ; On allotment Rs. 4.50
(including premium) On first call Rs. two ; On IInd and final call
Rs. 3.
Applications were received for 1,70,000 shares, out of which applications for 10,000 shares were rejected and application money was refunded. The allotment was made
pro¬rata to the remaining applicants. Money overpaid on application was used against the allotment money due.
Anil to whom 2,000 shares were allotted, failed to pay the allotment money and on his following failure to pay the
first call, his shares were forfeited. Sunil, who holds
1,200 shares failed to pay the 2 calls and his shares were forfeited after the final call. Out of the forfeited shares, 2,400 shares reissued at the rate of Rs. eight per share as fully paid, including Anil’s forfeited shares.
Pass necessary journal entries.
14. The subsequent particulars relate to a club for the year ended 31.12.2004 and you are needed to prepare
(a) a balance sheet as on 1.1.2004
(b) Income and expenditure a/c for the year ended
31.12.2004 and
(c) a balance sheet as on 31.12.2004.
Summary of cash book
Receipts Rs. Payments Rs.
To opening balance 2,350 By Salaries 1,200
To Entrance Fees 300 By Electricity exp. 120
To Subscriptions : By magazines 525
2003 50 By Fixed Deposits 2,500
2004 3,500 By Vessels 200
2005 75 By Payment to creditors 1,000
Profits from canteen 100 By closing Balance 1,150
Locker rents 200
Other income 120
6,695 6,695
The assets and liabilities as on 1.1.2004 were as
under :
Vessels Rs.800 ; Furniture Rs. 2,500 ; Consumable stores Rs. 350 : Creditors Rs. 1,200.
On 31.12.2004, value of consumable stores was Rs. 700 ; Creditors Rs. 550 ; the subscriptions outstanding were Rs.75 and the interest accrued on fixed deposits was Rs.25.
15. From the subsequent information, prepare the
Balance Sheet of International Bank as on 31.3.2005, with necessary schedules.
Rs. In lakhs.
Debit balances Rs. Credit balances Rs.
Current a/cs 28.00 Share capital 198.00
Cash credits 812.10 Statutory reserve 231.00
Cash on hand 160.15 Net profit before appropriation 150.00
Cash with RBI 37.88 P/L a/c 412.00
Cash with other banks 155.87 Fixed deposits a/c 517.00
Money at call 210.12 Saving bank a/cs 450.00
Gold 55.23 Current a/cs 520.12
Government securities 110.17 Bills payables 0.10
Premises 155.70 Borrowing from other banks 110.00
Furniture 70.12
Term Loan 792.88
Total 2588.22 Total 2588.22
Additional info :
Bills for collection Rs. 18,10,000
Acceptances and endorsements Rs. 14,12,000.

Earning:   Approval pending.