Bharathidasan University 2007 B.B.A FINANCIAL ACCOUNTING - exam paper

B.B.A. (Banking) DEGREE EXAMINATION,
DECEMBER 2007.
FINANCIAL ACCOUNTING
(2005 onwards)
Time : 3 hours Maximum : 100 marks
part A — (5 ? eight = 40 marks)
ans any 5 ques..
1. Journalise the subsequent transactions :
(a) Mr. X started business with a capital of Rs. five lakhs.
(b) He opened a bank account and deposited Rs. one lakh
(c) Purchased goods fro Rs. 25,000
(d) Sold to Mr. Ram for Rs. 5,000
(e) Paid wages Rs. 500
(f) Purchased goods from Mr. Ramesh for Rs. 10,000
(g) Received a cheque for Rs. 2,000 from Mr. Ram and deposited into bank
(h) Sent a cheque to Mr. Ramesh for Rs. 5,000.
2. You are provided the subsequent ledger balances of
Messrs Vignesh & Co., Prepare trial balance :
Capital Rs. 1,00,000
Sales Rs. 1,80,000
Purchases Rs. 90,000
Sales return Rs. 5,000
Purchase returns : Rs. 2,500
Cash on land Rs. 2,000
Cash at bank Rs. 1,500
Sundry debtors Rs. 86,000
Sundry creditors Rs. 18,000
Bad debts Rs. 2,000
Provision for bad debts Rs. 3,000
Plant a machinery Rs. 1,20,000
Bills payable Rs. 25,000
Insurance Rs. 2,000
Wages Rs. 5,000
Opening stock Rs. 15,000
3. X and Y entered into a joint venture. It was decided that the profits would be shared equally, with X supplying logs of wood to Y who would sell them in the market. X supplied out of his stock wood costing Rs. 1,03,000 and spent Rs. 8,000 in forwarding it to Y. Y sold the entire lot for Rs. 1,75,000. The selling expenses incurred by Y amounted to Rs. 9,250. Y remitted the amount due to X by means of a cheque. Pass journal entries and show important ledger accounts in the books of X.
4. List out the differences ranging from receipts and payments account and the income and expenditure account.
5. On first January 2000, Balan and Rajesh entered into partnership contributing Rs. 2,00,000 and Rs. 1,50,000 respectively and sharing profits in the ratio of three : 2. Rajesh was to be allowed a salary of Rs. 40,000 per year. Interest on capital was to be allowed at 6% per annum. During the year, Balan withdrew Rs. 30,000 and Rajesh Rs. 60,000, interest on the identical being Rs. 500 and Rs. 700 respectively. Profit in 2000 before the above adjustment was Rs. 1,05,800.
Show how the profit was to be distributed, as also the partners' capital accounts.
6. Give journal entries for the forfeiture and reissue of shares :
ABC Ltd. forfeited 200 shares of Rs. 10 every. Rs. seven called up, on which Raghul had paid application and allotment money of Rs. five per share. Of these, 150 shares were reissued to Vinoth, as fully paid up for Rs. six per share.
7. Explain the prudential accounting norms governing the banking companies
8. Subscriptions received during the year 2002 are as follows :
Rs. Rs.
For 2001 800
For 2002 42,200
For 2003 1,600 44,600

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