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

There are 450 members, every paying Rs. 100 towards annual subscription. Rs. 900 were in arrears for 2001 at the beginning of 2002. Show the amount of subscriptions to be shown in the income and expenditure account for the year ended 31.12.2002.
part B — (4 ? 15 = 60 marks)
ans any 4 of the subsequent.
9. From the subsequent particulars, determine the bank balance as per pass book of Priya & Co. as on 28th February 1998.
(a) Credit balance as per cash book on 28th February, 1998 was Rs. 15,000
(b) Interest charged by the bank upto 28th February Rs. 500 was recorded in the pass book.
(c) Bank charges made by the bank Rs. 125 were also recorded only in the pass book.
(d) Out of the cheques of Rs. 25,000 paid into the bank, cheques of Rs. 18,750 were cleared and credited by the bankers.
(e) Two cheques of Rs. 7,500 and Rs. 15,000 were issued but out of them only 1 cheque of Rs. 7,500 was presented for payment upto 28th February.
(f) Dividends on shares Rs. 4,500 were collected by the bankers directly, for which Priya & Co. did not have any info.
10. You are provided the trial balance of Messrs. Raja & Co.
Trial Balance
Dr. Cr.
Rs. Rs.
Capital 4,00,000
Sales 2,80,000
Purchases 1,40,000
Sundry creditors 1,20,000
Sundry debtors 1,50,000
Building 2,40,000
Machinery 80,000
Furniture 20,000
Factory rent 12,000
Office rent 24,000
Bad debts 2,500
Cash on land 18,000
Drawings 28,000
Provision for bad debts 2,000
Insurance 5,000
Wages 12,000
Salaries 25,000
Opening stock 12,000
Bills receivable 60,000
Bills payable 26,500
8,28,500 8,28,500
You are given with the additional info :
Closing stock Rs. 50,000
Wages outstanding Rs. 8,000
Salaries outstanding Rs. 4,000
Insurance prepaid Rs. 1,000
Depreciate machinery and furniture at 10% and building at 5%. Create a provision for bad debts at 3% on sundry debtors.
You are needed to prepare trading, profit and loss account for the year ended 31.12.2002 and a balance sheet on that date.
11. Mahesh & Co. consigned 200 bags of dhall to
Pitchai & Co. on 1.10.2001 invoiced at Rs. 600 per bag. They also paid Rs. 4,500 towards freight, insurance and loading charges etc. The consigners have been advised to sell them at the best available price. On 15.1.2002, an account sales was received from Pitchai & Co., stating that 160 bags were sold at Rs. 1,000 per bag. Their expenses were Rs. 4,000. They sent a draft after deducting their commission at 10%. Show the consignment account and M/S. Pitchai & Co.'s account in the books of consignors.
12. You are provided the receipts and payments account of National Club for the year ended 31st March, 2005.
2004 Receipts Rs. Payments Rs.
April, 1 To Cash balance 5,100 By Salaries 36,000
2005 To subscription By Rent 6,000
March (including Rs. 2,000 By Printing and
for 2005–06) 30,000 stationery 1,450
To Bank interest 100 By Postage 250
To Interest on investment By Bicycle 950
(cost of investments
Rs. 3,00,000) 15,000 By Plan bunds 6,800
To Sale of scooter 2,500 By Cash balance 1,250
52,700 52,700
Subscription includes Rs. 1,200 for 2003–04. Rent also includes Rs, 500 paid for March 2004. Subscriptions amounting to Rs. 1,500 are still to be collected for the year 2004–05. Rent for March 2005 was to be paid and Rs. 250 are outstanding against a stationery bill. The book value of the scooter was Rs. 3,200.
Prepare the income and expenditure account for the year ended 31st March, 2005 and the balance sheet on that date.
13. A and B started business on January 1, 2001 with capitals of Rs. 4,00,000 and Rs. 2,00,000 respectively. As per the deed, A was entitled to a salary of Rs. 5,000 per month; interest on capitals to be allowed at 5% p.a.; interest on drawings to be charged at 6% p.a. and profits are to be divided is the ratio of three : 2. Drawings were : A Rs. 20,000 and B
Rs. 40,000. Interest on drawings is to be charged for the avg. period of six months. The profits for the year 2001 before interest and salary were Rs. 3,00,000. provide profit and loss adjustment account and capital accounts.
14. A company issued 1,00,000 equity shares of Rs. 10 every at a premium of Rs. three per share payable Rs. five on application; Rs. five (including premium) on allotment and the balance on first call. All the shares offered were applied for and allotted. All the money due on allotment was received other than on 2000 shares call was made. All the amount due thereon was received other than on 3000 shares. Directors forfeited 2000 shares on which both allotment and call money was not received.
Pass necessary journal entries.
15. From the subsequent information, prepare profit and loss account of Zeal Bank Ltd. for the year ended 31st December 2000.
Interest on loans Rs. 2,59,000; Rent and taxes Rs. 18,000. Interest on fixed deposits Rs. 2,75,000; interest on order drafts Rs,. 1,54,000; Rebate on bills discounted Rs. 49,000; Directors fees Rs. 2,500; Auditors' fees Rs. 1,700; Commission Rs. 8,200; Salaries and allowances Rs. 54,000. Discount on bills discounted (net) Rs. 1,46,000; Interest on savings bank deposits Rs. 68,000; Postage and telegrams Rs. 1,400; Printing and stationery Rs. 2,900; Sundry charges Rs. 1,700; Interest on cahs credit Rs. 2,23,000. Interest allowed on current accounts Rs. 42,000. Bad debts to be written off Rs. 40,000. Provision for taxation may be made at 55%.

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