Bharathiar University 2007 B.Com Advanced Accounting - Question Paper

Cash sales 2,650
Goods returned by branch @ invoice price 300
Credit sales 22,500
Balance at the end:
Stock at invoice price 13,000
Debtors at the end 2,000
Petty cash (including Misc. income
Rs.25 not remitted)
Bad debts 300
Allowances to customers 500
Goods returned by customers 700
Goods sent to branch at invoice 20,000
Cash collected from Debtors 21,000

(Or)

(b)‘B’ Transport purchased 5 trucks from K auto limited on first January 1990 on hire purchase system. The cash price of every truck is Rs.120000. The mode of payments was as follows:

(i) 15% of cash price down
(ii) 25% of cash price at the end of every year for four years.

‘B’ transport writes off 15% depreciation annually on diminishing balance. The payment due on 31st December 1991 could not be made. ‘K’ auto limited agree to leave 3 trucks with the buyer on the conditions that the value of the other 2 trucks would be adjusted against the amount due, the trucks being valued at cost less 25% depreciation on diminishing balance. Show necessary in the books of ‘B’ transport.

28. (a) From the subsequent figures taken from the books of a businessman kept under the single entry system, you are needed to obtain out the figures for credit sales and credit purchases by showing the Total debtors account and Total creditors account.
1.1.1983 13.12.1983
Balances Rs Rs
Total Debtors 15500 16350
Total Creditors 10200 6835
Bills Receivables 1400 1500
Bills payables 890 600






Cash Received from customers 32400
Cash paid to creditors 21620
Bad debets written off 850
Returns inward 830
Returns outward 245
Payments made against B.P 2580
Cash received against B.R. 4200
Discount allowed 960
Discount received 740
Bad debts previously written off now received 330
Cash sales 15850
Bills receivable dishonoured 750
Bills payable dishonored 600
Rs
(Or)
(b) Raja carries on a grocery business and does not keep his books on double entry basis. The subsequent particulars have been extracted from his books:

1.07.1982 30.6.1983
Plant and machinery 25000 25000
Stock 22000 19500
Sundry debtors 8000 25500
sundry creditors 12500 10000
Cash in hand 400 800
Bank balance (dr)6250 (cr)7000


The subsequent transactions appear in the cash book of the year:
Received on amount of cash sales 31250
Received from sundry debtors 160000
Payment for purchases 28850
Payment on sundry creditors 132000
General expenses of business 21450
Wages paid 15000
Drawing 6800

During the year Raju had taken goods worth Rs.1950 from the business for his own use and had not paid any amount into the business for them.
Prepare trading and P & L account for the year ending 30th June 1983 after charging 10% depreciation on plant and Machinery and the balance sheet of the identical year.

29. (a) Sri Ram and Krishnan are partners in a firm sharing profits and losses as 3:1. On first January 2002, their position was as provided below:

Liabilities Rs Assets Rs
Ram's capital 50000 Plant 40000
Krishnan's capital 30000 Stock 10000
Creditors 20000 Debitors 30000
Cash at bank 20000

100000 100000
Nair is now to joint the partnership. He agrees to pay the partners Rs.20000 by way of Goodwill and introduce one-half of the combined capital of the 2 existing partners after depreciating plant and stock at 20% and 10% respectively and raising a reserve of 10% against Debtors. The new partner is to be allowed ¼ shares of the profits of the firm.

You are needed to prepare Capital account and new Balance sheet.

(Or)

(b) X and Y are partners in a firm sharing profits and losses as ‘X’ 60% and
‘Y’ 40%. On first January 2001 the position of the business was as follows:
_______
Liabilities Assets
X’s capital 30000 Plant and Machinery 30000
Y’s capital 25000 Stock 20000
Y’s capital 15000 Debtors 18000
Cash at bank 2000

70000 70000

Z agrees to join the business on the subsequent conditions:
(i) He will introduce Rs.20,000 as his capital and pay Rs.10,000 to the partners as premium for goodwill for ¼ th share profits of the firm.
(ii) A revaluation of the assets of the firm will be made by reducing Plant and Machinery account to Rs.10,000 and Stock by 10% and by raising provision for bad debts to 6.25% of debtors. Prepare necessary ledger account and Balance Sheet.

30. (a) The ‘S’ limited carried forward Rs.50,000 profit from the accounting year ending 31st March, 2002 to next year. During the year ending 31st March, 2003, it made a further profit of Rs.3,00,000. The Directors resolved to

(i) Make a provision for taxation Rs.1,00,000
(ii) Transfer to general reserve Rs.30,000
(iii) Dividend on preference shares @ 11% on Rs.2,50,000
(iv) Dividend @ 15% on equity shares, 30,000 Rs.10 every

Prepare the profit and loss Appropriation account of the company for the year ending 31st March 2003.

(Or)
(b) elaborate the legal requirement regarding the preparation of company Final Accounts?

Earning:   Approval pending.