Bharathiar University 2006 B.Com University - Question Paper

15 (a) Write a note on provision for taxation and dividends.

(or)

(b) A Company carried forward of Rs30,000 in the profit and loss account from the year ended 31.3.2003. During the year 2004 it made a further profit of Rs.3, 00,000. It was decided that subsequent decision be carried

(i) Provision for taxation Rs.1, 50,000.
(ii) Dividend equalization amount Rs.20, 000.
(iii) Dividend on 8% (tax free) Preference shares of Rs.2, 00,000.
(iv) Dividend at 15% ON 30,000 equity shares of Rs.10 every fully paid.
(v) General reserve Rs.35, 000.
(vi) Development rebate reserve Rs.35, 000.
You are needed to provide profit and loss appropriation account. (Tax Deducted at source is 23%).

part –C

16(a) X purchased machinery on 1.2.2000 for Rs.50, 000; paid Rs.11, 000 for its repairs and Rs.5, 000 for its installation which was completed by 31.3.20000. The companies give depreciation on its machinery at 15% per annum on diminishing balance method from the date it is put to use and closes its books on December31
Every year. On 1.10.2001, a repair work was carried out on the machine and Rs5, 000
Were paid for the identical. The machine was sold on 31.10.2202 for a sum of Rs.11, 000 and an amount of Rs1,000 was paid as diminishing charges.

Prepare machinery account from 2000 to 2002.

(Or)

(b) From the subsequent particulars write up the necessary adjustment accounts as would appear in the General ledger.

Debtors balance in the General ledger Adjustment A/c(cr.) Rs.60,500; creditors balance in the General ledger Adjustment A/c (Dr.) Rs.38,500.

(b) From the subsequent particulars write up the necessary adjustment accounts as would appear in the General ledger.

Debtors balance in the General ledger Adjustment A/c(cr.) Rs.60,500; creditors balance in the General ledger Adjustment A/c (Dr.) Rs.38,500.

Rs. Rs.

Credit sales 40,300 Payment to creditors 32,500
Cash sales 12,800 Receipts from debtors 48,200 Cash purchases 16,390 Discount allowed 375

Earning:   Approval pending.