Bharathiar University 2007 B.Com University - Question Paper

22. (a) Naga of Trichy has a branch at Madras. Goods are sent by head office at invoice
Price which is at the profit of 20% on cost price. All expenses of the branch are paid by head office. From the subsequent particulars, prepare branch account in the H.O. books, showing goods at invoice price.
Opening balances:
Stock at invoice price Rs. 11,000
Debtors Rs. 1,700
Petty cash Rs. 100
Goods sent to branch at invoice price Rs. 20,000
Expenses paid by H.O:
Rent Rs. 600
Wages Rs. 200
Salary Rs. 900
Remittance made on H.O:
Cash Sales Rs. 2,650
Cash collected from debtors Rs. 21,000
Goods returned by branch at invoice price Rs. 400
Balances at the end:
Stock at invoice price Rs. 13,000
Debtors Rs. 1,700
Petty cash Rs. 25
Or
(b) X purchased a typewriter on hire-purchases system. As per terms, he is needed to pay Rs. 800 down, Rs. 400 at the end of the 1st year, Rs. 300 at the end of 2nd year and Rs. 700 at the end of 3rd year. Interest is charged at 5% p.a. compute the total cash price of the typewriter and the amount of interest payable on instalment.

23. (a) discuss the limitations of Single Entry System.
Or
(b) Mohan, a retail merchant commenced business with a capital of Rs. 12,000 on 1.1.04. Subsequently on 1.5.04 he invested further capital of Rs. 5,000. During the year, he has withdrawn Rs. 2,000 for his personal use. On 31.12.04 his assets and liabilities were as follows:


Cash at bank 3,000
Debtors 4,000
Stock 16,000
Furniture 2,000
Creditors 5,000
Calculate the profit or loss made during the year 2004.

24. (a) Show how the subsequent items will appear in the capital accounts of the partners, X and Y when their capital are fluctuating.
X Y

Capital on 1.1.04 8,00,000 7,00,000
Drawings during 2004 1,60,000 1,40,000
Interest at 5% on drawings 4,000 2,000
Shares of profits for 2004 84,000 66,000
Interest on capital at 6% 48,000 42,000
Salary 72,000 __
Or

(b) P,Q and R sharing profits and losses equally, have capitals of Rs. 20,000 Rs. 15,000 and Rs.10,000. For the year 2004, interest was credited to them at 6% instead of 5%.
Give adjusting journal entry.

25. (a) From the subsequent particulars, determine the maximum remuneration available to a full time director of a manufacturing company.

Earning:   Approval pending.