Bharathiar University 2007 B.Com University - Question Paper

The profit & loss a/c of the company showed a net profit of Rs.40, 00,000 after taking into a/c the subsequent items:
(i) Depreciation (including special depreciation of Rs.40,000) Rs.1,00,000
(ii) Provision for income tax Rs.2,00,000
(iii) Donation to political parties Rs.50,000
(iv) Ex-gratia payment to a worker Rs.10,000
(v) Capital profit on sale of assets Rs.15,000
Or

(b) Distinguish ranging from Revenue Reserves & Capital Reserves.



SECTION –C
26. (a) A company whose accounting year is the calendar year, purchased on 1.1.03 a machine for Rs.40000. It purchased further machinery on first October 2003 for Rs.20000
And on first July 2004 for Rs.10000. On 1.7.05,1/4th of the machinery installed on 1.1.03 became obsolete and was sold for Rs.6800.
Show how the machinery a/c would appear in the books of the company for all the three years under diminishing balance method. Depreciation is to be given at 10% p.a.
Or

(b) From the subsequent particulars prepare Debtor Ledger Adjustment a/c and purchase Ledger a/c in the general ledger for the year ended 31.12.2004
Rs.

Purchase ledger (cr.) 2,00,000
Purchase ledger (dr.) 22,700
Sales ledger (cr.) 2,400
Sales ledger (dr.) 4,21,000
Credit purchases 20,00,000
Credit sales 18,00,000
Cash purchases 2,00,000
Cash sales 7,00,000
Closing balances:
Purchase ledger (dr.) 17,000
Sales ledger (cr.) 9,000
Purchase returns 1,00,000
Sales returns 80,000
Bills Receivable received 3,00,000
Bills payable accepted 2,00,000
Provision for bad debts 10,000
Bad debts written off 10,000
Bills receivable dishonored 40,000
Cash received from debtors 12,00,000
Cash paid to creditors 16,00,000

27. (a) discuss the difference ranging from Hire purchase and Instalment System.
Or

(b) The subsequent purchases were made by a business house having 3 departments:
Dept. A – 1000 units
Dept. B – 2000 units at a total cost of Rs. 1,00,000
Dept. C – 2400 units
Stocks on first January were:
Dept. A – 120 units
Dept. B – 80 units
Dept. C – 152 units
Sales were:
Dept. A – 1020 units at Rs. 20 every
Dept. B – 1920 units at Rs. 22.50 every
Dept. C – 2496 units at Rs. 25each
The rate of gross profit is identical in every case.
Prepare departmental trading account.

Earning:   Approval pending.