Bharathiar University 2007 B.Com University - Question Paper

28. (a) discuss the difference ranging from Double Entry and single Entry System.
Or

(b) A trader keeps his books by single Entry. During the year 2004, he kept a cash book of which the subsequent is an analysis.
Received from Sundry Debtors-Rs.1,28,000
Additional capital introduced on first Oct 2004 – Rs.16,000.
Loan from Nazar at 16% p.a on first july 2004 – Rs.21,000
Paid to Sundry Creditors –r Rs.1,15,400
General expenses paid – Rs. 7,800
Salaries paid – Rs. 6,000
Drawing – Rs. 8,000
Deposits in the bank during the year – Rs. 1,00,000
Withdrawals form the bank during the year - Rs. 72,000
The subsequent balances existed on first January 2004:
Sundry Debtors – Rs. 30,600
Sundry Creditors – Rs. 23,000
Bank overdrafts – Rs. 16,000

Liabilities Rs. Assets Rs.
Creditors 40500
Reserve 4500
capital
sunil 15000
Devan 12000
Ravi 18000

90000
machinery 43500
furniture 1500
Debtors 30000
Stock 15000



90000

Ravi retired on 31.12.04 and assets were evaluated as under:
Machinery Rs.51,000. Furniture Rs.1,200, Debtors Rs.28500. stockRs.14,700. Goodwill of the firm is valued at Rs.9,000 and Ravi’s share of goodwill is to be adjusted to continuing partner’s capital without raising goodwill account.
provide journal entires prepare necessary ledger account and new balance sheet.

30. (a) discuss briefly the legal position regarding final accounts of a company.
Or
(b) The X co .ltd was registered with an authorized capital of Rs.7,50,000 divided into 3,000 6% cumulative preference shares of Rs. 100 every and 4,500 equity shares of Rs. 100 every. The subsequent are the balances taken as on 31.12.04.
Rs. Rs.

stock on 1.1.04 241500 share capital:
Delivery exp. 102000 3000 share 6%
General exp. 21000 cumulative pref. share
Bills receivable 6000 of Rs.100 every 300000
Investments: s: 3000 equity shares
6000 sh.of Rs. 10 (Rs. 75 called up) 225000
every in sunrise co.ltd 60000 General reserve 82725
pref. dividend half year Profit & loss a/c 58500
30.6.2004 9000 sales 918600
Bank balances 97500 5% Debentures 210000
Goodwill 100000 Trade creditors 125520
Trade Debtors 167500 prov.for taxation 8800
390000
salaries 103500
Rent & rates 38250
Furniture at cost 75000
Purchases 476500
Freight & carriage
inwards 3750
Buildings – Rs. 85,000
Stock – Rs. 43,600
Cash balances – Rs. 1200
The subsequent balances existed on 31st Dec 2004:
Sundry Debtors – Rs. 32,000
Sundry Creditors – Rs. 23,800 and
Stock – Rs. 52,000
Depreciate building by 5% and give interest on Nazar’s loan.
Prepare Trading and Profit & Loss a/c for the year ended and Balance Sheet as on 31st Dec 2004.

29. (a) Arul and Balu are partners sharing profits in the ratio of 3:2. Their Balance Sheet as on first Jan 2004 was as follows:
CapitalA/c Rs. Assets Rs.
Sundry Creditors 15000 Plant&Machinery 30000
CapitalA/c Furniture 10000
Arul 30000 Stock 20000
Balu 25000 Debtors 18000
General Reserve 10000 Cash 2000

80000 80000
Charu is admitted as a partner on the above date on the subsequent terms:
(i) He will pay Rs. 10,000 as goodwill for 1/4th share in profits.
(ii) The assets are to be valued as under:
Plant and Machinery Rs. 32,000
Stock Rs. 18,000
Provision on debtors at 5%
(iii) It was obtained that creditors included sum of Rs.1,400 which was not to be paid .
(iv)There was a liability for compensatic to workers amounting to Rs.2,000.
(vi) Charu was to introduce Rs.20,000 a capital and the capitals of the other parteners were to be adjusted in the profit sharing ratio .for this purpose current accounts were to be opened.
provide journal entries,capital account and the balance sheet.

(OR)
(b) Sunil,Devan and Ravi are equal parteners a firm and their balance sheet as on 31.12.04 is provided below:


Rs. Rs.
Debenture interest (half year) 5250
Final dividend for 2004 20250
Cash in hand 12145
1929145 1929145

Prepare profit and loss account for the year ended 31.12.04 and balance sheet.
(i) Closing stock Rs.2,15,000.
(ii) Depreciation two 1/2 % on freehold property and 6% on furniture.
(iii) Bills receivable for Rs.2,500 maturing after 31.12.04 has been discounted with bank.
(iv) Directors proposed to pay 2nd half year’s dividend on preference shares.
(v) 10% dividend on equity shares is proposed.
(vi) Provide 5% towards reserve for doubtful debts on trade debtors.

Earning:   Approval pending.