Periyar University 2008-3rd Sem B.B.A - FINANCIAL ACCOUNTING-ester - Question Paper
06 UBA 06
(For the candidates admitted from 2006-2007 onwards)
B.B.A. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2008.
Third Semester FINANCIAL ACCOUNTING Time : Three hours Maximum : 100 marks
PART A (10 x 2 = 20 marks)
Answer ALL questions.
Answer to each question shall not exceed 6 lines.
is accounting? State any four accounting
%/ Who are all interested persons in accounting information?
iat do you mean by Average Due Date?
at is meant by Red ink interest?
at is Accounting Standard?
te the objectives of Accounting Standard?
7/ What is meant by Hire Purchase system?
understand by Hire Purchase
9T What do you mean by Grace Days in bills of exchange?
hat is meant by Accommodation bill?
PART B (5 x 4 = 20 marks)
Answer ALL questions.
Answer to each questions shall not exceed 2 pages.
1 at are the differences between trial
b ilance sheet?
Or
(b) Give Journal entries for the following transactions :
(i) A started a business with Cash Rs. 5,00, 000 and Machinery Rs. 50,000
(ii) An account started in Canara Bank Rs. 2,00,000.
(iii) Goods purchased from B for cash Rs, 50,000 and paid by cheque.
(iv) Sold goods to Ammu for cash Rs. 5,000.
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12. W What is meant by Account Current? State various methods of calculating interest in account current.
Or
(b) Nagaraj owes Muthu Rs. 1,340 on January
1, 2008. Following further transactions take place between them :
Rs.
January 16, Nagaraj buys goods 1,400 February 2, Nagaraj receives cash 1,100 March 5, Nagaraj buys goods 800
Nagaraj pays the whole amount on 31st March, 2008 with interest @ 5% p.a. Calculate interest.
13. (a) State the significance of Accounting Standards.
Or
(b) /What are the functions of Accounting Standards Board?
ish between Hire Purchase and
Or
(b) On 1st January, Akila purchased a machine on Hire purchase under a Hire purchase agreement which provided for an initial payment of Rs. 1,500 and the balance in four equal half-yearly instalments of Rs. 2,000 each, the first instalment falling due on 30 th June. Assume a rate of interest @ 6% per annum.
Calculate cash price.
15. (a) What is meant by renewal of bill? List out the journal entries to be passed in the books of Drawer
of bill.
Or
(Jb)" On January 6, 2008, A sold goods to B for Rsv-6,000. On the same data, A drew a four months bill on B which was duly accepted by the latter. A discounted the bill on January 9, 2008, with his bankers at 6%. Journalise the transactions in the books of A and B if the bill is dishonoured on the due date.
PART C (5 x 12 = 60 marks) Answer ALL questions.
Answer to each question shall not exceed 5 pages.
Write a note on the following :
(i) Accounting equation
(ii) Subsidiary books
(iii) Ledger
(iv) Double entry system.
Or
(b) The following is the trial balance of Mr. Sri as on 31st March, 2008.
Cr.
Rs.
12,000
Dr.
Rs.
500 Capital
Insurance
4
IP.T.O.]
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2,77,500 2,77,500 |
The following adjustment are to be made:
(i) Stock on March 31st, 2008. Rs. 17,500
(ii) Outstandings :Salaries Rs. 1,000 ; Rent
Rs. 500;
(iii) Prepaid: Insurance Rs. 125; Advertisement Rs. 200.
(iv) Provide depreciation : Furniture and fittings 10% ; Cycle 15%; Type writer 15%.
Prepare Trading and Profit and Loss Account for the year ended 31st March 2008 and a Balance Sheet as on that date.
17. (a) What do you mean by bank Reconciliation Statement? Explain the reasons for the differences bety/een the cash book and pass book balances.
Or
(b) From the following , prepare an Account Current as set by Nikila to Magila on 30 the June, 2008, charging interest on debits @ 6% and on credit @ 4% p.a.
2008 Rs.
Jan.l Balance due from Magila 600
Jan. 10 Sold goods to Magila 520
Jan. 17 Magila returned goods 125
Feb. 10 Magila paid by cheque 400
Feb. 14 Magila accepted Nikilas draft for one month 300 April 29 Goods sold to Magila 615
May 15 Received cash from Magila 700
June 5 Magila accepted Nikilas bill for 3 months 500
18. (a)<Explain the procedure for formulation of Accojallling Standards.
Or
(b) State and explain any six applications of Indian Accounting Standards.
19. (a) Give skeleton journal entries in the books of both buyer and seller in the case of Instalment purchase
system.
Or
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(b) Nikil purchased a truck on hire purchase system for Rs. 56,000 payment to be made, Rs. 15,000 down and 3 instalments of Rs. 15,000 each at the end of each year, rate of interest is charged at 5% per annum. Buyer is depreciating the asset at 10% p.a. on written down method. Because of financial difficulties, Nikil after having paid down payment and first installment at the end of the 1st year, could not pay second instalment and seller took possession of the truck. Seller after expending Rs. 357 on repairs of the asset sold it away for Rs. 30,110. Open ledger accounts in the books of both parties to record the transactions.
20. (a) Write a note on the following:
(i) Bill of Exchange
(ii) Discounting of bills
(iii) Endorsement of bills
(iv) Allonge
(v) Noting of bills
(vi) Retirement of bills.
Or
(b) Devi draws a bill for Rs. 4,500 on Uma on 2nd January 2008 for 3 months. Devi gets it discounted with the Bank for Rs. 4,410 and on 3rd January remits one-third of the amount to Uma, which Uma receives on 5th January. On the due date, Devi fails to remit the amount due to Uma; but he accepts a bill for Rs. 6,300 for 3 months which Uma discounts for Rs. 6,165 and remits Rs. 1,110 to Devi. Before the maturity of the renewed bill Devi becomes insolvent and only 50% was realised from his from his estate on July 10. Pass Journal entries in the books of Devi.
/
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