Amrita Vishwa Vidyapeetham 2008 B.C.A Computer Application Accounting Basics BC 306 - Question Paper

B.C.A. Accounting Basics BC 306 May 2008
Time : 3 hours Maximum : 100 marks
ans any 4 ques..
All ques. carry equal marks.
1. (a) Briefly discuss the various branches of accounting.
(b) Distinguish ranging from financial accounting and management accounting.
2. (a) Briefly discuss the basic accounting concepts and conventions.
(b) Explain the advantages of the double entry system.
3. From the subsequent Trial Balance, prepare the Trading and Profit and Loss account for the year ended Dec 31, 2005 and a Balance sheet as at that date.
Dr. Cr.
Capital – 40,000
Sales – 25,000
Purchases 15,000
Salaries 2,000
Rent 1,500
Insurance 300
Drawing 5,000
Machinery 28,000
Bank 4,500
Cash 4,500
Stock 5,200
Creditors – 1,000
66,000 66,000
Additional info.
(a) Stock on hand at Dec. 31, 2005 Rs. 4,900
(b) Salaries owing Rs. 300
(c) Rent paid in advance Rs. 200
(d) Insurance paid in advance Rs. 90
(e) Depreciate machinery by 10 per cent.
(f) During December the owner took Rs. 100 in goods for his own use.
4. The trial balance of a firm is out by Rs. 2,788 (excess debit). The subsequent errors were found, subsequently, to have been committed. Pass journal entries to accurate them.
(a) An amount of Rs. 100 was received from D. D as on 31st Dec. 2004, but had been entered in the cash book on third Jan 2005.
(b) The Returns inwards books for December had been cast Rs. 100 short.
(c) The purchase of an office table costing Rs. 300 had been passed through the Purchase Day Book.
(d) Rs. 375 paid for wages to workmen for making show cases had been charged to wages Account.
(e) A purchase of Rs. 671 had been posted to the debit of the Creditor’s account as Rs. 617. The creditor is P. Panna & Co.
(f) A cheque for Rs. 200 received from P.C. Joshi has been dishonoured on maturity and was passed to the debit of Allowances Account.
(g) Goods amounting to Rs. 100 had been returned by a customer and were taken into stock, but no entry in respect there of made in the books.
(h) Rs. 2,000 paid for the purchase of a motor cycle for Mr. Dutt (a partner) had been charged to Miscellaneous Expenses Account.
(i) A sale of Rs. 200 to Singhi & Co. was credited to their Account.
(j) A sale of Rs. 1000 has been passed through the Purchase Day Book. The Customer’s account has however been correctly debited.
5. The book of Kalyani showed the subsequent figures.
1.1.2005 31.12.2005
Rs. Rs.
Creditors 5,000 10,000
Debtors 6,000 6,600
Provision for doubtful debts 300 400
Buildings 30,000 24,000
Furniture 14,000 14,200
Commission received in advance 100 200
Bills payable 2,400 3,400
Rent due but not received 300 1,400
Unpaid salaries 1,500 1,600
General expenses owing 400 500
Stock – 10,000
The analysis of the Cash book showed the followings :
Receipts Rs. Payments Rs.
To opening balance b/d 7,400 By general expenses 1,000
To sales (cash) 16,000 By salaries 2,400
To rent received 1,400 By Bills payable 10,000
To commission received 1,000 By furniture 4,000
To debtors 10,000 By creditors 12,000
To sale of sold furniture 100 By Investments 4,000
By Balance c/d 2,500
35,900 35,900
The stock is valued on the closing date but no stock was taken on 1.1.2005. The rate of gross profit is 25% on sales. Prepare Trading and Profit and Loss a/c and Balance sheet.
6. ‘‘ K’’ who keep his books by single entry provide you the subsequent info for the year 2005.
Summary of Cash Book (Bank column
Receipts Rs. Payments Rs.
To opening balance 2,175 By creditors 13,500
To debtors 19,200 By bills payable 4,650
To Bills receivable 6,000 By salaries 3,250
To commission 750 By wages 6,000
To cash sales 4,300 By rent and taxes 2,200
To Balance c/d 1,675 By insurance 450
By carriage 125
By advertising 165
By drawings 3,760
34,100 34,100
By Balance b/d 1,675
Particulars of other assets and liabilities.
1.1.05 31.12.05
Rs. Rs.
Stock on hand 9,350 11,700
Debtors 6,000 7,000
Creditors 4,500 750
Bills receivable 2,000 2,500
Furniture 300 300
Bills payable 500 100
Building 6,000 6,000
A provision of Rs. 725 is needed for doubtful debts and depreciation @ 5% is to be written off on Building and Furniture Rs. 1,500 are outstanding for wages and Rs. 600 for salaries. Insurance has been prepaid to the extent of Rs. 125. Legal expenses are outstanding to the extent of Rs. 300.
Prepare Profit and Loss a/c and Balance sheet.
7. The subsequent figures relate to ‘‘N’’ traders Ltd., for the year ended 31st march 2005.
Trading and Profit and Loss a/c
Rs. Rs.
To opening stock 75,000 By sales 5,20,000
To purchases 3,25,000 (-) Returns 20,000 5,00,000
To Gross profit 2,00,000 By closing stock 1,00,000
6,00,000 6,00,000

To operating expenses : By gross profit 2,00,000
Admn. exps. 40,000 By dividend 9,000
Selling and distribution exps. 25,000 65,000 By profit and sale of shares 11,000
To non-operating expenses :
Loss on sale of assets 5,000
To net profit 1,50,000
2,20,000 2,20,000
Balance sheet
Liabilities Rs. Assets Rs.
2000 eq. shares of Rs.100 each 2,00,000 Land and building 1,50,000
Reserves 90,000 Plant and machinery 80,000
Current liabilities 1,50,000 Stock 1,00,000
P&L a/c 60,000 Debtors 1,40,000
Cash and bank 30,000
5,00,000 5,00,000
Calculate
(a) Gross profit ratio
(b) Operating ratio
(c) Operating profit ratio
(d) Net profit ratio
(e) Expenses ratio
(f) Stock turnover ratio
(g) Return on total resources
(h) Turnover of fixed assets
(i) Turnover to total assets.
8. From the subsequent info prepare a Balance sheet with as many details possible.
Gross profit Rs. 80,000, current assets Rs. 1,50,000, Gross profit to cost of goods sold ratio accounts payable velocity 90 days. Stock velocity six time, Bills receivable Rs. 20,000, Bills payable Rs. 5,000, Opening stock Rs. 36,000, Accounts receivable velocity (year 360 days) 72 days. Fixed assets turnover ratio eight times.

Earning:   Approval pending.