Madras University (UnOM) 2006 B.Com Corporate Secretaryship Financial Accounting Main - I - Question Paper

Time: 3 hours
Maximum: 100 marks

part A - [5 x eight = Marks 40]
ans any 5 ques..
All ques. carry equal marks.

1. describe the term Accounting? discuss the accounting rules with examples.

2. discuss the defects of the Single entry system.

3. Distinguish ranging from Hire Purchase and Instalment Purchase.

4. From the subsequent particulars of Mr. Vivek Barathi ascertain the Bank Balance as per pass book on December 31, 1994.

(a) The Bank Balance as per Cash Book was Cos. 11,500 on Dec. 31, 1994
(b) Cheque issued but not cashed before the date amounted to Its 1,750/
(c) Cheques paid in the Bank but not credited before Dec. 31 1994 amounted Its 2,150/
(d) Interest on investment collected by the bank but not entered in the cash book amounted to Its 275/
(e) Local cheque paid in but not entered in Cash Book Cos. 250
(f) Bank charges debited in the Pass Book Its 95.

5. The Accountant in a firm committed the subsequent errors :

(a) Rent Paid to Landlord Rs. 2,600/- was debited to Landlords Personal a/c

(b) Sold furniture for Rs. 1,000/- was entered in Sales a/c

(a) Cash drawn by the proprietor for his personal are 1,400/was debited to Trade Esp. a/c

(it) Repair buildings Rs. 450/- was passed through the buildings a/c

Rectify the above errors.

6. Mr. Gupta purchased machinery under Hire Purchase arrangement from Mr. Prakash. !be cash price of the machinery was Rs. 15,500/- The payment for the purchase is to be made as under:

On signing the agreement Rs. 3,000

First year Rs. 5,000
Second year Rs. 5,000
Third year Rs. 5,000

compute interest for the above periods.

7. X and Y Sharing profits in the ratio of seven : 5. They admit Z into partnership to 1/6th share, the old partners sacrificing equally. Vast would be the New profit Ratio of the partners of the reconstituted partnership?

8. From the subsequent balances of Mr. Arumugam, prepare Trading a/c for the year ending 31.03.2001.

Cos.
Opening stock - 1.4.2000 12,000
Purchases 28,000
Carriage inwards - 200
Sales returns 1,200
Purchase return 1,200
Sales 40,000
Wages 1,500
Stock on hand on 31.3.2001 14,000
Salary 5,000


part B - [3 x 20 = Marks 60]
ans any 3 ques..
All ques. carry equal marks.

9. What is Bank Reconciliation Statement? State the reasons for the disagreement of balances as shown by cash book and pass book.

10. Write short notes on:
(a) Sale or return basis
(b) Departmental Accounts
(c) avg. due date
(d) Partnership deed.

11. On Est January, 1992 X Ltd., purchased a motor car from Y Ltd., on the Hire Purchase system, the cash price of which was payable as Rs. 12,000 down and the balance in three equal annual instalments together with interest @ 10% Pa. The amount of the last instalment including interest was Its 17,600. Depreciation was to be given at 20% Pa. on the reducing balances. At the end of three years of service the motorcar was sold for Rs. 30,000 cash. Show (a) motor car a/c and (b) vendor's a/c in the books of the buyer for the three years to Ernst Dec, 1994.

12. I, ill & N were partners of a firm sharing profit and loss in the ratio of seven : five : 4. Set out beneath was their Balance sheet as at Nth June 1995.

Liabilities Its Assets Rs.
Sundry Creditor 30,000 Bank 20,000
Bills payable 11,000 Sundry Debtors
Gas loan 30,000 31,000
General Reserve 24,000
Provision for Bad Debts 1,000 30,000
Capital a/c Stock 25,000
I 45,000 Investments 14,000
a 35,000 Furniture 20,000
N 30,000 1,10,000 Goodwill 8,000 Plant& Machinery 80,000
P & I a/c 8,000
2,05,000 2,05,000

N retired from the partnership on Est July 1995 on the subsequent terms.

(a) That goodwill of the firm was valued at Cos. 32,000 and that asset account was to be accordingly revised

(b) That Cos. 3,000/- be witten off sundry creditors as that portion was no longer a liability

(a) That provision for doubtful debts was to be increased to Rs.1,200/

(d) That stock and furniture were to be depreciated by Rs.2,400 and Cos. 2,000 respectively

(a) That Cos. NO was to be paid to N immediately and the balance in 3 equal instalments

Show revaluation a/c, Capital account and Balance sheet of the reconstituted partnership.

13. From the following, prepare the Trading and Profit & Loss Account for the year ended Ernst December 1995 and the Balance Sheet as on that date.


Rs.
Capital 75,000
Cash 4,000
Buildings 40,000
Wages 6,000
Salaries 5,000
Rent, Rates 800

Earning:   Approval pending.