Madras University (UnOM) 2006 B.Sc Mathematics Financial Accounting - 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. Briefly discuss the different Accounting Concepts.

2. What are the objectives of preparing Trial Balance?

3. How are prepaid expenses adjusted? Illustrate with an example.

4. The subsequent balances are extracted from the books of

Thiru. Chinnappan as on 30.6.2002.

Rs. Rs.

Capital 20,000 Salaries 5,000

Drawings 5,000 Rent 2,000

Purchases 90,000 Taxes 300

Sales 1,30,000 Insurance 600

Return Inwards 700 Sundry debtors 8,000

Return Outwards 900 Sundry creditors 6,000

Carriage Inwards 1,100 Cash on hand 500

Carriage Outwards 800 Cash at Bank 2,500

Duty on purchases 2,000 Furniture 1,000

Stock on 1.7.02 11,000 Land 20,400

Motor Van 6,000

Prepare Trial Balance as on 30.6.2002.

5. Rectify the subsequent errors :

(a) Goods purchased for Rs. 2,500 from Mr. Kannan not entered in the books of accounts.

(b) Goods sold to Mr. Duraisamy for Rs. 2,300 on credit basis not entered in the accounting records.

(c) Goods returned by Mr. Ganesan for Rs. 200 not entered in the books of account.

(d) Goods sold to Sriram for Rs. 6,000 was entered by mistake in the debit side of Seetharam's Account.

6. Mr. Mani's cash book showed the Bank balance of Rs. 1,100 as on 31st March 2002. From the subsequent information, prepare a Bank Reconciliation Statement.

(a) Interest Rs. 120 collected by the Bank and it was entered in the cash book on fourth April 2002 duly.

(b) Bank charges Rs. 15 was not entered in the cash book.

(c) Cheques remitted into Bank for collection amounted to Rs. 2,000 but only Rs. 1,650 worth of cheques were collected by the Bank.

(d) Cheque issued but not paid by the Bank was Rs. 1,000.

(e) Bank collected and credited the Dividend amount of Rs. 400 was not yet to be known to Mani.

7. X and Co. of Chennai has a branch at Trichy. Goods are sent by the H.O. at invoice price which is at a profit of 20% on invoice price. All expenses of the branch are paid by the H.O. From the subsequent particulars, prepare branch account in the H.O. books when goods are shown at invoice price:

Rs.

Opening Balances

- Stock at invoice price 11,000

- Petty cash 100

- Goods sent to branch at invoice price 20,000

Expenses made by H.O.

- Rent 600

- Wages 200

- Salary 900

Remittances made to H.O.

- Cash sales 2,650

- Cash collected from Debtors 21,000

Goods returned by Branch at invoice price 400

Credit sales 21,300

Earning:   Approval pending.