Punjabi University 2006 M.Com Banking FINANCIAL ACCOUNTING - Question Paper

M.com(Banking) exam May 2006 - FINANCIAL ACCOUNTING


OCTOBER 2006 PAPER – three FINANCIAL ACCOUNTING

(For those who joined in July 2003 and after)

Time: 3 hours Maximum: 100 marks
part A -(4 x 10 =40 marks)


ans any 4 ques.. ans to theory ques. not to exceed two pages.


1. describe a bill of exchange and discuss its special features.
2. discuss the reasons on account of which the balance as shown by the Pass Book does not agree
with the balance as shown by the Bank column of the Cash Book.
3. How cash flow statement differs from funds flow statement?

4. Rectify the subsequent errors:
(a) Rs. 3,000 sale proceeds of machinery, has been posted to the sales Alc.
(b) A builder's bill for Rs. 7,200 for the erection of a small shed was debited to repair's account.
(c) A sum of Rs. 570 drawn by the proprietor for his own use was debited to travelling expenses
account.
(d) A sale of Rs. 350 to Kishore was entered in the Sales Book as Rs. 530.
(e) Purchased goods from Dinesh Rs. 800 passed through Sales Book.



5. From the subsequent compute funds from operation:
Rs. Rs.
To Operating expenses 1,00,000 By Gross profit 2,00,000
To Depreciation 40,000 By Profit on sale of plant 20,000
To Loss on sale of building 10,000
To Discount allowed 500
To Preliminary expenses written-off 5,500
To Goodwill written-off 12,000
To Net Profit 52,000
-------------- ---------------
2,20,000 2,20,000
------------- --------------



6. Amar sold goods to Babu for Rs. 1,000. Babu accepted a bill for Rs. 1,000 drawn by Amar. On
the due date, Babu approached Amar and requested him to cancel the original bill and to draw a
new bill for Rs. 1,025 (including interest) which is agreed by Amar. On the due date, the second
bill was honoured. Show the journal entries in the books of Amar.


7. A company issued 10000 equity shares of Rs. 10 each, payable Re. one on application, Rs. two on
allotment, Rs. three on 1st call and Rs. four on final call. All shares were subscribed and amounts duly
received. Pass entries in the books of the company.



8. From the subsequent Profit and Loss Account of X industries Ltd prepare a comparative income
statement.
Profit and Loss Account
(Rs. in Lakhs)
2003 2004 2003 2004
Rs. Rs. Rs. Rs.
To Cost of goods sold 500 640 By Sales 700 900
To Operating expenses:
Administrative expenses 20 20
Selling expenses 30 40
To Net Profit 150 200
------ ----- ------- --------
700 900 700 900
------- ------- ------- --------

part B - (3 x 20 =60 marks)
ans any 3 ques.. ans to th~ory ques. need not to exceed four pages.

Earning:   Approval pending.