Tumkur University 2008 B.B.M Accounts - Question Paper

FINANCIAL ACCOUNTING

All the ques. are compulsory. The 1st 5 ques. shall be of 16marks every and the last ques. shall be of 20marks.

Q1.
A. Define ‘Accounting? Differentials ranging from Accrues bases of Accounting VS Cash bases of Accounting.

B. Discuss the meaning and role of Payroll accounting system. Briefly explain the 2 basic Payroll Records maintained for Payroll Accounting.

Q2.
A. P & Q partners in business sharing Profits & Losses equally. Profit for the year 1997 Amounted to RS: 20,000. In addition, P has earned a personal Profit of RS: 5,000 From a competing business & Q has earned a Profit of RS: 6,000 by using firms property. Show distribution of Profit.

B. On 1-1-1996.A bill for RS: 20,000 payable after two months was drawn by P&Q Show Journal Entries in the books of P, Q, & R in every of the subsequent cases.

1) If P retains the bill till the due date & receives payment.
2) If P gets the bill discounted for RS: 19,500 & the bill is duly paid on maturity.
3) If P endorses the bill in favour of R & the bill is honoured on due date.
4) If P sends the bill to his Bankers for collection & the bill is duly collected by the bank.

Q3.
A. On first January ,1998. Pandey & Parker entered into a Joint Venture to Consign goods to Parkeh to be sold on their Joint risk. They agreed to share Profit & Losses in the ratio of 3:2. On 15th April, 1998 Pandey consigned to the value of RS: 36,000 & incurred Expenses amounting RS: 3000.On the first July,1993 Parker also consigned Goods to the value of RS:22,000 & incurred expenses amounting to RS: 1800. On 15th November, 1998 Parekh sold 80% of the total goods for RS: 60,000 & remitted the proceeds to Pandey after deducting 5% commission on sales.
On 31st December, 1998 on which date accounts were prepared. An interim Settlement was effected Pandey& Parker. On 15th August,1999 Parekh sold The remainder of the total goods for RS:8,000 & remitted theproceeds to
Parekh less 5% commission on sales. On 31st October,1999 A final settlement Was effected ranging from Pandey & Parker.

YOU ARE REQUIRED:-
1) To show the account in the books of every co-venture to record his own
Transactions. &
2) To Prepare a Memorandum Joint Venture Account.
3) Subscription Outstanding on December 31,1998. amounted to RS:15,000
4) Subscription received in advc on 31st December,1997 amounted to RS:11,.000.
5) Subscription received in advance on 31st December 31,997 1-1-1998 31-12-1998
6) Stock Of Stationery 2,000 3,000
Creditors for stationery 4,000 1,000

B. 1000 Cycles were consigned by X to Y at RS: 150 every X Paid freight RS: 10,000 & Insurance RS: 1500. During transit 100 Cycles were totally damaged by fire. Insurance company paid RS: 14,000 for claim of loss. Y Took the delivery of RS: 900 Cycles were sold at RS: 220 Other expenses of Y were RS: 2,000 Y was entitled to a commission of 5% Y settled the Account by bank draft.

Q4.
A. X has the subsequent accounts maintained in his private ledger. Lunch expenses (With Chief Minister) RS:10,000 (2/03/1998)
Hotel expenses (Of Secretary, GOI) RS:15,000 (15/03/1998)
Recreational expenses (Of PS to Industry Minister) RS: 8,000(25/03/1998)
Commission Received from Lufthansa Airlines RS: 30,000(18/03/1998)
Record the transactions in the main ledger & Private Ledger for the month Ended 31/03/1998 as per [a] Sectional Balancing System.
[b] Self-Balancing System.

B. During the year 1991, Ram Sold goods to Shyam as follows:-
RS: 10000 payable on fifth February.
RS: 8000 payable on 20th March.
Rs: 7000 payable on 15th August .
RS: 6000 payable on 16th september.
During the identical year, Ram also purchased goods from Shayam as under.
RS: 2000 due on eighth July.
Rs: 3000 due on 20th September.
Rs: 7000 due on 27th October.
Rs: 4000 due on 18th November.
The Parties settle their account on 30th November, interested being computed @ 12% per annum. Prepare Shyam in Account current with Ram.

Q5.
A. MR. Green & MR.RED had the subsequent Mutual dealings and desire to settle their accounts on 31/03/1998. With the help of avg. Due Date Method. Purchases by Green from Red Sales by Green to Red
Due 6/01/1998 6000/-
Due 6/01/1998 6600/-
Due 2/02/1998 2800/-
Due 9/03/1998 2400/-
Due 31/03/1998 2000/-
Due 20/03/1998 500/-
You are asked to as certain the avg. Due Date & the compute the Interest @ 18% P.a.

B. From the subsequent information, you are needed to compute income from Subscription & stationery expenses for the year ending December 31,1998 & show the relevant amount in all the basic statements for the year 1998. Extracts of Receipt & Payment Account for the year ending December 31, 1998 DR. To Subscription 90,000 By Stationery 10,000 Additional information:-
A] Subscription received during the year included RS: 8,000 for the year 1997 & the RS: 10,000 for the year.

Q. six
A. Prepare A pretty cashbook with analysis columns for:-
A] Postage & Stationery.
B] Traveling Expenses.
C] Carriage
D] Office expenses &
E] Sundries, i.e. miscellaneous. Rs. 10/- subsequent are the details for the month of February, 1998;
February, 1998.
1) Cash balance with Petty Cashier.
2) Paid Railway fare Telegrams.
3) Bought Papers & Envelops. Paid cleaning charges.
4) Paid cartage for goods Purchased Speed Post expenses.
5) Postage stamps.
6) Paid for Repair of kind author. Paid for Refreshment of Office Staff
7) Paid Office Expenses.

B. Distinguish ranging from International Accounting Standard (IAS) & National
Accounting standards (NAS)

C. Distinguish ranging from consignment Sales & Normal sales. OR. What is an Account Sales? Who Prepares it?

Earning:   Approval pending.