Acharya Nagarjuna University (ANU) 2006 B.Com Part II - Commerce, I - FINANCIAL ACCOUNTING - I - - Question Paper

B.Com. DEGREE EXAMINATION, DECEMBER 2006
(Examination at the end of 1st Year)
Part II - Commerce
Paper I - FINANCIAL ACCOUNTING - I

Time : 3 hours Maximum : 100 marks

part A - (4 X five = 20 marks)
ans any 4 ques..

1. Functions of Accounting.
2. Accounting conventions.
3. Trial Balance.
4. Subsidiary Books.
5. Promissory Note.
6. Capital losses.
7. Trading account.
8. Balance sheet

part B - (2 X 10 = 20 marks)
ans any 2 ques..

9. Journalise the subsequent transactions:
(a) 1.4.05 Started business with cash Rs.1,00,000
(b) 3.4.05 Purchased goods for cash Rs.30,000
(c) 5.5.05 Deposited in Bank Rs.20,000
(d) 9.5.05 Sales for cash Rs.22,000
(e) 15.5.05 Purchases from Ramu Rs.10,000
(f) 20.5.05 Sales to Suresh Rs.15,000
(g) 30.5.05 Salaries paid to staff Rs.6,000

10. From the subsequent ledger balances prepare a Trial Balance capital Rs.22,000; Stock Rs.10,000; Debtors Rs.8,000; Bills receivable Rs.6,000; Machinery Rs.20,000; Fixtures Rs.6,000; Purchase Rs.15,000; Bills payable Rs.10,000; Sales Rs.22,000; Creditors Rs.11,000.

11. On first Jan. 2001 .A. sold goods to B for Rs.6,000 and draw a bill on .R. for four months. B accepted the bill and returned it to .A. who discounted it on third Jan. 2001 with his bak at 12% per annum. B met his acceptance on the due date. Journalise the transactions in the book of .A..

12. On first Jan. 2005 Anil of Ajmer sent 10,000 tins of oil to Prakash of Delhi on consignment. The cost of every tin is Rs.100. The proforma invoice price fixed at Rs.150 per tin. On the identical day Anil paid Rs.3,000 a freight charges. Prakash paid Rs.3,000 as transport charges and Rs.1,000 as warehouse rent. Prakash sold 8,000 tins and Prakash is to be paid a commission of 10% on sales. Prakash paid the amount due by a bank draft. Prepare the necessary ledger accounts in the books of Anil.

part C - (3 X 20 = 60 marks)
ans any 3 ques..

13. Prepare a Bank reconciliation statement as on 31.12.05:

(a) Cash book balance (Cr.) Rs.3,500
(b) Cheques issued but not encashed Rs.2,200
(c) Cheques deposited but not credited by Bank Rs.660
(d) Bank charges not recorded in cash book Rs.150
(e) Cheques deposited as per bank statement but not entered in cash book Rs.950.
(f) Interest paid by bank recorded twice in the cash book Rs.450
(g) Cheques issued but dishonoured Rs.1,200.

14. Lampat for mutual accommodation draws a bill for Rs.3,000 on Sampat. Lampat discounted the bill for Rs.2,925 and remits Rs.975 to Sampat. On the due date Lampat is unable to remit his dues to Sampat to enable him to meet the bill. He however accepts a bill for Rs.3,750 which Sampat discounts for Rs.3,525. Sampat sends Rs.175 to Lampat. Lampat becomes in solvent and a dividend of 80 paise in the rupee is received from his estate. Pass journal entries and show the account of Sampat in the books of Lampat.

15. Prepare final accounts from the subsequent Trial Balance as on 30 June 2005:
Rs. Rs.
Cash in hand 500 Sales 40,170
Purchases 40,650 Return outwards 4,500
Opening stock 5,500 Capital 60,000
Wages 3,000 Sundry creditors 10,010
Factor fuel 2,500 Rent 2,500
Investments 10,000
Land and buildings 30,250
Insurance 1,760
General expenses 3,000
Staff expenses 2,270
Drawings 3,000
Sundry debtors 14,500
Bad debts 250

1,17,180 1,17,180

Additional information:
(a) Closing stock at the end of the year is Rs.6,800
(b) Depreciate fixed assets by 10%
(c) Salaries Rs.1,500 were still unpaid
(d) Charge 10% reserve for bad debts on debtors.
(e) Interest on investment Rs.2,000 is accrued.

16. Rectify the subsequent errors by using Suspense Account:
(a) Goods sold to Sateesh Rs.700 was not posted to his account.
(b) Purchase book was overcast by Rs.3,200
(c) Sales book was undercast by Rs.1,500
(d) Purchase returns book was undercast by Rs.450
(e) Cash received from Kumar Rs.650 was posted to his account as Rs.560.
(f) Cash paid to Suresh Rs.546 was posted to his account as Rs.645.

17. Ram, Mohan and Rahim were partners in joint venture every contributing Rs.5,000. Ram purchased goods for Rs.13,000 and also supplied goods with Rs.1,000 from his stock. Rahim also supplied goods to the value of Rs.1,500 from stock and his expenses in connection with the supplying of goods on account of joint venture amounted to Rs.50. Ram paid Rs.250 for expenses in connection with the joint venture. Ram sold goods on behalf of the joint venture and realized Rs.20,800. Ram was entitled to a commission of 20% on sales. Unsold goods amounting to Rs.500 were taken over by Mohan. Ram settled accounts of Mohan and Rahim by bank draft. Record these transactions in Ram Journal and also prepare joint venture account and Mohan account and Rahim account in the books of Ram,s.

18. A mine was acquired at a cost of Rs.2,00,000 on 1.4.01. It was expected it would yield 50,000 tonnes of coal in all. The true output was as follows 2001 - 5000 tonnes; 2002 - 7000 tonnes; 2003 - 4000 tonnes; Write up the mines account for the above years using depletion method of charging depreciation.

Earning:   Approval pending.