Acharya Nagarjuna University (ANU) 2005 B.Com Part II - Commerce I - FINANCIAL ACCOUNTING - I - Question Paper

(a) Overdraft as per cash book on 31st December 2004- Rs. 14,380
(b) Recorded in pass book only for six months ending 31.12.2004.
(i) Interest on overdraft - Rs. 320
(ii) Bank charges for the above period - Rs 140.
(c) Cheques drawn but not cashed before 31.12.2004 - Rs. 4,420.
(d) Cheques paid into the bank but not cleared before 31.12.2004 - Rs. 4,420.
(e) A bill receivable discounted with the bank in November was dishonoured on 31.12.2004.-Rs. 600.

14. Mahadev and Satyadev, for mutual accommodation drew bills on every for Rs. 5,000 for three months. every bill was discounted at 6%. On the due date, Satyadev paid his acceptance. Mahadev could not pay his acceptance on the due date. Mahadev paid Rs. 2,000 to Satyadev on the due data accepted a different bill for Rs. 3,050 for 2 months including interest. This bill was met on the due date. Pass the necessary journal entries in the books of Mahadev.

15. The subsequent is the Trial Balance of Sudharshan at 31, March 2004 :

Debit Balances Rs. Credit Balances Rs.
Drawings 4,000 Capital 80,000
Debtors 96,000 Creditors 68,000
Bills Receivable 24,000 Bills payable 21,200
Loan to Anupam 20,000 Sales 2,80,000

Debit Balances Rs. Credit Balances Rs.

Stock on 1.4.2003 50,000 Discount 800
Cash at Bank 35,800
Purchases 1,86,000
Clearing Charges 7,000
Returns Inwards 5,000
Freights 1,600
Salaries 13,000
Trading expenses 600
Rent 4,600
Income Tax 2,400

4,50,000 4,50,000

Stock on 31st March was Rs. 58,000. Salaries outstanding Rs. 400.

Interest accrued on loan Rs. 300

Write off Rs. 3,000 as bed debts and give for doubtful debts at 5% on debtors.

Prepare the profit & Loss a/c for the period ended 31st March 2004 and the Balance Sheet as on that date.

16. Rectify the subsequent errors by using suspense account :

(a) Goods sold to Sateesh Rs. 7,000 were not posted to his account.
(b) Purchase book was overcast by Rs. 2,800.
(c) Sales book was under cast by Rs. 371
(d) Purchase returns books was under cast by Rs. 112.
(e) Cash received from Govindu Rs. 777 was posted to his account as Rs. 7,777.
(f) Cash paid to Nagaraju Rs. 5,390 was posted to his account as Rs. 3,590.

17. Ramesh of Ranchi and Suresh of Surat entered into a Joint Venture for sending cotton bales to Bangladesh for sale. Ramesh sent bales of Rs. 30,000 and spent Rs. 1,500 for freight and Rs. 1,575 for sundry expenses. Suresh sent bales of Rs. 20,750 and spent Rs. 1,200 for freight, Rs. 200 for dock dues, Rs. 500 for customs and Rs. 500 for other expenses. Ramesh gave Rs. 6,000 to Suresh as advance. Suresh received Rs. 80,000 from Basha of Bangladesh for sale of bales which were sent to him. Suresh paid the amount due to Ramesh by bank draft. Show the necessary ledger accounts in the books of Ramesh and Suresh.

18. XYZ Collieries Ltd. acquired a lease right for 10 years of a mine on one st January 2000 on a payment of Rs. 10,00,000 to the landlord. It was estimated that the coal deposit of the mine was 2,00,000 tons.

The annual raising were :
2000-10,000 tons
2000-40,000 tons
2002-32,000 tons
2003-42,000 tons

By using 'Depletion' method of depreciation you are needed to show the lease account for 4 years.

Earning:   Approval pending.