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

B.Com. DEGREE EXAMINATION, MAY 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. Limitations of Accounting.

2. Accounting Concepts.

3. Journal and Ledger.

4. Petty cash book.

5. Bills of Exchange.

6. Revenue expenditure.

7. Depreciation.

8. Consignment.

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. 50,000
(b) 3.4.05 Goods purchased for cash Rs. 35,000
(c) 5.4.05 Purchased furniture Rs. 5,000
(d) 9.4.05 Sold goods to Naresh Rs. 7,000
(e) 11.4.05 Goods purchased from Jagan Rs. 40,000
(f) 15.4.05 Goods returned by Naresh Rs. 1,000
(g) 22.4.05 Paid salaries by Cash Rs. 1,500
(h) 24.4.05 Paid office rent by cash Rs. 800.

10. From the subsequent ledger balances prepare Trial Balance :

Capital Rs. 10,000, Machinery Rs. 15,000, Cash Rs. 3,000, Purchases Rs. 16,000, Sales Rs. 15,000, Bills receivable Rs. 3,000, Salaries Rs. 2,000, Bills payable Rs. 8,000, Bank overdraft Rs. 6,000.

11. Prepare a Bank reconciliation statement :

(a) Balance as per cash book (cr) Rs. 4,500
(b) Payment side of cash book was undercast by Rs. 150
(c) Cheques drawn Rs. 750 not recorded in cash book
(d) Cheques drawn Rs. 1,000 but not yet presented to bank
(e) Bank charges recorded twice in pass book Rs. 30
(f) Dividends paid into bank Rs. 100 but not entered in cash book

12. A, B and C for mutual accommodation drew the subsequent bills for 3 months.

A drew on B for Rs. 15,000 and on C Rs. 12,000
B drew on A for Rs. 18,000 and on C Rs. 30,000
C drew on A for Rs. 24,000 and on B Rs. 12,000

Pass journal entries in the books of 'A'

part - C (3 x 20 = 60 marks)
ans any 2 of the subsequent ques.
every ques. carries 20 marks.

13. On 31st December 2005 the cash book of a firm showed a Bank Balance of Rs. 3,000. Prepare a Bank Reconciliation statement showing the balance as per pass book.

(a) Cheques have been issued for Rs. 2,500 out of which cheques worth Rs. 2,000 only were presented for payment.

(b) Cheques worth Rs. 700 were deposited on 28th Dec, but not credited by the bank.

(c) A cheque from Mohan for Rs. 200 was paid in on 26th Dec. but not dishonoured and the advice was received on second Jan. 2006.

(d) Pass book showed bank charges Rs. 10 debited by the bank. It also showed Rs. 400 collected by bank as interest.

(e) A degree of Rs. 250 entered in the cash book on 30th December but was banked on third Jan.2006

14. Sudhir accepted a 3 months bill for Rs. 15,000 drawn by Kamal for mutual accommodation. The bill was immediately discounted for Rs. 14,560. Just before maturity Sudhir received a cheque for Rs. 2,500 from Kamal and the bill was duly honoured. On the mean time, Sudhir was declared insolvent and only 0.25 paise in a rupee was received as dividend from his estate. Show the journal entries in the books of both the parties.

15. From the subsequent balances taken from the books of Ravi Kumar, prepare final accouts for the year ending 31.03.2005.

Capital Rs. 35,000, Building Rs. 18,750, Machinery Rs. 9,250, Debtors Rs. 7,000, General Expenses Rs. 800, Rent paid Rs. 3,710, Drawings Rs. 650, Electric charges Rs. 190, Carriage inward Rs. 850, Cash at bank Rs. 3,000, Return invwards Rs. 450, Return outwards Rs. 110, Salaries Rs. 1,110, Discount allowed Rs. 200, Stock (1.04.2004) Rs. 16,500, Bills payable Rs. 5,000, Sales Rs. 63,500, Purchases Rs. 46,850, Wages Rs. 2,500, Cash in hand Rs. 1,800, Creditors Rs. 10,000 Stock (31.3.05) Rs. 18,210.

16. Pass rectification for the subsequent errors :

(a) A builders bill for Rs. 4,600 for erection of a small shed was debited to repairs account.

(b) Repairs to plant and machinery Rs. 900 had been charged to plant and machinery account.

(c) Wages paid to workers for making certain additions to machinery Rs. 340 were debited to wages account.

(d) A cheque for Rs. 750 received from John was credited to David.

(e) Goods to the value of Rs. 700 returned by 'X' were included in closing stock but no entry was made in the books.

(f) Goods sold to Z for Rs. 475 have been wrongly entered in the sales book as Rs. 745.

17. 'X' and 'Y' entered into joint venture for purchase and sale of a few household items. They agreed to share profits and losses in the ratio of their respective contributions. X contributed Rs. 10,000 in cash and Y Rs. 13,000. The whole amount was placed in a joint bank. Goods were purchased by X for Rs. 10,000 and expenses paid by Y amounted to RS. 2,000. They also purchased goods for Rs. 15,000 through the Joint Bank Account. The expenses on purchase and sale of the articles amounted to Rs. 6,000 (including those met by Y). Goods costing Rs. 20,000 were sold for Rs. 45,000 and the balance was lost by fire. Prepare Joint venture account, Joint Bank account and the ventures account closing the venture.

18. A mine was acquired at a cost of Rs. 5,00,000 on first June 2001. It was expected it would yield 1,00,000 tonnes of minerals in all. The true output was as follows :

2001 - 5,000 tonnes
2002 - 20,000 tonnes
2003 - 16,000 tonnes

Write up the mines account for the above years using depletion method of charging depreciation.

Earning:   Approval pending.