Acharya Nagarjuna University (ANU) 2006 B.B.M - III - FINANCIAL ACCOUNTING - Question Paper

B.B.M.(Previous) DEGREE EXAMINATION, MAY 2006
Part II - Business Management
PAPER - III - FINANCIAL ACCOUNTING

Time: 3 hours Maximum: 100 marks

ans any 5 ques.
All ques. carry equal marks.

1. describe Accounting and provide the main attributes of Accounting.

2. discuss the double entry system of Book Keeping.

3. What do you mean by posting? How posting is made from journal to ledger?

4. discuss imprest system of petty cash book. What is the relation of petty cash book to that of cash book?

5. discuss the essential features of partnership.

6. From the provided info prepare final accounts of Mr. Sunder and Sons for the year ending 31st March 2005:
Dr. Cr.
Rs. Rs.
Plant and Machinery 55,000 Capital 93,230
Furniture 1,720 Sales 1,26,177
Factory Fuel & Power 542 Creditors 22,680
Office Salaries 3,745 Purchase Returns 3,172
Cash in hand 68 Bills Payable 6,422
Sundry debtors 47,800
Purchases 83,290
Manufacturing wages 9,915
Rent and taxes 1,765
Office Expenses 2,778
Carriage on purchase 897
Discount 422
Drawings Account 6,820
Stock 21,725
Lighting (Factory) 392
Traveling Expenses 925
Carriage on Sales 960
Cash at Bank 2,245
Manufacturing expenses 2,680
Sales Returns 7,422
Insurance 570

2,51,681 2,51,681

Adjustments:
(a) Depreciate Fixed Assets by 10%
(b) give for bad debts 2.5 percent on debtors
(c) give for rent Rs.150
(d) Insurance unexpired Rs.70
(e) Outstanding wages and salaries Rs.800 and Rs.300 respectively.
(f) Stock at the end of the year 16,850.

7. Prepare columnar petty cash book on imprest system from the subsequent particulars and post it to the ledger.
2005 June
June 1 Received for petty cash payments Rs.500
2 Paid for postage Rs.40
5 Paid for stationery Rs.25
8 Paid for advertisement Rs.50
12 Paid for wages Rs.20
16 Paid for carriage Rs.15
20 Paid for conveyance Rs.22
25 Paid for travelling expenses Rs.80
27 Paid for postage Rs.50
28 Wages to office cleaner Rs.20
30 Paid for telegrams Rs.20
30 Sent registered notice to landlord Rs.3

8. On 1.7.2001 Ravi for mutual accommodation of himself and Sunil drew on the other a bill for Rs.10,000 payable at three months due. The bill was discounted at 5% with the Bank and half of the proceeds were remitted to Sunil on 2.7.2001. On 5.7.2001 Sunil drew a bill on Ravi for Rs.4,000 payable at three months date. He discounted the bill with Bank at 10% and remitted half of the proceeds to Ravi, Sunil became bankrupt on 31.8.2001 and only 25 percent was received by Ravi on 15.9.2001 as the 1st and final dividend from his estate. Write the journal entries in the books of Ravi.

9. Jyoti and Vikas were equal partners in a manufacturing business. On June 30, 2005 they dissolved the firm on which date their Balance Sheet was as below:

Liabilities Rs. Rs. Assets Rs. Rs.

Creditors 28,000 Cash at Bank 2,500
Less: Reserve for discount 1,000 27,000 Debtors 42,000
Reserve for contingencies 5,000 Less: Reserve 2,000 40,000
Mrs. Vikas Loan 10,000 Stock 32,000
Reserve Fund 15,000 Furniture 3,500
Jyoti Loan 8,000 Plant and Machinery 25,000
Jyoti Capital A/c 21,000 Prepaid Expenses 1,000
Vikas Capital A/c 18,000

1,04,000 1,04,000

Stock, debtors, plant and machinery and goodwill realised Rs.27,000, Rs.38,000, Rs.20,000 and Rs.5,000 respectively. Furniture did not realise any value. An amount of Rs.6,000 was paid on account of contingent liabilities. The expenses of realisation were Rs.1,000. The fire had previously made investment in shares of a joint stock company and had written off thus investments of finding it useless. The investment was realised Rs.1,500. Close the books of the firm and show the necessary ledger accounts.

10. A Limited Company issued 1000 debenture bonds of Rs.100 every at a premium of 10 percent repayable at par at the end of the tenth Year. The debenture bonds were payable 25 percent on application, 35 percent on allotment (previous) and the balance on 1st and final call. All the moneys were received by the company in due course. Journalise the above transactions.

Earning:   Approval pending.