Alagappa University 2007 B.B.M ,(FINANCIAL ACCOUNTING) - Question Paper

DISTANCE EDUCATION
B.B.M. DEGREE EXAMINATION, DECEMBER 2007.
FINANCIAL ACCOUNTING
Time : 3 hours Maximum : 100 marks
PART A — (6 x five = 30 marks)
ans any 6 ques..
ans to every theory ques. not to exceed one page.
1. Explain with examples the rules for journalising the transactions.
2. What is consignment? How does it differ from sales?
3. State the features of income and expenditure a/c.
4. How will you treat goodwill at the time of admission of a partner?
5. What are the conditions for the problem of shares at a discount?
6. How will you classify advances in Bank a/cs?
7. A holds 100 shares of Rs. 10 every on which he has paid Re. one as application money. B holds 200 shares of Rs. 10 every on which he has paid Re. one on application and Rs. two on allotment.
C holds 300 shares of Rs. 10 every on which he has paid Re. one on application, Rs. two on allotment and Rs. two for the 1st call.
They all fail to their arrears and the 2nd call of
Rs. two per share and the directors, therefore, forfeit their shares. The shares are re-issued subsequently @ Rs.11 as fully paid. Pass necessary journal entries in the books of the company.
8. On 1.1.2004, Alan draws a bill of exchange on Balan for Rs. 2,000 payable after two months, Balan accepted the bill and returned to Alan, Alan discounted the bill with his bankers for Rs. 1,900. Pass journal entries in the books of Alan and Balan, for the above assuming that
(a) the bill is honoured on the due date and
(b) not honoured on the due date.
9. From the subsequent Receipts and payments account, prepare an Income and Expenditure a/c for the year ended
31.3.2001.
Rs. Rs.
To Balance of cash 5,100 By Salaries 36,000
To Subscription (including
Rs. 2,000 for next year) 30,000 By Printing and
Stationery 1,700
To Interest on Investments 15,000 By Postage and telegram 6,000
To Bank interest 100 By Purchase of bicycle 950
By Purchase Govt. bonds 6,800
To Sale proceeds of car 2,500 By closing balance of cash 1,250
Total 52,700 Total 52,700
PART B — (5 x 14 = 70 marks)
ans any 5 ques..
10. From the subsequent Trial Balance as on 31.3.2004, prepare Trading A/c, Profit and Loss A/c for the year ended 31st March, 2004 and Balance Sheet as on that date .
Debit Balances Rs. Credit Balances Rs.
Cash in hand 13,170 Sales a/c 2,58,780
Purchases a/c 1,40,675 Return Outwards a/c 1,500
Returns Inwards 2,680 Capital a/c 82,000
Wages a/c 25,210 Sundry Creditors a/c 16,300
Carriage on sales a/c 3,200
Carriages on purchases a/c 2,040
Opening stock 25,760
Buildings a/c 50,000
Machinery a/c 27,500
Salaries a/c 15,000
General Expenses a/c 13,000
Insurance a/c 600
Drawings a/c 15,245
Sundry debtors a/c 24,500
3,58,580 3,58,580
Adjustments :
(a) Value of closing stock Rs. 26,800.

Earning:   Approval pending.