IndiaStudyCenter.com - Test Papers of Univ of Madras - BSc Mathematics

BCA/B.Sc Maths Financial Accounting OCTOBER2003 U/IC 1884/JAB/CAA Time: Three hours Maximum: 100 marks SECTION A - (5 x 8 = 40 marks) Answer any FIVE questions. All questions carry equal marks. 1. Briefly explain the various Accounting Concepts. 2. What are the objectives of preparing Trial Balance? 3. How are prepaid expenses adjusted? Illustrate with an example. 4. The following balances are extracted from the books of Thiru. Chinnappan as on 30.6.2002. Rs. Rs. Capital 20,000 Salaries 5,000 Drawings 5,000 Rent 2,000 Purchases 90,000 Taxes 300 Sales 1,30,000 Insurance 600 Return Inwards 700 Sundry debtors 8,000 Return Outwards 900 Sundry creditors 6,000 Carriage Inwards 1,100 Cash on hand 500 Carriage Outwards 800 Cash at Bank 2,500 Duty on purchases 2,000 Furniture 1,000 Stock on 1.7.02 11,000 Land 20,400 Motor Van 6,000 Prepare Trial Balance as on 30.6.2002. 5. Rectify the following errors : (a) Goods purchased for Rs. 2,500 from Mr. Kannan not entered in the books of accounts. (b) Goods sold to Mr. Duraisamy for Rs. 2,300 on credit basis not entered in the accounting records. (c) Goods returned by Mr. Ganesan for Rs. 200 not entered in the books of account. (d) Goods sold to Sriram for Rs. 6,000 was entered by mistake in the debit side of Seetharam's Account. 6. Mr. Mani's cash book showed the Bank balance of Rs. 1,100 as on 31st March 2002. From the following information, prepare a Bank Reconciliation Statement. (a) Interest Rs. 120 collected by the Bank and it was entered in the cash book on 4th April 2002 duly. (b) Bank charges Rs. 15 was not entered in the cash book. (c) Cheques remitted into Bank for collection amounted to Rs. 2,000 but only Rs. 1,650 worth of cheques were collected by the Bank. (d) Cheque issued but not paid by the Bank was Rs. 1,000. (e) Bank collected and credited the Dividend amount of Rs. 400 was not yet to be known to Mani. 7. X and Co. of Chennai has a branch at Trichy. Goods are sent by the H.O. at invoice price which is at a profit of 20% on invoice price. All expenses of the branch are paid by the H.O. From the following particulars, prepare branch account in the H.O. books when goods are shown at invoice price: Rs. Opening Balances - Stock at invoice price 11,000 - Petty cash 100 - Goods sent to branch at invoice price 20,000 Expenses made by H.O. - Rent 600 - Wages 200 - Salary 900 Remittances made to H.O. - Cash sales 2,650 - Cash collected from Debtors 21,000 Goods returned by Branch at invoice price 400 Credit sales 21,300 Balances at the end: - Stock at invoice price 13,000 - Debtors at the end 2,000 - Petty cash 25 8. Suresh Kumar purchased goods from Prakash with the condition of settling accounts in the following dates. Suresh Kumar is willing to settle the whole amount on Average Due Date through a Bill of Exchange. Calculate Average Due Date. Instalment Date Amount (Rs.) 12.3.2002 4,500 23.4.2002 1,800 19.5.2002 2,300 24.6.2002 1,500 SECTION B - (3 x 20 = 60 marks) Answer any THREE questions. All questions carry equal marks. 9. Trial Balance of Mr. Anand for the year ended 31.3.2002 was given below: Debit balances Rs. Credit balances Rs. Drawings 18,000 Capital 1,00,000 Buildings 45,000 Loan as on 1.4.01 @ 9% p.a. 20,000 Furniture and fittings 7,500 Sales 1,30,000 Motor van 30,000 Commission 8,000 Interest on loan 900 Creditors 10,000 Purchases 90,000 Bills payable 2,000 Carriage inwards 1,000 Opening stock 20,000 Wages 12,000 Office expenses 18,000 Insurance 1,600 Debtors 6,000 Cash at Bank 20,000 2,70,000 2,70,000 Additional Informations : (a) Closing stock was valued at Rs. 45,000. (b) Outstanding expenses : Wages Rs. 500; Interest on loan Rs. 900; Rent Rs. 1,000. (c) Prepaid Insurance Rs. 200. (d) Commission received in advance Rs. 2,000. (e) Interest on capital and interest on drawings at 5% and 2% respectively. (f) Depreciation on: Furniture and fittings 10% p.a. and Motor van 20% p.a. Prepare Trading and Profit and Loss Account and the Balance Sheet for the year ending 31.3.2002. 10. Mr. Surya does not keep a systematic record of his transactions. He is able to give you the following information regarding his assets and liabilities. 2000 2001 Dec. 31 Dec. 31 Creditors for goods 21,000 19,000 Creditors for expenses 1,500 1,800 Bills payable 8,700 11,500 Sundry debtors 35,000 34,000 Stock (at cost) 28,000 25,000 Furniture and fittings 10,000 12,000 Cash 5,100 ? The following additional information is also available relating to 2001. Rs. Bills payable issued 20,800 Cash sales 15,000 Payment to creditors 31,000 Expenses paid 6,600 Drawings 8,000 Bad debts, during the year were Rs. 900. As regards sales, Surya tells you that he always sells goods at cost plus 25%. Furniture and Fittings is to be depreciated at 10% of the value in the beginning of the year. Prepare Surya's Trading and Profit and Loss Account for 2001 and his balance sheet as at the end of that year. 11. From the following figures, prepare accounts to disclose total profit and the profit of the two departments, A and B Rs. Rs. Opening Stock: A 15,200 Sales A 1,00,000 B 10,800 B 80,000 Purchases A 75,100 Purchase Returns A 1,100 B 69,800 B 800 Carriage inwards 2,860 Discount received 1,430 Salaries A 9,000 B 8,500 General 11,600 Rent and rates 6,000 Advertising 8,100 Insurance 1,000 Generalexpenses 5,400 Discount allowed 1,800 Accountancy charges 500 The following further information is supplied: (a) Goods transferred from department A to B were Rs. 5 000. This has not yet been recorded. (b) General salaries are to be allocated equally. (c) The area occupied is in the ratio of 3 : 2. (d) Insurance premium is for a comprehensive policy, allocation being inconvenient. (e) The closing stock of the two departments were A Rs. 17,800 and B Rs. 15,600. 13. Saravanan and Rengan were partners sharing profits in the ratio of 3 : 2. On 1st July 2001 their Balance Sheet was as under: Liabilities Rs. Assets Rs. Sundry creditors 20,000 Stock 12,000 Capitals Debtors 15,000 Saravanan 5,000 Furniture 600 Rengan 3,000 Cash 400 28,000 28,000 The firm was dissolved on the above date. The assets were realised only for Rs. 16,000. Expenses came to Rs. 500. Saravanan's private estate could pay only Rs. 1,000. Rengan had no surplus. Close the books of the firm by giving ledger accounts.