Solapur University Question Paper
B.Com. – I (Semester – II) Examination, 2014
FINANCIAL ACCOUNTING (New)
Day and Date : Saturday, 29-3-2014 Total Marks : 50
Time : 11.00 a.m. to 1.00 p.m.
Instructions : 1) All questions are compulsory.
2) Out of Q. 4 a and Q. 4 b solve any one.
3) Out of Q. 5 a and Q. 5 b solve any one.
4) Figures to the right indicate full marks.
1. Choose the correct alternatives and complete the given sentence : 10
1) The relationship between consignor and consignee is one of _________
a) Debtor and creditor b) Seller and buyer
c) Principal and agent d) Producer and consumer
2) The commission given to the consignee to bear loss on account of bad debts is _____________
a) Simple commission b) Special commission
c) Overriding commission d) Del Credere commission
3) The object of branch accounting is to know ______________
a) Profit and Loss of Head Office
b) Profit / Loss of each branch
c) Profit and Loss of the proprietor
d) None of the above
4) Dependent Branch is also called as __________ branch.
a) Agency b) Independent
c) Foreign d) Inland
5) Accounting _________ means those rules of action adopted by the accountants universally while recording accounting transactions.
a) System b) Principles
c) Procedure d) None of the above
6) The term _______________ includes those basic assumptions or conditions upon which the science of accounting is based.
a) Conventions b) Accounting
c) Concepts d) All of the above
7) According to _______________ convention accounting practices should remain unchanged from one period to another.
a) Materiality b) Disclosure
c) Conservation d) Consistency
8) In ___________ system only Personal Accounts and Cash Book are kept.
a) Branch Accounting b) Double Entry
c) Single Entry d) None of the above
9) The primary objectives of ____________ organisation is to provide services.
a) Company b) Partnership
c) Non-Profit d) None of the above
10) ___________ system is suitable for small business unit such as sole trading concern and partnership firm.
a) Branch Accounting b) Company Accounts
c) Single Entry d) None of the above
2. Answer the following :
A) Write a short note on Accounting Principles. 5
B) A Head Office in Delhi has a branch at Bombay. From the following information, prepare the Branch Account in the Head Office books showing the net profit of the branch : 5
Rs.
Opening stock at branch 5,000
Goods sent to branch 40,000
Goods return by branch 2,000
Sales proceeds received from branch 50,000
Cheques sent to branch for :
Salaries 2,400
Wages 600
Rent 1,000
Closing stock at branch 7,000
3. Answer the following :
A) Write a short note on Accounting Conventions. 5
B) A consigned 2000 tonnes of coal @ Rs. 50 per tonne to B of Delhi. He paid Rs. 20,000 as freight. Due to normal wastage only 1,950 tonnes were received by B. He also paid Rs. 5,000 as unloading and cartage charges. The goods unsold amount to 650 tonnes. You are required to calculate the value of closing stock. 5
4. Answer any one : 10
a) On 1st June, 2013, Benerjee and Co. of Baroda consigned to Mukerjee and Co. of Mahmad 100 fans invoiced at Rs. 450 each, which was 25% above their cost price. Banerjee and Co. has paid Rs. 100 for packing Rs. 50 for insurance and Rs. 350 for carriage. On 1st Oct. 2013, Mukerjee and Co. sold 75 fans for Rs. 40,000 the expenses incurred there on being Rs. 1,600. Mukerjee and Co. is entitled to get ordinary commission at 5% and 25% del-credere commission on sales. They remitted Rs. 30,000 to Banerjee and Co. Pass the Journal Entries in the books of Consignor.
b) Given below is the Receipt and Payment Account of Khandvi Sports Society for the year ended 31st March, 2013 :
Receipt and Payment Account for the year ended 31-03-2013 Receipts Rs. Payments Rs.
To Entrance fees 2,000 By Salaries 2,000
To Donation for building 25,000 By Gardening 300
To General donations 3,000 By Building 20,000
To Subscription 4,000 By Printing and Stationary 200
To Interest on Investment 100 By Furniture 4,000
To Rent received 900 By Telephone charges 400
By Sports Equipments 3,000
By Insurance 100
By Investments 4,000
By Balance c/d 1,000
35,000 35,000
Additional Information :
1) Subscriptions outstanding for the year 2012-2013 Rs. 800.
2) Subscriptions received in advance for the year 2013-2014 Rs. 50.
3) Salaries outstanding Rs. 100.
4) Prepaid Insurance Rs. 30.
5) Half of the entrance fees are to be capitalised.
6) Depreciate building by 2% , furniture by 5% and sports equipment by 10%.
Prepare :
1) Income and Expenditure Account for the year ended 31-03-2013.
2) Balance Sheet as on that date.
5. Answer any one : 10
a) The Modern Trading Company of Solapur has a branch at Barsi. Goods are sent to branch at selling price which is cost plus 20%. All cash received is deposited into the head office account in a local branch and the necessary advice is sent to the head office. The head office sends cheques for branch expenses.
From the following particulars, draw up the Branch Account in the head office books :
Rs. Stock at branch on 1st January, 2013 18,000
Stock at branch on 31st December, 2013 22,800
Goods sent to branch 72,000
Goods returned to head office 4,200
Cash sales for the year 39,000
Credit sales for the year 25,200
Returns from customers 1,200
Cash received from customers 20,000
Discount to customers 400
Allowances to customers 100
Bad debts 500
Rent and rates 1,500
Salaries and wages 4,000
Sundry debtors on 1st January, 2013 6,000
Sundry debtors on 31st December, 2013 9,000
b) Shri Abhay requests you to prepare a Balance Sheet and Profit and Loss Account for the year 2013 from the following details :
All his takings : Cash and credits are paid into Bank, except the amount retained for personal use and for Petty expenses, which he notes in a note book. An analysis of the Bank Pass Book reveals the following :
Total amount (including Rs. 3,350 for credit sales mode in 2012) paid into Bank Rs. 43,550. Expenditure :
Personal drawing Rs. 3,000
Purchases Rs. 35,400
Salaries Rs. 2,500
Rent Rs. 1,200
Electricity Rs. 350
Printing and Stationary Rs. 250 and advertising Rs. 450.
Cash at Bank on 31st Dec. 2013 was Rs. 400. His personal drawing shown in the note book amounted to Rs. 1,200 and the amount spent for petty expenses Rs. 300, Rs. 4,675 was outstanding for Credit sales excluding Rs. 425, which was considered, irrecoverable and to be written off.
His liabilities were :
Particulars 31-12-2012 31-12-2013
Rs. Rs.
Creditors 2,400 3,500
Rent 100 100
Electricity 20 15
Advertising – 250
The stock on 31-12-2013 was Rs. 3,500 but he had no record of his stock on 31st Dec. 2012. He sold his Goods at profit 33 3
1 % on cost.
_____________________
B.Com. – I (Semester – II) Examination, 2014
FINANCIAL ACCOUNTING (New)
Day and Date : Saturday, 29-3-2014 Total Marks : 50
Time : 11.00 a.m. to 1.00 p.m.
Instructions : 1) All questions are compulsory.
2) Out of Q. 4 a and Q. 4 b solve any one.
3) Out of Q. 5 a and Q. 5 b solve any one.
4) Figures to the right indicate full marks.
1. Choose the correct alternatives and complete the given sentence : 10
1) The relationship between consignor and consignee is one of _________
a) Debtor and creditor b) Seller and buyer
c) Principal and agent d) Producer and consumer
2) The commission given to the consignee to bear loss on account of bad debts is _____________
a) Simple commission b) Special commission
c) Overriding commission d) Del Credere commission
3) The object of branch accounting is to know ______________
a) Profit and Loss of Head Office
b) Profit / Loss of each branch
c) Profit and Loss of the proprietor
d) None of the above
4) Dependent Branch is also called as __________ branch.
a) Agency b) Independent
c) Foreign d) Inland
5) Accounting _________ means those rules of action adopted by the accountants universally while recording accounting transactions.
a) System b) Principles
c) Procedure d) None of the above
6) The term _______________ includes those basic assumptions or conditions upon which the science of accounting is based.
a) Conventions b) Accounting
c) Concepts d) All of the above
7) According to _______________ convention accounting practices should remain unchanged from one period to another.
a) Materiality b) Disclosure
c) Conservation d) Consistency
8) In ___________ system only Personal Accounts and Cash Book are kept.
a) Branch Accounting b) Double Entry
c) Single Entry d) None of the above
9) The primary objectives of ____________ organisation is to provide services.
a) Company b) Partnership
c) Non-Profit d) None of the above
10) ___________ system is suitable for small business unit such as sole trading concern and partnership firm.
a) Branch Accounting b) Company Accounts
c) Single Entry d) None of the above
2. Answer the following :
A) Write a short note on Accounting Principles. 5
B) A Head Office in Delhi has a branch at Bombay. From the following information, prepare the Branch Account in the Head Office books showing the net profit of the branch : 5
Rs.
Opening stock at branch 5,000
Goods sent to branch 40,000
Goods return by branch 2,000
Sales proceeds received from branch 50,000
Cheques sent to branch for :
Salaries 2,400
Wages 600
Rent 1,000
Closing stock at branch 7,000
3. Answer the following :
A) Write a short note on Accounting Conventions. 5
B) A consigned 2000 tonnes of coal @ Rs. 50 per tonne to B of Delhi. He paid Rs. 20,000 as freight. Due to normal wastage only 1,950 tonnes were received by B. He also paid Rs. 5,000 as unloading and cartage charges. The goods unsold amount to 650 tonnes. You are required to calculate the value of closing stock. 5
4. Answer any one : 10
a) On 1st June, 2013, Benerjee and Co. of Baroda consigned to Mukerjee and Co. of Mahmad 100 fans invoiced at Rs. 450 each, which was 25% above their cost price. Banerjee and Co. has paid Rs. 100 for packing Rs. 50 for insurance and Rs. 350 for carriage. On 1st Oct. 2013, Mukerjee and Co. sold 75 fans for Rs. 40,000 the expenses incurred there on being Rs. 1,600. Mukerjee and Co. is entitled to get ordinary commission at 5% and 25% del-credere commission on sales. They remitted Rs. 30,000 to Banerjee and Co. Pass the Journal Entries in the books of Consignor.
b) Given below is the Receipt and Payment Account of Khandvi Sports Society for the year ended 31st March, 2013 :
Receipt and Payment Account for the year ended 31-03-2013 Receipts Rs. Payments Rs.
To Entrance fees 2,000 By Salaries 2,000
To Donation for building 25,000 By Gardening 300
To General donations 3,000 By Building 20,000
To Subscription 4,000 By Printing and Stationary 200
To Interest on Investment 100 By Furniture 4,000
To Rent received 900 By Telephone charges 400
By Sports Equipments 3,000
By Insurance 100
By Investments 4,000
By Balance c/d 1,000
35,000 35,000
Additional Information :
1) Subscriptions outstanding for the year 2012-2013 Rs. 800.
2) Subscriptions received in advance for the year 2013-2014 Rs. 50.
3) Salaries outstanding Rs. 100.
4) Prepaid Insurance Rs. 30.
5) Half of the entrance fees are to be capitalised.
6) Depreciate building by 2% , furniture by 5% and sports equipment by 10%.
Prepare :
1) Income and Expenditure Account for the year ended 31-03-2013.
2) Balance Sheet as on that date.
5. Answer any one : 10
a) The Modern Trading Company of Solapur has a branch at Barsi. Goods are sent to branch at selling price which is cost plus 20%. All cash received is deposited into the head office account in a local branch and the necessary advice is sent to the head office. The head office sends cheques for branch expenses.
From the following particulars, draw up the Branch Account in the head office books :
Rs. Stock at branch on 1st January, 2013 18,000
Stock at branch on 31st December, 2013 22,800
Goods sent to branch 72,000
Goods returned to head office 4,200
Cash sales for the year 39,000
Credit sales for the year 25,200
Returns from customers 1,200
Cash received from customers 20,000
Discount to customers 400
Allowances to customers 100
Bad debts 500
Rent and rates 1,500
Salaries and wages 4,000
Sundry debtors on 1st January, 2013 6,000
Sundry debtors on 31st December, 2013 9,000
b) Shri Abhay requests you to prepare a Balance Sheet and Profit and Loss Account for the year 2013 from the following details :
All his takings : Cash and credits are paid into Bank, except the amount retained for personal use and for Petty expenses, which he notes in a note book. An analysis of the Bank Pass Book reveals the following :
Total amount (including Rs. 3,350 for credit sales mode in 2012) paid into Bank Rs. 43,550. Expenditure :
Personal drawing Rs. 3,000
Purchases Rs. 35,400
Salaries Rs. 2,500
Rent Rs. 1,200
Electricity Rs. 350
Printing and Stationary Rs. 250 and advertising Rs. 450.
Cash at Bank on 31st Dec. 2013 was Rs. 400. His personal drawing shown in the note book amounted to Rs. 1,200 and the amount spent for petty expenses Rs. 300, Rs. 4,675 was outstanding for Credit sales excluding Rs. 425, which was considered, irrecoverable and to be written off.
His liabilities were :
Particulars 31-12-2012 31-12-2013
Rs. Rs.
Creditors 2,400 3,500
Rent 100 100
Electricity 20 15
Advertising – 250
The stock on 31-12-2013 was Rs. 3,500 but he had no record of his stock on 31st Dec. 2012. He sold his Goods at profit 33 3
1 % on cost.
_____________________
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