Reg. No. 3295, Q.P. Code : [08 CS 01] (Por the candidates admitted from 2008 onwards) B.Com. (CS) DEGREE EXAMINATION, APRIL 2019, First Semester Part III — Corporate Secretaryship FINANCIAL ACCOUNTING —! ‘Time : Three hours ‘Maximum ; 75 marks SECTION A — (10 x 1= 10 marks) i “Answer ALL questions. Choose the correct answer. 1. A Trial Balance is a (a) Real Account (b) Nominal account (©) Personal account (@ List of balances is not a tangible asset. (@) Goodwill () Land (© Closing stock (@)_ Cash‘Wrong balancing of an account is (a) Errors of principle (b) Errors of commission (© Brrors of omission (@ . None of the above |A Sold goods to B for Rs, 20,000. A will grant 5% discount to B, B requested A to draw a bill. The amount of bill will be : (a) Rs. 20,000 () Rs. 19,000 (© Rs. 19,200 (@) Rs. 20,200 Bills receivable book is a part of (@) Journal ) Ledger (©). Profit & loss account (@ Balance Sheet All information like withdrawn, deposited and balance regarding cash item are mentioned in (a) Pass book (b) Cheque book (© Current account (d)_ Bank statement Commission received is (a) Expense (b) Income © Asset (@ Liability 2 3295 Rent receivable (given in trial balance) is an item of (a) Balance sheet (6) Profit and Loss Account, (©) Trading Account (d) Both Balance Sheet and Profit and Loss ‘Account ‘The number of days can be calculated on the ways (a) Forward method () Backward method (©) Daily balance method. (d) All the above Average completion time for a schedule sequence at a work center is total ———. (a) Process time divided by the number of jobs (b) Flow time divided by total processing time (© Flow time divided by the number of jobs (@). Processing time plus total late time divided by number of jobs SECTION B — (5 = 5 = 25 marks) + Answer ALL questions (a) Distinguish between Journal and Ledger. Or 3 329512. () From the information below, Pass journal (@) entries: (@ Salary paid Rs. 5,000 (ii) Rent paid to house owner Rs. 1,000 Gi) Credit Purchases from Mr. Anbu Rs, 2,000 : (iv) Sold goods to Jemes Rs.4,000. ‘The following errors were detected in the accounts of Siva & Sons,for the year ended 30% June 1992 1 Sales to Sridhar Rs. 152, posted to his accounts as Rs. 125 2 Purchased goods from Manohar Rs. 550, credited as Rs. 505 3 Received bills Receivable from Seenu Rs. 1,000, posted as Rs. 100 4 Purchased furniture from Raghu Re, 404 on credit debited as Rs. 440 5 Discount allowed Rs. 64 to Anbu credited to his account as Rs. 46. Pass necessary journal entries to rectify these errors. or 4 8295, ms 13, ) @ From the following particulars, prepare a bank reconciliation statement as on 31* ‘December, 2000, (@ Bank balance as per cash book as on 81-12-2000, Rs. 5,400. (ii) Cheques issued but not presented for payment Rs. 516, (ii) Cheque deposited into bank but not credited in the pass book Re. 240, (iv) Bank charges debited in pass book Rs. 30. (¥) Interest on current account credited by the bank but not recorded in the cash ‘book Rs. 25. On 1.1.2014, Jayanthy sold goods to Devi on Credit for Rs, 2,000 and drew a bill on Devi for Rs. 2,000 for 3 months after date. Devi accepted it on 31.1.2014 and returned it to Jayanthy. On Maturity, the bill was duly honoured by Devi. Pass journal entries in the books of both the parties. Or 5 829514. (@) Mr. ‘R’ accopted on 1* April, 1990 a bill for 000 drawn by Mr. ‘S' at 3. month. immediately discounted the bill with his banker at 7%. Mr. 'R’ failed to meet the Dill on the due date and an his request Mr, ‘S$’ renewed the bill for 2 months by adding 12% interest to the amount on Mr. ‘R's’ furnishing security. Mr.‘R’ endorsed two of his customers bills for Rs, 7,000 and Rs, 5,400 due on 20 Aug. and 10% Sept. respectively. Mr. ‘S’ discounted all the three bills at 7% with the bankers. On the due dato all the bills were met. Journalise the above transactions in the books of ‘R’ and 'S' Prepare trading and profit and loss Account from the information gives below : Opening Stock Purchases: Wages ‘Closing Stock Sales Carriage on purchases Carriage on Sales Rent (Factory) Rent (Office) Rs, 3,600 18,260 3,620 4,420 82,000 500 400 400 500 3295 | Sales Returns Purchase Returns j General Expenses Discount to Customers Interest from Bank Or 700 900 360 200 (b) Calculate Net Profit from the following : Purchases (200 units) Freight and carriage Rent and Advertising Sales (150 units) Rs. 10,000 1,200 600 10,800 16. (@) Ramesh draw upon Vinod several bills of exchange due for payment on different dates as under: Date of Amount Tenure of the Bill the bill Rs, 16-88 1,200 1,600 2,000 1,500 1,800 2,400 3 months 2 months 3 months 3 months 1 month 2 months Find out Average due date on which Payment may be made in one single amount. Or 1 329516. ) @ ‘The following are a series of Transactions between A and B for the three months ending on 81-3-96. Calculate the amount of {nterest to be payable by one party to the other @ 10% p. a. Books of A Rs. Jan.1 Opening Balance (Dr) —_5,000 Jan. 10 Sold goods to B 10,000 Jan. 15 Cash received from B 10,000 Feb. 15 Sold goods to B 10,000 Mar. 1 Cash received from B 5,000 SECTION C —(6 x 8= 40 marks) “Answer ALL questions. Record the following transactions in the personal account of Kapil 2013 ‘April 1 Sold goods to Kapil Rs. 6,000 ‘April 6 Cash received from Kapil Rs. 5,800 and allowed him discount Rs. 200 ‘April 18 Kapil purchased goods Rs. 8,000 8 3295 ) 2013 ‘April 80 Received cash from Kapil on account Rs.4,500 May 1 Balance from last month b/d Rs.3,500 May 12 Sold goods to Kapil Re.12,000 May 22 Received Cash from Kapil Rs.4,850 and allowed him discount Rs. 150 May 31 Received Cash in full settlement of Kapil Ale Rs, 10,250. Or Record the following transaction in their proper subsidiary books, post them to ledger and prepare a trial balance: 2000 Rs. Sep. 1 Sold to Ranian at 10% trade discount 5,000 3 Kesavan sold us goods at 20% trade discount 8,000 4 Sold to Narayanan 1,000 6 Purchased goods from Madhavan at a trade . discount of 15% 2,000 9 3295,1, @) 2000 Rs. 9 Goods returned by Raman 500 10 Purchased goods from Govindan 1,700 12 Returned goods from Kesavan 300 14 SOLD TO Narayanan fat 10% trade discount 1,500 = 15 Purchases from Kesavan (Net value) 1,000 18 Narayanan returned a part of the goods sold to him on 14*Sept 300 22 Returned goods to Kesavan (a part of 15% Sept. purchases) 100 27 Goods purchased from Madhavan 40 29 Sold to Narayanan (at 10% trade discount) 500 30 Returned goods to Madhavan 40 from the following details, prepare bank reconciliation statement reconciling the adjusted bank balance as per cash book for balance sheet purpose with the balance as per bank statement: 10 3295, O) (Bank balance as per cash book on 81-12-96 Rs. 5,000 (i) Cheque deposited but not credited by bank till 81-12-96 Rs. 3,000 (ii) Bank charge Rs. 20 not shown in cash book. (iv) Direct deposit by a customer Rs. 2,000 not shown in cash book (%) Cheques issued but presented after 31-12-96 Rs. 4,000. (vi) Interest collection by bank Rs. 500 not shown in cash book. (vii) Cheque deposited dishonoured Rs. 500 dishonour entry not passed in cash book. (viii) Mistake in totaling of cash book in bank column on debit side Rs. 1,000 Or ‘The following errors were discovered in the books of A, small: on Dec, 1994. The difference in Trial balance Rs. 2,610 had been entered in a suspense account, since the final accounts were to be prepared urgently. On correction of the errors, the suspense Ale ‘were eliminated. u 329518, @ @ A purchase of @ chair from Modern ‘Traders for Rs. 350 has been entered in the Purchase Book as Rs. 530. (fi) Assale of Rs. 400 to A. Mohan has been entered in the purchase day book. (ii) ‘The returns outward book overcast by Rs, 600. (iv) Goods retumed by K Mani Rs, 750 have ,been entered in the return outwards Book. However, K. Mani's Alc is correctly posted. (®) The total of purchase Day Book had been undercast by Rs. 1,000. (vi) Rs. 760 for Motor repairs had been taken to Motor Vans A/c. (vii) A cheque received from N. Balu Rs. 390 hhad beon debited in the cash book but the double entiy had not been completed. Give journal entries ‘to rectify these errors and prepare the suspense A/c. Explain the meaning of the terms () ‘Drawer’; (i) ‘Drawee’; (ii) ‘Payee’; and Gv) Endorsee’ in the context of Bill of exchange. Or 2 3295 19. ) @) ‘Mr, ‘K’ received from one of his customers a bill at three months for Rs. 8,000. He discounted it on the same thy at 10% per annum with his Bankers. On the date of maturity, the bill was dishonoured. He incurred noting charges of Rs. 50. However, the customer paid him Rs. 2,000 in cash on the date of maturity and accepted a fresh bill ‘at three’ months for the amount due from him, Mr. ‘K’ gave the second bill to Mr. his ereditors. one of Pass the necessary journal entries in the books of Mr. K. ‘The following Sigures have been extracted from records of Fancy Stores, a proprietorship concern as at 31° Dec. 1995. Rs. Furniture 1,50,000 Capital 540,000 Cash in hand 30,000 Opening stock 5,00,000 Fixed Deposits 13,46,000 Drawings 50,000 Provision for Bad debts 30,000 3 3295Rs. Cash at Bank 1,00,000 Purchases 30,00,000 Salaries 1,90,000 Carriage Inwards 410,000 Insurance 60,000 Rent 2,20;000 Sundry Debtors 6,00,000 Sales 60,00,000 Advertisements 1,00,000 Postage & Stationery 34,000 Bad debts 20,000 Printing & Stationery 90,000 General charges 1,80,000 Sundry creditors 4,00,000 Deposit from customers 60,000 Prepare Trading and Profit and loss A/c and Balance Sheet after taking into consideration the following further information: (The closing stock as on 31-12-1995 was Rs, 1,00,000. Gi) A sale of Rs, 2,50,000 made for cash had been credited to the Purchases Alc. (ii) Salary of Rs, 20,000 paid to an ‘employee had been entered in the Cash book bank column as Rs. 10,000. “4 3295 (iv) Charge depreciation on furniture at 10%. () Furniture had been sold during the year for Rs, 1,00,000 and the proceeds had been credited to furniture account. ‘The written down Value of furniture sold was Rs. 50,000. (vi) A sum of Re. 1,00,000 received from a patty which had purchased Some stocks belonging to a separate business of the proprietor was Credited to the sundry debtors Account. (vii) ‘The proceeds of a matured fixed deposit amounting to Rs. 254,000 had been credited to the fixed deposit Account, ‘The original amount of the deposit was Rs. 2,00,000. (viii) There was an outstanding liability for rent of Rs. 20,000. (ix) An advance of Rs. 10,000 paid to an ‘employee against his salary of January 1996 had been debited to the salary Ae. (x) The office premises were sublet from December 1995 for a monthly rental of Rs, 10,000, but the rent for December has not yet been Received. Or 15 3295) From the following balances extracted from the books of Mr. Rahim, prepare Manufacturing A/e and ‘Trading Alc for the year ending 31-12-93. Rs. Opening Stock: (1-1-93) Raw materials 8,000 Work-in-progress 32,000 Finished goods 410,000 Purchase Raw materials 84,000 Finished goods 20,000 Salesreturns 2,000 Carriage inwards 4,000 Freight on purchases 3,000 Import duty 9,000 Dock charges 2,400 Sales 2,52,000 Purchase returns 4,000 Manufacturing wages 37,600 Motor power 4,000 Oil, grease, waste ete. 1,000 Heating and Lighting 800 16 3295, 20. (a) 1990 Jan, 1 Feb. 4 March 15 April 20 May 15 Re. Factory rent 800 Factory insurance 400 Carriage and freight on Finished goods 600 Octroi (material) 200 Octroi (finished goods) 200 Closing Stock (31-12-93) Raw materials 4,000 Work-in-progress 24,000 Finished goods 12,000 Krishna had the following transaction with Gopal. Rs, Opening balance due from Gopal 500 Sold goods to Gopal 1,000 Purchased goods from Gopal 300 Received acceptance from Gopal for the bill Dated April; 15* payable one 400 month after date Paid cash to Gopal 300 Ww 3295‘Make up an account current to be rendered by Krishna to Gopal on 30% June 1990. Calculating interest at 10% pa Or (b) For goods sold, Nagarajan draws the following bills on Raj who accepts the same as per terms given under. Amount of the bill Date of Date of ‘Tenure Re drawing acceptance 16,000 6.1.95 9.1.95 3 months after date 18,000 152-95 182.95 60 days 16,000 212.95 212-95 2 months 30,000 149-95 17.53.95 30days after sight (On 18-3-95 it was agreed that the above bills will be withdrawn and the acceptor would pay the whole amount in one lump sum by a cheque, 15 days ahead of average due date and for this a rebate of Rs. 1,000 would be allowed. Calculate the average due date, the amount and the due date of the cheque. 18 3295,