CCE-2 Exam-2021-22

B.Com.Comp. 1st Sem-A/B/Financial Accounting

Time: 2 hours Max. Marks: 30
Note: Attempt all the questions.

Short Answer Type Questions (Carry 2 Marks each)

Q.1 Distinguish between Straight Line Method and Reducing Balance Method of depreciation.
Q.2 Name the different users of Accounting Information.
Q.3 State the different types of Branches.
Q.4 Briefly explain the meaning of “Non-profit Organization”.
Q.5 Define Partnership and name the different types of partner.
Long Answer Type Questions (Carry 4 Marks each)
Q.6 Prepare corrected trial balance from the following incorrect trial balance:

Items Dr. Amount (Rs.) Cr. Amount (Rs.)

Cost of goods sold 1,50,000 ------------
Closing Stock --------------------- 40,000
Debtors --------------------- 60,000
Creditors --------------------- 30,000
Fixed Assets 50,000 ------------
Opening Stock 60,000 ------------
Expenses -------------------- 20,000
Sales -------------------- 2,00,000
Capital 90,000 ------------
3,50,000 3,50,000
Q.7 From the following balances, prepare Trading and Profit & Loss Account and Balance Sheet of David
Enterprises as on 31st March, 2021:

Rs. Rs.
Capital 1,64,000 Sundry Creditors 18,000
Drawings 5,600 Sales 2,48,000
Machinery 10,000 Return Outward 2,000
Stock (1.4.2020) 30,000 Discount (Dr.) 1,600
Purchases 1,74,400 Discount (Cr.) 2,400
Returns Inwards 12,000 Rent Received 2,000
Sundry Debtors 42,000 Lighting Expense 800
Furniture 18,200 Motor Car Expenses 12,600
Motor Car 80,000 Bank Balance 30,400
Freight Inward 4,000 Loan from Sharad at 12% p.a. 20,000
Wages 1,600 Interest on loan 1,800
Freight Outward 600
Advertisement 30,800
Adjustments:
i) Stock on 31st March, 2021 was valued at Rs. 50,000.
ii) Depreciate Motor Car by 15%.
iii) 1/3 of the Car Expenses and depreciation is to be charged to the proprietor’s Account.
iv) Write off 1/4th of advertising expenses.
v) Goods costing Rs. 7,000 were purchased and included into stock but no entry was passed to record
the purchases.
vi) Make a provision for doubtful debts at 5% on debtors.
Q.8 Usha Ltd. has its branch at Gaya. Goods are invoiced to the branch at 20% profit on invoice price.
From the following details prepare Branch Account in the books of Head Office:
Goods supplied to branch at invoice price 38,000
Wages paid by Head Office 1,520
Rent Paid by Head Office 1,800
Sundry Expenses paid by Head office 200
Cash sales 24,800
Cash received from debtors 10,000
Credit sales 11,200
Discount allowed to customers 400
Goods spoiled 100
Goods returned by customers 200
Furniture at the end of year 900
Depreciation @ 10% on furniture.

Q.9 Following is the information in respect of certain items of Ganesha Sports Club.You are required to
show them in the Income and Expenditure Account and Balance Sheet:
Details Amount
Sports Fund as at April 1,2020 1,75,000
Sports Fund Investments 1,75,000
Interest on Sports Fund Investments 75,000
Donations for Sports Fund 25,000
Sports Prizes Awarded 36,000
Expenses on Sports Events 27,000
General Fund 3,50,000
General Fund Investments 3,50,000
Interest on General Fund Investments 40,000

Q.10 A, B and C are partners sharing profits and losses in the ratio of A 1/2, B 3/10, C 1/5 after
providing for interest @ 5% on their respective capitals, viz., A ₹ 50,000; B ₹ 30,000 and C ₹ 20,000 and
allowing B and C a salary of ₹ 5,000 each per annum. During the year ended 31st March, 2019, A has
drawn ₹ 10,000 and B and C in addition to their salaries have drawn ₹ 2,500 and ₹ 1,000 respectively.
Profit and Loss Account for the year ended 31st March, 2019 showed a net profit of ₹ 45,000. On 1st
April, 2018, the balances in the Current Accounts of the partners were A (Cr.) ₹ 4,500; B (Cr.) ₹ 1,500 and
C (Cr.) ₹ 1,000. Interest is not charged on Drawings or Current Account balances. Show Partners’ Capital
and Current Accounts as at 31st March, 2019 after division of profits in accordance with the partnership
agreement.