Reg. No.

18U1CM01
[For the students admitted from 2018 – ’19]

SELVAMM ARTS AND SCIENCE COLLEGE (Autonomous),

NAMAKKAL – 3.

B.Com., Degree Examination Feb. - 2021.

Semester – I

Part : III FINANCIAL ACCOUNTING - I

Time : Three Hours Max. Marks: 75

SECTION – A (10 x 1 = 10 Marks)

I). Answer All questions :

1. Salary is a_________ account.

a) Personal b) Real

c) Nominal d) Unreal

2. Goods given as sample is a _________ account.

a) Personal b) Real

c) Nominal d) Unreal

3. A bill of exchange must be :

a) Conditional b) Un conditional

c) Drawer d) None of these

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4. He is a person who is responsible in a significant way to
carry out the finance functions.

a) Treasurer b) Controller

c) Finance manager d) None of the above

5. Depreciation account is closed by transferring_________

at the end of the year.
a) Profit ad loss A/c b) Trading A/c

c) Fixed asset A/c d) All the above

6. Seller is called under the hire purchase system :

a) Hire vendor b) Hire purchaser

c) Hire seller d) None of these

7. The profit and loss account shows :

a) Profit of the company b) Gross profit

c) Net profit d) Net profit and Net loss

8. Closing stock is show in :

a) P&L account b) Trading account

c) Trading and balance sheet d) Balance sheet

9. Which year hire purchase governs the hire purchase

agreement on?
a) 1952 b) 1972 c) 1983 d) 1957

10. The hirer is called :

a) Seller b) Buyer

c) Vendor d) None of these

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 SECTION – B (5 x 2 = 10 Marks)

II). Answer All questions :

11. What is a “Cash Price”?

12. What is Trading Accounting?

13. What is depreciation?

14. What is Ledger?

15. Write any two subsidiary books.

SECTION – C (5 x 5 = 25 Marks)

III). Answer All questions, choosing ONE from each set :

16a) What are the objectives of accounting?

(OR)

16b) Explain accounting rules.

17a) What is capital and revenue expenditure? Explain.

(OR)

17b) Give the layout of profit and loss account.

18a) What is depreciation? Mention the causes for

depreciation.

(OR)

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18b) A company whose accounting year is the calendar
year, purchased on 1-1-93 a machine for Rs.
40,000. it purchased further machinery on 1 Oct.
1993 for Rs. 20,000 and on 1st July 1994 for Rs.
10,000. On 1-7-1995, ¼th of the machinery
installed on1-1-1993 become obsolete and was sold
for Rs. 6,800.

Show how the machinery account would appear in

the books of the company for all the 3 years under
diminishing balance method. Depreciation is to be
provided at 10% p.a.

19a) Explain the practical uses of average due date.

(OR)

19b) X owes Y the following sum of money due on the

dates stated :

Due date Amount (Rs.)

5.1.96 400

20.1.96 200

4.2.96 800

26.2.96 100

10.3.96 50

Find out average due date.

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20a) The Kanpur Shoe Company opened a branch at
Delhi in 1988. From the following particulars
prepare Delhi Branch A/c for the year 1988.
Rs.

Goods sent to branch 15,000

Cash sent to branch fir expenses 6,000
Cash received from the branch 24,000
Stock on 31.12.88 2,300
Petty Cash in Hand 40.

(OR)

20b) Samy & Co., have opened a branch at Neyveli. The

following is a list of transactions between the head
office and the branch for the year ending June 30
1996. Rs.
Stock at branch on 31st July 1995 3,000
Goods supplied to branch during the year 48,000

Salaries 2,400

Rent 720

Telephone 200

Petty expenses 300

Remittance received from the branch

during the year 55,000

Stock on 30th June 1996 2,500

Balance of petty cash 20

All the branches expenses are paid by head office.
Show the branch A/c in H.O. books.

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 SECTION – D (3 x 10 = 30 Marks)
IV). Answer any THREE questions :
21. From the following trial balance extracted from the
books of Mr. Ramesh, prepare the trading and profit
and loss account and balance sheet as on 30th
June,2006

Debit balances Rs. Credit balances Rs.

Cash in hand 540 sales 98,780

Purchases 40,675 Return outwards 500

Wages 10,480 Capital 71,000

Carriage inwards 2,040 Sundry creditors 6,300

Stock on 1.7.2005 5,760

Machinery 20,000

Goodwill 7,500

Salaries 15,000

Insurance 3,600

Sundry debtors 14,500

Drawings 5,245

Cash at bank 2,630

Return inward 680

Fuel 4,730

Carriage outwards 3,200

Building 4,000

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 Additional information:
1. Depreciate building at 10% and machinery at
20%
2. Salaries outstanding Rs. 2,000
3. Create a reserve for bad and doubtful debts at
5% on sundry debtors.
4. Closing stock is valued at Rs. 6,800
5. Insurance prepaid Rs. 200.
22. The following information was extracted from the books
of M/S.Sudha Ltd. Prepare final Accounts on
31.03.2009.
Debit Credit
Particulars Particulars
(Rs.) (Rs.)

Opening stock 12,500 Sales 1,89,000

Depreciation 7,000 Commission 2,000
Carriage inwards 700 Capital 1,71,300
Furniture 8,000 Creditors 17,500
Carriage outwards 500 Bills payable 5,000
Plant and machinery 2,00,000 Return outwards 13,800
Cash 8,900
Salaries 7,500
Debtors 19,000
Discount 1,500
Bills receivable 17,000
wages 16,000
sales returns 14,000
purchases 86,000
3,98,600 3,98,600

Closing stock on 31.12.2009 Rs. 45,000.

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23. A company whose accounting year is the calendar year,
purchased on 1-1-93 a machine for Rs. 40,000. It
purchased further machinery on 1 Oct. 1993 for
Rs. 20,000 and on 1st July 1994 for Rs. 10,000. On
1-7-1995, ¼th of the machinery installed on 1-1-1993
become obsolete and was sold for Rs. 6,800.

Show how the machinery account would appear in the

books of the company for all the 3 years under
diminishing balance method. Depreciation is to be
provided at 10% p.a.

24. Different between cash discount and trade discount.

25. Explain various accounting concepts briefly.

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