SVKM'S NR"S

ANEL SURENDRA MODI SCHOOL OF COMRERCE/SCHOOL 0F COMMERCE

AcademicYear : 2022 -2023

Program B.Com urons.) Year: I Semester: I

Subject: Financial Accounting-I Batch: 2022-2025

Date : 04 January '2023 Time:01.00 pin to 03.00 pin 2 0rs)

No. of pages: C,3,

i Marks:50
FINAL EXAMn`IATloN

Iustrurfrons±
• All Questions are compulsory.
• Working notes must fiorr'r. an integral part Of you; answer
•Numb;rstotherightindicatethemainunmarksfioreachquestton
• Sin|ile o[nd scientiife calculators are allowed
• Make necessa[ry assumptions wl.erever required.

Q.la (15 Marks)

.ir and T\'ater are partners in a fro .+1/s L-ni`'ersal Enterprises sharing profit and losses equally. The
dial balance ol`their fin as on 31 >1 }Iarche 2022 is gil-en below.

Amount air.)
ParticuJan I Amount ate.) Pardculas
I Capital,1
1

Drat+ings:

-ir 40,000 Air 7,00,000

u-afar 70,000 Water 5,00,000

Land & Budding 8,00,000 Provision for Bad Debts 16,000

}fachier`- 3,60,000 Sundy Creditors 3,80,000

Salries 74,000 Outstanding Salaries 10,000

General Exp€uses 28,000 10%BackLoan(01.10.202l) 1,60,000

Sundr`-PebtLnrs 4,92,000 Purchase retun 60,000

Discount 20,000 Sales 21,00,000

IussT-ce preriun 24,000

Gndilill 60,000

Sales retun 1,00,000

Cash at Bank 58,000

B ius Recei\'alles 80,000

Closing Stcek 7,20,000

Funiture I,30,000

Purchases adjusted 8,60,000

Commission 10,000

Total 39£6'000 Total 39,26'000

Page 1 of 3
PrepareTradingandProfitandLossAccoint,ProfitandLossAppropriationAccount,Partnerscapital
Accountfortheyearendedon31stMarch,2022andaBalanceSheetonthesanedateafterconsidering
the following adjustments.

1) Write off Bad Debts Rs. 24,600 and make a Provision for Bad Debts at 5%.
2) Interest on Partner's Capital is to be allowed at 5% p.a. on opening capital.
3) Depreciation is to tie charged on Land & Building at 10% p.a., Machinery at 12.50% p.a. and
Funiture at 5% p.a.
4) 1/5th of the Goodwill is to be written off.

(5 Marks)
Q'1b

i. Fomulate the jounal entries in the tooks of M/s chaand Tara Entexprises for the fouowing
transactions. (3marks)

ist April, 2022 PurchasedgoodsofRs.50,000fromXYZLtd.atatradediscountof10%.Paid1/3rdanountincashand1/3rdamountbycheque.Receivedcashdiscountof5°/o.rdfth

1 5th April, 2022 Goods withdrawn from business costing Rs. 15,000. 1/3 o em were
distributedasfreesanples,1/3rdofthemweregivenasdonatioustoanNcOand
the remaining were.kept for self-use.ReceivedacashgiftofRs.15,000from a relative. Used this money to purchasesharesforthebusiness.PurchasedsharesofRelianceLtd.worthRs.13,500and

25th April, 2022

paid Rs.1,500 as brokerage.

ii. Briefly explain separate Entity q3usiness Entity) concept with an example. (2 marks)

(15 Marks)
Q2
0n 1stJanuay,2019,XLtd.purchasedfivemachineseachcosting€1:50,000.Asumtotalof€7,500
Was spentonfreightand€7,500forinstallationchargesforallthemachinestogether.

On lst July, 2020, one of the machines was sold for € 1, 35,000 and on the sane day new machinery
waspurchasedatacostof€1,20,000.AtestrunR-asundeftakenonthesanedayforthisnewmachinery
at a cost of € 10,000 making it was ready for use.

Outofthemachineriespurchasedon1stJanuary2019,twomachinerieshadamajorbreakdownon1st
October2020andi`-eresoldtoYltd.for{45,000ofwhich€25,000isstillreceivable.

Thefimclosesitsbookson31stDecembereachyear.Itchargesdepreciationat15%p.a.onwhtten
dour value method.

Prepare Machiner}- account and Provision for depreciation Account for the years 2019 and 2020.
alound off decimals to the nearest rupee)

(10 Marks)
Q.3a

The`fimhastwodepalunents.clothandgarment.The.gamentsweremadeoutoftheclothsupplied
bytheclothdepartmentatselhigprice.Fromthefollowingfigures,prepareDepartmentaltradingand
profitandlossAccountandGeneralprofit&lossaccountfortheyearending31§tMarch2022.
Page 2 of 3
 Cloth Garment
Particulars Department (3 Department (3
Opening stock 12,00,000 40,000
Purchase 12,00,000 80,000
Sales 24,00,000 12,00,000
Wages 20,000 15,000
General Expense 56,000
Rent 2,50,000
hterest on Investments received 40,000
Reserves for Doubtful Debts to be maintained at 5%
Salary 1,10,000 50,000
Sales Retun 2,00,000 Nil
Purchase Retun 2,00,000 50,000
closing stock 3,30,000 1,40,000

• i)dd3tiL°tnoalf#i;=paati;:ni/4 is utihied by garment department and remaining space is utilized by cloth

deparinent.
2)Duringtheyear,goodsworthRs.8,00,000transferredfromclothdepartmenttogarmentdepartment
at selling price.
3) General expense is to be apportioned based on net sale including transfer.
4) hterest on investinents is outstanding for four months. hvestments were made at the begirming of
the year and the firm continues to hold the investments till the year end. Out of total investments,
investhent made by cloth department is twice of investments of gament department.
5) Cloth department sells goods on cash basis and of the total sales of garment department, 40% is
cash sale. Out of the total credit sale of garment department, 60% is received in the current year.
6) The stock in Garment depatment may be considered as consisting of 75% cloth and 25% other
expenses.
7) The Cloth department and garment department earned a gross profit of 15% and 20% respectively
fortheyear2020-21.

• Q3b (2.5 marksx2=5Marke)

State which accounting concept or convention is violated in each of these situations and give
justification for your answers.

i) Deven purchased a multi utility printer for { 34,000 to be used for his Travel and Tourism Business.
The printer has a useful life of 3 years. He debited € 34,000 to Printing and Stationery Account and
transferred the sane to Profit and Loss account at the year-end.

ii) \-.P. Jen-euers got an order to supplyjewellery worth\ € 8,00,000 in the month 6f February 2022.
Since the jew-eller}. u-as to be custom made, N.P. Jewellers will be able to supply it in April 2022.
The`-hal-e decided to record it as Credit sales in their financial books for the year ending 3 lst March
2022.

Page 3 of 3