Closing stock 4,420 Purchase returns 900 SRI VENKATESWARA COLLEGE OF COMPUTER APPLICATIONS Sales 32,00 General expenses 900 AND MANAGEMENT 0 (An Exclusive Institute for World Class MCA & MBA) Carriage on purchase 500 Discount to customers 360 Carriage on sales 400 Interest from bank 200 M.C.A. – DEGREE MODEL EXAMINATIONS DECEMBER 2023 (OR) Second Semester (b) To Find: 1. Gross profit ratio, 2.Net profit ratio, 3. Current ratio, 4. MC4104 FUNDAMENTALS ACCOUNTING Liquid ratio 5. Proprietary ratio, 6. Debt Equity ratio. (Regulations 2021) Amou Amou Particular nt Particular nt 13. (a) Prepare a Time: 3 Hours Max. Marks: 100 PART - A (10 x 2=20 Marks) 30,00, 15,40, flexible budget for the Sales 000 Fixed asset 000 production of 80% and ANSWER ALL THE QUESTIONS: Cost of 20,00, 15,00, 100% activity on the Sales 000 Net Worth 000 basis of the following 1. Define accounting. 2. List out any three objectives of accounting. 4,00,0 Debts 9,00,0 information. 3. How to calculate current Ratio? Net Profit 00 ( Long) 00 4. What is mean by cash book? Avge. 8,00,0 Current 5,00,0 5. Define Budget. Inventory 00 Liabilities 00 6. What is Cash Budget? Current 7,00,0 8,00,0 7. What is Mean by Depreciation? assets 00 NBIT 00 8. Write short note on Suspense account? Production at 50% Capacity 5,000 Units 9. What is Bank Reconciliation Statement? Raw Material Rs.80 per unit 10. What is Insurance Claim? Direct Labor Rs.50 per unit PART B - (5 x13=65 Marks) Direct Expenses Rs.15 per unit ANSWER ALL THE QUESTIONS: Factory Expenses Rs.50,000 (50) (Fixed) 11. (a) Explain the Process and scope of accounting. Administration Expenses Rs.60,000 (Variable) (OR) (b) Explain the Generally Accepted Accounting Principles. (OR) 12. (a) Prepare trading and profit and loss account from the (b). Explain the types of Budget. Information given below. Particulars Rs. Particulars Rs. Opening Stock 3,600 Rent (Factory) 400 Purchase 18,26 Rent (office) 500 0 14. (a) Rectify the following errors identified in the books of GFG as on 31 March 2022. The Trial Balance did not match. It shows Rs.7,465 Doubtful Debts being extra credit. Pass necessary journal entries and open suspense Sundry Debtors 10,000 Bad Debts 300 account. Closing stock at the 1. Returns Inward Book was short casted by Rs.500. Sundry Creditors 12,000 end 8,000 2. A Purchase of Rs.1,035 was posted to Creditor’s Account as Additional Information Rs.1,000. 1. Outstanding Salaries Rs. 500 3. An amount of Rs.5,000 owed by Sabena was omitted from 2. Interest on Capital at 10% P.A. sundry debtors. 3. Depreciation on Plant and Machinery at 10% P.A. and 4. Namur paid Rs.2,500, but her account was wrongly credited Buildings at 5% P.A. with Rs.4,500. 4. Prepaid of Interest Rs. 100 (OR) 5. Provision for Bad and Doubtful Debts at 10% on Debtors (b) On July 01, 2010, Ashok Ltd. purchased a machine for Rs. (OR) 1,08,000 and spent Rs.12,000 on its installation. At the time of (b) Journalize the following transactions: purchase it was estimated that the effective commercial life of the 2017 (Rs.) machine will be 12 year and prepare machine account and March 1 Shyam Sunder & Sons commenced business with80,000 depreciation Account in the books of Ashok Ltd. For first 4 years, if cash depreciation is straight line method with 10%. The account is closed 2 Purchased goods for cash 36,000 on December 31st, every year. 3 Machinery purchased for cash 4,000 15. (a) Explain the procedure for Bank reconciliation statement. 4 Purchased goods from : (OR) Raghu 22,000 (b) Explain the Insurance Claim Methods. Dilip 30,000 6 Returned goods to Raghu 4,000 PART C - (1 x 15=15 Marks) 8 Paid to Raghu, in full settlement of his account 17,500 ANSWER ALL THE QUESTIONS: 10 Sold goods to Mahesh Chand & Co 32,000 16. (a) From the following particulars of Mrs. Raman & Co., 13 Received cash from Mahesh Chand & Co. 19,800 you are required to prepare Trading, Profit and Loss Account and Balance Sheet for the year ended 31st Dec. 2003 Discount allowed 200 Rs. Rs. 15 Paid cash to Dilip 14,850 Sales 65,000 Discount Allowed 100 Discount received 150 Sales Return 500 Discount Received 500 20 Sold goods for cash 25,000 Stock at the beginning 8,000 Salaries 3,000 24 Sold goods for cash to Sudhir Ltd. 18,000 Purchases 29,000 Interest paid 400 25 Paid for Rent 1,500 Purchases Return 300 Furniture 3,000 26 Received for Commission 2,000 Direct Wages 5,000 Buildings 20,000 28 Withdrew by Proprietor for his personal use 5,000 Direct Expenses 5,000 Plant and Machinery 20,000 28 Purchased a fan for Proprietor's house 1,200 Carriage Inwards 4,000 Cash in Hand 1,000 Capital at the beginning 30,000 Bills Payable 6,200 Drawings 5,000 Reserve for Bad and 500