Q2/2J/03-14 Reg. No
St. Joseph’s College of Arts & Science (Autonomous) St. Joseph’s College Road, Cuddalore – 607001 BM203S - FINANCIAL ACCOUNTING Time : 3 hrs
Max Marks :75 SECTION – A (10X2=20) Answer ALL Questions
1. What is average due date? 2. Define Account Current. 3. What are the different kinds of Branches? 4. What do you understand by Stock and Debtor System? 5. What are Departmental Accounts? 6. What do you understand by ‘Inter Departmental Transfers’? 7. Define Partnership. 8. What is a ‘Partnership deed’? 9. What is ‘Garner Vs. Murray rule’? 10. What do you mean by dissolution of firm? SECTION –B (5X5=25) Answer any FIVE Questions 11. R owes S the following sums of money due from him on the dates stated: Rs.300 due on March 9, 1993 Rs.1,000 due on April 2, 1993 Rs.4,000 due on April 30, 1993 Rs.100 due on June 1, 1993 He wants to make the complete payment on 30.06. 1993. Calculate interest at 5% p.a. with the help of Average due date method. 12. The Kanpur Shoe Company opened a branch at Delhi in 2011. From the following particulars prepare Delhi Branch A/c for the year 2011. Rs. Goods sent to branch 15,000 Cash sent to branch for expenses 6,000 Cash received from the branch 24,000 Stock on 31-12-2011 2,300 Petty Cash in hand 40
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13. What are the advantages of preparing departmental accounts? 14. Show how the following items will appear in the Capital Accounts of the partners, Babu and Gopu when their capitals are fluctuating: Capital on 1.1.2011 Drawings during 2011 Interest at 5% on drawings Shares of Profits for 2011 Interest on Capital at 6% Salary
Babu (Rs.) Gopu (Rs.) 8,00,000 7,00,000 1,60,000 1,40,000 4,000 2,000 84,000 66,000 48,000 42,000 72,000 Nil
15. P, Q and R share profits in proportion of 1/2, 1/4 and 1/4. On the date of dissolution their Balance Sheet was as follows: Liabilities Rs. Assets Rs. Creditors 14,000 Sundry Assets 40,000 P’s Capital 10,000 Q’s Capital 10,000 R’s Capital 6,000 40,000 40,000 The assets realized Rs.35,500. Creditors were paid in full. Realization expenses amounted to Rs.1,500. Close the books of the firm. 16. Describe the different methods of treating goodwill on the admission of a new partner. 17. A, B and C are partners sharing profits in the ratio of 5:5:4. D is admitted as a partner. D introduced as capital for his 1/4th share. Goodwill of the firm is to be valued at 2 years’ purchase of 3 years profits which have been Rs.15,000, Rs.26,000 and Rs.22,000. Give journal entries if: a. There is no goodwill in the books of the firm b. The goodwill account appears at Rs.14,000. SECTION –C (3X10=30) Answer any THREE Questions 18. Prepare account current for Nagesh in respect of the following transactions with Basha: 2011 Rs. Sep.16 Goods sold to Basha 400 (due 1st Oct.) Oct.1 Cash received from Basha 180 Oct.21 Goods purchased from Basha 1,000 (due 1st Dec.) Nov.1 Paid to Basha 660 Dec.1 Paid to Basha 600 Dec.5 Goods purchased from Basha 1,000 (due 1st Jan.) Dec.10 Goods purchased from Basha 440 (due 1st Jan.) 2012 Jan.1 Paid to Basha 1,200 Jan.9 Goods sold to Basha 40 (due 1st Feb.)
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The account is to be prepared up to 1st Feb. Calculate interest @6% p.a. 19. The Calcutta Commercial Company invoiced goods to its Jamshedpur Branch at cost. The Head Office paid all the branch expenses from its bank except petty cash expenses which were paid by the branch. From the following details relating to the branch, prepare, a. Branch Stock A/c b. Branch Debtors A/c c. Branch Expenses A/c d. Branch P&L A/c Stock (Opening) Debtors (Opening) Petty Cash (Opening) Goods sent from H.O Goods returned to H.O Cash Sales Advertisement Cash received from debtors Stock (Closing) Allowances to customers Discount to customers Bad Debts Goods returned by customers to branch Salaries & Wages Rent & Rates Debtors (Closing) Petty Cash (Closing) Credit Sales
Rs. 21,000 37,800 600 78,000 3,000 52,500 2,400 85,500 19,500 600 4,200 1,800 1,500 18,600 3,600 29,400 300 85,200
20. A firm had two departments, cloth and readymade garments. The garments were made by the firm itself out of cloth supplied by the cloth department as its usual selling price. From the following figures, prepare departmental trading and profit and loss account for the year ended 31-3-2011. Cloth Dept. Rs. Opening stock on 1-4-2010 Purchases Sales Transfer to readymade garments dept. Expenses- Manufacturing - Selling Stock 31-3-2011
3,00,000 20,00,000 22,00,000 3,00,000 20,000 2,00,000
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Readymade Dept. Rs. 50,000 15,000 4,50,000 60,000 6,000 60,000
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The stock in the readymade garments department may be considered as consisting of 75% cloth and 25% other expenses. The cloth department earned gross profit @ 15% in 2009-2010. General expenses of the business as a whole came to Rs.1,10,000. 21. A and B are partners sharing profits in the ratio of 3:1. Their Balance Sheet stood as under on 31.12.2012: Liabilities Rs. Assets Rs. Capital: Stock 10,000 A 30,000 Prepaid Insurance 1,000 B 20,000 50,000 Salary due 5,000 Debtors 8,000 Less: Provision 500 7,500 Creditors 40,000 Cash 18,500 Machinery 22,000 Buildings 30,000 Furniture 6,000 95,000 95,000 C is admitted as a new partner introducing a capital of Rs.20,000, for his 1/4th share in future profit. Following revaluations are made: i. Stock be depreciated by 5% ii. Furniture be depreciated by 10% iii. Building be revalued at Rs.45,000 iv. The provision for doubtful debts should be increased to Rs.1,000 Prepare Revaluation A/c, Capital A/c and Balance Sheet after admission. 22. Describe the different modes or ways in which a partnership firm may be dissolved.
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