FA Question paper 33 % Units

IInd Semester B.Com Degree Examination, 17th March 2012
BC2B02 – Financial Accounting
Time: Three Hours                                                                                    Maximum: 30 Weightage


I - Answer All Twelve Questions
A - Fill in the Blanks:
1)     Input >…………. > outputs > ……………
2)     AS 3- Deals …………………
3)     Sales Journal records all ………………… sales of Goods
4)     Preliminary expenses are an example of ………………

B - Write the Correct Answer from the Choice Given in the Brackets:
5)     Payment made to creditors is a (capital receipt, capital expenditure, revenue exp, revenue receipt)
6)     Income received in advance is (an income, a liability, an asset, a loss)
7)     Goods is given as samples should be credited to (advertisement account, sales account, purchase account, none of the above)
8)     Payment of LIC premium of owner is debited to ( capital account, drawings account, LIC premium account, None of these)

C - Answer in One Word:
9)     Trial balance is prepared to.
10)Credit note means.
11)Final accounts include.
12)The amount of money owned by a business to outsiders is known as.
 (12 × ¼ = 3 Weightage)

II – Short Answer Type Questions (Answer All Nine Questions)
13)Define financial accounting.
14)What do you mean by capital expenditure?
15)What are closing Entries?
16)Name the different types of cash book.
17)Define ledger.
18)What is trade discount?
19)What is business entity concept?
20)Define Balance Sheet.
21)Give the adjusting entry for prepaid expenses.
                                          (9 × 1 = 9 Weightage)




III – Short Essay / Paragraph Questions (Answer Any Five Questions)
22) Journalise the following Opening Entry:
Cash in hand 2,000
Plant 50,000
Furniture 5,000
Creditors 13,000
Debtors 18,000

23)Journalise the following Transactions
Jan. 1 Arun commenced business with cash 50,000
2 Purchased goods for cash 10,000
5 Purchased goods from Mohan on credit 6,000
7 Paid into Bank 5,000
10 Purchased furniture 2,000
20 Sold goods to Suresh on credit 5,000
25 Cash sales 3,500
26 Paid to Mohan on account 3,000
31 Paid salaries 2,800

24)From the following particulars prepare the sales book of Modern Furniture Mart
2003 June 5 Sold on credit to Arvind & Co.
20 tables @ Rs.600 per table
20 chairs @ Rs.300 per chair
7 Cash sales to Anand & Co.,
10 tables @ Rs.300 per table
20 chairs @ Rs.150 per chair
10 Sold to Baskar & Co., on credit
10 almirahs @ Rs.3,000 per almirah
10 tables @ Rs.200 per table
15 Sold old typewriter for Rs.1,000 to Madan on credit
20. Sold to Gopinath on credit.
10   ables @ Rs.1,000 per table

25) Show the Effect of Transactions on Accounting Equation :
1. A started business with cash Rs. 350000
2. Brought a car for Rs. 210000
3. Purchased goods from ABC traders, Rs. 20000
4. Cash sales Rs. 3000
5. Sold goods on credit to Mohan Rs.25000
6. Paid for office stationary Rs. 250


26)Prepare a Double Column Cash Book from the following transactions of Mr.Gopalan:
2004 Jan. 1 Cash in hand 4,000
6 Cash Purchases 2,000
10 Wages paid 40
11 Cash Sales 6,000
12 Cash received from Suresh and 1,980 allowed him discount 20
19 Cash paid to Meena 2,470 and discount received 30
27 Cash paid to Radha 400
28 Purchased goods for cash 2,070

27)Distinguish between capital expenditure and revenue expenditure.
28)The following balances were extracted from the ledger of Rahul on 31st March, 2003. You are requested to prepare a trial balance as on that date in the proper form.
Salaries 36,320                      Purchases 1,44,670
Sales 1,73,500                       Sundry Debtors 1,430
Plant & Machinery 34,300   Travelling Expenses 2,630
Commission Paid 1,880        Carriage Inward 240
Stock on 1.4.2002: 11,100   Sundry Creditors 14,260
Repairs 1670                                     Capital, 1.4.2002 62,500
Sundry Expenses 460           Drawings 3,500
Returns Inward 1,000          Cash at Bank 1,090
Discount Allowed 1,150       Returns Outward 400
Rent and Rates 3,220           Investments 6,000
                                                      (5 × 2 = 10 Weightage)

IV – Essay Questions (Answer Any Two Questions)
29)The trial balances of Mr.Uma Shankar shows the following balances on 31st March 2000. Prepare final accounts.
Debit Balance Rs.                                            Credit Balance Rs.
Purchases                  70,000                        Capital account          56,000
Sales returns                            5,000                       Sales                          1,50,000
Opening stock            20,000                        Purchase returns         4,000
Discount allowed          2,000                       Discount received        1,000
Bank charges                               500                       Sundry creditors        30,000
Salaries                         4,500
Wages                           5,000
Freight inwards           4,000
Freight outwards        1,000
Rent, rates and taxes   5,000
Advertising                  6,000
Cash in hand                1,000
Plant and machinery 50,000
Sundry debtors         60,000
Cash at bank                 7,000                                                                                  
           2,41,000                                                          2,41,000
Additional information:-
Closing stock on 31st March 2000 was Rs. 30,000.
Depreciation on plant and machinery 6%
Provide 5% for bad and doubtful debts
Prepaid rent 200
Interest on capital to be allowed at 8% pa

30) Journalise the following transactions and post them into ledger and prepare trial balance.
 Apr 1st , 2010.    commenced business with cash Rs.600000.
2    Opened a state bank of India account with Rs 50000.
3    Purchase land and building Rs. 200000
5        Bought goods from Anil  Rs.45000
6        Sold goods to Arun Rs.18000
11   Drew cheque for Rs.4300 for petty cash.
15   Paid to Anil on account Rs.40000
16   Received cheque from Arun Rs.14900;Discount allowed to him Rs.100
17   Paid salary Rs.8000
18   Bought goods for cash Rs.16500
19   Bought Loose tools Rs.4700
20   Sold goods for cash Rs.12000
21   Paid electricity charges Rs.900
22   Bought goods from Manohar Rs.50000
25   Goods returned to him Rs.500
26   Cheque sent to Manohar in full settlement of his account.
27   Paid carriages Rs.230

31)Explain the Accounting Process with the help of an Accounting cycle.


                                   (2 × 4 = 8 Weightage)