SHRI V.K.

PANDE COLLEGE OF SCIENCE AND MANAGEMENT HINGANGHAT

SESSIONAL EXAMINATION -2009
BACHLELOR OF COMMERCE WITH COMPUTER APPLICATION-I
SUBJECT :- FINANCIAL ACCOUNTING-4
TIME:- THREE HOURS MARKS:-100
N.B 1:- All questions are compulsory and carry equal marks
EITHER: (20)
1. a) Name the fundametal conepts and principles of accounting and explain in
some detail,business
the entity concept.
OR
b) Journalise the following transactions in the bolks of Raja:- (10)
2006 Decembler
1 Received Rs. 10000 from father-in-law as gift and deposited the same into the A/c
2 took loan from Mrs.Shalini 5000
3 Paid rent to landlord in advance. 75
4 Received rent from sub-tenants 100
5 Paid from postal stamps. 10
6 Commissions due from gupta . 40
7 Sent money order to radhika Rs.80 Money order commission paid 2
8 Paid for mantri club bill 600
12 Sold private scooter and invested in business 2000
15 bought equity shares of bharat fertilizers 900
17 invested in national small saving certificates 100
19 Paid Rs.200 fo rcarriage on machinary
19 Cash sales 25000
19 income tax paid 2100
c) M/s a.A,B co. Ltd. Of Nagpur consigned to Mr. Bajaj of Bombay 1000 bags of(10)
tobacco cos
Rs.250 per bag. They were received at 20% above cost price. M/s A,B & Co. Ltd o
paid Rs.1500 for insurance Rs. 3500 for carriage and Rs. 5000 for sundry expense
On receiving the consignment Mr. Bajaj of bombay accepted a bil for half the amo
price. M/s A,B, & Co.Ltd. Of nagpur discounted the same bill for 147500 and disco
Charged to consignment account.
Mr. Bajaj of bombay sent an account sales which showed as:
1. Cash sales of 600 bags of tobacco at Rs.350 each.
2. Credit sales of 300 bags of tobacco at Rs 400 each
3. Mr. bajaj of bombay took 50 bags of tobacco for his own use at Rs.3210 per bag
4. Expenses paid by Mr. Bajaj of bombay were:
for godown rent Rs.3000/- and selling expesnes of Rs.5000/-
5.Mr.Bajaj of bombay remitted the balance due by a draft after duducting his expe
and commisson at 10% on sales and Del credere commission at 2% on credit sa
bags of tobacco only.
Show consignement accunt in the books of M/s A,B,& Co. Ltd. Nagpur and in the
of Bajaj and Co. M/s A.B & Co. Ltd. Nagpur Account.
EITHER: (10*2)
2. a) A Machinery was purchsed for Rs. 100000 o 1st January,2000. It has been decide
for its annual depreciation fund system. A reference to the depreciation fund tabl
Rs.0.1810 per annum amounts to Rs. 1 in five yerar at 5%. At the end of the third
had to be scrped at Rs. 20000. investments sold out on that date for Rs.25000. O
a new manchinery was purchased for Rs.67000. investmentrs were in multiples o
Show machinery account. Deprieciation Fund account. Depreciation Fund investm
for the years 2000,2001 and 2002.
 b) A machine is purchases for Rs.20000. At the end of four years it has to be replced
purpose an insurance policy is taken out the annual premium being Rs. 2200. At
fourth year a new machine costing Rs.31000 is installed. The old machine is writt
OR
c) On 1 st Jan 2007;M/s Tallboy& co. ltd took delivery from plain vans ltd.of
(20)
5 motor v
purchase system. 2000 being paid on delivery and the balance in five instalments
each payable annually on 31st dec. The vendor copany charges 5% interest on ye
balances. The cash value of motor vans was Rs. 15000.
show the Journal entries and the vendor account. Interest account and the motor
in the books of M/s tallboy & Co. Ltd for five years under:
i. Asset Accrual Method ii. Credit purchases with Interest Method
EITHER: (20)
3. a) Prepare incme and expenditure account and balance sheet for the year e
from the following infromation:-

Receipt and Payment Account for the year ending March 31, March 2007

Receipt Amt Payment Amt

Balance b/d 41000 6000
Subscriptions: Salaries and Wages:
2005-06 7200 2005-06 4800
2006-07 337600
2007-08 2006-07
12000 356800 83200 88000
Entrance fees 16000 Sundry expenses 37000
Locker rent 58000 freehold land 60000
Revenue from refreshment 48000 Stationery 16000
Income from investment 56000 Rates 24000
Refreshment expenses 37500
Telephone charges 250000
Investments 250000
Balanced c/d 53300
5758000 ###
The following additional infromation is provided to you:
1. There are 1800 members each paying an annual subscription of Rs.200,
Rs 8000 were in arrears for 2005-06 as on april 2006.
2. On March 31,2007 the rates were prepaid to june 2007: the charge paid every year be
3. There was an outstanding telephone bill for Rs.1400 on March 31,2007.
4. There was an outstanding telephone bill for Rs.1400 on March 31,2007.
5. Stock of stationaery as on March 31, 2006 was Rs. 2000 on March 31 March 31,2007, i
6. On March 31,2006 building stood at Rs. 400000 and it was subject to depreciation @ 2
7. Investments on March 31, 2006 stood at Rs.800000
4. On March 31,2007, income accrued on investments purchased during the year amoun
OR
b) A and B have operated their own separate musical instrument retailing businesses(10)
for many ye
decided to amalgamate their business and to from a partnership from 1st april 1998. Th
in repect of the individual business as at 31st March 1998 are as follows:

BALANCE SHEET
Liabilities A B Assets A B
CAPITAL 1200000 500000 FREEHOLD PREMISES 500000
CREDITORS 300000 150000 MACHINERY AND EQUI. 200000
BILLS PAYABLE 250000 FURNITURE AND FITTING 50000 39000
BANK OVERDRAFT 150000 STOCKS 500000 375000
DEBTORS 237500 285000
BILLS RECEIVABLE 150000 200000
BANK 112500 1000
### 900000 ### ###
It was agreed by the partners that:
1. Profits are to be shared in the proportion of 3/5 to A and 2/5 to B.
2. The debtors of A are valued at Rs. 225000 the bills receivable at Rs.137500, stock at R
and equipment at Rs.275000 and free hold premises at Rs.875000. The other remainin
cash recourses and liabilties, are to be taken over at book value.
3. The Debtors of B are valued at Rs. 262500 and stock at Rs.300000 the bank overdraft is to b
funds and the furniture and fittings to be valued at Rs.52500. The remaining assets,includin
liabilites are at book to be taken over values.
4. Sufficient cash t be introduced by B so that his capital contribution is in the same proportions
You are required to; pass necessary journal entries to close the books of A and B and the bal
partnership as at 1 st april 1998.
EITHER: (20)
4. a) On 31st December 1981 the following balances appeared in the books of
English firm having its head office in London:-
Dr.Rs Cr.Rs.
Stock 1.1.81 12600
Purchases and Sales 75000 112500
Debtors and Creditors 39000 26000
Bills of Exchange 10400 9100
Wages and Salaries 4800
Rent,Rates and Taxes 3600
Sundry Charges 1500
Furniture and Fixture 4910
Bank Balance 28900
London Office A/c 33200
180800 ###
Stock on 3.12.81 was Rs.32500 Delhi Branch A/c in the books of London ofice showed a debit balance o
Furniture and Fixture were acquired from a remittance from London of £ 350 which exactly covered the
Fixtures.
The Rates of Exchanges may be taken at-
Dates Rate The Average rate for the year 1981may be taken at Rs.1
31.12.80 Rs 14 per £ Prepare the Trading and Profit and Loss Account and Bal
31.12.81 Rs 13 per £ Relating to Delhi Branch in the London Books.
OR

4. b) From the following Trial balance for the year ended 31st March 2003 and
of Tejas consumers Co-operative Society Vasai. Prepare the final account
31st March 2003.

Trial Balance
Particular Dr.Rs Cr.Rs.
Share Capital 800000
Reserve Fund 200000
Purchases 1200000
Stock on 1.4.2002 200000
Carriage inward 10000
 Salaries and Allowances to Staff 140000
Building Fund 140000
Share Capital Redemption Fund 25000
Contribution to Staff Provident Fund 10000
Sales 1600000
Staff Provident Fund 34000
Bad Debts 8000
Reserve for Bad and Doubtful Debts 20000
Postage 6000
Machinery (at cost) 28000
Travelling Exp. 10000
Bonus to Employess 10000
Printing and Stationery 3500
Insurance 11000
Building (at cost) 600000
Furniture (at cost) 100000
Depreciation Fund 90000
Sundry Debtors 200000
Sundry Creditors 25000
Investments in Shares of Co.op. Societies 120000
Staff Provident Fund Investments 34000
Fixed Deposit with District Central co-op.Bank 160000
Sundry Expenses 10000
Repairs to Building 20000
Interest on Fixed Deposit 16000
Dividend received on Shares 12000
Transfers Fees 5000
Profit and Loss Appropriation A/c Balance Last year 20000
Cash at Bank 100000
Cash in hand 6500
Total 2987000 2987000
Adjustments:-
1. Closing Stock on 31st March 2003 was Rs 320000.(Cost Price) Rs.400000(Market Price)
2. Salaries unpaid on 31.3.2003 was Rs.8000
3. Prepaid Insurance is Rs.1500
4. Provide Reserve for Bad and Doubtful Debts @ 5%
5. Provide Depreciation for the year as shown below:
On Building:Rs.30000;On Furniture:Rs.10000; On Machinary: 2800. Transfer to Education
6. Audit Fees are outstanding for the year : Rs 5000.
7. Provide for Share Capital Redemption Fund Rs. 3000
8. Directors recommend dividend to Members@10%
5 (4*5)
a) Explain the following term:- i. Education Fund ii.Reserve Fund iii. Dividend iv. Share Captia
b) Write difference in Hire Purchases System and Instalment System.
c) What is Depreciation and types of Depreciation Fund Method?
d) Explain the following Term with fromat. :- i. Balance sheet ii. Trial Balance iii. Ledger A/c iv