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UNIVERSITY OF VOCATIONAL TECHNOLOGY

NATIONAL DIPLOMA IN QUANTITY SURVEYING (NDQS-SL) 2009/2011 Year I - Semester - II Examination August 2010 Subject : Financial Accounting (NDQS-202)

Instructions: This paper consists of questions with serial number 1 - 5. Answer all questions Marks are indicated against each question. Detailed workings/explanations should form part of your answer. Duration (01) The following balances were extracted from the books of accounts of Colombo corner Ltd. as on March 31, 2010 Particulars Opening stock Sales Purchases Salaries Other expenses
Sales and advertising cost Financial expenses Administrative overheads

: 03 hours

Amount(Rs) Amount9Rs) 9,0000 7,35,000 4,10,000 86,000 73,000

20,000 10,000 16,000

Plant & Machineries Furniture & fixtures

Vehicles

1,50,000
1,00,000 2,50,000

Sundry debtors Sundry Creditors Cash and bank Share capital Short term loan Other information: i. The value of Stock as on March 31, 2010 is Rs.75,500 ii. Bad debts to be written off during the year were Rs.1, 000.

45,000 32,000 153,000 6,00,000 36,000 14,03,000

14,03,000

iii. A provision for doubtful debts is to be made at 5% on sundry debtors. iv. Telephone bills amounting to Rs.2,000 remain unpaid v. Depreciation is to be provided as follows: Plant & machineries Furniture & fixtures Vehicles 10% 5% 10%

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After making the above adjustments you are required to prepare A) Trading and Profit and loss account of Colombo corner company for the year ending 2010 The Balance sheet as at 31st march 2010

(25Marks) (15Marks)

B)

(02) Prepare a triple column Cash Book from the following transactions of Rathnayaka Enterprises for the Month of August, 2010 2010 Cash in hand Aug 1 Cash at bank 2 4 5 7 13 14 15 17 19 20 23 24 28 31 Purchased goods for cash Received cash from Erandhi Discount allowed to her Withdrawn cash from bank for office use Paid cash to Mr. Kamal Discount Received Received cheque from silva Discount allowed to him Cash & Received Cheque deposited in Bank Cash sales Paid to Jaspan by cheque Discount Received Deposited in Bank Paid electricity bill for July 2010 Interest for investment received from JK Lanka( Pvt ) Received cheque from Dilruckshi Allowed him discount Purchased goods for cash Cash sales 20,000 4,500 1,850 150 10,000 3,800 200 5450 50 8,000 5,000 3450 50 4,000 2,500 2,000 3,230 30 2,000 3,000 (15Marks) 5,000

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(03) In the month of April 2009, the accountant of Melroy & Co. found the following errors in the books of accounts for the year 2008-2009 in spite of the agreed balance sheet: i. ii. iii. iv. v. vi.
A sale of Rs.20,050 to Mr. Gunarathna was entered in the sales day book as Rs.20,500 and it has been debited to Mr. Gunarathna.s account as Rs.25,000. A purchase of Rs.16,000 from Ms. Kaushlya on 30th March 2010 was taken in stock, but the invoice was not passed through the purchase day book. Goods to the value of Rs.2,750 returned by Ms. Kulani, had been debited to her account and also to sales return account. The purchase day book for the month of March 2010 was under cast by Rs.10,000 Bank interest on overdraft for the month of March 2010, amounting to Rs.3,750 has not been recorded in the books of accounts. A credit sale of Rs.20,000 on 29th March 2010, has been completely omitted from the sales day book.

You are required to pass the necessary journal entries to rectify the above errors (Use only journal proper model) Journal Proper Particulars Rs Rs

(15Marks)

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(04) Particulars Share Capital at the rate of Rs.10 each Stock as on April 1, 2010 Sales Sale returns Purchases Purchase returns Carriage inward Rent & taxes Sundry creditors Sundry debtors Bank loan (interest at the rate of 12% per annum) Interest on bank loan Advertisement Expenses Bad debts Income from Investments Cash at bank Discount allowed Discount received Investments Furniture & Fittings Audit fees Insurance premium Traveling expenses Cash in hand Salaries Wages Building Plant & Machinery Amount 6,00,000 40,000 9,60,000 80,000 6,64,000 84,000 27,800 12,000 1,16,000 2,40,000 40,000 4,000 24,000 2,000 4,000 21,000 4,050 2,800 40,000 45,000 5,400 2,400 2,200 5,400 1,37,550 50,000 2,50,000 1,50,000

You are required to prepare Trial Balance as on March 31, 2010

(15, Marks)

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(05) The following balances were extracted from the books of accounts of NITE SL Ltd; whose cash book (Bank Column) shows a debit balance of 44,500 as on December 31, 2009. On investigation it is found that: I. A dividend of Rs 4,000 and interest amounting to Rs. 6,000 received by the bank was recorded only in the pas book. Insurance premium paid on December 30th 2009 by the bank Rs. 2700 was not entered in the cash book. The payment side of the cash book had been under cast by Rs. 50 Bank charges amounted to150, debited in passbook but not yet credited in cash book. A bill payable for Rs. 2,000 has been paid by the bank is not taken in the cash book A bill receivable for 6,000 has been discounted with the bank at a cost of Rs 100 which was also not recorded in the cash book. Cheques amounting to Rs. 60,000 issued to creditors have been not presented for payment . Cheques deposited into bank amounting to Rs. 1, 05,000 out of which cheques amounting to Rs 55,000 only were collected by the bank up to December 31, 2009

II.

III. IV.

V. VI.

VII.

VIII.

You are required to prepare, A) adjusted cash book B) and then the reconciliation statement, (15 Marks)

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