JAYARAJ ANNAPACKIAM COLLEGE FOR

WOMEN (AUTONOMOUS)
I B.Com (CA). II.Sem End-Sem
FINANCIAL ACCOUNTING II CA2A2
HOURS: 2 (9-11A.M)
DATE : - 03-2010
PART-A (5X1=5)
Answer ALL questions:

MARKS:50

1. Branch trading and profit and loss account is only a

(a) memorandum account (b) personal account
(c) real account
2. Under straight line method depreciation is charged
evenly (a) every year (b) half-year (c) quarterly
throughout the life of the asset.
3. Single entry system is kept by (a) sole trader (b)
Govt companies (c) Private companies
4. Under the net worth method any additions to
capital during the accounting period must be (a)
added to profit (b) added to capital (c) deducted
from capital
5. Depreciation charged on (a) fixed assets (b)
Current assets (c) floating assets
PART-B (5X1=5)
Answer ALL questions:
6. What is Single Entry system?
7. What is statement of affairs?
8 Explain the demerits of Single entry system
9. What the special features of branch accounts?

10. What are the different types of depreciation?

PART-C (4X10=40)
Answer any four questions:
11. Ram Prakash keeps his books by the Single Entry
method. His position on 31st December 2003 was as
follows:
Cash in hand Rs.200; Cash at bank Rs.3000;
Stock Rs.20,000; Sundry Debtors Rs. 8,500; Fixtures
and fittings Rs.1,800; Plant and machinery Rs. 15,000;
Sundry Creditors Rs.22,000; During the year Ram
Prakash introduced Rs.5000 as further capital in the
business and withdrew Rs.750 per month.
On 31st December 2004, his position was as
follows:
Cash in hand Rs.300; Cash at bank Rs.2000; Stock
Rs.19,000; Sundry Debtors Rs.14,000; Fixtures and
fittings Rs.1,500; Plant and machinery Rs.27,000;
Sundry Creditors Rs.29,000.
From the above prepare a statement showing the
Profit or Loss made by him for the year ended 31 st
December 2004
12. A Delhi merchant has a Branch at Madras to which he
charges the goods at cost plus 25%. The Madras Branch
keeps its own Sales ledger and remits all cash received to the
Head Office every day. All expenses are paid from the Head
Office. The transactions for the branch during the year 2002
were as follows.

Stock (1-12002) at I.P

Debtors (1-12002)
Petty cash (1-12002)
Cash sales
Credit sales
Goods sent to
branch at I.P
Collection on
ledger accounts
Goods returned
to H.O. at I.P
Bad debts
Allowances to
Customers

Rs.
11,000 Returns Inwards

Rs.
500

100 Cheques sent to Branch

100 Rent

600

Wages
2,650
23,950 Salary and other expenses
20,000 Stock (31-12-2002) at I.P

200
900
13,000

21,000 Debtors (31-12-2002)

300 Petty cash(31-122002)including miscellaneous
income Rs.25 not remitted

2,000
125

300
250

Prepare the branch trading and profit and loss account

and branch account for the year ending 31-12-2002.
13. The Southern Confectionery Company, Mumbai has a
branch at Chennai. Goods are invoiced to the Chennai Branch at
selling prices, being cost plus 25 percent. The Chennai Branch
keeps its own Sales Ledger and transmits all cash received to the
Head Office daily. All expenses ar paid from Mumbai.

Stock 1.1.1988
Stock 31.12.1988
Debtors 1.1.1988
Debtors 31.12.1988
Rent and Rates (paid by H.O.)
Sundry Expenses (paid by H.O)
Cash sales for the year
Credit sales for the year
Cash received from Debtors
Goods invoiced from Mumbai
Wages paid from H.O.
14. A firm acquires a four - year lease on 1 st January 2002
for Rs. 40,000. The firm decides to establish a Depreciation
Fund for its replacement. Interest is expected to be earned at
5%.
On 31st December 2005, the balance at Bank,
before the receipt of interest on Depreciation Fund
Investment, was Rs. 26,000. Investments were sold for
Rs. 29,000. New lease was acquired for Rs. 45,000.
Give journal entries and ledger accounts relating
to the above.
Note: The Sinking Fund tables show that Re. 0.232012
has to be invested every year to produce Re. 1 at the end
of four years.

Rs.
12,500
15,000
7,000
9,000
4,000
800
54,000
35,000
33,000
91,000
3,400

15.

A company whose accounting year is the calendar

year, purchased on 1st April 2003, machinery
costing Rs.30,000. It purchased another machine
on 1st October 2003, costing Rs. 20,000 and on 1st
July 2004, costing Rs. 10,000.
On 1st Jan 2005, one-third of the machinery which
was installed on 1st April 2003 became obsolete
and was sold for Rs. 3,000.
Show how the Machinery Account would
appear in the books of the Company. The
machinery was depreciated by the Fixed Instalment
method @ 10% p.a.