Time Allowed: 3 Hours Max Marks: 100: Paper A1

FINANCIAL ACCOUNTING B.
COM-I CITY COLLEGE SAMBRIAL Paper A1
Time Allowed: 3 Hours Max Marks: 100
************************************************************************************
*
Attempt any five questions. Question No.1 is compulsory. All questions carry equal marks.
Q.2: From the following particulars prepare a Bank Reconciliation statement of Mr. Baber as on 31 st
March 2006 with the help of revised cash book.
a. Bank over draft as per the cash book Rs.24,000

b. Rs.80,000 worth of cheques were sent for collection and only Rs.50,000 worth of cheques
were collected up to 31st March.
c. Out of cheques for Rs 60,000 issued in March cheques of Rs.36, 000 were presented for
payment.
d. Bills discounted with the bank and dishonored Rs 60,000.
e. A customer directly deposited an amount of Rs 56,000 into the bank.
f. Interest on overdraft Rs 2,500 in the pass book only.
g. A cheque for Rs 10,000 entered in the cash book (Debit Side) was not sent at the bank for
collection.
h. Discount received Rs 500 was entered in the bank column erroneously.
Q.3: From the following trail balance prepare the trading and profit and loss account for the year ended
31st December 2006.
Debit Credit
Rs Rs
Stock on 1.1.2006 24,200
Purchases 41,000
Sales 1,19,600
Capital 1,83,200
Drawings 8,400
Furniture 24,000
Salaries Outstanding 2,600
Sundry Debtors 33,600
Sundry Creditors 25,000
Income Tax 1,200
Machinery 36,000
Building 80,000
10 % Investment 16,000
Wages 24,000
Salaries 26,000
General Expenses 6,000
Cash at Bank 6,000
Cash in Hand 4,000
3,30,400 3,30,400
Gujrat university 1
FINANCIAL ACCOUNTING B.COM-I CITY COLLEGE SAMBRIAL Paper A1
Adjustments:
1. Depreciate Building at 2% p.a, Machinery at 5% p.a and furniture at 10% p.a .
2. Provide provision for doubtful debts at 5% and create reserve for discount at 5% on sundry
debtors.
3. Create reserve for discount on creditors at 3%
4. Wages payable Rs 3000
5. Sock on 31.12.2006 is Rs. 32,600
Q.4: A trader by preparing his trial Balance found Rs 2,340 excess debit and transferred it to suspense
account later he found the following errors:
1. Commission account balance (Dr) Rs 7290 was not transferred to the Trial Balance
2. The total of the sales book Rs 10,440 had not been posted to the sales A/c
3. A sale of furniture for Rs 7,200 was entered in the sales book
4. Purchase made from Raja stores for Rs 6750 had been forgotten to enter in the books
5. Cash paid to Rehman Rs 10,560 was posted to his account as Rs 9,750
6. Goods sold to A for Rs 3,750 posted in B’s Account.
Required:
1. Pass the rectifying entries
2. Prepare suspense account
Q.5: A sells goods to B for Rs 10,000 on March 1, 2005.A draws a 3 month bill on B, which he
accepts .A gets it discounted by his banker at 10% P.a. On the due date the bill is dishonored the
bank pays Rs 30 as noting charges. However B pays Rs 4,060 in cash (Rs 60 for noting charges
and interest) and accepts a new bill for Rs 6,000 for two months. On the due date B approaches
A and again asks for renewal of the bill for a further period of 3 months. A agrees to the request,
provided B pays Rs. 30 as interest in cash the last bill is paid by B one month before its maturity
under a rebate of Rs 15.
Required: Pass the journal entries in the book of A and B.
Q.6: The balance sheet of Mr. Umer and Mr. Talha as on 3 st December 2007 is set out below. They
share profit and losses in the ration of 2:1
Assets Rs Liabilities Rs
Freehold property 20,000 Umer’s Capital 40,000
Furniture 6,000 Talha Capital 30,000
Stock 12,000 General Reserves 24,000
Debtors 60,000 Gratitoes 16,000
Cash 12,000
1,10,00 1,10,00
They agree to admit Hamza into the firm subject to the following terms and conditions:
i) Hamza will bring in Rs 21,000 of which Rs 9000 will be treated as his share of Good will to
be retained in the business
ii) He will be entitled I/4Ih share of the profits of the firm
iii) Fifty percent of the general Reserve is to remain as Reserve for bad and doubtful Debts
iv) Depreciation is to be provided on Furniture at 5%
v) Stock is to be revalued at Rs 10,500
Gujrat university 2
FINANCIAL ACCOUNTING B.COM-I CITY COLLEGE SAMBRIAL Paper A1
Required: Show the general entries giving effect to the above said arrangements (including cash
transaction) and prepare the opening balance sheet of the new partnership
Q.7: Enumerate the method of calculating depreciation Discuss briefly the merits and demerits of each
method.
Q.8: Suleman keeps his books on single entry system. His statement of Assets and Liabilities as on 31 st
December 2007 is as follows.
Assets Rs. Liabilities Rs.
Land and Buildings 40,000 Sundry Creditors 130,000
Furniture and Fixtures 6,000 Loan from money lender 113,200
Plant and Machinery 110,000 Other liabilities 26,800
Stock 18,400
Sundry Debtors 151,000
Cash 16,600
342,000 2,70,000
His drawings during the year amount to Rs. 6000. Land and building are to be
depreciated by 2%, furniture and fixture by 10% and plant and machinery by 10%. Sundry
debtors are to be reduced by 2%. He has used Rs. 1600 worth of stock of his business for private
purposes. During the year 2007 he sold some of his household furniture for Rs. 2000 and paid this
into his business bank account. His capital at beginning of the year was Rs. 60,000 draw up his
statement of profit and loss of the year ended 31st December 2007.
Q.9: Define accounting. What is the need and importance of accounting?
Gujrat university 3

Time Allowed: 3 Hours Max Marks: 100: Paper A1

Uploaded by

Copyright:

Available Formats

Time Allowed: 3 Hours Max Marks: 100: Paper A1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Time Allowed: 3 Hours Max Marks: 100: Paper A1

Uploaded by

Copyright:

Available Formats

FINANCIAL ACCOUNTING B.

COM-I CITY COLLEGE SAMBRIAL Paper A1

Time Allowed: 3 Hours Max Marks: 100

a. Bank over draft as per the cash book Rs.24,000

Q.9: Define accounting. What is the need and importance of accounting?

You might also like