Register No: U3CMC51/ U3CCC51

VIRUDHUNAGAR HINDU NADARS’ SENTHIKUMARA NADAR COLLEGE

(An Autonomous Institution Affiliated to Madurai Kamaraj University)
B.Com./ B.Com.(CA) Degree Examinations, November 2023
Part III – Core Subject
CORPORATE ACCOUNTING
(For those who joined in June 2018 and afterwards)
Time: 2 Hours Maximum Marks: 50
Section – A (5 x 4 = 20 marks)
Answer ALL questions choosing either (a) or (b)
Answer not to exceed TWO pages

1. a) What are the types of share capital? Explain.

(OR)
b) Explain the underwriting of shares.

2. a) Analyze the redeemable preference shares.

(OR)
b) Following is the balance sheet of R Ltd as at 31st March 2020:
Share capital 5,000 equity share Sundry assets 6,10,000
of ` 100 each fully paid up 5,00,000 Bank 3,80,000
2,000 6% redeemable preference
share of ` 100 each fully paid 2,00,000
Profit and loss a/c 2,40,000
Creditors 50,000
9,90,000 9,90,000
On the above date the preference shares are redeemed at a premium of 5%. Journalise and give the amended.

3. a) For the year ended 31 March 2019, the profit of Kerbs Ltd., before changing depreciation on fixed assets and
managerial commission amounted to `3,00,000.
Depreciation for the year amounted to `60,000 and a commission of 10% of the profits (before charging
such commission) was payable to the manager.
The paid-up capital of the company consisted of `10,00,000 divided into 5,000 6% preference shares of
`100 each, along with 50,000 equity shares of ` 10 each. Interim dividend @ `2.50 per share was paid during
the year.
Brought from the previous year, the credit balance in the profit and loss account was `35,000. Also the
following appropriations were proposed by the board of directors and subsequently passed at the company’s
annual general meeting:
i. To pay the year’s dividend on preference shares.
ii. To pay a final dividend on equity shares at `0.50 per share to make a total dividend of `1 per share
for the year.
iii. To provide for taxation @ 50% on the net profit.
iv. To transfer `25,000 to the general reserve.
v. To carry forward the balance
Required: show the profit and loss appropriation account.
(OR)
b) A company was incorporated on 1 April to acquire the running business of a partnership firm from 1 January.
The account year ends on 31 December. Using the information shown below, calculate the sales ratio for the
pre-incorporation and post-incorporation period.
 Sales for the whole year (January to December) = `7,20,000.
 Sales for January, June and July are 2 times the average.
 Sales for August are 1.5 times the average.
 Sales for March and September are 0.5 times the average.

1 (Contd…2)
4. a) Preparation of statement of affairs to the meeting of creditors:
M.Co. Ltd. went into voluntary liquidation on 1.3.2019. The following are extracted from its books on
that date:
(`) (`)
Capital: Building 1,50,000
50,000 equity shares of ` 10 each 5,00,000 Plant and machinery 2,10,000
Debentures (secured by a floating charge) 2,00,000 Stock-in-trade 95,000
Bank overdraft 30,000 Book debts 75,000
Creditors 40,000 Less: provision 10,000 65,000
Calls-in-arrear 1,00,000
Cash in hand 10,000
Profit and loss account 1,40,000
7,70,000 7,70,000
Plant and machinery and building are valued at `1,50,000 and `1,20,000 respectively. On realization
losses of `15,000 are expected on stock. Book-debts will realize `70,000. Calls-in-arrear are expected to
realize 90%. Bank overdraft is secured against buildings. Preferential creditors for taxes and wages are `6,000
and miscellaneous expenses outstanding `2,000.
(OR)
b) Preparation of liquidator’s final statement of account:
Prakash processors went into voluntary liquidation on 31st March 2019, when their balance sheet read as
follows:
(`)
Liabilities:
5,000, 10% cum pref. shares of ` 100 each fully paid 5,00,000
2,500 equity shares of ` 100 each, ` 75 paid 1,87,500
7,500 equity shares of ` 100 each, ` 60 paid 4,50,000
15% debentures secured by a floating charge 2,50,000
Interest outstanding on debentures 37,500
Creditors 3,18,750
17,43,750
Assets:
Land and buildings 2,50,000
Machinery and plant 6,25,000
Patents 1,00,000
Stocks 1,37,500
Sundry debtors 2,75,000
Cash and bank 75,000
Profit and loss a/c 2,81,250
17,43,750
Preference dividends were in arrears for 2 years and the creditors included preferential creditors of
`38,000.
The assets realised as follows:
Land and building - `3,00,000; machinery and plant - `5,00,000; patents - `75,000; stock -
`1,50,000; sundry debtors - `2,00,000.
The expenses of liquidation amounted to `27,250.
The liquidator is entitled to a commission of 3% on assets realised except cash. Assuming the final
payments including those on debentures is made on 30th June 2000, Show the liquidator’s final statement
of account.

5. a) Distinguish between amalgamation and absorption.

(OR)
b) Distinguish between net assets method and net payment method as a basis for computing purchase
consideration.
Section – B (3 x 10 = 30 marks)
Answer any THREE questions
Answer not to exceed FOUR pages

6. Aarthy Co. Ltd., issued 20,000 equity shares of ` 10 each payable as to ` 2 on application ` 3 on allotment ` 3
on I call and ` 2 on final call. All money was duly received on issued shares. Pass journal entries prepare
ledger accounts and show balance sheet.

2 (Contd…3)
7. Pass journal entries from the following:
i. X Ltd redeems its 6,000 redeemable preference shares of ` 100 each at par. For this purpose, it
issued 3,000 equity shares of ` 100 each at 10% premium and for the balance, it utilized profit and
loss account which had sufficient balance.
ii. X Ltd redeems its 10,000 redeemable preference shares of ` 10 each at par. For this purpose, it
issued 4,000 equity shares of ` 10 each at 10% discount and for the balance, it utilized profit and
loss a/c which had the sufficient balance.
iii. X Ltd redeems its 8,000 redeemable preference shares of ` 10 each at par. For this purpose, it
issued 3,000 equity shares of ` 10 each and for the balance, it utilized profit and loss a/c which had
the sufficient balance.

8. A company was registered with a nominal capital of `5,00,000, divided into shares of `10 each, of which
20,000 shares had been issued and fully paid.
The following is the trial balance extracted on 31 December 2019:
` `
Stock (January 1, 2014) 93,210
Manufacturing wages 54,870
Manufacturing expenses 9,620
Purchases and sales 4,10,730 5,84,950
Machinery repairs 4,305
Carriage inwards 2,455
Carriage outwards 4,630
Advance payment of income tax 7,145
Bank loan (at 5%) 25,000
Interest on loan 625
Debtors and creditors 82,200 46,110
Profit and loss account (January 1, 2019) ,4320
Bank current account 3,430
Cash in hand 960
Leasehold factory 32,105
Plant and machinery 39,200
Losse tools 6,250
Share capital 2,00,000
Calls in arrears 500
Rate and electricity (factory `7,105; office `1,700) 8,805
Directors’ fees and remuneration 6,000
Office salaries and expenses 6,500
Auditor’s fees 625
Office furniture 2,500
Commission 4,320
Returns 6,320 4,905
Perminary expenses 3,000
Transfer fees 20
Goodwill 75,000
8,65,305 8,65,305
Prepare a trading and profit and loss account for the year ended 31 December 2019. Also prepare a balance
sheet for the same date, taking into consideration the following adjustments:
1. Write off one-third of preliminary expenses.
2. Depreciation on plant and machinery at 20%; on office furniture at 10%.
3. Manufacturing wages `945 and office salaries `600 had accrued due.
4. Provide for interest on bank loan for 6 months.
5. Stock was valued at `62,240 and loose tools at `5,000.
6. Reserve `4,250 on debtors for doubtful debts.
7. Reserve further `1,560 for discounts on debtors.
8. The directors recommend a dividend at 5% for the year ending 31 December 2019, after providing for
taxes amounting to `11,500.

3 (Contd…4)
9. Sri Gobinda Chandra Sadhukhan is appointed liquidator of Sun Co. Ltd in Vlountary liquidation on 1st July
2023 from the following balances are extracted from the books on that date:
(`) (`)
Capital: Machinery 45,000
24,000 shares of ` 5 each 1,20,000 Leasehold properties 60,000
Reserve for bad debts 15,000 Stock-in-trade 1,500
Debentures 75,000 Book debts 90,000
Bank overdraft 27,000 Investments 9,000
Liabilities for purchases 30,000 Calls-in-arrear 7,500
Cash in hand 1,500
Profit and loss account 52,500
2,67,000 2,67,000
You are required to prepare a statement of affairs to the meeting of creditors.
The following assets are valued as under:
Machinery - ` 90,000
Leasehold properties - ` 1,09,000
Investments - ` 6,000
Stock-in-trade - ` 3,000
Bad debts are ` 3,000 and the doubtful debts are ` 6,000 which are estimated to realize `3,000. The bank
overdraft secured by deposit of title deeds of leasehold properties. Preferential creditors are `1,500. Telephone
rent outstanding is ` 120.

10. X Company Limited and Y Company Limited have agreed to mermaid and to form a new company called Z
Company Limited which has taken over both the companies as per their balance sheet given below:

Balance Sheet of X Company Limited as on 31st March 2001

Liabilities (`) Assets (`)
Share capital Land and building 2,00,000
Subscribed and paid up capital Plant and machinery 1,50,000
50,000 shares of ` 10 each 5,00,000 Furniture 50,000
Reserves and surplus: Investment in government
General reserve ` 1,50,000 securities 2,00,000
Surplus ` 50,000 2,00,000 Stock 90,000
Development rebate reserve 30,000 Debtors 80,000
Creditors 50,000
Bills payable 20,000

8,00,000 8,00,000

Balance sheet of Y Company Limited as on 31st December 2001

Liabilities (`) Assets (`)
Share capital Land and building 3,00,000
Subscribed and paid up capital Plant and machinery 2,50,000
80,000 shares of ` 10 each 8,00,000 Patents 1,50,000
Reserves and surplus: Furniture 50,000
General reserve ` 3,00,000 Investment in other securities 4,50,000
Surplus ` 1,00,000 4,00,000 Stock 1,20,000
Secured loans 1,50,000 Debtors 90,000
Unsecured loans 50,000 Bank 90,000
Creditors 60,000
Bills payable 40,000
15,00,000 15,00,000
You are required to pass opening journal entries in the books of new company Z Ltd. and also balance sheet.

ALL THE BEST

4
Register No: U3CMC52 Section – B (3 x 10 = 30 marks)
VIRUDHUNAGAR HINDU NADARS’ SENTHIKUMARA NADAR COLLEGE Answer any THREE questions
(An Autonomous Institution Affiliated to Madurai Kamaraj University) Answer not to exceed FOUR pages

B.Com. Degree Examinations, November 2023 6. Explain the development of financial system in India.
Part III – Core Subject
7. Distinguish between Treasury bill market and discount market.
FINANCIAL MARKETS AND SERVICES
8. Distinguish between the money market and capital market.
(For those who joined in June 2018 and afterwards)
Time: 2 Hours Maximum Marks: 50 9. Explain the process and benefits of forfeiting.
Section – A (5 x 4 = 20 marks)
10. State the SEBI guideline to stock market in India.
Answer ALL questions choosing either (a) or (b)
Answer not to exceed TWO pages
1. a) What are the powers of SEBI? Explain.
(OR)
b) Interpret the strengths and weaknesses of Indian financial system.

2. a) What are the features of commercial bill market? ALL THE BEST
(OR)
b) Explain the objectives of commercial paper.

3. a) State the importance of new issue market.

(OR)
b) Find the new issue market.

4. a) Explain the benefits of factoring.

(OR)
b) Explain the different types of factoring.

5. a) State the benefits of mutual fund.

(OR)
b) Interpret the open ended funds in mutual fund.

1 (P.T.O.) 2
Register No: U3CMC53 Section – B (3 x 10 = 30 marks)
VIRUDHUNAGAR HINDU NADARS’ SENTHIKUMARA NADAR COLLEGE Answer any THREE questions
(An Autonomous Institution Affiliated to Madurai Kamaraj University) Answer not to exceed FOUR pages
B.Com. Degree Examinations, November 2023 6. Explain the characteristics of modern business.
Part III – Core Subject
7. Analyze the components of business environment.
BUSINESS ENVIRONMENT
8. Explain the importance and futures of culture environment.
(For those who joined in June 2018 and afterwards)
Time: 2 Hours Maximum Marks: 50 9. What are the impacts of political legal environment? Explain.
Section – A (5 x 4 = 20 marks)
10. Explain the factors of ecological environment.
Answer ALL questions choosing either (a) or (b)
Answer not to exceed TWO pages
ALL THE BEST
1. a) Find the benefits of business environment analysis.
(OR)
b) Explain the importance of business environment.

2. a) What are the organisation structure of business environment?

(OR)
b) Write note on the organisation culture.

3. a) What are the elements of culture in environment?

(OR)
b) Classify the impact on business in cultural environment.

4. a) Find the political and legal environment.

(OR)
b) What are the advantages of political environment?

5. a) Explain objectives of ecological environment.

(OR)
b) Determinates the factors of corporate environmentalism.

1 (P.T.O.) 2
Register No: U3CMC54/ U3CCC53 Section – B (3 x 10 = 30 marks)
VIRUDHUNAGAR HINDU NADARS’ SENTHIKUMARA NADAR COLLEGE Answer any THREE questions

(An Autonomous Institution Affiliated to Madurai Kamaraj University) Answer not to exceed FOUR pages

B.Com./ B.Com.(CA) Degree Examinations, November 2023 6. Explain the essential elements of a valid contract.
Part III – Core Subject 7. What are the features of quasi contracts? Discuss in detail.
BUSINESS LAW
8. Interpret the rights and duties of finder of goods.
(For those who joined in June 2018 and afterwards)
9. State the rights and duties of seller in sale of goods act – 1930.
Time: 2 Hours Maximum Marks: 50
Section – A (5 x 4 = 20 marks) 10. Explain the duties, power and functions of the competition
Answer ALL questions choosing either (a) or (b) commission.
Answer not to exceed TWO pages
1. a) State the nature of contract. ALL THE BEST
(OR)
b) Find the classification of contract.

2. a) Analyze the remedies for breach of contracts.

(OR)
b) Explain the various types of breach of contracts?

3. a) Explain about the bailee’s lien.

(OR)
b) State the essentials of bailment.

4. a) Select the any five regarding delivery of goods.

(OR)
b) State any five elements of sale by non-owner.

5. a) What are the factors of competition act 2002? Discuss.

(OR)
b) Explain the competition commission of India.
1 (P.T.O.) 2
Register No: U3CME51/ U3CCE51
VIRUDHUNAGAR HINDU NADARS’ SENTHIKUMARA NADAR COLLEGE
(An Autonomous Institution Affiliated to Madurai Kamaraj University)
B.Com./ B.Com.(CA) Degree Examinations, November 2023
Part III – Elective Subject
INCOME TAX
(For those who joined in June 2018 and afterwards)
Time: 2 Hours Maximum Marks: 50
Section – A (5 x 4 = 20 marks)
Answer ALL questions choosing either (a) or (b)
Answer not to exceed TWO pages
1. a) Explain the gross total income section 80B(51).
(OR)
b) Analyze the provisions for residential status.

2. a) Mr. Velavan resides in Chennai, gets ` 10,000 per month as basic salary, ` 8,000 per month as DA
(forming part) and ` 12,000 per month as HRA. He pays ` 10,000 per month as house rent. Calculate
taxable HRA.
(OR)
b) Mr. Venkat provides the following details related to his let out house property for the P/Y 2022-23:
Actual rent received - ` 7,000 p.m.
Municipal value - ` 60,000 p.a.
Fair rental value - ` 66,000 p.a.
Find the gross annual values for the assessment year 2023-24.

3. a) A firm’s stock of goods is valued on 1-4-2022 and on 31-3-2023 at ` 2,50,000 and ` 3,00,000 at 20%
below the cost. Calculate the amount of under valuation of stocks.
(OR)
b) State the admissibility or not of the following items in business head:
i. Interest paid to bank ` 18,000 in connection with overdraft obtained for paying dividend.
ii. Entertainment expenses of ` 26,000 incurred during the previous year.

4. a) From the following, compute the income other sources for the assessment year 2023-24:
i. Dividend - ` 16,000
ii. Winning from horse race - ` 40,000
iii. Winning from lottery tickets- ` 1,00,000
(OR)
b) Mr. Basker provides the following information, compute his taxable income:
Long-term capital gain - ` 3,60,000
Short-term capital gain - ` 1,10,000

5. a) Analyze the rules for set off and carry forward of losses.
(OR)
b) Explain the deduction from gross total income u/s 80U and 80D.

1 (Contd…2)
 Section – B (3 x 10 = 30 marks) 8. Profit and loss account of Raman for the year ended 31-3-2023:
Particulars (`) Particulars (`)
Answer any THREE questions
To opening stock 15,000 By sales 1,80,000
Answer not to exceed FOUR pages To purchase 40,000 By closing stock 20,000
To wages 20,000 By gift from father 10,000
6. Mr. Anaand Da furnishes the following particulars of his income earned during the previous year relevant To rent 46,000 By refund of income tax 3,000
to the assessment year 2023-24: To car repairs exp 3,000
(`) To wealth tax 2,000
i. Interest on German development bonds (one-third is received in India) 51,000 To medical expenses 3,000
ii. Income from agriculture in Bangladesh, remitted to India 31,000 To car depreciation 4,000
iii. Income from property in Canada received in U.S.A. 1,10,000 To income tax 1,000
iv. Income earned from business in Kuwait, business being controlled from To net profit 69,000
Mumbai (` 25,000 is received in India) 65,000 2,13,000 2,13,000
v. Dividend from an Indian company 15,000 i) 50% of rent for own purposes.
vi. Royalty received in Singapore from Mr. Gulgam, a resident in India, for ii) 3/4 of car was used for business and 1/4 for personal use.
technical services provided for a business carried on in Singapore 25,000 iii) Wages include ` 250 p.m. on account of Motor car driver’s wages for 10 months.
vii. Profit from business in Chennai, this business is controlled from Singapore 1,25,000 Compute the business income.
viii. Profit on sale of building in India, but received in Mumbai 2,50,000
ix. Income from agriculture in Punjab, received in Mumbai 30,000 9. From the following data you are required to calculate taxable capital gain for the previous year 2022-23:
x. Profit from business in Indonesia; this business is controlled from Delhi i) Plot purchased in 1995 for - ` 66,000
(60% of the project deposited in a bank there and 40% is remitted to India) 40,000 ii) Market value of plot on 1-4-2001 - ` 1,50,000
xi. Interest received from Mr. Shyam, a non-resident on the loan provided to iii) Ground floor cost of construction in 2020-21- ` 3,00,000
him for a business in India 28,000 iv) First floor-cost of construction in 2005-06 - ` 5,32,000
Compute his gross total income, if he is: i) resident ii) not ordinary resident iii) non-resident. v) Sale consideration received in 2022-23 - ` 50,00,000 on sale of property
vi) Investment in new property in June 2023 - ` 20,00,000
7. Following details are available from Sh. P.N. Dutta, a resident individual for the year ending on 31-3-2023. vii) Cost inflation index: 2005-06 = 117; 2022-23 = 331.
You are required to compute his taxable income under the head ‘salaries’.
(`) 10. State the provision relating to transfer of income to spouse.
a) Salary received 2,40,000
b) Income tax deducted to R.P.F. deducted from salary 12,000
c) Own contribution to R.P.F. deducted from salary 38,000
d) Dearness allowance 50% of salary --
e) Employer’s contribution to R.P.F. 29,000
f) Interest on accumulated balance of R.P.F. @ 9.5% 24,000 ALL THE BEST
g) He is provided with a furnished free quarter for residential purposes in
Calcutta [population above 25 lakhs] owned by his employer. The fair
rent which is at ` 9,000 p.m. Cost of furnishing is ` 90,000. Gardener’s
salary paid by employer is ` 6,000 p.a.
h) He is provided with a car of 1.5lt. Capacity by his employer for both
personal and official use and expenses of maintaining and running the
car with chauffeur are borne by the employer.
i) He had two life insurance policies: one on his own life for a policy
value of ` 90,000 on which annual premium paid by his employer is
` 8,200; and other on the life of his wife for a policy value of ` 20,000
on which premium paid by him is ` 1,800.
Compute his salary income and Q.A. for deduction u/s 80C.

3
2 (Contd…3)
Register No: U2CMN51/ U2CCN51
VIRUDHUNAGAR HINDU NADARS’ SENTHIKUMARA NADAR COLLEGE
(An Autonomous Institution Affiliated to Madurai Kamaraj University)
B.A./ B.Sc./ B.C.A./ B.B.A. Degree Examinations, November 2023
Part IV – Non Major Elective
BUSINESS ACCOUNTING
(For those who joined in June 2015 and afterwards)
Time: 2 Hours Maximum Marks: 75
Section – A (5 x 6 = 30 marks)
Answer any FIVE questions
Answer not to exceed TWO pages
1. What is accounting? Explain the classification of accounts.

2. Explain the importance of accounting.

3. Explain the steps in journalising.

4. Mr. A is a sole proprietor having a provisions store. Following are the transactions during the month of
January, 2018. Journalise them.
Jan 1 Commenced business with cash ` 80,000
Jan 2 Deposited cash with bank ` 40,000
Jan 3 Purchased goods by paying cash ` 5,000
Jan 4 Sold goods and received cash ` 11,000
Jan 5 Paid salaries by cash ` 5,000
Jan 6 Bought furniture by cash ` 4,000

5. The following are the transaction of Mr. Kumaran, dealing in stationery items. Prepare ledger accounts.
a) Started business with cash - ` 2,00,000
b) Opened bank accounts by depositing - ` 80,000
c) Bought goods on credit from Sriram for - ` 30,000
d) Sold goods on credit to Selva for - ` 10,000
e) Goods sold for cash - ` 15,000
f) Paid Sriram` 30,000 through NEFT
g) Received a cheque from Selva and deposited the same in bank - ` 10,000

6. From the following balances extracted from the books of Raju, a trader on automobiles, prepare trial
balance:
Particulars Amount (`) Particulars Amount (`)
Cash in hand 5,500 Direct expenses 5,000
Discount received 3,000 Carriage onwards 3,500
Creditors 15,000 Capital 45,000
Buildings 50,000 Purchases 49,700
Opening stock 6,000 Sales 59,400

7. From the following information, prepare trading and profit and loss a/c of Mr. M for the year ending 31st
December 2016 and the balance sheet as in that date. The closing stock on 31st December, 2016 was valued
at ` 2,000.
Particulars Amount (`) Particulars Amount (`)
Opening stock 500 Purchases 1,300
Sales 5,000 Wages 700
Discount received 500 Salary 500
Building 50,000 Capital 50,000
Cash in hand 4,500

Section – B (3 x 15 = 45 marks)
Answer any THREE questions
Answer not to exceed SEVEN pages
8. Explain in detail about the meaning, advantages and limitations of double entry system.
1 (P.T.O.)
9. Ananth is a trader dealing in textiles. From the following transactions, pass journal entries:
(`)
Feb 1 Commenced business with cash 70,000
Feb 2 Purchased goods from X & Co on credit 30,000
Feb 3 Cash deposited into bank 40,000
Feb 4 Bought a building from L & Co on credit 95,000
Feb 5 Cash withdrawn from bank for office use 5,000
Feb 6 Cash withdrawn from bank for personal use of Ananth 4,000
Feb 7 Towels given as charities 3,000
Feb 8 Shirts taken over by Ananth for personal use 12,000
Feb 9 Sarees distributed as free samples 3,000
Feb 10 Goods (table clothes) used for office use 200
10. Record the following transactions of Vijay Electronics & Co. in the purchases book, purchases returns
book, sales book and sales returns book:
2017 Jan 1 Purchased on credit from Preethi & Co.,
25 tables fans @ ` 1,400 each
10 fans @ ` 2,000 each
Add: auto charges @ ` 100
Jan 5 Sold on credit to Sheela & Co.,
10 electric iron box @ ` 1,250 each
20 electric stoves @ ` 450 each
Less: 10% discount
Jan 10 Purchased from cash from Brindha @ Co.,
10 electric stoves @ ` 1,300 each
Jan 18 Returned to Preethi & Co.,
5 table fans being defective for which cash is not received
Jan 20 Purchased from Sathya & Co.,
10 fans @ ` 1,200 each
Less: trade discount 5%
Jan 21 Sheela & Co returned 3 electric iron boxes as defective for which cash is not paid.
Jan 23 Purchased from Elizabeth & Co., 10 water purifiers @ ` 4,700 each on credit.
Jan 25 Sold on credit to M/s Bhavani & Co., 2 damaged fans for which cash is not received.
Jan 27 Returned to Sathya & Co., 2 damaged fans for which cash is not received.
11. Enter the following transactions in a cashbook with cash and discount columns:
2017 Jan 1 Cash in hand ` 11,500
Jan 5 Paid to Ramanathan by depositing in cash deposit machine ` 300
Discount allowed by him ` 10
Jan 8 Purchased goods for cash ` 400
Jan 10 Cash received from Rajagopal ` 980
Discount received ` 20
Jan 15 Sold goods for cash ` 400
Jan 21 Paid cash to Shanthi ` 295
Discount received ` 5
Jan 25 Paid wages by cash ` 50
Jan 31 Paid to Sanjeev ` 390 in full settlement of his account ` 400
12. The following balances are extracted from the books of Thomas as on 31st March, 2018:
Particulars Amount (`) Particulars Amount (`)
Purchases 75,000 Capital 60,000
Returns inward 2,000 Creditors 30,000
Opening stock 10,000 Sales 1,20,000
Freight inwards 4,000 Returns outward 1,000
Wages 2,000
Investments 10,000
Bank charges 1,000
Land 30,000
Machinery 30,000
Building 25,000
Cash at bank 18,000
Cash in hand 4,000
2,11,000 2,11,000
Additional information:
a) Closing stock - ` 9,000.
b) Provide depreciation @ 10% on machinery
c) Interest accrued on investment ` 2,000
Prepare trading account, profit & loss account & balance sheet.
ALL THE BEST
9. A company has prepared the following budget estimates for the year 2023-2024: Register No: U3CMC61/ U3CCC61
Sales - 15,000 units
Fixed expenses - ` 34,000 VIRUDHUNAGAR HINDU NADARS’ SENTHIKUMARA NADAR COLLEGE
Sales - ` 1,50,000 (An Autonomous Institution Affiliated to Madurai Kamaraj University)
Variable costs - ` 6 per unit
You are required to B.Com./ B.Com.(CA) Degree Examinations, November 2023
I. Find the P/V ratio, break-even point and margin of safety
Part III – Core Subject
II. Calculate the revised P/V ratio, break-even point and margin of safety in each of the following
cases: MANAGEMENT ACCOUNTING
a) Decreases of 10% in selling price
b) Increase of 10% in variable costs (For those who joined in June 2018 and afterwards)
c) Increase of sales volume by 2,000 units Time: 2 Hours Maximum Marks: 50
d) Increase of ` 6,000 in fixed costs Section – A (5 x 4 = 20 marks)

10. The expenses budget for production of 10,000 units in a factory is furnished below: Answer ALL questions choosing either (a) or (b)
Per unit (`) Answer not to exceed TWO pages
Materials 70
Labour 25 1. a) Define management accounting. Explain the scope of management accounting.
Variable overheads 20 (OR)
Fixed expenses (` 1,00,000) 10 b) Distinguish between management accounting and financial accounting.
Variable expenses (direct) 5 2. a) Following is the profit and loss account of Prabha Ltd,:
Selling expenses (10% fixed) 13
Particulars (`) Particulars (`)
Distribution expenses (20% fixed) 7
To opening stock 50,000 By sales 2,50,000
Administration expenses 5
To purchases 1,25,000 By closing stock 25,000
Total cost per unit 155
To manufacturing exp 12,000
Prepare a budget for production of
To office expenses 15,000
a) 8,000 units b) 6,000 units c) indicate cost per unit at both the levels
To selling expenses 12,000
assume that administration expenses are fixed for all levels of production.
To preliminary expenses 3,000
To net profit 57,500
2,75,000 2,75,000
ALL THE BEST Calculate: a) net profit ratio b) operating ratio c) office expenses ratio d) selling expenses ratio
(OR)
b) The following is the balance sheet of a firm XYZ:
(`) (`)
Share capital 30,000 Fixed assets 16,500
Creditors 8,000 Cash 1,000
Bills payable 2,000 Book debts 6,000
Bank O/D 3,500 Bills receivables 2,000
Stock 17,500
Prepaid expenses 500
43,500 43,500
Calculate: a) current ratio and b) liquid ratio
3. a) From the following particulars, determine the cash flows from investing activities:
Particulars Purchases (`) Sold (`)
Land 5,10,000 7,50,000
Building 2,00,000 --
Investment 2,30,000 1,50,000
Goodwill 2,50,000 --
Patents -- 1,60,000
i) Interest received on debentures held as investments ` 6,000.
ii) Dividend received on shares held as investment ` 12,000.
(OR)
1 (Contd…2)
 b) From the following particulars, find out cash flows from the following activities: Section – B (3 x 10 = 30 marks)
Particulars 2015 (`) 2016 (`)
Answer any THREE questions
Equity share capital 18,00,000 25,00,000
8% preference share capital 5,00,000 7,50,000 Answer not to exceed FOUR pages
13% debenture 4,00,000 3,50,000 6. List out the tools and techniques of management accounting.
Bank loan 3,00,000 2,20,000
st
During the year ended 31 March 2016: 7. From the following particulars, draw up the balance sheet of the company:
a) Final dividend of ` 1,80,000 and interim dividend of ` 40,000 was paid to the equity share Current ratio - 3.0
holders. Quick ratio - 2.5
b) Interest ` 52,000 and ` 30,000 were paid to the debenture holders and the bank respectively. Net working capital - ` 50,000
c) Preference dividends ` 40,000 was paid. Stock turnover ratio - 6 times
(cost of goods sold/ closing stock)
4. a) Calculate BEP (in units) and BEP (in rupees) from the following data: Gross profit ratio - 25%
Fixed cost - ` 3,00,000 Fixed assets turnover ratio - 2 times
Variable cost per unit - ` 20 Debtors turnover ratio - 2 months
Selling price per unit - ` 30 Fixed assets to shareholder’s net worth - 0.80
(OR) Reserves and surplus to capital - 0.25
b) Margin of safety ` 10,000 which represent 40% of sales. P.V ratio 50%.
Calculate a) sales b) break even sales c) fixed cost d) profit 8. From the summarised balance sheet of Raja Ltd., as on 31.3.2014 and 31.3.2015, prepare the cash flow
statement:
5. a) From the following figures, prepare raw materials purchase budget for January, 2007: Particulars Note No. 31st Mar 2014 31st Mar 2015
Particulars Materials (in units) I. Equity and liabilities
A B C 1. Share holders’ funds
Estimated opening stock 16,000 6,000 24,000 a) Share capital 1,00,000 1,00,000
Estimate closing stock 20,000 8,000 28,000 b) Surplus 16,000 13,000
Estimated consumption 1,20,000 44,000 1,32,000 c) General reserve 14,000 18,000
Standard price per unit `1 ` 1.50 ` 2.00 2. Share application money Nil Nil
(OR) 3. Non-current liabilities Nil Nil
b) Prepare a cash budget for the month of May, June and July on the basis of the following information: 4. Current liabilities
i) Income and expenditure forecasts: a) Sundry creditors 8,000 5,400
Month Sales (all Purchases (all Wages Manufacturing Office Selling b) Outstanding expenses 1,200 800
credit) (`) credit) (`) (`) expenses (`) expenses (`) expenses (`) c) Provision for taxation 16,000 18,000
March 60,000 36,000 9,000 4,000 2,000 4,000 d) Provision for bad debts 400 600
April 62,000 38,000 8,000 3,000 1,500 5,000 Total 1,55,600 1,55,800
May 64,000 33,000 10,000 4,500 2,500 4,500 II. Assets
June 58,000 35,000 8,500 3,500 2,000 3,500 1. Non-current assets
July 56,000 39,000 9,500 4,000 1,000 4,500 a) Fixed assets
August 60,000 34,000 8,000 3,000 1,500 4,500 i) Tangible assets
ii) Cash balance on 1st May ` 8,000 Land 40,000 36,000
iii) Plant costing ` 16,000 is due for delivery in July payable 10% on delivery and the balance after three Building 37,000 36,000
months. ii) Intangible assets
iv) Advance tax of ` 8,000 is payable in March and June each. Goodwill 12,000 12,000
v) Period credit allowed by suppliers 2 months and to customers 1 month. Non-current investments 10,000 11,000
vi) Lag in payment of manufacturing expenses ½ month. 2. Current assets
vii) Lag in payment of all other expenses 1 month. a) Inventories 30,000 23,000
b) Debtors 20,000 22,200
c) Cash and cash equivalents 6,600 15,200
Total 1,55,600 1,55,800
Additional information:
a) A piece of land has been sold for ` 4,000.
b) Depreciation of ` 7,000 has been charged on building.
c) Provision for taxation ` 19,000 has been made during the year.
2 (Contd…3)
3 (Contd…4)
Register No: U3CMC62 Section – B (3 x 10 = 30 marks)
VIRUDHUNAGAR HINDU NADARS’ SENTHIKUMARA NADAR COLLEGE Answer any THREE questions
(An Autonomous Institution Affiliated to Madurai Kamaraj University) Answer not to exceed FOUR pages
B.Com. Degree Examinations, November 2023 6. What is entrepreneurship? Narrate the positive and negative aspect of
Part III – Core Subject entrepreneurship.

ENTREPRENEURSHIP DEVELOPMENT 7. List out the entrepreneurial competencies possessed by the

entrepreneurship.
(For those who joined in June 2018 and afterwards)
Time: 2 Hours Maximum Marks: 50 8. Briefly explain the various steps involved in starting of new enterprise.
Section – A (5 x 4 = 20 marks)
9. Explain subsidy schemes given to entrepreneurs.
Answer ALL questions choosing either (a) or (b)
Answer not to exceed TWO pages 10. List out the various problems faced by the women entrepreneurs.

1. a) Define entrepreneurship. Explain its importance.

(OR)
b) Define the term entrepreneur and distinguish it from manager.

2. a) Describe the main functions of an entrepreneur.

(OR) ALL THE BEST
b) Distinguish between an innovative entrepreneur and an adoptive
entrepreneur.

3. a) Explain the various sources of business idea.

(OR)
b) What is project report? State its importance.

4. a) Explain the functions of DIC.

(OR)
b) Describe the functions of SISI.

5. a) Narrate the functions of women entrepreneur.

(OR)
b) What are the government assistance given to women entrepreneur?
1 (P.T.O.) 2
Register No: U3CMC63/ U3CCC63
VIRUDHUNAGAR HINDU NADARS’ SENTHIKUMARA NADAR COLLEGE
(An Autonomous Institution Affiliated to Madurai Kamaraj University)
B.Com./ B.Com.(CA) Degree Examinations, November 2023
Part III – Core Subject
SPECIAL ACCOUNTS
(For those who joined in June 2018 and afterwards)
Time: 2 Hours Maximum Marks: 50

Section – A (5 x 4 = 20 marks)
Answer ALL questions choosing either (a) or (b)
Answer not to exceed TWO pages

1. a) A subsidiary company sold goods to its holding company on the basis of cost plus 25%. At the end of the
year, stock-in-trade of the holding company included such goods amounted to ` 80,000. 25% of the shares
of the subsidiary company are held by outsiders. What the amount of stock reserve required?
(OR)
b) Explain the process of holding company.

2. a) The trial balance of the Nedungudi Bank Ltd., as on 30th June 2016 shows the following balances.
Interest and discount - ` 45,40,600
Rebate on bills discounted (1.7.2015) - ` 4,750
Bills discounted and purchased - ` 3,37,400
The unexpired discount as on 30.06.2016 is estimated to be ` 5,560. Calculate the amount of interest
and discount to be credited to profit and loss account.
(OR)
b) Bring out the items available under deposits of balance sheet.

3. a) The life fund of a life insurance company on 31.3.2016 showed a balance of ` 54,00,000.
However, the following items were not taken into account while preparing the revenue A/c for 2015-2016.
i) Interest and dividend accrued on investments - ` 20,000
ii) Income tax deducted at source on the above - ` 6,000
iii) Reinsurance claims recoverable - ` 7,000
iv) Commission due on reinsurance premium paid - ` 10,000
v) Bonus in reduction of premiums - ` 3,000
Ascertain true life assurance fund.
(OR)
b) Calculate the claims incurred by a fire insurance company to be shown in revenue account for the year
ending 31.3.17 with the help of following data:
Claims paid - ` 3,29,408
Claims outstanding (1.4.16) - ` 52,000
Claims outstanding (31.3.17) - ` 30,000
Medical expenses relating to claim - ` 3,000
Claims covered under reinsurance - ` 5,000

4. a) What is meant by replacement of an asset? Explain.

(OR)
b) From the following information relating to Guntur power & light co., Ltd., prepare net revenue account for
the year ended 31.3.04:
a) Net revenue a/c balance (1.4.03) - ` 50,000
b) Profit transferred from current year revenue a/c - ` 90,000
c) Interest on debentures - ` 16,000
d) Interim dividend - ` 32,000

5. a) Explain the objectives of Indian accounting standards.

(OR)
b) Explain about the Indian accounting standards.

1 (P.T.O.)
 Section – B (3 x 10 = 30 marks)
Answer any THREE questions
Answer not to exceed FOUR pages
6. On 31st March 2010 the balance sheets of H Ltd and its subsidiary S Ltd stood as follows:
Liabilities H Ltd (`) S Ltd (`) Assets H Ltd (`) S Ltd (`)
Equity share capital 8,00,000 2,00,000 Fixed assets 5,50,000 1,00,000
General reserve 1,50,000 70,000 75% shares in S Ltd (at cost) 2,80,000
Profit & loss a/c 90,000 55,000 Stock 1,05,000 1,77,000
Creditors 1,20,000 80,000 Other current assets 2,25,000 1,28,000
11,60,000 4,05,000 11,60,000 4,05,000
Draw a consolidated balance sheet as at 31st March, 2010 after taking into consideration the following
information:
a) H Ltd acquired the shares on 31st July, 2010.
b) S Ltd earned profit of ` 45,000 for the year ended 31st March, 2010.
c) In January 2010 S Ltd, sold to H Ltd goods costing ` 15,000 for ` 20,000.
On 31st March, 2010 half of these goods were lying as unsold in the godown of H Ltd.
7. From the following information prepare the profit and loss account ABC Bank Ltd. for the year ended on
31st March 2022 in the prescribed form:
S.No. Particulars `
1 Interest on loan 2,59,000
2 Interest on fixed deposits 2,75,000
3 Rebate on bills discounted required 49,000
4 Commission 8,200
5 Establishment 54,000
6 Discount on bills discounted 1,95,000
7 Interest on cash credit 2,23,000
8 Interest on current account 42,000
9 Rent and taxes 18,000
10 Interest on overdrafts 1,54,000
11 Director fees 3,000
12 Auditor fees 1,200
13 Interest on savings bank deposits 68,000
14 Postage and telegrams 1,400
15 Printing 2,900
16 Sundry charges 1,700
Bad debts to be written off amounted to ` 40,000. Provision for taxation may be made @ 55%.
Balance of profit from last year was ` 1,20,000. The directors have recommended a dividend of ` 20,000
for the shareholders.
8. Prepare profit and loss account and balance sheet as on 31.3.2016 with the following information:
` `
Claims paid 1,14,315 Reserve for unexpired 2,47,495
Commission to agents 60,590 Claims outstanding (1.4.15) 5,085
Expenses of management 1,99,696 Premium income 4,03,932
Depreciation 15,419 Interest, dividend & rent 34,692
Loss on sale of investment 23,169 Share capital 2,50,000
Income tax on interest 10,625 P&L a/c balance (1.4.15) 33,581
Agents balances 54,792 Provision for taxes 43,618
Investments in govt. bonds 3,86,921 Sundry creditors 4,919
Interest accrued on investments 6,028
Outstanding premium 4,019
Advances and deposits 12,122
Cash and bank balances 65,650
Furniture and motor car 94,666
10,48,012 10,48,012
i) The entire authorized capital has been issued and subscribed.
ii) Reserve for unexpired risks is at 50%.
iii) Claims outstanding as on 31.3.16 amounted to ` 3,317 thousand.
iv) Provide ` 20,000 thousand towards taxation.

9. Prepare final accounts of railways with the imaginary figures.

10. Explain the advantages and disadvantages of Indian accounting standards.

ALL THE BEST

Register No: U3CMN61/ U3CCN61 Section – B (3 x 15 = 45 marks)
VIRUDHUNAGAR HINDU NADARS’ SENTHIKUMARA NADAR COLLEGE Answer any THREE questions
(An Autonomous Institution Affiliated to Madurai Kamaraj University) Answer not to exceed SEVEN pages

B.A./ B.Sc./ B.C.A./ B.B.A. Degree Examinations, November 2023 8. Distinguish between selling and marketing.

Part IV – Non Major Elective 9. Explain the various steps to be followed in new product development.
PRINCIPLES OF MARKETING 10. Explain the factors influencing for pricing decisions.
(For those who joined in June 2015 and afterwards)
11. Describe the types of channels of distribution.
Time: 2 Hours Maximum Marks: 75
Section – A (5 x 6 = 30 marks) 12. Explain the process of personal selling.
Answer any FIVE questions
Answer not to exceed TWO pages ALL THE BEST
1. What are the objectives of marketing?

2. What is meant by a product?

3. Describe the advantages of product life cycle.

4. Write a short note on resale price maintenance.

5. Explain the importance of channel of distribution.

6. What are the advantages of sales promotion?

7. State the objectives of advertising.

1 (P.T.O.) 2