This question papér contains 16+4 printed pages} Your Roll No. 486 B.Com/l E Paper II—FINANCIAL ACCOUNTING ” (Admissions of 2006 and onwards) Time :3 Hours 7 : © Maximam Marks: 55 (Write your Roll No. on the top immediately on receipt of this question paper.) Note : Answers may be written either in English or in Hindi; but the same medium should be used thtoughout the paper. feooht : ea wea wT TAT Git oT fet feet ww we A Sing, Afar ah sae wm oe wae et eat afem | ; “The niaximum marks printed on the question paper are applicable for the students of the: regular colleges (Cat. ‘A’). ‘These marks will, however, .be scaled up proportionately in respect of the students of NCWEB at the time of posting of awards for compilation of result. a Note : Attempt Al! questions. All questions carry equal marks. All: the questions of a Section should be attempted together. Show your workings clearly. ea | RMT we Ifa _ wit weil So sie wa EI yas as wet aT sae TAT Afar! arth frafata ey ered: ceiea PTO.(2), State, whether the following statements are True/False = () Depreciation is an amortised expenditure.” (i) Good sold on approval basis is treated as a complete sales. (iif) Over-riding commission is calculated on credit sales only. (iv) Dependent branches do not perform accounting function. 486 1x5=5, (v) Under Hire-Purchase system depreciation ig recorded in the books of Vendor. frofafaa wer wer Fa aa, aA + @ Free ww vehi oa Br Ww ips ore oe aan Te a feat See A eT er FI Gay wenten weet Bl Fa Hse fast meet frat ara & (oy) afar med dame ard 7G ach E @) Rera-ete wort & stata qeaae a fear SF arct F femrs fra sta a ‘On 31st March, 2008 the following Trial Balance was prepared from the books of Mr. Maneet : ® Debit ‘Credit. Rs.) Rs.y Debtors and Creditors 30,600 10,000 Bills Receivables . 5,000Plant and Machinery | 75,000 — Purchases (Adjusted) . 190,000 _ Capital Account _ 70,000 Freehold Premises 50000 - Salaries . : 21,000 _ Wages : 24,400 - Postage and Stationery . ‘, 1,750 = Camage in ; : 1,750 - Carriage out : . 1,000 = Baa debis j : 950 - Bad Debts Provision . - 350 Office Charges 1,500 ~ Cash at Bank oe 5.300 - Cash in hand 800 - Bills Payable . — 7,000 Genéral Reserve _ 20,000 Sales _- 3,31,700 Closing Stock 30,000 _ 439,050 | _4,39,050 PTO.(4) 486 The foliowing adjustments ae required: (a) Maneet gets a salary of Rs. 12,000 p.a. (6) Allow interest on capital @ 10% pa. ©) , Bad debts provision is 24% on Debtors. (d) 10% of Net profit to be carried to General Reserve. (© Iewas discovered in April 2007 that the stock as on 31st March, 2007 were overcast by Rs. 1,000. However ino entry was passed in April, 2007. () Depreciate Plant and Machinery; @ 10% and Freehold Premises @ 2% pa. Prepare the Trading and Profit and Loss Account of the firm for the year ended 31st March, 2008 and a Balance Sheet as at the date. 10 31 rd, 2008 at fet wit S end A frafafiad dave dan fear wae: ‘Sf ~ wise : we @) rafal ak aratcat - 30,600 10;000 wea fare 5,000 = aaa aa writa 75,000 _ atereat Carafe) .*.} 490,000 7pt dar wrees afte waghat ae a Rent atm ats one sree, eT aie wea a fre ore ariea & at da a tee wes aa 4. a fara ars ftad sifan ee 50,000 21,000 1,750 1,750 1,000 950. 1,500 5.300 800 30,000 4,39,050 24,400 486, 70,000 7,000 20,000 3,31,700 |_____; ____. 4,39,050 PTO.frafafar wari feu wa és” (wm) wits Bi 12,000 & wa ae aat fra we TI Ce) est % 10% wha ah at ee 8 ars ahaa (a) Benth we ote aed BS fare 2% wh ore TAA (a) Pete oI 10% BA A A sren TEL (3) ste 2007 4 ae var wer fe 31 Vd, 2007 F Ris BT 1,000 -%. afer warn rn en dente set, 2007 HF ang vfafee adh at mes (a) tis aan FRI HK 10% at at a BRITE ct ott wees vie TW 2% aft ad at ce 8 yeaa ond 31 arf, 2008 & wae ge at S fae wt a eM aa oy ak wf TET aan aifte sik va fH ae a gees Tan afr Or (@aan) Explain Single Entry System. What are the defects of Single Entry System? - 10 wre wate woret at eren aifaal: wre wfafte wont A an wfrat s 2486 ‘The following are the details fuimished by Romeo Club. You are required to prepare Balance Sheets: as at 31.3.2011 and 31.3.2012 : * Receipts and Payments Account for the year ended 31.3.2012 Receipts Rs, |Payments Rs. To Balance : Cash 3,400 |Salaries 12,100 Bank 12,400 | Insurance 3,150 Entrance Fees 14,500 | Furniture purchased 30.9.2011) 5,300 Subscription received : Postage 2:350 “Year, 2010-2011 3,200. | Printing and Stationery 6.750 Year 201 12012 44,500. | Sundry Expenses 4,500 Sale of old Newspaper 1,100 | Members Meeting expenses 25.100 Lecture Meet fees 3,800. | Closing Balance : Sale of old furniture (1.10.2011) |. 5,650 Cash + 13,500 Bank 15,600 88,550 88,550 P.T.O-Income & Expénditure Account for the year ended 31.3.2012 486, Dr. cr. Particulars * Rs. | Particutars Rs. To Salaries | 12,100 | By Entrance fees 14,500 To Insurance 3,150 | By Subscription : To Postage 2,350 Received 44,500 « To Printing and stationery 6,750 | Add: Outstanding , _5,500_ $0,000 To Sundry Expenses 4,500 | By Lecture meet fees To Members meeting expenses| 25,100 Received 3,800 To Depreciation : Add : Outstanding _1,200. 5,000 Furniture @ 10% 318 By Sale of newspapers 1,100 Machinery @ 20% 2,000 | By Profit on sale of furniture 900 Building @ 10% 10,000 To. Excess of Income over : Expenditure 4835Details (As on) 31.3201 31.3,2012 () —Stibscription due and outstanding 4,000 ? ‘ 1 (i) -Club Building - 1,00,000 90.000 | 10 Ate ae efies ons 8 nk omeh o13z0 e202 qa ta aS svat ait starerit erat 313.2012 a Tara SA are at F fers vata %. | srerafrai ; z wo: tag 3,400 | aaa " : 12,100 ae 12,400 | at 3,150 yae Wee ; 14,500 [water waiter : : . (30.9.2011) 7 5,300 dal Wa BM: | lore ot 2,550 ad 2010-2011 3200 ous aa Berra » |. 6.750. ad 2011-2012 , 44,500 |fafaa at 4,500 WH saan FH fast 1,100 [ace wt dow FGA...) 25,100 deat § safe 2 at sta | 3,800 | afer ae: A wt Ft fat 5,650 das , 13,500 -16-2011) . ae 4 * 15,600 88,550 ; 88,550 P.T.O,€ 10) aia dat aa AST 3132012 BY at AE ae Fe 486 ‘Sfre g. | Rhee % an 12,100 | WAR IRF 14,500 att 3,150 | eT: ae 2,550 wal Gt 44,500 wag wet Rea * 6750 [te : FaTH __5500 | $0,000 ‘ fafen a 4500 [aa A enti BF weed Ht dx 3 oS (25,100 aida sag 3.800, AeA: aS: wT 1,200 5,000 wedier 10% at xB sis |araardi it facat 1,100 netzd 20% at at @ | 2.000 [wate at fat 7 cy 900 WaT 10% aaa 10,000 ara er ora aft 4,835 71,500 [71,500 aortic 313.2011 1 313.2012 a art ak waa t 4,000 2 @ eam 1,00,000° 90,000(staan) On 1.1.2006, Mr, X purchased a second hand machinery for Rs. 50,000; paid Rs. 11,000 for its overhauling and Rs. 5,000 for its instaliation which was completed.on 31.3.2006. On. 1.10.2007 a repair work was carried out.on the machine and Rs. 5,000 were spent for the satie, The machine was sold on 31.10.2008 for a sum of Rs. 21,000 and an amount of Rs. 1,000 was paid as dismantling charges. The company provides depreciation on its machinery at 20% on diminishing balance method and closes its book on 31st.December every: year. Prepare machinery account from 2006 to 2008. 10 11.2006 a fire x 3 50,000 % A te BH ae Gad, seat Yh ATT 11,000 %. aa saa wafta aA He 5,000 %. wd fu! ag arf 31.3.2006 BH YT @ var ai 110.2007 Ft Fei we ae aT HA fare aT BAT FA A 5,000 % od au Win a 31.10.2008 # 21,000 % aa fea mat ait 1,000 % at oft asia ant Barer ae SF fae a we) Set wea Ae fate F aA refed 1 20% yeas at craen wet & ake oy wrt wt x aed 31 fea a dq act @ . 2006 & 2008 wR HI TRI Sean JAK Fife PTO.( 129 : 486 ‘Ahmed Oil Co. of Mumbai consigned 1,000 barrels of oil costing Rs. 800 per barrel to Vardhan Oil Co. of Agra on January 1, 3003. Ahmed Oil Co. paid Rs: 50:000 as freight and insurance 25 barrels were destroyed on January 7.2003 in transit. The insurance claim was settled at Rs. 15,000 and was paid directly to consignor. Vardhan Oil Co. took delivery of the consignment on January 19.2003 and accepted a bill drawn upon them by Ahmed Oil Co. for:Rs, 5,00,090 for 3 months. On March 31, 2003. Vardhan Oil Co. reported-as follows = (750 barrels were sold at Rs. 1,200 per barrel (ii) . The other expenses were = Rs. Clearing charges mo, 11,250 Godown rent 7 10.000 Wages 7 30,000 " Printing, Stationery, Advertisement 20,000 (iii) 25 barrels of oil were lost due to leakage which is considered to be normal loss. Vardhan Oil Co. is entitled to a commission of 5% on all the sales affected by them. Vardhan Oil Co. paid the amount due in respect of the consignment on 31st March itself. Show the Consignment Account, the Account of Vardhan Oil Co. and the Loss in Transit ‘Account as they would appear in the books of Ahmed Oil Co. 10(CB) 486 arene ata ort, jas A goo &. wea Sea F fears B Ja F 1.000 Aza 1.1.2003 - Bama at ah attr seh at aie CFEC! TEN atlas SorHh HTS ait aA F 50,000 F fedi71.2003 BA afters & eet 25 Seat we A ve ater ar ae 15,000 % A freer fen wa, six ae’ ah wa aw ae a me aia afar ot 3 19.1.2003 a wa at fected J ct site 5,00,000 = fae aeng ataa Beh ge sas a Fe ae faa wh, oh fe de oe A ta qq, eran at feat 31 ari, 2003 @ ata ata aot > Aarfefan gare, a: @) 750 Sa 1,200 %. ft tea & feos & Fa gt Bi Gi) 7 SA aT: eB wea eA F wt 11.250 Them a fara 10,000 magical 30,000 oag aa Read a fear 20,000 cay Feora Sworn 25, At et Fares we A A wn se FI ana aga avd FL sae ge at E feet sy et A ew Ti TH ata art Aa ant Ba ea veo S dds Fa of 2 at aaa arm, aH atta Soh Sen ote Ta Fae a aH ae eheis ATE fra ee a oe ota Set S ad F 2a aw PTO. |(staan) Kapil and Tendulkar joint underwrite and place on the market 50,000 equity shares on Bombay Machineries Lid, of Rs. 10 each, Iwas agreed with the company that they would be alloted 2,000 Equity shaes as fully paid towards their remuneration. Thieir Profit sharing ratio is 3 : 2. . : Applications were received from the public only for 45.000 equity shares. Kapil paid Rs. 4,000 for postage and advertisement in addition to 60% of the amount required to take up the short subscription, ‘Tendulkar financed. the balance amount, These are accounted for through Joiit bank account. ‘All the shares including those allotted for remuneration were sold. Kapil sold 3,000 Equity shares for Rs. 35,000 and Tendulkar sold the balance shares for Rs. 48,000: Tendulkar incurred expenses of Rs. 2,000. Sale proceeds were retained individually ‘Show necessary Ledger Accounts in the books of the venturers, which were separately kept for this purpose. The inter se account was settled through the Joint Bank Account. 10 afr oe gaan Sep ev A aon Bake 10% aa soon) Head Bat a oa wits fafhés we stent we ota 8 Eee S ae ae aenfe(15) 486 HEA fe ESR UR #50 Hye 2000 Ge A rain fet AA sat ater ar aga 3: 2 & aaa & Pact 45,000 SaaS Seri F fae maa wa AL! Hftet 7 4,000 F STH a fram wad fre ot fe og afters a1 aA fare cif a FI 60% a seat 9 ie o fe Fr e ee H k # ae, eT army Be dem Ba Ree fart cattery oneea tae afer a1 wher % 3,000 Saad BR 35,000 &. Fi alte geet A te Tati FI 48,000 & aa fea ager 4 2,000 %. ae feui fat a wa of cater eo A wa ot : cated a gaat Horace Go aie ing oh Re oo SETS TST va we a) ea Ba wr Prem Hea Se a F safe fort TT ‘A trader has its branch in Mumbai to which the goods are invoiced at cost plus 20%. Prepare Branch A/c in the books of the Head Office after taking into consideration the following information 10: a also : Opening stocks at branch 72,000 Cash sales at branch 52,500 Credit sales at branch : 1,23,000 PTO.Collections froin branch debtors . . 1,13,700 Goods received from Head Office : . 90,000 Branch Expenses : Paid by Head Office 9,000 Paid by Branch . 18.000 Expenses unpaid 7 4,200 Closing stocks ‘at branch : - 54,000 Closing Balance of branch debtors . 27,480 Goods sent from head office to branch remaining in transit on closing day 10,800 we ort a men qed 7% faa ae cma A 20% Seat Fe Ate gro Fs 2) fefafad qari A an A ost a wer wei Saat A a wean tax aif : w wen 4 anf eta 72,000 rar git tens fat 52,500 ‘ar BRI so ft , 1,23,000 we cen a weiad oft Ty 1,13,700 wer arate & wreat Aet 90,000we Sad : war araieta gra fee Te ‘ 9,000 ral. grt FRE ATE . 18,000 oe aa : . 4,200 ara Fifer, wie ; $4,000 eran wh raf a sit ta, 27480 span acre 2 yen rae AT ir Fe ger 9 aa we . : 10,800, :Or (@aa) On 1.1.2010 X, a television dealer, bought 5 television sets from Dolphia Television Co. on hire-purchase. The cash price of each set was Rs. 20,000. ht was agreed that Rs. 25,000 should be paid immediately and the balance in three instalments of Rs. 30,000 each at the end-of each-year. The Television Co. charges interest @ 10% p.a. The buyer depreciates television sets at 20% p.a. on the diminishing balance method. P.T.O.X paid cash down’and two instalments but failed to pay the last instalment, Consequently, the Television Co. repossessed three'sets, leaving two sets-with the buyer and adjusting the value of 3 sets against the amount due. The sets repossessed were valued on the basis of 30% depreciation p.a. on the written down value. The sets repossessed were sold by the Television Co, for Rs. 30,000 after necessary repairs amounting to Rs, 5,000. Open the necessary Ledger accounts in the books of both the parties. 10 11.2010 Boe anne Beles Stee 3 farrt-wee amen 3 Sern Behe aut & 5 tcifasa Be wees ae wenfs BE fH 25,000 % sen & feu se aik fa wets af B sia H 30,000 8 at an fat § faq ots tatoos Eat lo ofa ad at a ore Set Bi Ba waA Fa fae F ony Ww 20% yft ad af at 8 teifaod Sa BEES ca BX A ewe ea fae fea ax & fai ot dt ouig sim fer wie wan wereaes cif aot F da de are ah often 4a feu, ik de Sa Fo oe Be feu aT aa aft at uaa 43 8a an aga aarti at fear oh ae aa fare a 30% wa ad Ere art FS ae wafer yea eA aT ees Het 3 ara fem ad aa FA srayan mea HUET fa HW 5,000 F TF BW, 30,0008. 4 aa fem SH Wea ni A nas aoe dar dan Hf(19) 486 ‘A, Band C are three partners. Their profit ratio is equal: They dissolve their firm due financial crisis. Their Balance Sheet on the date of dissolution is as follows : Liabilities Rs, | Assets i Rs. * ‘Capital : Building ~ [15,000 A 12,000 | Machinery 7,500 B 13,500 | Stock 15,000 c 4,500 | Debtors . 33,000 Creditors 40,500 [| _ — 70,500 70,500 All asséts realized for Rs. 25,500. All the partners were insol ‘anything from their private estate. jivent and could not contribute * Prepare ledger accounts to closé the books of the firm, including deficiency account. 10 A, Bam ca arta SE. wem ar A aun ar cag BSE fetta, daze Sere wet we A faaea a eer fages at ata see gers Freee a: eaard %. | afteaftat = at : 1H 13,000 A 12,000 | nei 7,500 B 13,500 | wae 15,000 c 4500 | Sefeat 33,000 erfeat 40,500 [es00 | 70,500 P.O.(20) 486 weit afeeiafer A 25,500 F sae ae fore TAL a mite feanferen @ Ag a a a aret frit doer a and aime adi 2 adi a " wl @ aed Bde wa few Gor BO fan ate rst a der : a Or : (ore Distinguish between the following (a) Income & Expenditure A/e and Receipts & Paymenis A/c. 4 (©) Capital Expenditure and Revenue Expenditure. 3 (©) Normal Loss and Abnormal,Loss. . 3 Preteen Hsia wat: (@) aa wan oy Sar ak wfadh ver serait a Gear (a) ita ora ste wae a @) were af sk sara aft” 486 20-