Financial Reporting and Analysis

Trimester -1
End Term
Time allowed – 2 hours
Max Marks – 40

Instructions:
1. All questions are compulsory
2. Questions 1-5 are to be done on excel sheet.
3. Cheat sheet is allowed only for formulas (A4 size sheet ,single side ,hand written )
4. All the Best

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Q1 to Q5- Excel sheet attached. (Marks 15)
Q6. From the following Trial Balance extracted from the books of Mr. Charles Brown, prepare a Trading
and Profit & Loss A/c for the year ended 31st March, 2018 and a Balance Sheet as at that date:

Dr. Balances (₹) Cr. Balances (₹)

Purchases 3,30,000 Sales 5,30,000
Rent Paid 7,480 Returns 8,000
Wages 33,000 Trade Creditors 37,000
Salaries 30,800 Discount 3,000
Power 5,400 Capital 2,00,000
Stock on 1-4-2017 15,000 Miscellaneous Income 3,060

Charity 500
Debtors 53,000
Furniture 8,000
Motor Car 2,36,000
Motor Car Expenses 18,000
Insurance 3,600
Unexpired Insurance 600
Drawings 5,000
Cash Balance 34,680

7,81,060 7,81,060

Information:-
(i) Debtors totaling Rs.3000 proved to be bad and company decided to create a provision of 2% for
doubtful debts.
(ii) Expenses for wages (Rs.2000), rent (Rs.520) and salaries (Rs.1200) for March have not been paid.
(iii) Provide 10% depreciation on Furniture and 20% on Motor Car.
v) Stock on 31-3-2018 was 36000. (Marks 15)
Q7. i) Mohan purchased a Motor Car costing Rs. 60,000 on 1st January, 2016 transportation and
repairing charge were incurred amounting Rs. 5,000 and 200 respectively. Dismantling charge of old
motor car in place of which new motor car was purchased amounted to Rs.20, 000. Market value of
motor car was estimated at Rs. 70,000 on 31st December, 2016 while finalizing the annual accounts.
Mohan values the motor car at Rs. 70,000 in his book. Which of the following concepts was violated by
the Mohan?

(a) Matching concept (b) Realisation concept(c) Cost concept (d) Periodicity concept

ii) A purchased a car for Rs.5,00,000, making a down payment of Rs.1,00,000 and signing aRs.4,00,000
bill payable due in 60 days. As a result of this transaction
(a)Total assets increased by Rs.5, 00,000.
(b)Total liabilities increased by Rs.4, 00,000.
(c) Total assets increased by Rs.4, 00,000.
(d) Total assets increased by Rs.4, 00,000 with corresponding increase in liabilities (Marks 1)

Q8. Recognize the following concept: (Marks 4)

Q.9 Prepare the adjusting entry for the following: (Any 5)

i) At year end, unrecorded interest expense due to creditors was Rs. 4,000 (payable in the next year).
Prepare the adjusting entry at year end

ii) Prepaid Insurance account began the year with a balance of Rs. 230. During the year, insurance in the
amount of Rs. 570 was purchased. At the end of the year March 31st, 2009 the amount of insurance still
unexpired was Rs. 350. Prepare the year end adjusting entry

iii) At year end, unrecorded interest receivable from the Government bonds is Rs. 1,700. Prepare the
adjusting entry

iv) On July 3, a deposit in the amount of Rs. 5,000 was received for services to be performed. By the end
of the month, services in the amount of Rs. 1,200 were performed. Prepare journal entries for the
original receipt of the deposit and the adjusting entry on 31st July

v) On October 4, Smith Company rendered services valued at Rs. 11,000. The client will pay for the
services November 1 and closing are done at the end of each month pass this transaction at the end of
period. (Marks 5)