AMOEUAL 13121 560 1 Semester B.C.L.S./B.Com./B.C.S.P/B.C.T.T. Examination, December 2018 (Semester Scheme) (CBCS) COMMERCE Financial Accounting Time : 3 Hours Max. Marks : 70 Instruction : Answers should be written completely either in English or in Kannada. SECTION -A 1. Answer any five sub questions. Each sub question carries 2 marks. (8x2=10) a) What do you mean by purchase consideration ? b) What is royalty ? c) What do you mean by Accounting Standards ? d) Give the meaning of hire purchase system. e) Give any two reasons for conversion of a firm into a limited company. f) What do you mean by shortworkings ? {) Mention any 2 objectives of Financial Accounting. SECTION -B Answer any three questions. Each question carries 6 marks. (3x6=18) 2. Explain any 4 accounting concepts. 3. Prepare an analytical table of Royalty from the following details : Minimum rent — % 25,000 p.a. Royalty — % 2 per ton of ore raised Shortworkings are recoverable during the first 3 years of the lease only. The output for the first 4 years is as follows 1*year — 3,000 tons; 2™ year — 10,000 tons; 3" year — 30,000 tons and 4" year — 35,000 tons P.T.O.13121 i ‘AN 4. From the following details, calculate purchase consideration and show the journal entries in the books of purchasing company. The purchasing company has agreed to issue 8,000 equity shares of ¥ 10 each at par, 500, 8% preference shares of & 100 each @ 10% premium, 1,000 debentures of 50 each @ 10% discount and pay cash equal to 10% of purchase consideration. 5. From the following information you are required to determine the amount of total sales : Opening stock = 80,000 Purchases % 4,00,000 Closing stock = 70,000. Rate of gross profit on sales 20% 6. Ms. Veena purchases a motor car on hire purchase system. Caloulate cash price of the motor car from the following : Down payment % 20,000; 1" Instalment % 28,000; 2" Instalment % 36,000; 3” Instalment % 33,000; Rate of Interest ~ 10% p.a. SECTION -C Answer any three questions. Each question carries 14 marks. (3x14=42) 7. On 1 January, 2014, Mr. Jayanth purchased a washing machine from Royal Enterprises on hire purchase basis. The cash price of the machine was 260,000, payable ¢ 12,000 on signing the agreement and the balance in 4 annual instalments of € 12,000 plus interest @ 15% p.a. payable on 31* December each year. Jayanth writes off depreciation @ 10% p.a. on diminishing balance method. Show the necessary Ledger A/es in the books of Jayanth.SHON A cS 13121 8. X Co, Lid, took a lease from a landlord for a period of 20 years from 1-1-2010 ona Royalty of 2 per ton of coal raised with a minimum rent of % 20,000 and power to recoup shortworkings during the first four years of the lease. The annual output was as follows : Year Tons 2010 5,000 2011 8,000 2012 10,000 2013 15,000 2014 20,000 Prepare Minimum Rent A/c, Royalty A/c, Shortworkings A/c and Landlord A/c. 9. A, Band C were in partnership sharing profits and losses in the ratio of 4:3: 1 respectively. On 31 March, 2018, they agreed to sell their business to a limited company. Their position on that date was as follows : Balance Sheet Liabilities Amount Assets Amount Creditors 16,000 Land and Buildings 36,000 Loan from Bank 8,000 Furniture 24,000 Capital A/c Debtors 30,000 A 40,000 Stock 26,000 B 30,000 Cash 4,000 Cc 26,000 1,20,000 1,20,000 The company took the following assets at the valuation shown below : Land and Buildings — = 44,000; Furniture — % 22,000; Debtors — % 28,000; Stock —% 24,000 and Goodwill — % 8,000. The company also agreed to pay creditors which was agreed at % 15,400. The company paid 3,300 equity shares of € 10 each and the balance in cash. The expenses amounted to % 1,000. Prepare the necessary ledger accounts in the books of the firm.13121 4+ CANON AA 10, 11. Mr, Das keeps his books by single entry system. From the following data, prepare Trading and P & L A/c for the year ending 31* March, 2018 together with Balance Sheet as on that date : a) Cash book analysis shows the following : Salaries ~ % 17,000; Business expenses - & 15,600; Interest charges — % 400; Drawings — % 4,000; Payment to creditors — % 30,000; Cash sales — % 30,000; Receipts from debtors — % 50,000; Balance at bank on 31-3-2018 -%5,000. b) Further details available are : Particulars 1-4-2017 31-3-2018 + © Stock 18,000 20,440 Creditors 16,000. 11,000. Debtors 44,000 60,000 Furniture 2,000 2,000 Machinery 30,000 30,000 ¢) Provide interest on opening capital @ 5%; provide % 3,000 for doubtful debts and 5% depreciation on all fixed assets. a) Calculate interest included in each instalment. Cash price — % 60,000; down payment — % 18,000 three annual instalments of @ 24,000, 18,000 and % 12,000 respectively payable at the end of each year. b) Ascertain credit sales from the following : e Opening debtors 80,500 Cash received from debtors 6,23,500 B/R received 24,000 Sales returns 8,000 Bad debts 6,800 B/R dishonoured 3,000 Discount allowed 2,000 B/R discounted with bank 4,5006 13121 aig eg Mpa 1. conmemaide 5 ead Berlon enzo, ae evga 2 wodries. (5x2=10) a) Deh e3elodoocideads ? b) mada acdde ? ©) Skene statnesd ace? d) warn grominds sigsec Spr ance iB. €) word enraot Hooray Nodbood dostatwn slotexa cinaonaide ade wadrarida, 88a, f) dash mugs norte? 9) ere SynAg oinajmnde ada enciesriesy 398, Qypn- wo cinamecide 3 algrieri egos. 33 3846 woarieh. (3x6=18) 2. oinenade mey deeds maldiidey dstot, 3. eens avdrvod Mags axel weoday gosmon: tdaj eeGrl mart — de. 25,000 BS ear oor oped de. 2 dod deed seen diet aaened: onds Baddobay ondohuaa, dace me Bae Tie wuss, s1 dedowoed, 1 Bar 3,000 warn 2BeF 10,000 sare 3 Sar 30,000 warrivs 4 Bair 35,000 warns. 4, dddod antorleod sdorh eisdarbaty dowtotac, dombsndyss tosiad IAeao darno cradtinidah Seba, DOeO dostactho dio. 10 viciowd 8,000 maaina, SeCoesy shod edad, , 500 Be. 8 d Batad was decor'eny (sboadeled da. 100) ve, 10 d Systo BIRO, Ge, 50 aoosdeIeict 1,000 moxeydsyse. 10 B Ootmonns Bodo, shay 2.689, deO eidon Be, 10 Oxia arith dase, aeden wack. .13121 6 {ANDINA 5. datiths dn&sonod tin Samed Segsiay Agros: ecoes Adzorieo. = 80,000 Doar %4,00,000 oda Rdorie> = 70,000 Rois sheds Agoemddd ge 20 8. Seba dem soeemcd mda) wwArt dawy¥o singabe, Docaaded, or Hens asitneod & mos ancy adobe, Boedeotono. Boones wes da. 20,000; Serie tov de. 28,000; adresie doxs cre. 36,000; Shavele todd de. 33,000; we cd mars Se. 10. ayer- a2 SHBUNS Bevo, oimalmmcide shave won BS agAwamey vcerv, — (9x14=42) 7. 1-1-2014 dort Se eosbou* work wil wttoiod bossa maier aoko's ae UBO00 ear sdoed: eased, DoeorcES. obos0 Sind sede. 60,000 shoes Bg Reo meen de. 42,000 =b25 wot? ain: ia 4 TRA FoMTA, Ta, 12,000 + Be 15 dos Bars wea Sea dente axows 318 Beata, Be mecbos* Be. 10 ieee aaveorssD, ada don emdde, woes AProAce. “be woos SIC aaecio, Aine sovdrida, ZoUWOA, 8. X #0. 0. Be RnOsd0d wom Togriocbaty 20 Satrreri 1-1-2010 doc, sari da. 2 dod: corsa Bey 3 mmarida, 20, 000 woe Bar cuagriday seb,wussrivoss Bede mo atiedd, aibetbesmocdoc> main xo, mare ecard es #0eocioast Bate artree, 2010 5,000 2011 8,000 2012 10,000 2013 18,000 2014 20,000 BY A and, UGS end, das esa soos sine Ged amanda ZoaRor,ARE a 7 13121 9. A, B abey C anevcmovonOnh,, end soay dainvay 4:3: 1 embmece, Borttinsy grieh. 31-3-2018 dor toes Dexdaod Eo aely mY RT Mowery Brdeo wart dead. eohhed ead Ag & Sedoroed, wa TURD we, wemeroriv) we. wares oR. more> 16,000 ginsy ste) e38 36,000 sROtded me 8,000 exdacaitcraries 24,000 notdand amar : moTRdo> 30,000 A 40,000 cama 26,000 B 30,000 Sri 4,000 6 26,000 1,20,000 1,20,000 soridorn #1 deri Saeord were), ware griakeckd: rosy aoa vied de. 44,000 exnendotarie ae, 22,000 momdd ee. 28,000 oema da, 24,000 Bear ate dr, 8,000 De. 15,400 day, mOnort saan Ram wad. gowdodv de. 10 23,300 Recor, Beary yes slngaisy arioa deskie) mntact sigdeias des, 1,000 doxobayecs, Rag sndriday Zoowo%. 10. Se tant escd gay genes o8 detec ated aticbegs, asd Baticos astrecd 31-3-2018 § Gog sorawed ay med any, coe} aa apsngsy, end dedi cy beat meas gakwOA, a) eid aiich ayecay, SodeOamert ss dead wodried gom> woula : ActwoY— dn. 17,000; aa,sn0dt esse — do. 15,600; WR Eotind — ce. 400; x08 star - de. 4,000; Ganer gets — de, 30,000; anc ainont3— do. 30,000; atorsrivors wet — ce. 50,000; eno8d 802 31-38-2018 — da. 5,000.13121 b) 80 Badotosd aintosrie a Be3 aa. 11. a) aon cme dane psorérie Redmewedeonvo obegre> tant ead adore wodemds sede, 5 dod exe SHOOR, odes aed aovosnas z 18,000 16,000 44,000 2,000 30,000 1-4-2017 31-3-2018 z 20,440 11,000 60,000 2,000 30,000, NOAA ROMP 3,000 da. rivay SHOOA sey 2p, ADAG shed Be. 5 dos. Boos), Show. He tosdad, Aeocbs waRowa dowsten0: and 3s op. 60,000 Cams Or. 18,000 Bo aaird wog.de damwascad ase mard sosoried gman de. 24,000, Gs. 18,000 az) da. 12,000. 3: desodsiriecd me anopisd Sagaay combs. aadord memo ADOMOOOS word wea BAS Board Soe saz, sd me. Board anders Baw, Hoe tR08nd, m0bG Motard on. 80,500 623,500 24,000 8,000 6,800 3,000 2,000 4,500