7004

First Semester 5 Year B.Com. LL.B. Examination,

March/April 2021
FINANCIAL ACCOUNTING
Max. Marks: 80
Duration:3 Hours
Instructions: 1. Answer any five Questions from group (a) each question
carries 10 marks.
2. Answer any five Questions from group (b) each question
carries 06 marks.
3. Answers should be written in English completely.

Q. No. 1. a) Define accounting. Explain the objectives and functions of Marks 10

Accounting.
Q. No. 1. b) Describe briefly three kinds of accounts with examples
and explain the golden rules of debit and credit of these
accounts. Marks: 6

Q. No. 2. a) What is Accounting concept ? Explain the major accounting

Marks: 10
concepts in detail.

Q. No. 2. b) Group the following accounts in personal, real and nominal

account.

i)Creditor ii) Building

ii) Advertisement iv) Salary

OLLEGE vi) Machinery

OSEPn SC
v) Capital
vii) Furniture vii) Wages
ix) Copyright 2BANGALORE-25 x)Goodwill
Bank loan Marks 6
xi) Patent RAR xii)
Record the following transactions in Three Column Cash
Q. No. 3. a) Marks 100
Book.
2018 April 1 Started business of 7 27,000
4 Deposited R 5,000 into Bank
discount
6 Paid to Mr. Vinod 1,800 and
allowed by him { 200
allowed
8 Received cash from SaiR 3,600 and
him discount of 400

10 Paid electricity bill R 1,000

personal use F 500
15 Withdraw from bank for
18 Cash purchase 4,500
P.T.O.
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21 Cash sales 7,300
24 Purchase Furniture of 2,000
27 Mr. Fazin have done payment through cheque by
3,200
30 Deposited into bank ? 800
Q. No. 3. b) What is subsidiary book ? State its advantages. Marks:6
Q. No. 4. a) Enter the following transactions in Purchase Day and Sales
Day Book. Marks: 10
Jan. 1 2018 Purchase from Mr. Avinash and Co. on credit
40Heater@1,800/heater
20tube light 300/tube light
Jan. 2 Sale to Mrs. Anisha and Co. on credit
12heater@2,100/heater
15 tube light 7 350/tube light
Jan. 5 Purchase from Mr. Ramu on credit
60 Irons @ 550/Iron
40Mixers@72,700/Mixer
Jan. 10 Salary paid 200
Jan. 12 Sale to Mrs. Anju on credit
30 Irons @ { 600/lron
20 Mixers @{ 3,000/mixer
Jan. 15 Purchase Computer for office use from
Mr. Ravi of 7 12,000
Jan. 18 Purchase from Rohit and Co. on credit
25 electric kettles @ 700/kettle
30table fan @ 1,200/fan
Q. No. 4. b) What do you mean by cash bo0ok ? Explain the different types
of cash book. Marks : 6
Q. No. 5. a) Thefollowing are the balances extracted from the books of
Sri Prem as on 31 March 2018. Prepare his Trading and Profit
and Loss Account and Balance Sheet as on that date.
Marks:10
Particulars Dr Cr
Drawings 2,500
Building 12,000
Opening Stock 7,834
Machinery 4,338
Furniture 1,140
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Carriage Inwards 952
Purchase 33,437
General Expenses 1,766
Rent and Taxes 770
Advertisement 3,716
Debtors
17,860
Salary 10,862
Sales Return
683
Cash
100
Bad debt
100
Insurance 326
Wages 9,975
Depreciation 542
Capital 30,000
Bad debt provision
500
Creditors 11,133

BANGALORE-25 LEGEO
6% loan 5,000
Bank OD 543
Sales 61,725
AR
1,08,901 1,08,901
Adjustments:
i) Bring provision for bad debts on debtors at 5%.
ii) One year Interest is outstanding on loan.
ii) Insurance prepaid 100.

iv) Closing stock is 8,931

is Final account ? State its objectives. Marks: 6
Q. No. 5. b) What
N o . 6. a) The following are the balances extracted from the books of
Syam as on 31st March 2018. Prepare Trading and P&L
Account and Balance Sheet as on that date. Marks 10
Particulars Dr Cr
Opening stock 22,000
Purchase 30,000
Sale 86,000
Discount 400
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Sale Returm 6,000
Building 50,000
Debtors 26,000
Salary 2,400
Office expenses 1,200
Wages 10,000
Purchase Return 4,000
Interest 800
Travelling expenses 400
Fire Insurance premium 800
Machinery 10,000
Carriage on purchase 700
Commission 400
Cash in hand 2,300
Rent and taxes
1,800
Capital 62,000
Creditors 10,800
1,64,000 1,64,000
Adjustments:
i) Closing stock valued at 7 16,000
i) Wages 2,000 and salary 1,200 are
ii) Rent for two months at the rate ofoutstanding.
500/month is
outstanding.
iv) Depreciation building by 5% and machinery by 10%.
v) Prepaid Insurance 200.
O. No. 6. b) Write a short note on
i) Trading Account
ii) Profit and Loss Account
im) Balance Sheet.
Marks 6
Q. No. 7. a) From the following Receipts and Payment Account of
Bilaspur Club' prepare Income and Expenditure Account
for the year ended 31 March 2006 and its Balance Sheet
as on that date.
Marks 10
Receipts Payments
Cash in hand 3,500 Salary 2,000
Cash at bank 10,000 Repair Expenses 500
Donations 5,000 Purchase on Furniture 6,000
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To Retreshment 12,000 By Audit fee 800
Receipt
(Foodstuff sale) By Balance at
To Entrance fee 2,000 Bank (31 Dec. 1999)
Current account 100
Deposit Account 5,000

31,300 31,300
1-1-1999 were Building 20,000,
Government
Asset on
securities 10,000 and stock of food stuffs
1,800. There
on 1-1-1999.
was also a reserve fund at ? 3,500
and arrears
Arrears of subscription for 1998 were 900
stock of food stuff at the
of subscription for 1999 wereR 1,300
close at the year was valued at ? 1,50o.
entrance fee
The by-law of the club provided that 50% of the
to
and 10% of the surplus of any years are to be transferred
Reserve Fund.
club for the
Prepare Income and Expenditure Account at the
Balance Sheet as on that date.
year ended 31-Dec.1999 and
Q. No. 8. b) Explain the difference between Receipt and Payment
Marks :6
Account
a. No. 9. a) What is Computerized Accounting ? Explain the
advantages of Computerized Accounting. Marks: 10

Write short note on accounting softwares. Marks: 6

Q. No. 9. b) a

Q. No. 10. a) What are the problems faced in Computerized

Accounting System ? Marks: 10

Q. No. 10. b) Distinguish between Manual and Computerized

Marks 6
Accounting SEPHS

COLLEGE
BANGALORE-2S
R Y
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5
12,000 Miscellaneous 500
Subscriptions
Investment 6,000
Entrance Fee 1,000 Purchase on
100 Insurance Premium 200
Interest on
Investment
Interest Received 400 Billiard table 8,000
Sale of old newspaper 150 Paper Ink etc. 150
Drama expenses 500
Sale of Drama Ticket 1,050 Cash in hand (closing) 2,150
Cash at Bank (closing) 7,200
33,200 33,200

Adjustment:
a Subscription in arrear for the year 2005-06 7 900 and
subscription in advance for the year 2005-06 350.
b) Prepaid Insurance 90
c) Outstanding miscellaneous expenses 40
d) 50% of donation is to be capitalized.
e) Entrance fee as to be treated as Revenue Income.
) 8% interest has accrued on investment for five months.

Q. No. 7. b) What would be the amount of salary to be debited to

Income and Expenditure Account for the year ended 31 March
2018? Marks: 6
Salary paid during the year 2017-18 25,000
Salary outstanding on 31st March 2017 1,250
Salary outstanding on 31st March 2018 7 1,875
Salary paid on 31st March 2017 1,125
Salary prepaid on 31st March 2018 1,000 )
Q. No. 8. a) Following is the Receipts and Payments Account of the
Chandigarh Club for the year ended on 31st December 1999. Marks: 10

Receipts Paymentss
To Current Account 300 By Refreshment expenses 8,000
To Deposit Account 2,400 (Food Stuff purchased)
To Interest 600 By Crockery purchased 3,000
To Subscription 12,500 By Books purchased 2,000
( 800 is for 1998) By Newspaper 200
To Profit on 1,500 By Salary 11,000
entertainments By General expenses 1,200