LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.A. B.Sc DEGREE EXAMINATION – ECONOMICS & MATHEMATICS
SUPPLEMENTARY EXAMINATION – JUNE 2007
CO 4201 - FIN. ACCOUNTS & FIN. STAT. ANALYSIS
Date & Time: 26/06/2007 / 9:00 - 12:00
Dept. No.
Max. : 100 Marks
SECTION - A
(10 x 2 = 20)
Answer ALL the questions
1.
2.
3.
4.
5.
6.
7.
8.
Define Accounting
State the rules of double entry accounting.
What is meant by real account? Give relevant examples.
Differentiate Capital expenditure from Revenue expenditure.
What is a trial balance?
Define accounting ratio.
Write a note on cash from operations.
How would you incorporate the following items in Loyola Tennis Club’s
Balance Sheet for the year 2006:
(Rs.)
Medal distribution fund
26000
Medals distributed
4500
Interest on fund invest ments
3500
Medal distribution fund investments
25000
9. Prepare Single Column Cash Book of Mr. Valan
Date
Particulars
Amount (Rs.)
2007 Jan 1 Started business with Cash
35000
5 Bought goods for Cash
15000
10 Sold goods to Mohan on credit
50000
15 Paid Rent
10000
20 Mohan settled his account by cash
50000
25 Sold an unused bike for cash
20000
30 Bought a second-hand car for cash
60000
31 Paid salaries
5000
10. From the following details, determine the managerial remuneration available to a full time
director of a manufacturing company. The P&L account of the company shows a Net Profit
of Rs.4000000 after taking into account the following items:
a) Depreciation (including Special depreciation of Rs.40000) Rs.100000
b) Provision for income tax
Rs.200000
c) Donation to political parties
Rs.50000
d) Ex-gratia payment to a worker
Rs.10000
e) Capital profit on sale of assets
Rs.15000
SECTION - B
(5 x 8= 40)
Answer any FIVE questions
11. Briefly explain any eight accounting concepts.
12. Distinguish between Receipts & Payment account and Income & Expenditure account.
13. What are the advantages of preparing Cash Flow Statement?
14. Pass journal entries in the books of Mr.Mani for the month of Jan. 2007:
2007 Jan1. Started business with Cash Rs.75000 and Plant Rs.25000
6. Bought goods for Cash Rs.30000
9. Sold goods to Mr.Ameer on credit Rs.25000
12. Bought a Computer from M/s. Laptop Ltd. on credit Rs.40000
16. Received interest by cheque, which is deposited immediately Rs.1000
20. Paid Commission by cheque Rs.3000
24. Final settlement by Mr.Ameer Rs.24500 and discount allowed Rs.500
31. Paid Salaries Rs.20000
15. Record the following transactions in the relevant Subsidiary books of M/s. Soosai
Stationery Mart for the month of March 2007:
Mar1. Bought from M/s.Camlin Pencils
10 Gross full scale @ Rs.60 per dozen
40 Dozen Geometry Box @ Rs.50 each
Trade discount on all the above items @ 12%
Mar 5. Bought from M/s. Natraj Stationeries
15 Gross HB Pencils @ Rs.24 per dozen
10 Gross Art Pencils @ Rs.4 each
Mar 10 Returned to M/s. Camlin Pencils
20 Nos. full scales bought on Mar.1
Mar 20 Sold to St.Xavier Mat. School, Chennai.
10 Dozen Geometry box @ Rs.900 per dozen
5 Gross HB Pencils @ Rs.3 each
Trade discount on all the above items @ 10%
Mar 25 Sold unused furniture for Cash Rs.15000
Mar 30 Returned by St.Xavier Mat. School, Chennai
5 Nos. Geometry box sold on Mar 20.
16. From the following details prepare Receipts and Payments account of Arnold Sports Club
for the year ended 31-3-2007:
Particulars
Rs.
Particulars
Rs.
Balance as on 1.4.2006
3000
Subscriptions for the year:
Entrance fees
5500
2005-06
4000
Rent paid
52000
2006-07 200000
Stationery purchased
2000
2007-08
6000
Sports equipments purchased
60000
Donations received
10000
Wages paid
24000
Annual Day party expenses
25000
Maintenance charges
12000
Interest paid
9000
17. Prepare Bank reconciliation statement of Mr.Raja for the month of March 2007:
(a) Balance as per Cash book Rs.20000
(b) Cheque deposited into bank but not credited Rs.5000
(c) Cheque issued to Ramu, but not cleared till date Rs.3000
(d) Bank Charges debited in the pass book Rs.20
(e) Interest credited in the pass book till 31-3-2007 Rs.200
(f) Our client Mr.Pandian has directly paid into our account Rs.7000
(g) LIC premium paid by the banker as per our standing instructions Rs.1000
(h) Banker has given a wrong credit Rs.750
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18. From the following Balance Sheet of M/s. Ashok Ltd. you are required to prepare a Cash
Flow Statement:
2005-06
2006-07
2005-06
2006-07
Liabilities
(Rs.)
(Rs.)
Assets
(Rs.)
(Rs.)
Share Capital
1200000 1500000 Cash
180000
282000
Creditors
420000
270000 Debtors
720000
690000
Profit & Loss a/c.
60000
138000 Stock
480000
540000
Land
300000
396000
1680000 1908000
1680000 1908000
SECTION - C
(2 x20=40)
Answer any TWO questions
19. Prepare Three Column Cash Book of Mr.Kurana for the month of March 2007.
Date
Particulars
Rs.
2007 Mar. 1 Cash in hand
50000
Bank balance (Cr.)
5000
3 Bought goods for Cash
30000
5 Sold goods for Cash
40000
9 Bought furniture for cash and payment by cheque
5000
12 Commission paid
3000
14 Rent received by cheque and banked immediately
12000
16 Deposited into bank
35000
20 Bought goods from Arun on credit
12000
22 Returned goods to Arun
2000
23 Final settlement made to Arun
9750
25 Withdrew from bank
20000
27 Sold goods to Mathew for credit
25000
29 Final settlement made by Mathew
24500
30 Withdrew from bank for own use
1000
31 Deposit into bank all cash in excess of
5000
20. Prepare a Trading and Profit & Loss account for the year ended 31.12.2006 and a Balance
Sheet on that date from the Trial Balance of Mr. Irudayam.
Particulars
Debit (Rs.)
Particulars
Credit (Rs.)
Opening stock
10000
Capital
350000
Buildings
500000
Bank loan
75000
Furniture
40000
Creditors
25000
Purchases
200000
Purchase returns
2000
Salaries
30000
Interest received
3000
Bad debts
1500
Sales
450000
Cash
12500
Bills Payable
20000
Sales returns
3000
Factory rent
24000
Advertising
15000
Power
18000
Stationery
4000
Wages
12000
Carriage inwards
3000
Debtors
42000
3
Insurance
10000
925000
925000
Adjustments:
(a) Stock as on 31-12-2006 Rs.150000
(b) Salaries unpaid Rs.6000
(c) Insurance prepaid for a quarter.
(d) Depreciate Furniture @ 10% p.a.
(e) Write off further bad debts Rs.2000
21. Prepare a Balance Sheet with as many details as possible from the following information:
(a) Gross Profit ratio
20%
(b) Debtors turnover
6 times
(c) Current Ratio
2.5
(d) Liquid Ratio
1.5
(e) Fixed assets to net worth 0.80
(f) Stock turnover ratio
6 times
(g) Net working Capital
Rs.300000
(h) Capital
Rs.1000000
(i) Reserves & Surplus
Rs.500000
.
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