Reg. No.

NOVEMBER 2022 U/601/09-19/05101/

20-22/05101

FINANCIAL ACCOUNTING/FINANCIAL ACCOUNTING – I

Time : Three hours Maximum : 100 marks

SECTION A — (10  2 = 20 marks)

Answer ALL questions.

1. How will you show the following in the Profit and Loss Account?

Bad Debts (Trial Balance) 900

New Bad Debts (Adjustments) 500
New Provision for Doubtful Debts (Adjustments) 200
Old Provision for Doubtful Debts 100

2. What is BRS?

3. How do you incorporate the following in the Tanjore turf club

Balance sheet for the year 31.3.2019

Medal distribution fund 98,400

Interest on the fund investment 28,900
Medals distributed 28,700
Medal distribution fund investment 98,000

4. Rectify the following errors

(a) Sales to Manoj 5,500 was recorded as 5,050
(b) Sale to Manoj 3,400 was recorded as 4,300
(c) Wages paid 4,300 were recorded in the Cash Book as
3,040
5. From the following particulars, calculate the amount of
depreciation under Straight Line Method.
(a) Machinery Purchased on 1.1.2015 is 72,000
(b) Freight Charges 2,000
(c) Installation Charges 4,000
(d) Life of the Machine – 5 Years
(e) Accounting Year – Calendar Year

6. What is recoupment of short working?

7. Mr. Deva informs you that his goods worth 1,00,000 are
insured for 80,000 subject to average clause. The loss by fire is
estimated to be 95,000. Calculate what claim the incurred will
get from the insurers.

8. List out the benefits of avenge due date.

9. Mr. Rafi maintains his books on single entry system. He gives

you the following information

Capital as on 1.1.2012 32,000

Capital as on 1.1.2013 36,000
Drawings during the year 2012 10,000
Capital introduced on August 2012 6,000
You are required to calculate profit made by Mr. Rafi during
2012.

10. What is average Clause?

SECTION B — (5 × 7 = 35 marks)

Answer ALL the questions.

11. (a) Distinguish between single entry system and double entry
system.

Or
(b) A fire occurred in a business premises on 31.07.2016.
Ascertain the Amount of Claim

(i) Sales from 01.01.2016 to 31.07.2016 18,00,000

(ii) Purchase from 01.01.2016 to 31.07.2016 12,00,000
(iii) Stock on Hand on 01.01.2016 6,00,000
(iv) Gross Profit 40% on Sale

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12. (a) Explain the procedure to ascertain the fire insurance claim.

Or
(b) Calculate Gross profit from the following data
Particulars
Sales 6,60,000
Return inwards 10,000
Return outwards 20,000
Purchase 2,00,000
Closing Stock 50,000
Opening Stock 40,000
Wages 1,00,000

13. (a) Prepare a bank reconciliation statement from the following

data as on 31.12.2020.
(i) Balance as per cash book 12,500
(ii) Cheques issued but not presented for payment 900
(iii) Cheques deposited in bank but not collected 1,200
(iv) Bank paid insurance premium 500
(v) Direct deposit by a customer 800
(vi) Interest on investment collected by bank 200
(vii) Bank charges 100

Or
(b) From the following particulars find out net credit
purchases:

Opening balance of Sundry creditors 40,000

Payment of cheques 2,35,000
Payment by bills payable 25,000
Payment in cash 5,000
Discount received 2,500
Purchase returns 5,000
Closing balance of sundry creditors 47,500

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14. (a) Prepare Receipts and Payments Account of a club for the
year ended 31st December 2019 from the following
particulars :

Opening balance of Cash 40,000

Receipt of entrance fees 8,000
Subscription received for 2019 16,000

Previous year’s subscription received 1,600

Paid salaries 2,000

Paid for miscellaneous expenses 200

Rent paid 1,200

Payment for purchase of cricket balls 500

Payment for purchase of cricket bats 1,600

Payment for stationery in cash 100

Or

(b) Rectify the following Errors :

(i) 7,500 paid to Mani against our acceptance was

debited to Maui Account

(ii) 15,000 Salary paid to Mr. Mohan stands debited to

his personal account

(iii) Sold old machinery for 6,000 but wrongly credited to

sales account

(iv) Purchased furniture for 4,000 wrongly debited to

purchase account

(v) Salary received 2,250 was credited to commission

account.

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15. (a) A colliery company took the lease of a coalfield for a period
of 25 years from 1.01.2013 on a royalty of 1 per tonne of
coal raised with a minimum rent of 20,000 and the power
to recoup the short workings during the first three years of
the lease. The annual raisings were as follows.
Year Output
(Tonnes)
2013 12,000
2014 18,000
2015 12,000
2016 15,000

Prepare Short workings Account.

Or
(b) On 1st January 2014 machinery was purchased for
50,000. On 1st July 2015 additions were made for 10,000.
On 1st April 2016 further additions were made to the extent
of 6,400. On 30th June 2017 machinery the original value
of which was 8,000 on 1st January 2014 was sold 6,000.
Books were closed on 31st December every year. Show the
profit on sale of machinery and also prepare machinery
account for four years if depreciation is charged at 10% at
original cost (straight line) method.

SECTION C — (3 × 15 = 45 marks)

Answer ALL questions.

(Question No. 16 is a compulsory Question)

16. Prepare a Trading Account, a Profit and Loss Account and a

Balance Sheet from the following information.
Particulars Particulars
Opening Stock 5,00,000 Purchases 1,30,000
Sales 7,00,000 Capital 4,00,000
General Expenses 40,000 Bills Payable 11,000
Salaries 35,000 Closing Stock 1,25,000
Sundry Creditors 50,000 Purchase Return 18,000
Sales Return 40,000 Cash in hand 2,10,000
Wages 9,000 Sundry debtors 1,85,000
Bills Receivable 30,000

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17. (a) Prepare a Bank reconciliation Statement as on 30th April
1996 from the following particulars.
(i) P’s Overdraft as per pass book was 12,000
(ii) Cheques have been issued for 7,000 out of which
cheques worth 3,000 only had been presented and
en cashed up to 30th April 1996.
(iii) Cheques amounting to 3,500 had been paid into
bank for collection but of these only 500 had been
credited in the bank pass book.
(iv) Bank had charged a sum of 500 towards interest on
overdraft
(v) Direct deposit by a debtor in to bank 400
(vi) Interest on investment collected and credited by the
bank 600
(vii) Bank had debited a sum of 1,200 on account of life
insurance premium of Mr. P as per his standing
advice, which was not recorded in the cash book.

Or
(b) Explain about the needs, importance and causes of the
depreciation.

18. (a) On July 1, 1998, the godown of M/s A Ltd. was destroyed
fire. The records of the company revealed the following
particulars.

Stock on January 1, 1997 95,000

Stock on December 31, 1997 80,000
Purchase during 1997 3,10,000
Sales during 1997 4,00,000
Purchase from January 1, 1998 to the date of fire 75,000
Sales from January 1, 1998 to the date of fire 1,00,000
In valuing the closing stock of 1997, 1,000 was written off
whose cost was 4,800 part of this stock was sold in 1998
at a loss of 400 whose cost was 2,400. Stock salvaged
was 5,000. The godown was fully insured
Indicate from the above the amount of claim to be made
against the insurance company.

Or

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(b) Mr. Mano keeps has books of accounts under single entry
system. His financial position on 31.12.2010 and
31.12.2011 was as follows :
2010 2011

Cash 9,860 800

Stock in trade 38,520 57,020
Plant and machinery 54,420 61,000
Bills receivable - 16,480
Sundry debtors 24,840 43,940
Sundry creditors 72,040 80,000
Furniture 4,960 5,220
Drawings - 5,000

During the year he introduced additional capital of

20,000.
From the above particulars prepare a statement of Profit
and Loss of Mr. Mano for the year ended 31.12.2011.

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