KAKARAPARTI BHAVANARAYANA COLLEGE (AUTOMONOUS) B.Com.

LOGISTICS PAPER: CFA101A FINANCIAL ACCOUNTING-I II MID

Time: 1. 30 Hrs. SECTION-A

Max. Marks: 40

Answer any TWO of the following 2x5 = 10 1. What do you understand by subsidiary books? Describe the purpose of preparing such books. 2. Distinguish between Debit Note and Credit Note 3. What is a trial balance? Explain its objectives. 4. What are financial statements? What is the need of preparing financial statements? SECTION-B Answer any TWO of the following 2x15 = 30 1. From the following transactions of the month of April 2013, prepare the Journal Proper of Jindal & Co., a saree dealer, who also maintains purchases Book, Sales Book. April 1. Purchased on credit from Goyal Mills, Surat 25 polyster sarees @ Rs.100 3 Purchased on credit from Bansal & Co, 2 typewriters @ 3500 each 5 Sold on credit to Goyal & Co., 5 polyester sarees @125 each 6 Returned one typewriter (being defective) to Bansal & Co 8 Sold on credit two old typewriters to Murali @500 each ` 10 sold for cash to Garg & Co 20 Kota Sarees @50 each 12 returned to Goyal Mills, Surat 5 polyester sarees @100 each 14 Murali returned one old typewriter @ 500 16 Purchased for cash from Kansal & Co., 2 chairs @ 3700 each 18 returned one chair (being defective) Rs. 3700 20 sold two old chairs to Manohar @ 500 each 21 Manohar returned one old chair 22 Goyal & Co became insolvent and paid only 80 paise in a rupee in full final settlement. 24 Mr. B.K. Jindal (Proprietor of Jindal & Co) took away two silk sarees (Costing rs. 350 each sale price Rs. 700 each) from the shop and Presented to his wife on her 25th birthday. 25 a cheque of Rs.3500 received from Mittal & Co., a customer, Endorsed in favor of Bansal & Co., a Creditor. On 30-04-2013, the bank informed that this cheque was dishonoured 30 rent due to landlord, Ram Rs. 1000 30 Salaries due to employee Shyam Rs.1000 2. From the following particulars, prepare Petty Cash Book on Imprest system of Shri Lakshmi & Co. for the month of January 2013. Jan 1 Opening balance (on imprest system) 1000 2 paid for stamps 120 3 paid cleaners wages 150

4 5 6 7 8 9 10 11 12 13 14 15 16

paid for fare 160 paid for office tea 150 paid for repairs of cycle 100 paid for advertisement300 draw imprest from head cashier paid for cartage 100 paid for travelling expenses 250 paid for telegram sent 150 paid for entertainment to travelling salesman paid for repairs of cycle 10 paid for printing of a bill 50 paid for stationary 30 draw imprest from head cashier.

200

3. The following is the trial balance of M/s. Kasturi Agencies as on 31st March, 2013. Prepare Trading and Profit & Loss A/c for the year ended 31st March, 2013 and a balance sheet on that date. Dr Cr. Capital 100,000 Drawing 18,000 Buildings 15,000 Furniture & Fittings 7,500 Motor Van 25,000 Loan from Hari @12% interest 15,000 Interest paid on above 900 Sales 100,000 purchases 75,000 Opening stock 25,000 Establishment Expenses 15,000 Wages 2,000 Insurance 1,000 Commission Received 4,500 Sundry Debtors 28,100 Bank Balance 20,000 Sundry Creditors 10,000 Interest 3,000 Adjustments: 1. Closing stock was valued at Rs.32000 2. Outstanding wages Rs.500 3. Prepaid Insurance Rs.300 4. Commission received in advance Rs.1300 5. Allow interest on capital @ 10% 6. Depreciate Buildings 2.5%, Furniture 10% and Motor Van 10%. 7. Charge interest on drawings Rs.500 8. Accrued interest Rs.500

4. Prepare a three-column Cash Book of M/s Tulsian & Co from the following particulars 2013 Jan1 cash in hand Rs. 50000, Bank overdraft Rs.20000 2 paid into bank 10000 3 bought goods from Hari for cash Rs.200 4 bought goods for Rs. 2000 paid cheque for them, discount allowed 1% 5 sold goods to Mohan for Cash Rs.1175 6 received a cheque from Shyam to whom goods were sold for Rs.800, discount allowed 12.5% 7 Shyams cheque deposited into bank 8 Purchased an old typewriter for Rs. 200 spent Rs. 50 on its repairs 9 Bank notified that Shyams Cheque has been returned dishonored and debited the Account in respect of charges Rs.10 10 Received a money order for Rs. 25 from Hari 11 Shyam settled his account by means of a cheque for Rs.820, Rs. 20 being for Interest charged 12 withdraw from bank Rs.10000 18 Discount a Bills of Exchange (B/E) for Rs. 1000 at 1% through bank 20 honored our own acceptance by cheque Rs.5000 22 withdrew for personal use Rs.1000 24 paid trade expenses Rs.2000 25 withdrew from bank for private expenses Rs.1500 26 purchased machinery from Rajiv for Rs. 5000 and paid him by means of a bank draft purchased for Rs. 5005 27 issued cheque to Ram Saran for cash purchase of furniture Rs.1575 28 received a cheque for commission Rs.500 from R&Co. and deposited into bank 29 Ramesh who owed us Became bankrupt and paid us 50 paise in the rupee 30 received payment of a loan of Rs.5000 and deposited Rs.3000 out of it into bank 31 paid rent to landlord Mohan by a cheque of Rs.220 31 Interest allowed by bank Rs.30 31 half-yearly bank charges Rs.50

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