ST.

ANTONY’S COLLEGE OF ARTS AND SCIENCES FOR WOMEN, THAMARAIPADI

MODEL EXAMINATION - APRIL 2020
FINANCIAL ACCOUNTING – II
MAJOR : I B.COM & B.COM CA MARK: 75
DATE : TIME : 3 HOURS
PART – A
I.CHOOSE THE CORRECT ANSWERS:
1.Consignment a/c is of the nature of
a). Personal a/c b). Nominal a/c c). Real a/c d). Representative’s a/c
2. Del credere commission is allowed to cover
a). Normal loss b). Abnormal loss c). Loss due to bad debts d). Actual loss
3. A Joint venture is
a). Sending goods by one person to another b). Particular Partnership
c). Purchasing goods d). Selling goods
4. Profit or loss on joint venture is shared by the co-venturers
a). Equally b). In the Capital ratio c). As per the agreement d). New ratio
5. Bills receivable endorsed are debited to
a). B/R a/c b). Debtors a/c c). Creditors a/c
6.Closing Capital + Drawings- Opening capital = -------------------
a). Profit or loss b). Additional Capital c). Opening Creditors
7. A Promissory note contains
a). An unconditional order b). A Promise c). Request to delivery goods
8. The grace days for a bill is:
a). 3 days b). 4 days c). 5 days d). 6 days
9. Goods sent to branch at cost + 25%. The loading on the invoice price is:
a). 16% b). 20% c). 25% d). 125%
10. Goods supplied by Head office to its branch may be charged at:
a). Cost Price b). Selling Price c). None of these
PART – B ( 5 X 4 = 20)
II. ANSWER THE FOLLOWING QUESTIONS:
11. a). Distinguish between a Consignment and a Sale. (OR)
11.b). Ajay consigned to baby 100 Cases of tea costing Rs.100 per case. He paid Rs.1,000 as freight and cartage.
Baby could take delivery of only 90 cases since 10 cases were lost in transit.He paid Rs.2,000 as unloading and
carriage charges. At the end of the year, he reported that he has sold away 80 cases at Rs.150 per case. You are
required to calculate: 1). Value of abnormal loss 2). The value of closing stock. If the abnormal loss of 10 cases
happens at the godown of the consignee in place of transit from Ajay to Baby. What will be the 3). Value of
abnormal loss and 4). Value of Closing stock.
12. a). What is Joint venture and Explain its Characteristics. (OR)
12. b). X and Y entered into a joint venture for purchase and sale of some household items. They agreed to share
profits and losses in the ratio of their respective contribution. X contributes Rs.10,000 in cash and Y Rs.13,000.
The whole amount was placed in a joint bank account. Goods were purchased by X for Rs.10,000 and expenses
paid by Y Rs.2,000.The also purchased goods for Rs.15,000 through the joint bank account. The expenses on
purchase and sale of the articles amounted to Rs.6,000(including those met by Y). Goods costing Rs.20,000 were
sold for Rs.45,000 and the balance was lost by fire. Prepare Joint venture A/c, Joint Bank A/c and the Venturers’
accounts closing the venture.
13.a). Explain single entry system. How does it differ from double entry system? (OR)
13.b). From the following data, ascertain sales made during the year by preparing Memorandum Trading Account.
Stock on 1.1.95 60,000 Stock on 31.12.95 40,000
Purchase during 1995 4,00,000 Rate of G.P. on Sale 20%
Wages Paid 10,000
14.a). What is a ‘Receipts and Payments account’? (OR)
14. b). On 1-1-1999, Jeyanthy sold goods to Devi on credit for Rs.2,000 and drew a bill on Devi for Rs.2,000 for
3 months after date. Devi accepted it on 3-1-1999 and returned it to Jeyanthy. On Maturity, the bill was duly
honoured by Devi. Pass Journal entries in the books of both the parties.
15. a).Wrote short notes on: a). Goods in transit b). Cash in transit. (OR)
15.b). From the following particulars prepare a branch account showing the profit or loss t the branch.
Opening Stock at the branch 15,000
Goods Sent to the branch 45,000
Sales 60,000
Salaries 5,000
Other Expenses 2,000
Closing Stock could not be ascertained but it is known that the branch usually sells at cost plus 20%. The branch
manager is entitled to a commission of 5% on the profit of the branch before charging such Commission.
PART – C (3 X 15 = 45)
III. ANSWER THE FOLLOWING ANY 3 QUESTIONS:
16. A head office has its branches at Luknow and Jaipur. The head office sent goods to the branches at
invoice price which cost plus 25%. Sales are made only at the branches which remit all cash received to
head office. Fromm the following details, prepare the branches stock and Stock Adjustments A/c and
goods sent to branches A/c’s as they would appear in the Bombay books.
Lucknow Jaipur Branch
Branch (Rs.) (Rs.)
Goods from Head office at Invoice 40,000 25,000
price
Returns to Head office at Invoice 600 500
price
Cash Sales 19,000 17,500
Credit Sales 12,000 9,500
Stocks – 1 st Jan 1995 (Invoice Price) 6,000 8,000
Stocks – 31.12.1995 (Invoice Price) 18,000 11,000
17. Ghose and Bose enter into a Joint Venture for guaranteeing the subscription at par of 1,00,000 shares
of Rs.10 each of a Joint Stock Company. They agree to share profits and losses in the ratio of 1:3. The
terms with the company are 4.5 commission in cash and 6000 shares of the company as fully paid up.
The Public take up 94,000 of the shares and the balance shares of guaranteed issue are taken up by
Ghose and Bose who provide cash equally . The Commission in cash is taken by the partners in the ratio
of 4:5.
The Entire shareholding of the venture is then sold through brokers, 25% at a price of Rs.9; 50% at a
price of Rs.8.75; 15% at a price of Rs.8.50 and remaining 10% are taken over by Ghose and Bose
equally at Rs.8 per share. The sale proceeds of the shares are taken by the partners equally.
Prepare a Joint Venture Memorandum Account and the separate accounts in the books of Ghose and
Bose.
18. Sathish draws two bills of exchange on 1-1-1999 for Rs.6,000 and Rs.10,000 resepectively. The bill of
exchange for Rs.6,000 is for 2 months, while the bill for Rs.10,000 is for 3 months. These bills are accepted by
kannan to settle the amount he owed to sathish. On 4th March,1999, Kannan requests to renew the first bill with
interest at 12% p.a. for a period of 2 months. Sathish agrees to this proposal. On 20 th March 1999 kannan retires
the acceptance for Rs.10,000, interest rebate i.e., discount being Rs.100.
Before the due date of renewed bill, kannan becomes insolvent and only 70 paise in a rupee was recovered from
his estate. You are asked to show the journal entries in the books of sathish and kannan and also show kannan’s
a/c in sathish’s ledger.
19. The following purchases were made by a business house having three departments.
Dept. A 1,000 units
Dept. B 2,000 units at a total cost of Rs.1,00,000
Dept. C 2,400 units
Stocks on 1st January were:
Dept. A 120 units
Dept. B 80 units
Dept. C 152 units
Sales were:
Dept. A 1020 units at Rs.20 each
Dept. B 1920 units at Rs.22.50 each
Dept. C 2496 units at Rs.25 each
The rate of gross profit is same in each case. Prepare Departmental trading account.
20. Indian oil ltd. Tuticorin consigned 2,000 barrels of lubricant oil costing Rs.800 per barrel to Central oil
company, Mumbai on 1.1.99. Indian oil ltd. paid Rs.1,00,000 ass freight and insurance. 50 barrels were destroyed
in transit on 8.1.99. The insurance claim was settled at Rs.30,000 and was paid directly to the consignor.
Central oil Co.took delivery of the consignment on 20.1.99 and accepted a bill drawn upon them by Indian oil ltd.
For Rs.10,00,000 for 3 months. On 31.3.99, Central oil Co. reported as follows:
i). 1,500 barrels were sold at Rs.1,200 per barrel;
ii). The other expenses were unloading Rs.5,000; Wages of Salesmen Rs.1,00,000; Printing Rs.42,600; Godown
rent Rs.20,000.
iii). 50 barrels of oil were lost due to leakage which is considered to be a normal loss.
Central oil Co. is entitled to a commission of 5% on all sales effected by them. Central oil Co. paid the amount
due in respect of the consignment on 31.3.99. Show the Consignment a/c , Central oil co a/c and loss inn transit
a/c in the books of Indian oil ltd and the Consignor’s a/c in Central oil Co’s books.