SM-267

I-_Ifll
II Semester B.Com. Exam.inati,oR~May/June 2010
(Semester Sdteqte);
COMMERCE
Fln;tneial AccottnfiBg-Il ,,'
Ti~,: 3.aQUl"s

Instruction : Answers should be written completel?l either in Kannada or

in English.

Answer any 10 of the following. Each question carries two marks.

1. a) What is meant by Fire claims ?
b) Give a specimen of Bills Receivable Account as prepared under S'ingle Entry
System.
c) Ascertain opening stock when
Purchases
90,000, Wages 27,000,
Sales
J,30,000
Closing Stock
20,000, Gross Profit on Sales is 25%.
d) Mention Important objectives of departmental accounts.
e) What are dependent branches?
f) What is meant by loaded price in Branch Accounting ?
,

~ ,

g) What is meant by cash in transit?

h) What are Abnormal line of goods ?
i) What is single ~ntry system of Book Keeping?
j) Which is the authority issuing Accounting Standards?
k) Mention the basis of Apportionment of the following expen'ses in case of
departmenUllac.epunting.
a) Labour Welfare Expenses
b) Advertising.
I) Calculate the ~oun~'6fFire claim by applymg average clause from the following:

Loss of stock by fire

Amount of policy
Total value of stock

1,50,000
1,30,000
1,71,000

11111111111111

2. A fire occured on 31-3-2004 in the premises of a Firm and stock was destroyed
with the exception of the value of Rs. 1,24,080.
Following particulars are available from the books of accounts of the firm.
1,80,000
Purchases to the date of fire

7,80,000

Sales to the date of fire

5,40,000

Carriage Inwards

24,000 .

Commission paid on purchases

to purchase manager

2%

Rate of Gross Profit on cost

50%

You are required to calculate

a) Total Loss of stock
b) Amount of claim to be lodged with insurance company.
3. From the information given below, calculate sales
Opening debtors

5,000 Opening Bills Receivable

2,000

Closing debtors

8,000 Closing Bills Receivable

1,000

Cash received from debtors

10,000

(including cash from Bills receivable).

III III~.II.IIIIII
4. A H.O. at K.GF. has branches at Kolar and Mulbagal. Give the entries in the
H.O. books to adjust the following assuming that the books are closed on
31-3-2004.
a) Expenses paid Rs. 4,800 to be charged to Mulbagal branch for work done
on its behalf by H.O.
b) Kolar branch paid Rs. 3,600 as salary to a visiting H.O. official. The branch
has debited the amount to salaries ale.
c) Depreciation at 10% P.A. is to be charged on furniture at Kolar costing
Rs. 10,000 the account of which is in the H.O.
d) Goods costing Rs. 2,400 purchased by H.O. from Royal Marketing but
payment made by Kolar branch.
e) A Remittance_ofRs. 3,750 made by Mulbagal branch to H.O. on 28 March
2004 was received by H.O. on 2-04-2004.
5. The Bangalore Shoe Company has a branch at K.GF., the following are the
transactions between the H.O. and branch during the year 2008-2009.
Stock at branch on 01-04-2008

750

Petty cash at branch on 01-04-2008

200

Cheques sent to branch:

3,300

For Salaries

1,000

For Rent

2,000

For Petty cash

300
3,300

Cash remitted to H.O.

18,000

Goods received from H.O.

13,000

Stock on 31-03-2009
Petty cash on 31-03-2009

1,000
150

1lIlllnll.llm
6. A firm has two departments

A & B. During the,. Trading period ending

31-03-2010.
Particulars

Dept. A

Dept. B

Total

5,000

7,000

12,000

Purchases

42,000

'52,000

94,000

Sales

80?OOO

93;000

1)3,000

Purchase Returns

2,000

2,000

4,000

Sales Returns

2,000

2,000

Carriage inwards

4,000
4,500

Power

6,000

,Wages

11,000

Closing Stock of Depts,

11,000

Opening Stock

Wages are allocated in the ratio of 5:6 and the number of units consumed by
Dept. A and Dept B are in the ratio of 1:2. Prepare departmental trading account
in columnar form,
7. Calculate the total purchases from the following information relate to Sundry
creditors account.
Opening Balance

2,000

Cash paid to creditors

60,000

Goods returned to Crs

10,000

Acceptances issued to creditors

60,000

Discount allowed byers

1,350

Closing balance

4,000

Cash purchases during the period amounted to Rs. 50,000

8. State the scope and functions of Accounting Standards Board.
9. Briefly explain the stages in the conversion of books of accounts from Single
Entry System to Double Entry System.

SECTION -._~. ~C,

\--,

,:-

Answer' any three of the following. Each question carries IS marks.

10. On J5th September 2004, the premises ofStat1'frading Co. were damaged by
frre. However sufficient records were saved from whic,qthe following ,information
was gathered.
Stock at cost on 01-04-2003
nu 'I' 73,500
Stock at cost on 31-03-2004
./'.l 79,600
Purchases for the year ending 31-03- 2004
~,98,poo
. Sales for the year ending 31-03-2004
:~,g7,000
Purchases 01-04-2004 to 15-09-2004
. ',\1t62~()(}o'
.,
SalesOl-04-:-2004to:15-09-2004
,,"2,31~200< 1 \""
On determining the value of stock on 31-03-2004, Rs. 2,300 had been written
off in respect of c.erWin, slo\\1':moving stock, which, had original '40St ."of
Rs. 6,900. A part of this stock was sold in May at a loss. of Rs. 250 on original
cost of Rs. 3,450. The remaipj.ng stock is now estimated at Original cost,
subject to this the Gross Profit ratio has been uniform throughout.
V~lue of salvaged stock is Rs. 5:800.
Show the amount of claim subjectto Average clause.
The value of policy was Rs. 50,000.
11. Reddy carries on business as retail m~tchant. He does not maintain Regular
account books. From cash sales effect~q:;by him he effects business and other
payments, and always retains cash ofRs,J,OOO on hand and deposits the balance
in the bank account. The stock inventories for the year ended 31 st December
2009 are lost. However he informs yoil that he has sold goods invariably at a
price which yields him a profit of 33
% .on cost.
-.

\'

Prom the following information prepare necessary final accounts for the year
ellding 31-12- 2009.

a)..~htsina:~~iabilities

01012009
1,000

cdh:~iSank
Debtddn~?
Stock ofg~,
Creditors,
H a::

-?
\10,000

>

~8,ooo;\
.4,000

31122009
1,000
8,000
35,000
?

I.mmillmlillngil
b) Analysis of the bank pass book
Payment to creditors

70,000

Payment for business expenses

12,000

Receipts from debtors

75,000

Loan from Rani taken on 01-01-2009

10,000

at 10% interest P.A.

Cash deposited in the bank
In addition he paid to the creditors for goods Rs. 2,000 in cash and salaries
Rs. 4,000 in cash. He also withdrew Rs. 8,000 cash for his personal use.

Debit Balances

Rs.

Credit Balances

Rs.

Furniture

2,800

Creditors

Cash at Bank

3,560

Goods supplied to H.O.

12,000

Sales

76,000

Office Expenses

940

Debtors

7,400

Salaries

3,000

Rent

1,920

Goods from H.o.

16,000

Purchases

37,600

Stock on 01-01-2009

12,000

H.O. Account

3,700

6,480

91,700

91,700

Closing stock valued at Rs. 2,700. The branch account in the H.o. books on
31-12-2009 stood at Rs. 460 (Dr). Goods worth Rs. 2,500 sent by H.o. to
branch and remittance of Rs. 1,200 sent by branch to H.o. were in transit.
Incorporate above Trial Balance in H.o. and pJ;epare Kolar BranchA/c.

13. Bangaldre H.O;tlfabmpartYinV61besg6dds

to its;K~GF. Branch at'cost plus

20%. The branch also purchases independently froin local parties for which
. "".~

payments are made by the H.O. All cash collections of the daY
is to be remitted
'~.
.

..

to H.O. through a bank account and all expenses of the branch ary 4,kectly paid
byH.O.

Imprest cash :
01-01-2007

20,000

31-12-2007

18,500

Debtors on 01-01-2007

2,50,000

Transferred from H.O. at invoice price

2,40,000

Direct Purchase by branch

1,60,000

Total sales

17,50,000

Cash sales

4,50,000

Returns from customers

30,000

Direct Purchase

4,50,000

Goods sent to branch from H.O.

6,00,000

Transfer from H.O. for Petty cash Exp.

25,000

Bad debts

10,000

Discount to customers

20,000

Cash received from customers

Branch expenses

12,50,000
3,00,000

Stock on 31122007
Directly purchased by branch

1,20,000

Transferred from H.O. at invoice price

1,80,000 .

S:.-K::'

Traders Ltd deal in

departme:lS, the balances of accounts on

are as follows

Share Capital;
/ 50,000 shares of Rs. 10 each
6% Debentures

Stock on 01-01-2009
Dept.
Dept.

A
B

Dept.

Purchases

A
B
C

A
B
C

A
B
C
Motor Lorries
Furniture
Bank
Salaries
Carriage
Traveling Expenses
Advertisement
Printing and Stationery
Rates and Taxes
General Charges
Debenture interest upto 30-6-2009
Sundry creditors
Bills Receivable
Sundry Debtors
Bills Payable
General Reserve
Goodwill
Land and Building
Profit and Loss Account (Cr.)

5,00,000
3,00,000
70,000
40,000
60,000
14,10,000
7,00,000
10,50,000
18,60,000
9,15,000
13,80,000
2,80,000
1,30,000
2,10,000
1,30,000
72,000
1,44,800
54,000
12,600
6,300
8,100
13,500
1,800
36,900
9,000
1,01,000
2,80,000
2,66,000
30,000
1,45,000
90,000
1,80,000
24,000

31~:::1II1111\

Adjustments :
Bad debts Rs. 2,000, Bil1s,.,~~9~iv.able Bad 1,600, Closing Stock ': Dept.
A. 60,000, Dept. B - 50,000. Dept. C - 65,000. Depreciate Land and Building by
2.5%. Furniture by 1q%~~tltO!Lorries 25%. Allocate depreciation on Motor
Lorries in the ratio of 2~1:
1ap4- the other expenses in the ratio of total opening
stock and purchases of each dept. Prepare departmental Profit and Loss Alc in
a columnar form for thceyear ending 31-12-2009 and the Balance Sheet on that
date in the prescribed form. "
,~t

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~d~
:;)~n- w

1. ~M ~~CC)ddfc) ~
~~~~rtero~o~o.~.!
~~rtwa~
e;,~rleb.
(lOx2=20)
a) ~o! ::>~oj) ~~ arloa5&>d
arl~ cWodoe~ ?
b) ~~ ~~dJ
arl~'!oj)e'JM~~O~
~~O;yd~e!i)d <:5JO~rl~~~cm ~dOQt)~
~t!.
c) '6~f\~ ~&.!~od
~do2P~ Ci);EJ]~~ ~o~~~~o.
~oeO
90,000
~()
27,000
~OC)~
1,30,000
e;,o.!e>Ci)m~
20,000
iEirc>e.; ~'l;J ~OC)~ d~o.m ~e. 25
J

cP

d)

~~dd()~
~~
e;,Qe~ ~.rlrl9J" wodoe~?

~~f\eoj)

.!~~o.

erotte~rl~~

e)
f) ~eo~ d~ wodoe~?
II

g) "~rlF e>~d ~rldJ" cWodoe~?

h) ~~~~e.;Md ;yd~ wodoe~?
i) ~e ~~
arl~~ wod~e~?
j) o:m~ ;yd0'trt~~d
~~rl~~
NQFO~

e;,Q!JC)~~.?~.....

k) ::>~1\eOi?~~d~rle;.~
~tt, ~~dd,~~~
a) ~~F"~ ~~~~ .~.:~tsc::":'~:;;:'
.. ' ,,'

' ,

';':

,":''1

..j. _.j ...-

b) ~~e~

.: __".,

'" .....

......_~.

cj(.> ~,~.
~_

'
1) ~ ~e;1\~ ::>;1drl~od ~~~O W~
~o!~od

~:t' "'(.~ --:~-;l.,~-: ~.';(r.:}:;c

~~d

~(),I,)oj) ~~

~~

...'", ',.J

1,71,000

'"""_,.'

,~.

'-_.v\."A" '.,/ _"..'.' ""',,~,.-'

, .'

/j:;~r,:;

~;ETc)~"

Ci);EJ]~ 1,50,000
1,30,000

Ci);EJ]N~~~

.'

~t.:RrrlY~ ~o~Q:)O?

'."

OCt

,'.

<?~'~

arlOa5&>d
arl~&J
~~o~.

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III

IRiggi BI 1 III1111
5. ~orl~JC)ro ~.~O.No:m tf.t3.wcp".cd()M
~1~~cxt:>~ ffiIc)ood. ~ tf~~or;; ~~w;)drle.;b
~~cd ~~~O~~ tf.t3.wcp".!rc)~crl.t;)oort2008-2009d~ cdt!Od.
01-04- 2008 dO ~~

750

01-04-2008d()

200

z.3~o cdrlr;)
M

~~rt t5~~
~~oo.!Jr;)
"
c>(.
Q

1,000
2,000
300
3,300

~02J~~l\

2Je)~rt7\e)1\
z.3~O ~~~1\
M
z.;l"

~~cd ~~~ort ~N~d cdrlr;)

18,000
13,000
~~cd ~~~ocmod 2Jod ~~
31-03- 2009 d() ~~
1000
31-03-2009 drD z.3~ocdrlr;)
150
~~cd
~~eocxt:>~~rl~O
'G.t3.w~. ~~ ro;)3cxt:>~ 30cmO.
-..:.;
J
M

c>(.

5,000

B
7,000

Total
12,000

42,000
80,000
2,000
2,000

52,000
93,000
2,000
2,000

94,000
1,73,000
4,000
4,000
4,500

~do~d

crvN]~

~o~o
~m>W

~o~o W<JaJ;w';
~m>w

W<JcD;W';

'6.rc>ori ~dacd ~~Ocd 7\e)~2Je)~rt

~o~cd
~rD
eo.!~ CC)Ml~
..ll
~Ocxt:>~ 5:6d ~~~d~

2,000

9,000

zZoub~~.

~oQcd ero~crl.t;)~rl
Q;;)'l;h)rl
-A ~

B cxt:>0M
1:2d ~e:m~dOMzZoz.3'Go:m1\d.

6,000
11,000
11,000

1111110

7. 5~1\~ ~~cm

elQVdd ~~d "'W~~~~~tt'cm~

b9

.~doQd

~a;5~N~

~od

iS~

60,000

e;J.)~

~t3~

f'J

10,000

c@ot3rl~

60,000

;xirc)~~
'WoddJ

1,350

b9

4,000

~F"d ~~~ ~~5

50,000

eo~d

8. ~?3r)d ~~,~~
..

9.

50~&ot3~O .

2,000

~~~

~d~~~d

1111111

l:l

?i/C)~~F"~
~d~!!3 ~~
Q.JJ

Qtid~~od
0.~~~
Q
~
a5oi!rl~~ iSo~e;J.)1\ Q;J~ONO.
'WO~ CC>~~~

~cmF"~~~

CC>~~~

g(,

~~N.

Qtid~1i
Qtio~F"il:be;J.)rl
'6o~'Wc:b~Q;JQ;Jr;S
Q

10. 0M!o515-09-2004do~
~eJ~
~~~o~ ~O.Nom 'doart e~~om~~.
~~'6~~ ~~~ ~ 5~50d ~~cm~ iSo~&o~~1\d.
01-04-2003 do~ iSd'6J

73,500

31-03-2004do~

79,600

~d'6J

31-03- 2004d a;5~F"d~o~o~~

3,98,000

31-03-2004d

4,87,000

~~F"d ~0tle.3~'ri,)

01-04-2004 Ood 15-09-2004da;5d1\~ ~o~o

1,62,000

01-04-20040od15-09-2004~d1\~

2,31,200

~0tle.3

edd czj~~d

31-03-2004dod,)
~~~
~~
~~~rl
"5t!~ ~t:h>~QZi)rl,:,~"
5'e)d'Q)~1\
dre>.
2,300d~ eJ CC>NC)c:S~ a;5t3F"~~1\d.edd efu~czj~ 6,900dre>~..-b.
~~. 2004 oo~ ~
~AA)Nc:S ;tS.~ ~~~
250 dre>.~'ri ~~
~odc:b. efu~ czj~ 3,450 M. ~~ ~~d
~t3F"~d CC>N]~ edd ~~d ~~zj~o::b~M~d. ~ ~~~oti 'Wd~~~r{'ri~ M~grlt!N
~~~Q
e~~~ ~~1\ro~d.
~oacm~ ~~d CC>;t3'&)~ 5,800 d.rcl.
.JJ

~<J

.JJ

g(,

q)

q).JJ

~~

g(,

~~~o::b

.;

~~tS

50,000 ~.

c:S~arloast)o zj~t!~o::b~

~ow &o~~o.

11. 0ttoJ:>~dJ ~~MO ~el~d

~tJ.)~

~~~d

c:S~~~Qo. ~~dJ ~~w;,d, ~

~O~~~l'\

tJ

g(,

31-12-2009d~M itSd'5J ~~~

~~.33,X ~

~2;j

~wd~~

ZtJdJ~oo ~dJ~~odJ

c:J)t;dc:SJ~,o6n
"tJ

g(,

<J

e:5do.re,~~

~~

'5~~ddJ.
W.P

~~~d

~~Fo~,~d

<J

~JS

o:m~rl~

01-01-2009

~~~

~rleJ~

31-12-2009

~o.t>~~ c:SrldJ

1,000

1,000

~06c:S~ c:SrldJ

8,000

10,000

35,000

28,000

4,000

9,000

:xbra5rleJJ

~tS0&f

m~ ~~~d ~~~=fi:
70,000

Qra5rl~n~~~
~~dd

~~Frl~n

~~

:xbrnrl~od ZtJoddJ

12,000
75,000

c:SrldJ

ojJ;)~rlarc>

~~~ddJ. ~ ~eJn c:S~C)~dJ~

;)~o::brleJ e:5~dd c>~~31-12- 2009~ ~~~rb~oo

~)

~~~

c:Srld~ ~1'izj~ir.)d& ~~~dJ

ZtJ~~

i!c:S~.o::b~ 1000 o.re,.c:Srld~ ~~~o~

eJ
g(,

~1~rleJ~

c>~~
05~eP0

i!amo",.

Debit Balances
cd~ti>

~~eoo:i:>~~F~~

940

;!Je)~T\e)dcb
~e~cd

7,400
3,000
1,920

'lJ;)t!rt

~~cd det'~~od ~~~

cn~~

~oeO
r:Jt);!Je)~01-01-2009
~r;h)cd~~eoo:i:>~~
J

Rs.

;tr.)!)~cb

2,800
3,560

Ille~~d~~~

~o~cd~

Credit Balances

Rs.

3,700

~~cd ~~eort ~~~

c:m0C)~

~dM~
.

12,000
76,000

16,()()()

37,600
12,000
6,480
91,700

~~e=b r:Jt)~~ 2,je52,700/-. ~~cd ~~eoo:i:> ~~~~~~ 31-12-2009dot:P ~~o:i:>

~~oj:x) d/c). 460 (pr. ) .d~. ~QC>cd
~~eooj:x)d/c). 2,500 d~ ~dW~ ~~rl ~&>.tJ~
~
~~o.m ~QC>cd~~eOrl ~~~
cd~ti> d/c). 1,200 c:m~F ~rt1s.d~~. ~~cd
~~eoo:i:>!)M
ci>e!lcd~~o:i:>\!t)~~J~
~~
~
~o!~~1\ ~tro~ ~e~d ~~o:i:>
~~o:i:>~ ~ ~QClcd~~eooJJ ~~it~!l
~~.
~.
M
13. 2,jo~~JC)ocd~~~cd~~eo~~
twoti>~~o:bJ ~~ e.~.wcpt'. ~~rl ~d~~ ~~!)cdci>ee5
~e. 20d~ ;;:jeo.tJd
c:m0C)~2,je5oJJ~~~d.
!Tt)~Qj)~~eo:i:>~oeo~~rt cn,~cd~~eo
~~~~ ~or:Jt)o:i:>
c:m~d.
~~o:i:> ~cdoOcd~~05C>d~~od~~.tJd W~M cd~d~ ~ode
~~cd ~~eOrl
~~oJJ cW~M
~~F~~~
~~cd ~~eo trc>~~d. ~ ~~1\cd
c:m&>';o:i:>~
~.tJ ~QC>N ~~eo~~d~ ~.~.w~. ~~o:i:> ~~~
t.)O~o.
t!e)~ ~rlt::b:
01-01-2007
20,000
31-12-2007
18,500
01-01- 2007 doti> 3.b~~~
2,50,000
01-01-2007 dot::b~d~
~~cd ~~eodj;)od~e~o.tJ~
J

Q)

~~~da

(Invoice priceY
~~ ~ed ~oeO.tJti>
t.J~ c:m0C)~
cdrlm c:m0C)~
1\OC)ar(~ ~~
~~d ~d~
""
~ed ~oeO
~~cd ~~eodj;)od ~~ ~e~oNd ~~
(c:m0C)~2,je5o:i:>!lJ
Q

1,60,000
17,50,000
4,50,000
30,000
4,50,000
6,00,000

11111111111111111
~~o::b r.d~O~r.dFffiJl\ ~~~

~~~o~~&.!Jr;:b

25,000
10,000
20,000
12,50,000
3,00,000

~~ ~~d
:ID~r:~rt

:ID~r:~
t,,~ ~~~

l'\m6r:~od ~ ~~OM:S~r:r;:b

~~o::b ~mFr:9,)

31-12-2007 d~ ~d~:
~~
~QV~

1,20,000

~o~o.!JZ:>

~~d~l\

~~wcmodd~~o:mdq

(~OVW

?,j~)

1,80, ()(){)

14. 5Jc:fuc1'~~dc1'Nd~ro~ro ;)2tJ;)r:r:~~M~~ffiVd ~~~o.

31-12-2009dod.:> ~i!r:~

~9rl9,) ~l\~~~.
~. 10d 50,000 ;r:w~~

~~ro ~o~wveJ

~~6 d ;r:weJ~~r:9,)

01-01-2009do~ mm~

~t;rc>rl

w~rl

;)2tJ;)rl
;)2tJ;)r:

C
A

;)~r:

wQtlrl

dnOd&3 - wQtlrl

;)2tJ;)rl

A
B

;)~r:

;)~rl
;)2tJ;)rl

~OeO-

uo -

wQtlrl

wv05~rl9,)
ctl~tfucJ~d~rl~
~~~Qf'

~606~~~9

7io~~
;wort

~om~d
~&m;$)

~tt

B
C

5,00,000
3,00,000
70,000
40,000
60,000
14,10,000
7,00,000
10,50,000
18,60,000
9,15,000
13,80,000
2,80,000
1,30,000
2,10,000
1,30,000
72,000
1,44,800
54,000
12,600
6,300
8,100

~9~ ~
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