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6004
First Semester Five Year B.B.A.LL.B. Examination, December 2019
Financial accounting
(2018 and 2019 Batch) (New)
Duration : 3 Hours Max. Marks : 80

Instructions : 1. Answer all five Units.

2. One essay type question and short note/problems is
compulsory from each Unit.
3. Figures to the right indicate marks.
4. Answers should be written in English only.
5. Use simple calculator only.

UNIT – I

Q. No. 1. (a) State the account to be debited and the account to be

credited for each of the following : Marks : 10
a) Commenced business with Rs. 20,000
b) Purchased goods from X Rs. 4,000 on credit
c) Purchased goods from Y Rs. 2,000 for cash
d) Paid cash Rs. 1,600 to X on account
e) Returned goods worth Rs. 200 to X.
f) Purchased furniture from Z Rs. 600 on credit
g) Purchased machinery for cash Rs. 1,000
h) Sold goods to A Rs. 1,800 on credit
i) Sold goods to B Rs. 200 for cash
j) Received cash Rs. 800 from A on account
k) A returned good worth Rs. 100
l) Paid salary Rs. 1,400 to accountant
m) Paid landlord office rent Rs. 300
n) Paid wages Rs. 160
o) Paid for stationery purchased Rs. 40
p) Paid advertisement charges Rs. 240
q) Received interest on bank deposit Rs. 500

P.T.O.
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r) Received dividend on shares Rs. 60
s) Received commission of Rs. 400
t) Withdrawn cash Rs. 200 for personal expenses.
OR
(a) What do you mean by Accounting concepts and Accounting
conventions ? Explain.

(b) What are the objectives of book keeping ? Marks : 6

OR
(b) Write a short note on “Accounting Standards”.

UNIT – II

Q. No. 2. (a) Journalise the following transaction. Marks : 10

(Rs.)
2016 01 Business started with i) Cash 1,50,000
November ii) Goods 50,000
03 Purchased goods from Harish 30,000
05 Sold goods for cash 12,000
08 Purchased furniture for cash 5,000
10 Cash paid to Harish on account 15,000
13 Paid sundry expenses 200
15 Cash sales 15,000
18 Deposited into Bank 5,000
20 Drew cash for personal use 1,000
22 Cash paid to Harish 14,700
in full settlement of his account 15,000
25 Goods sold to Nitesh 7,000
26 Cartage paid 200
27 Rent paid 1,500
29 Received cash from Nitesh 6800
Discount allowed 200
30 Salary paid 3,000

OR

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(a) Prepare Three column cash book from the following
transaction of M/s Vinayaka Enterprises for the month of
January 2017.
Date Particulars Amount (Rs.)
2017 01 Cash in hand 4,000
January Bank overdraft 3,200
05 Cash sales 9,000
07 Purchased goods by cheque 2,000
09 Purchased furniture for cash 2,200
11 Cash paid to Mr. Rohit 2,000
14 Deposited into bank 7,000
16 Bank charged interest on
overdraft 200
25 Sale of goods for cheque and
sent to bank immediately 3,000
27 Rent paid by cheque 800
28 Paid wages by cheque 500
29 Drew cash for personal use 500
30 Paid salary 1,000
31 Interest collected by bank 1,700

(b) What is cash book ? State its features. Marks : 6

OR
(b) What is the meaning of trial balance ? Why is it prepared ?

UNIT – III

Q. No. 3. (a) Prepare financial statements for the year ending on

31st December 2012 from the following trial balance and
adjustment. Marks : 10
Name of the accounts Debit (Rs.) Credit (Rs.)
Drawings and capital 15,000 50,000
Purchases and sales 40,000 70,000
Returns 2,000 3,000
Wages 4,000 –
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Salaries 8,000 –
Debtors and creditors 12,000 10,000
Bills receivable and payable 5,000 4,000
Furniture 15,000 –
Opening stock 13,000 –
General expenses 3,000 –
Insurance 1,000 –
Cash and bank balance 19,000 –
1,37,000 1,37,000
Adjustments :
a) Closing stock Rs. 20,000
b) Insurance prepaid Rs. 200
c) Provide for doubtful debts @ 5%
d) Depreciate furniture by 10% p.a.
OR

(a) From the following trial balance of Malini as on 13-12-1976

prepare final accounts.
Name of accounts Amount (Dr.) Amount (Cr.)
(Rs.) (Rs.)
Capital account – 1,20,000
Drawing account 15,000
Bills receivable 22,000
Machinery 20,000
Debtors and creditors 60,000 58,000
Wages 39,000
Purchases and sales 2,52,000 3,55,000
Commission 5,500
Rent and taxes 6,000
Stock on 1-1-1976 90,000
Salaries 10,500
Travelling expenses 2,000
Insurance 600
Repairs 3,400
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Bad debts 3,500
Furniture 9,000
Returns 5,000 2,000
Cash in hand 500
Cash at bank 2,000
5,40,500 5,40,500
Adjustments :
1) Stock on hand on 31-12-1976 was Rs. 1,00,000
2) Create 5% provision for debtors
3) Prepaid insurance amount to Rs. 100
4) Commission earned but not received amounts to Rs. 500
5) Wages and salaries are unpaid to the extent of Rs. 1,000
and Rs. 1,500 respectively
6) Depreciate machinery by 5% and furniture by 10% per
annum.
(b) What do you mean by bad debts and doubtful debts ? Mark : 6
OR
(b) What is depreciation ? How it is treated in the books ?

UNIT – IV

Q. No. 4. (a) P draws a bill on Q for Rs. 1,000 and Q accepts the same and
returns it to P who endorses it over to R. Then R endorses
it to S who discounts the bill for Rs. 980 with his bankers.
Before the due date Q approaches P and requests him to
receive cash Rs. 500 and to draw a new bill for Rs. 550 to
renew the old bill. P agrees to these proposals and also to
take up the first bill on due date.
Pass the Journal entries in the books of P, Q, R and S. Marks : 10
OR

(a) ‘A’ drew a bill on ‘B’ for Rs. 2,000. B accepted the same and
returned it to ‘A’ who endorsed it over to ‘C’ and ‘C’ endorsed
it over to ‘D’. ‘D’ then discounted the bill for Rs. 1,900 with his
bankers. On the due date the bill was dishonoured. Noting
charges incurred by the bankers amounted to Rs. 20.
Pass the journal entries in the books of all the parties
assuming that the bill was taken up by A on dishonour.
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(b) What do you mean by acceptance of bills and endorsement
of bills ? Marks : 6
OR
(b) Define bills of exchange. What are the main advantages of
bills of exchange ?

UNIT – V

Q. No. 5. (a) From the following Receipt and Payment Account for the
year ending 31-03-2015 of Nagi’s Club. Prepare Income
and Expenditure Account for the same period. Marks : 10
Receipt Amount Payment Amount
Dr. (Rs.) Cr. (Rs.)
To Balance b/d bank 25,000 By Purchase of
furniture (1-7-14) 5,000
To Subscriptions By Salaries 2,000
2014 – 1,500 By Telephone 300
2015 – 10,000 expenses
2016 – 500 12,000 By Electricity charges 600
To Donation 2,000 By Postage and
stationery 150
To Hall rent 200 By Purchase of books 2,500
To Interest on bank 550 By Entertainment 900
deposits expenses
To Entrance fees 1,000 By Purchase of 5%
Government
papers (1-7-14) 8,000
By Miscellaneous 600
expenses
By Balance c/d :
Cash 300
Bank 20,400
40,750 40,750
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The following additional information is available :
i) Salaries outstanding – Rs. 1,500
ii) Entertainment expenses outstanding – Rs. 500
iii) Bank interest receivable Rs. 150
iv) Subscriptions accrued Rs. 400
v) 50% of entrance fees is to be capitalised.
vi) Furniture is to be depreciated at 10% p.a.
OR

(a) Explain the basic features of Income and Expenditure

account and of Receipt and Payment account.

(b) Write a short note on Capital expenditure and Revenue

expenditure. Marks : 6
OR
(b) Write a short note on non-profit organisation.

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