Download OU B.Com 2018 June 1st Year 2nd Semester (Regular-Backlog) 3527E Financial Accounting II Question Paper

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FACULTY OF COMMERCE

B.Com. (CBCS)(II - Semester) Examination, May/June, 2018

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(Common Paper for General/Computers /Computer Applications/Advertising/Foreign Trade/ and Taxation Courses)

FINANCIAL ACCOUNTING - II

Paper Code - BC - 204

Time: 3 Hours Max. Marks: 80

PART - A (5X4=20 Marks)

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Note: Answer any FIVE of the following questions not exceeding 20 lines each.

1. Renewal of a bill.
2. Goods sent at Invoice Price
3. Joint Venture.
4. List out any four differences between single entry System and Double Entry System.

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5. Del Credere commission.
6. Promissory Note.
7. Consignment
8. From the following particulars, calculate the amount to be shown in the Income and Expenditure Account For Subscriptions received in the current year are :
   Last Year Rs.25,000
   

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   Current Year Rs.2,25,000
   Next Year Rs.20,000
   Subscriptions outstanding last year Rs.37,500
   Subscriptions outstanding for the current Year Rs.50,000
   Subscriptions received in advance in last year for the current year Rs.32,500
   

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   Subscriptions received in advance in current year for the next year Rs.10,000

PART - B (5X12=60 Marks)

Note: Answer all the questions in not exceeding 4 pages each.

1. a) Manish purchased goods with Rs.3,60,000 from Malhotra on 1st January 2018. He pays Rs.1,20,000 immediately in cash and sends his acceptance to a bill to Malhotra for 4 months for the remaining amount. Malhotra gets it discounted at 6% p.a. Pass Journal entries in the books of Manish as well as Malhotra assuming that the bill was met the due date
   OR

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2. a) Prerna of Delhi consigned goods of value Rs. 2,00,000 to Anurag of Mumbai to be sold at 5% commission. Prerna paid freight Rs.12,000, insurance and other charges Rs.8,000. A cheque was received for Rs.12,000 from Anurag as an advance against the consignment. In due course, an Account sales was received from Anurag stating that half the consignment was disposed off realizing Rs.1,80,000. Expenses incurred being Rs.11,000. A cheque was enclosed for the balance. Give the Journal entries and open necessary ledger accounts in the books of both the parties.
   OR
   b) What is Abnormal loss, how it is different from Normal loss? Explain with suitable examples.
3. a) Surya bought goods of the value of Rs.45,000 and sold to Chandra on a Joint Venture. It was decided that the profits would be divided equally. On the same day Surya paid Rs.2,700 and drew a bill on Chandra for Rs.18,000 and discounted the bill for Rs.17,640. On receipt of the goods, Chandra paid carriage of Rs.900 and insurance of Rs.1,200. Surya received an Account sales showing that the goods had realized Rs.76,500 gross. Pass Journal entries and prepare the necessary Ledger accounts showing the results of Joint Venture in the books of both the parties assuming that settlement was made.
   OR
   

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   b) P and Q entered into a Joint Venture. They contributed Rs.20,000 and Rs.16,000 respectively and decided to share profits and losses in the ratio of 3:4. The purchases are Rs.32,000 and the sales amounted to Rs.40,000. The remaining stock is taken over by P at Rs.2,000. Expenses paid are Rs.1,600. P drew from the Venture Rs.8,000. Pass Journal entries and prepare the necessary ledger accounts for the Venture.
4. (a) Mr. Careless keeps his records under the Single Entry System.
   

   Particulars	1-4-2017	31-03-2018
   Bank O/D	10,000	12,000
   Furniture	20,000	20,000
   Building	70,000	70,000
   Investment		10,000
   Debtors	20,000	30,000
   Creditors	30,000	40,000
   Stock	45,000	50,000
   Jeep(1-10-2017)		20,000
   Cash	10,000	20,000
   Capital	30,000	40,000

   
   introduced further capital of Rs.20,000.
   (i) Reserve for Bad and doubtful debts is to be maintained at Rs.5% on debtors.
   

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   (ii) Plant and Machinery depreciated at 10%, Furniture at 5% and Jeep 10%.
   (iii) Appreciate Building by 20%
   (iv) Debtors included Rs.1,000 from an insolvent customer Ascertain profit or loss and prepare statement of Affairs.
   OR
   (b) Explain the steps to be taken to convert single entry into double entry books of account. From the balances obtained prepare Trading and Profit or loss for the year 2017-18 and Statement of Affairs
   

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   Particulars	1-4-2017	31-03-2018
   Bank O/D	2,25,000	2,00,000
   Furniture	23,000	23,000
   Land & Building	2,65,000	2,65,000
   Debtors	1,51,000	1,49,000
   Creditors	1,93,000	1,86,000
   Stock	2,96,700	3,11,000
   Cash	26,700	27,000
   Bills Receivable	0	2,04,000
   Bills Payable	10,000	2,90,000

   
   During the year, he withdrew Rs.30,000 for personal use.
   Adjustments:
   (i) Maintain Provision for bad debts at 2.5% on debtors.
   (ii) Depreciate Land & Building at 2% and furniture at 10%.

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5. (a) From the following Receipts and Payments account of XYZ charitable Hospital, Prepare Income and Expenditure account for the year ending 31-3-2018 and Balance sheet as on that date.
   

   Receipts	Amount	Payments	Amount
   To Balance b/d	13,120	By salaries	40,000
   To Subscriptions	7,600	By Rent and Taxes	16,800
   To fees	4,000	By Maintenance of Vehicle	13,400
   To Donations	1,60,000	By Purchase of Vehicles	24,940
   		By Balance c/d	1,19,580

   
   A donation of Rs.2,000 received for building
   OR
   (b) Receipts and Payments account of Sania Sports Club for the year 2017-18 is given below.
   

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   Receipts	Amount	Payments	Amount
   To Donations	42,000	By salaries	9,900
   To life Membership fee	15,000	By furniture	35,100
   To Tournament Fund	24,000	By Games exp	7,500
   To subscriptions	19,500	By printing and stationary	9,300
   To Entrance fees	3,600	By Tournament Expenses	9,000
   To Donations for computers	15,000	By sports equipment bought	42,000
   To sale of old Newspapers	7,800
   	1,26,900		1,20,600

   
   Additional Information:
   (i) Subscriptions receivable for 2016-17 is Rs.4,500 and for 2017-18 is Rs.7,500
   (ii) Value of sports equipment on 1-04-2017 is Rs.3,000 and on 31-03-2018 is Rs. 27,000
   (iii) Provide Rs.3,000 for depreciation on furniture.
   

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   Prepare income and expenditure account for the year and Balance sheet as on 31-03-2018.

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