Birla Institute of Technology & Science, Pilani Work-Integrated Learning Programmes Division First Semester 2018-2019 Mid-Semester Test (EC-2 Regular) Course No. Course Title Nature of Exam Weightage Duration Date of Exam Note:
: FIN ZC415 : FINANCIAL AND MANAGEMENT ACCOUNTING : Closed Book : 30% No. of Pages =2 : 2 Hours No. of Questions = 5 : 30/09/2018 (FN)
1. Please follow all the Instructions to Candidates given on the cover page of t he answer book. 2. All parts of a question should be answered consecutively. Each answer should start from a fresh page. 3. Assumptions made if any, should be stated clearly at the beginning of your answer.
Q.1.
From the following balances of Neha Ltd. prepare Final Accounts as on 31st March, 2016 Account name
Stock on 01-04-2015 Purchases Sales Production Expenses Selling Expenses Trade Expenses Returns Inwards Returns Outwards Tools & equipment Trade Marks Discount Cr. Salaries Fixed Deposit with P.N.B. Cash in Hand Motor Vehicles Land Capital Life Insurance Premium
Rs. 23,500 46,800 1,30,000 27,000 5,800 1,200 6,600 2,800 7,200 5,000 2,100 9,600 10,000 1,300 50,000 60,000 1,37,450 6,000
Account name Freight Inward Freight Outward Rent (Factory 1/3, Office 2/3) Legal Expenses Miscellaneous Receipts Sundry Debtors Sundry Creditors Free Samples Bad-Debts Bank Charges Loan Interest on Loan
[10] Rs. 1,100 3,000 7,500 800 500 30,000 12,200 600 4,750 2,800 27,900 2,400
Additional information to be adjusted: (a) Closing stock at the end of year was Rs 36,500 (b) Motor Vehicles to be depreciated @10% per annum (c) Write off 5% of sundry debtors as bad debts. (d) Outstanding salaries Rs 1000 Expectations: Prepare Expectations: Prepare Trading and P&L A/c and Balance Sheet in Account format. Follow order of permanence for items in balance balance sheet.
FIN ZC415 (EC-2 Regular)
First Semester 2018-2019 2018-2019
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FIN ZC415 (EC-2 Regular)
Q.2.
First Semester 2018-2019
Write journal entries for following transactions: (a) (b) (c)
Page 2 [6]
Goods sold to Mahesh Rs 1000 [50% in cash and 50% on credit] Payment received from Mahesh Rs 400 Balance amount could not be recovered from Mahesh. You decide to treat it as bad debts.
Instructions: Use the rules of debit and credit for three types of accounts. Expectations: Your answer should include a journal entry written in a format discussed in class (comprises account to be debited, account to be credited, respective amounts). No other description is required.
Q.3.
Prepare accounting equation from the following transactions: (a) (b) (c) (d) (e) (f)
[3]
Manoj started business with Rs 10,000 and building worth Rs 20,000 Deposited in bank Rs 5000 Salaries paid to office staff Rs 1000 Goods purchased on credit Rs 2000 Goods sold for Cash Rs 500, on credit Rs 500 Received cash from debtors Rs 500
Instructions: Do not explain the impact of these transactions descriptively. Show it by increasing and decreasing the amounts of relevant accounts. Expectations: The answer should include an accounting equation that shows impact of transactions one by one.
Q.4.
According to Schedule VI of Companies Act, what head would following accounts fall under? [5] (a) Reserve and Surplus (b) Sundry Creditors (c) Building (d) Loan from bank (e) Short term loans extended to other c ompanies
for e.g. Goodwill falls under Non Current Assets under Asset side of balance sheet
Q.5.
Prepare an account for Vehicle from following information: (a)
Purchased vehicle on April 1, 2015 for Rs 500,000. Payment made by cheque.
(b)
Depreciation is charged @ 10% per annum on written down value basis.
(c)
On March 31, 2018, you sold off the vehicle for Rs 300,000.
[6]
Prepare vehicle account year by year and show the impact of above transactions. Instructions: Take into account the given information and make necessary journal entries as part of your rough work (not to be evaluated). Then post the entries into ledger account. Expectations: The answer should include a ledger account showing date-wise posting on debit and credit sides.
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FIN ZC415 (EC-2 Regular)
First Semester 2018-2019
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