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FOUR YEAR HONOURS B.Com. General/Computet Application) /B;B.A.
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(General/ Digital Marketing DEGREE EXAMINATION
JUNE/JULY -2024
CHOICE BASED CREDIT SYSTE~
SECOND SEMESTER -, MAJOR[MINOR ­
PART - II : ACCOUNTANCY
PAPER-3: FINANCIAL ACCOUNTING
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(Under CBCS New Regulation w.e.f the academic year 2023-24 )
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Time: 3 Hours Max. Marks: 7S

SECrION-A . ­
Answer any Five of.the following questions ~ Each question carries 3 marks.
(Sx3=IS)
1. Prepare Sales book from the following particulars 2020
Jan 4 Goods sold to Ravi Rs. 4,000.
Jan 6 Goods sold to Pavan for cash Rs. 6,000.
Jan 9 Goods returned from Ravi Rs. 5,000.
Jan 10 Goods sold to Shankar Rs. 2,000.
Jan 13 Furniture sold to Kumar Rs. 1,000.
2. What is Book keeping?
3. Machinery'purchased 011 01-01-2020
- for Rs. 50,000. Installation charges amounting
.
to
Rs. 5,000 and scrap value is Rs. 3,000. The estimated life of the machinery is 10 years.
Calculate depreciation.
4. Explain the ,causes ofdepreciation.
S.. From the following information, calculate closing stock. Opening stock Rs. 40,000,
Purchases Rs. 1,20,000, Wages Rs. 10,000, Gross profit 10% of sales, Total sales
Rs. 2,75,000.
6. Prepare profit and loss account and calculate net profit. Gt:oss profit Rs. 75,000,
Administration expenses Rs.16,000, Commission received Rs. 5,000, Depreciation
Rs. 4,000, Insurance Rs, 500.
7. Explain account sales.
8. Explain Abnormal loss.
9. . Explain the differences between consignment and Joint venture.
10.. Explain the features ofjoint venture. .
SECflON-B
Answer any Five of the following questions. Each question carries 12 marks.
(SXI2=60)
11. Journalize the following transactions. Also state the nature ofeach account involved in the
Journal entry.

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1stDecember 2020, Ajit started business with cash Rs. 40,000.
Dec. 3, he paid into the Bank Rs. 20,000.
Dec. 5, he purclJa.sed goods for cash Rs.15,000.
Dec. 8, he sold goods for cashRs.· 6,000.
Dec. 10, he purchased furniture and paid by cheque Rs. 5,000.
Dec~ 14, he purchased goods fromAmrit Rs. 10,000.
Dec. 16, he received fromArvind Rs. 3,960 in full settlement. .
Dec. 18, he withdrew goods for personal use Rs. 1000.
Dec. 20, he withdrew cash from business' for personal use Rs. 2,000.
Dec. 31, goods distributed by way offree samples RB. 1,000.
12. Enter the following transactions in the appropriate type ofcash book, and post the same to
the relevant ledger accounts:
2018
July 1 Started business with an ~vestment of Rs. 9,000.
July 2 Deposited in Bank ofIndia, Rs. 7,000.
July 4 Acquired a building by issuing a cheque ofRs. 5,000.
July 10 Paid the bill offumiture by cheque Rs. 1,000.
July 18 Withdrew Rs. 100 from the bank.
July 20 Sold merchandise for Rs. 1,200.
July 22 Deposited Rs. 3,000 futo the bank.
July 25 Bought Rs. 1,000 merchandize.
July 28 Paid freight Rs. 50
II July 30 Withdrew from bank for personal use Rs. 500.
July 31 Paid to Mahesh &S. -1,080 in full satisfaction by cheque.We owed to Mahesh Rs.
1,100 for goods purchased. .
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13. On 1 January 2018, Mohan Company took a lease from Pavan Company at a cost of
Rs. 3,00,000 for 5 years. It is decided to provide depreciation on the lease by annuity method
charging 5% interest. The annual amount to be return ofas depreciation is Rs. 69,292.50.
Prepare Lease accoUllt for 5 years.
14. Ramya Ltd. Books are closed for the fmancial year, purchased a machinery worth
Rs. 2,00,000 on 01 -04-2017. Additional machinery was purchased for Rs. 50,000 on
30-09-2018. A machinery purchased on 30-09-2018 was sold forRs. 34,000 on
30-09-2020. Prepare machinery account for the year ending 31 st March 2021 on the
assumption that depreciation at 10% per annum on the Straight-line method.
15. From the following Trial Balance ofAjay Limited prepare TradingNc, Pr.tfit and 10ssNc
and Balance Sheet for the year en<iing on 31st December 2021.
Dr. Cr.
~"i> . Balanee , ·..':..Balance ­
(Rs.) (Rs.)
Land and Building 1,50,000 Sundry Creditors 50,000
Plant and Machinery 80;000 Capital .." 3,20,000

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r Bill Receivables 15,000 Sales 2,65,000
Stock on 1.1.2021 75,000 Reserve for Bad and
Doubtful Debts 9,000
Purchases 1,02,000
Wages 35,000 Loan .20,000
Coal, Gas and Coke 11,600 Commission Received 4,400
Salaries 15,000
Rent 4,500
Cashat bank 50,000
Sundry Debtors ·90,000
Repairs . 7,600
Bad Debts 11,000 .
Sales Returns 2,500
Fumitureand Fixture 18,000
Interest on Loan 1200
6,68,400 6,68,400
Adjustments
i) Closing stock was valued at Rs. 40000.'
ii) Depreciate Plant and Machinery @ 10% and Furniture and Fixture @5%.
iii) Provide for Bad and Doubtful Debts @5%.
iv) Outstanding Expenses: Wages Rs.2,OOO, Rent Rs. 500
v) Commission received in advance Rs. 500.
16. Write necessary adjusting entries.
i) Appreciate land at 10% on the value ofland Rs. 2,OO,~.
ii) Interest received in advance Rs. 2,000.
iii) PrepaidrentRS.I,500.
iv) Outstanding wages Rs. 4,000.
v) . Commission accrued Rs. 1,000.
vi) Provide 10% depreciation on the machinery value Rs. 50,000.
17. On I !It April 2021 , Aditya Mills Ltd., Delhi, consigns 500 pieces ofshirting - costing
Rs. 5,000 to Birla stores, Bombay. The consignee is entitled to 5% selling commission and ..
1% del-credre commission. .
Following expenses were incurred by the consignor. 1!
Carriage Rs. 200 . !

Insurance Rs. 100 ,>, L

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Freight' Rs. 150
Aditya Mills Ltd. draws a Bill ofExchange for Rs. 2,000 on Birla Stores, "Bombay, which
was duly accepted by them. It is discounted for Rs. 1,950. On 31 st May 2021, Birla stores J"
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send the Account Sales which shows that they have sold g()()()8'fofRs 7,500 and paid expenses . ".~.
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amounting to Rs. 150: Stock in consignee's hands on 3}Si May 2021 is valued at Rs. 1,500.
BirlaStores enclose a sight draft with the Account Sales, for the net amountdue toAditya i.,
c
Mills Ltd. Give ledger accounts in the books of the consignor. i
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 18. BbaratbiofGunturconsigned 150tonnesofgoods atRs.I 000 per each to Rama at Kurnool
after including 25% on coSt to besoldatinvoice. HespentRs. 3,200 and Rs. 3,600 towards
transport and insurance respectively. In transit 15 tonnes were spoiled and Bharathi claimed
insurance ofRs. 6,000 to which insurance company accepted Rani~ sent his account sales
after two months as follows .
. 130 tonnes at invoice price
2 tonnes loss due to normal reasons (loss)
18 tonnes were with consignee
Selling e~ Rs. 4,000
His commission 3%
Rama sent due arnOlDlt by D.D
Prepare necessary ledger accounts in the books ofBharathi and Rama.
19. Ajay and Bharath were in a Joint venture for carrying on Trade, sharing profit and
loss as 3 :2. Ajay purchased goods for Rs.80,000 and paid for expenses Rs. 5,000. He
drew a bill of exchange for Rs. 30,000 and discounted it for Rs. 28,000.
Bharath received goods and sell them in total for Rs. 1,05,000. His expenditure for shop
.rent, sales boys' salary Rs. 9,000. He forwarded a bank draft to Ajayfor the due amount.
Prepare Joint venture alc and other co-venture alc, where each maintains their books of
accounts.
20. A and B entered into a joint venture agreement to share the profits and losses in the ratio of
2: 1. A suppliedgoodsworthRs. 60,00010B incurring expensesamounting to Rs. 2,000 for freight
and insurance. During 'transit goods costing Rs. 5,00()' became damaged and a sum of
Rs. 3,000 was recovered from the insurance company. B reported that 90% ofthe remaining
goods were sold at a profit of30% oftheir original Cost. Towards the end ofthe venture, '
a fire occurred and as a result the balance stock lying unsold with B was damaged. The
goods were not inSured ~dB agreed to compensate A by paying in cash 80010 ofthe aggregate
ofthe original cost of such goods plus proportionate expenses incurred by A. Apart from
the joint venture share ofprofit, B was also entitled under the agreement to a commission
of5% ofnet profits oftotalledRs. 1,000. B had earlier remitted an advance ofRs, 10,000.
B duly paid the balance due to A by diaft.
You are required to prepare inA's books:
i) Joint Venture ACCOlDlt
ii) B's account

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