Printed Pages : 8
What do you understand by depreciation, amortization
and depletion? Explain the various reasons for charging
MAM204
293211
(Following Paper ID and Roll No. to be filled in your Answer Book)
depreciation by a firm.
PAPER ID : 293211
Q6. What is a company? State the various types of a
company. Also explain the characteristics of a company.
Roll No.
OR
What do you understand by shares and debentures?
Explain in brief the various types of shares and
MAM
(SEM. II) THEORY EXAM. 2014-15
FINANCIAL ACCOUNTING
debentures.
Q7. What are final accounts? Give a specimen of balance sheet
and profit and loss accounts of a company in the vertical
Time : 3 Hours]
[Total Marks : 100
format. (As per current schedule)
Note : Attempt the questions from each section as indicated.
OR
What do you understand by reserves and surplus?
SECTION - A
Explain the various uses of reserves and surplus.
Q1. Attempt any four questions from the following : 5x4=20
(a) What are the steps in accounting?
(b) What is balancing of account?
(c) Give the classifications of expenditure.
(d) Explain the types of liabilities.
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[JJ5]
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[Contd...
(e) Give the differences between written down value and
(f)
4. On 2nd December, 2014 a fire broke out and de-
straight line method of charging depreciation.
stroyed the stock of the value of Rs. 22,000 and the
Explain the right shares and bonus shares.
insurance company has admitted the claim to the extent of Rs. 10,000.
SECTION - B
SECTION - C
Q2. Attempt any three questions from the following: 10x3=30
(a) Journalise the following transactions in the books of Ram
Attempt all the questions from the following : 5x10=50
Q3. Write down the objectives and functions of accounting
and sons :
2013
standards board of India. Also state some accounting stan-
Jan 1 Started business with cash Rs. 40,000, furniture
dards issued by ICAI.
OR
Rs. 5,000 and machinery 10,000.
Jan. 2 Deposited into the Bank Rs. 2,000
Discuss the various accounting concepts and the conven-
Jan. 5 Purchased goods from Amir Rs. 10,000
tions with suitable examples.
Q4. What are the advantages of sub-division of journal? Ex-
Jan. 10 Sold goods to Sohan for Rs. 4,000
Jan. 12 Paid to Amir Rs. 9,000 in full settlement
Jan. 15
plain the various sub-division of journal.
OR
Withdraw of goods for personal use Rs. 1,000 and cash Rs. 500.
Jan.16 Sohanbecame insolventandcouldonlypay25paiseinarupee.
What is a trial balance? What are the objectives of pre-
Jan. 18 Purchased furniture and paid by cheque Rs. 5,000
paring trial balance. Show its format.
Jan. 20 Goods distributed by way of free sample Rs. 1,000.
cuss in brief the various methods of valuation of inventory.
Jan. 26 Received interest Rs. 500
Jan. 31
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Q5. What are the various methods of inventory taking? Dis-
OR
Paid for stationery Rs. 200, rent Rs. 500 and salaries of staff Rs. 2,000
[Contd...
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[Contd...
Provisions for doubtful debts
3,000
(b) State with reasons, which of the following is of a capital or
Manufacturing expenses
3,500
of a revenue nature :
General Expenses
4,400
(i) A second-hand car was purchased for a sum of Rs.
Capital
40,000
Drawings
20,000 and a sum of Rs. 5,000 was spent on its over-
7,200
hauling
Opening Stock
20,500
(ii) Freight and cartage of Rs. 1,000 was paid on a pur-
Purchases
66,000
chase of a new plan and a sum of Rs. 200 was spent
Carriage Inward
1,500
Sales
on its erection
1,60,500
Sundry Debtors
25,500
Sundry Creditors
(iii) Rs. 1,000 was spent on painting a factory
(iv) Furniture at book value of Rs. 1,500 was sold for a
14,300
sum of Rs. 1,000. New furniture of Rs. 2,000 was
Cash in hand
500
Cash at Bank
2,200
(v) Rs. 2,000 was spent on dismantling, removing and
Carriage Outwards
1,700
reinstalling plant and machinery to a more convenient
Salaries
Total
purchased and Rs. 200 was spent towards cartage
16,000
2,20,000
site
2,20,000
Additional information:
1. Write-off bad debts Rs. 700 and maintain the provision for doubtful debts at 5% on sundry debtors.
2. Stock on 31st December, 2014 is Rs. 30,000.
3. Depreciate machinery by 10% and furniture by 5%.
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[Contd...
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[Contd...
(c) A manufacturing concern whose books are closed on 31st
The subscription lists closed on 10th February 2014. Ap-
March, purchased machinery for Rs. 1,50,000 on 1st April
plications for 70,000 shares were received. Out of this
2011. Additional machinery was acquired for Rs. 40,000
Rs. 40,000 were refunded, Rs. 60,000 were adjusted to-
on 30th September, 2012 and for Rs. 25,000 on 1st April,
wards amount due on allotment. The balance amount of
2014. Certain machinery, which was purchased for Rs.
allotment money was paid on 16th February 2014.
40,000 on 30th September, 2011, was sold for Rs. 34,000
One allottee of 500 shares did not pay call money of Rs.
on 30th September, 2014.
3 per share on 1st May 2014. These shares were forfeited
Give the machinery account for the year ending 31st March,
on 1st June 2014 and reissued as fully paid at Rs. 10 per
2015 taking into account the depreciation at 10% per an-
share on 1st July 2014. Journalize the above transaction.
num on the written down value.
(e) From the following trial balance of Raja, prepare the
(d) On February 1, 2014, the Directors of BMY LTD. is-
trading, profit and loss accounts for the year ending 31st
sued 50,000 equity shares of Rs. 10 each at Rs. 12 per
December 2014 and the Balance Sheet as on that date.
share payable as follows :
Particulars
Rs. 5 on application (including Rs.2 per share towards
Factory Rent
2,000
premium)
Bills Receivable
7,300
Rs. 4 on allotment
Bills Payable
Rs. 3 on final call made on 1st May 2014
Insurance
1,200
Furniture
10,000
Machinery
28,000
Office Rent
2,000
Debit Rs.
2,200
Manufacturing Wages
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[Contd...
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Credit Rs.
20,500
[Contd...
