Answer Any Four Questions. (4X6 24) : Time: 3 Hours Max. Marks:120

Government First Grade College, Siddakatte
2nd Internal Examination- March 2019

I B.Com – II Semester
Subject- Financial Accounting II
Time: 3 hours Max. Marks:120
Section – A
Answer any four questions. (4X6=24)
1. What is del credere commission? How it effect Bad debts to the Consignee?
2. What is noting and protesting of a bill?
3. Write a note on hire purchase system.
4. Madhuri drew a two months bill on meenakshi for Rs. 21,000 on 6 th July 2017 and
Meenakshi accepted the same. On 16 th August, Madhuri discounted the bill with the banker
at 12% p.a. The bill was honoured on the due date.
Pass journal entries in the books of Madhuri and Meenakshi.
5. From the following details, find out the sales:
Rs.
Opening bills receivable 7,800
Opening debtors 30,800
B\R encashed during the year 20,900
Cash from debtors 70,000
Bad debts written off 2,800
Return inwards 8,700
Bills Receivable dishonoured 1,800
Closing Bills Receivable 6,000
Closing debtors 25,500
Cash sales during the year 40,900
6. Anand of Bangalore consigned 500 Toys to Bhaskar of Mysore to be sold on consignment

basis. The cost of one toy was Rs. 200. Anand paid Rs. 5,500 as freight and insurance and
received Rs. 40,000 as advance from Bhaskar. Bhaskar paid Rs. 1,000 as octroi and carriage,
Rs. 1,500 as rent and₹Rs. 1,200 as insurance. 410 toys were sold by the consignee for
Rs. 1,10,000. He is entitled a commission of 5% on sales.
Prepare Consignment A/c only.
Answer any four questions. (4X12=48)
7. Distinguish between single entry system and double entry system.

8. Distinguish between sale and consignment.
9. Arun draws a bill for Rs.10,000 on Barun. Barun accepts it and returns it to Arun. Arun
endorses it to Charles and Charles endorses it to David. David discounts the bill for Rs.9,800.
On the due date the bill is dishonoured and the noting charges incurred by the bankers
amounting to Rs. 200. Pass journal entries in the Books of all the parties. Assuming that the
bill is taken up by Arun on Dishonour.
10. From the following prepare total debtors Account and Total Creditors A/c and find credit
sales and credit purchases.
Rs.
Debtors on 1st Jan 5,000
Debtors on 31st Dec 4,000
Creditors on 1st Jan 4,000
Creditors on 31st Dec 6,000
B\P issued during the year 8,000
Cash paid to Creditors 20,700
Discount allowed 150
B\R endorsed to Creditors 4,000
Endorsed B\R dishonoured 500
Sales return 600
Cash from debtors 3,000
Cash returned to customer 270
Bad debts written off 1,200
B\R dishonoured by customer 1,000
Discounted B\R dishonoured 700
Purchase return 200
11. Sushma consigned 10 cycles costing Rs.1,500 each to Smitha on 1 st march 2013 paying
Rs. 750 as freight and₹Rs. 250 as insurance. Smitha accepted a bill drawn on her by Sushma
for Rs.10,000 on 15th March 2013 and paid Godown rent of Rs.400, insurance of Rs.250,
unloading charges Rs.100. They are entitled to a commission of 5%. Smitha sold 8 cycles at
₹ Rs.2050 each and sent a bank draft for the amount due after deducting their commission,
expenses and advance.
Prepare necessary ledgers A/c’s in the books of Sushma.
12. Guptha purchased a machine under hire purchase system from Pankaj. The cash price of the
machine was Rs. 15,500. The payment for the purchase is to made as under:
On signing the contract Rs. 3,000
End of first year Rs. 5,000
End of second year Rs. 5,000
End of third year Rs. 5,000
Pass necessary journal entries in the books of Guptha. Charge depreciation at the rate of 10%
on diminishing method.
Answer any two questions. (2X24=48)
13. On 1.4.2014 Amar accepted a three months bill drawn by his creditor Ashok for Rs. 10,000.
On the same date Ashok discounts the same at 5% p.a. Amar being unable to meet the bill at
maturity, request Ashok to accept Rs. 4,000 in cash and to draw another bill for three months
for the Balance amount plus interest at 7% p.a. Ashok agrees. Before the second bill matures.
Amar becomes insolvent and is unable to pay any amount what so ever.
Show journal entries in the books of both the parties.
14. Thushar submits the following figures relating to his business in respect of the year 31st
December 2018.
You are required to prepare a trading and profit and loss account for the year ended and a
Balance Sheet as on 31st December 2018.
Any difference in cash is assumed to be drawings.
Rs.₹
Cash paid into Bank 3,00,000
Private dividends paid into Banks 4,000
Private payments out to Bank 52,000
Payment to creditors out of Bank 2,44,000
Cash received from debtors 5,00,000
Wages 80,000
Carriage inward 14,000
Rent and Rates 4,000
Lighting and heating 2,000
Bad debts 4,000
General expenses 9,200
Discount received 5,000
Payment to creditors by cash 76,000
Assets and Liabilities on:
1-1-2018 31-12-2018
Rs.₹ Rs. ₹
Stock 40,000 30,000
Bank 16,000 24,000
Cash 600 800
Sundry debtors 28,000 40,000
Sundry creditors 54,000 60,000
Investments 1,00,000 1,00,000
Buildings 2,00,000 1,80,000
Furniture 60,000 50,000
15. On 1st January 2011, Shakti Oil Company purchased an oil machine from Delhi Co. on the
Hire purchase system. The cash price of the machine was Rs. 1,11,750 and payment was to
be made as follows.
Rs. 30,000 was to be made on the signing of the agreement and the balance in three
instalments of Rs. 30,000 each at the end of each year. 5% interest is charged by the Delhi
Co. per annum. Shakti oil Company has decided to write off 10% p.a. on the diminishing
balance of the cash price.
Give the journal entries and necessary accounts in the books of Shakti oil Company under
credit purchase with interest method. (calculations are to be made to the nearest rupee).
16. From the following information relating to Nagaraj who keeps his books on Single Entry
System.
Prepare Trading and profit & Loss A/c for the year ending 31-12-2013 and the Balance Sheet
as on that date:
1-1-2013 31-12-2013
Creditors 18,000 ?
Furniture 8,000 8,000
Debtors ? 55,000
Stock 12,000 10,500
Cash 24,000 ?
Other particulars:
Receipt from debtors 1,75,000
Paid to creditors 90,000
Total sales (including cash sales Rs.38,000) 2,25,000

Total purchases (including cash purchases Rs.23,000) 1,20,000
Sales return 2,000
Purchase return 1,500
Drawings 20,000
Bad debts 1,000
Discount allowed 3,000
Discount received 2,500
Rent 8,000
Wages 3,000
Trade expenses 2,000
Salary 5,000
Office expenses 3,000
Depreciation furniture by 10%
Outstanding salary 500
Prepaid rent 800

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Government First Grade College, Siddakatte

2nd Internal Examination- March 2019

6. Anand of Bangalore consigned 500 Toys to Bhaskar of Mysore to be sold on consignment

Answer any four questions. (4X12=48)

7. Distinguish between single entry system and double entry system.

Answer any two questions. (2X24=48)

Show journal entries in the books of both the parties.

Total sales (including cash sales Rs.38,000) 2,25,000

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