Financial Accounting Punjab University

2009 - 2018
B.Com Part 1 Past Papers

Question Paper 2015

Time : 3 Hours Marks: 100

Note: Attempt any five questions. All questions carry equal marks.

Q. 1 Ali, Murtaza and Mujtaba are the debtors and creditors of each other. They drew the
bills in the following manner.
 Ali drew on Murtaza for Rs. 15000 and on Mujtaba Rs. 12000
 Murtaza drew on Ali for Rs. 18,000 and on Mujtaba Rs. 10,000
 Mujtaba drew on Ali for Rs. 24,000 and on Murtaza Rs. 12000

All the bills were discounted at 10% .All the bills were paid on due date. Show entrien in the
books of Ali, Murtaza and Mujtaba.
Q. 2 From the following particulars prepare the bank reconciliation statement of Mr.
Mujtaba Rehan at 31st October 2014.
 Bank overdraft as per cash book Rs 3500
 Cheques issued but not encased during the year Rs 2200
 Bank charges not recorded in the cash book Rs 150
 Cheques deposited as per bank statement not entered in the cash book Rs. 950
 Club dues of Mr. Mujtaba paid by bank as per standing instruction not recorded in
the cash book Rs. 100
 Cheques issued by Mr. Mujtaba dishonored Rs. 1200

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 Financial Accounting Punjab University
2009 - 2018
B.Com Part 1 Past Papers

Q.3 . The following trial balance is extracted from the books of Behzad and CO ON 31ST
March 2014. You are required to prepare trading and profit and loss a/c and balance sheet as
on that date:
Details Debit Credit
Drawings 30,000
CAPITAL 372,000
Purchases and Purchase return 450,600
Stock on 1.4.2013 138,000
Cash in hand 10,380
Bank Balance 67,800
Plant and Machinery 115,800
General Expenses 2,520
Printing Charges 4,920
Accounting Fee 840
Commission 9,900
Investment purchased on 1.4.2013 12,000
Interest received on investment 600
Sundry Debtors and creditors 108,000 89,010
Wages 75,000
Salaries 42,000
Income tax 4,800
Discount Allowed and received 18,900 13,800
Sales returns and sales 1,650 626,850
Bill Receivable 9,600
Furniture 9,150
Rent and Rates 12,000
1,113,960 1,113,960

The following adjustments are to be made:

 Charge interest on CAPITAL AT 5% p.a and 3% on drawings.
 Stock on 31.3.2005 is Rs. 156000
 Provide Rs. 15,000 for wages.
 Accrued rent is Rs. 1500
 Charge 5% Depreciation on plant and machinery and 10 % on Furniture
 Insurance to the amount of Rs.600 relates to next year.

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 Financial Accounting Punjab University
2009 - 2018
B.Com Part 1 Past Papers

Q. 4 A trader by preparing his trial balance found Rs 780 excess debit and transferred it to
the suspense are later he found the following errors .

A. The total of the sales book Rs. 3,480 had not been posted to the sales A/C\
B. Sales of old furniture for Rs. 2400 were entered in the sales book.
C. Commission a/c balance (Dr.) Rs. 2430 was not transferred to the trial balance.
D. Purchase made from Ali stores for Rs 2250 had been forgotten to enter in the books .
E. Cash paid to Rehan Rs. 3520 was posted to his a/c Rs. 3250.
F. Goods sold to A for Rs. 1250 posted in B’s account.

Pass the journal entries to rectify them and prepare the suspense account. Also show the effects on
profit. Before rectification of errors the profit was Rs. 53790.

Q.5 Murtaza is not writing his books properly. From the following information prepare a
statement showing profit and loss and statement of affairs for the year ending 30th June 2014
Details 1-7-2013 30-6-2014
Cash in hand 900 2800
Debtors 22800 21400
Creditors 31200 28400
Stock 33400 37400
Bill receivables 30500 28800
Bank overdraft 40800 39200
Motor van 4200 4200
Furniture 3400 3400

Drawing Rs. 4800, depreciate furniture 10%, Write off Rs. 800 on motor van. Provide Rs.1000 as
bad debts and 5% as reserve on debtors. Provide reserve of Rs. 1600 on bill receivables.

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 Financial Accounting Punjab University
2009 - 2018
B.Com Part 1 Past Papers

Q.6 The following in the receipts and payment of Murtaza foundation hospital for the year
ending 31st December 2014.
Details Rs. Details Rs.
Opening Balances: Payments:

Cash 500 Furniture Purchased 100

Bank 8,000 Salaries 23,000

Govt. Securities 180,000 Instruments Purchased 500

Diet Expenses 2,000

Receipts: Surgery and dispensary 1,000

Subscription 25,000 Rent and taxes 500

Insurance 200

Interest 9000 Office expenses 700

Donation for charity fund 4000 Misc Expenses 100

Miscellaneous 300 Closing balances:

Bank 18000

Cash 700

Govt. Securities 180000

Requirement:
You are asked to prepare the income and expenditure account for the year and the balance sheet as
on 31st December 2014. The other assets on 1st January 2014 were: Furniture Rs.2000: Land Rs.
50000; Building Rs. 150,000; Instruments Rs.3500. The govt securities of the face value Rs.
200,000 (Cost 180,000) represent investment of the 2013 endowment fund. The subscription
received includes 10,000 for the year 2013 but Rs.7000 is outstanding for 2014. Salaries paid
include Rs. 1,000 for 2013 but Rs. 1500 is payable for 2014. Interest received includes Rs. 2000 for
2013 but Rs. 2,300 is outstanding for 2014.

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 Financial Accounting Punjab University
2009 - 2018
B.Com Part 1 Past Papers

Q. 7 Irtaza and Murtaza were partner in a firm sharing profit equally. Their Business
position as on 30th June 2014 is as follows:
Assets Rs. Liabilities Rs.
Cash in hand 150 Sundry Creditors 6,000
Stock 3,600 Bank overdraft 1,500
Sundry Debtors 6,200 Irtaza’s Capital 2,100
Furniture 600 Murtaza’s Capital 1,600
Investments 650
11,200 11,200

It is agreed to take Mujtaba into partnership and to make the following adjustments.
a) Bad debts are to be written off for Rs.1,600
b) Value of furniture is to be reduced to Rs.400
c) Depreciate stock at 10%
d) Write off 20% on investment
e) Raise Goodwill for Rs.1000

Mujtaba introduced Rs.1000 as capital for his 1/3rd share. Other partner’s capital should be
adjusted according to new partner’s capital.

Q. No.8 Define bill of exchange. Discuss its features and types.

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