ST.

JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

PRACTICE EXAM
B.COM(Regular) - I SEMESTER
FINANCIAL ACCOUNTING
Duration: 2 Hours Max. Marks: 60

SECTION – A
I. Answer any 5 questions. Each question carries 2 marks. (5 x 2 = 10)

1. Give the meaning of IFRS. And mention any one need for convergence of
IFRS.
2. The following information relates to a business for the year ended 30 June:
Revenue from operations Rs.180,000 Purchases Rs.132,000 Opening Inventory
Rs.33,000 Sales were all made at a uniform gross profit margin of 20%.
Calculate the value of closing Inventory.
3. Identify the account to be credited in the following transaction. Withdrawal
of goods by the proprietor for personal use.
4. If the total Purchasers is Rs. 48,000, opening trade payables are Rs. 8,000 and
closing trade payables are Rs. 6,000. Calculate cash paid to suppliers.
5. Identify which type of events are these after reporting period but before the
approval by the board of directors.
a) Settlement of a court case.
b) Destruction of an asset.
6. Bric Ltd has a stock of Rs. 2, 00,000. Total liquid assets are Rs. 10, 00,000 and
quick ratio is 2:1. Calculate current assets.
7. Define: Assets and Liabilities.

SECTION - B
II. Answer any 4 questions. Each question carries 5 marks (4 x 5 = 10)

8. Explain briefly the phases of applicability of Ind AS.

9. Prepare a Trial Balance from the following details:

Particulars Rs
Cash in Hand 2,000
Purchases returns 4,000
Wages 8,000
Establishment expenses 12,000
Sales returns 8,000
Capital 22,000

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 Carriage outward 2,000
Discount received 1,200
Commission earned 800
Machinery 20,000
Stock 10,000
Debtors 8,000
Creditors 12,000
Sales 44,000
Purchases 28,000
Bank overdraft 14,000
Manufacturing expenses 14,000
Loan from Ashok 14,000
Carriage inward 1,000
Interest on Investments 1,000

10. Prepare daily balance sheets on the basis of the following transactions:

a) Manu commenced business with Rs 70,000

b) Purchased goods from Rahul Rs 14,000
c) Paid to Rahul in full settlement Rs 13,500
d) Sold goods for cash (cost price is Rs 3000) Rs 4000
e) Outstanding salary to Manager Rs 500
f) Paid rent in advance to landlord Rs 400

11. From the following particulars, prepare a Statement of Profit and Loss
for the year ending 31st March, 2020:
Debit Items Rs. Credit Items Rs.
Purchases 60,000 Capital 1,13,075
Return Inwards 1,500 Revenue from operations 1,27,000
Buildings 90,000 Return outwards 1,275
Opening Inventory 40,000 Discount Received 800
Discount allowed 350 Trade payables 25000
Insurance premium 100
Trade receivables 45,000
Salaries 17000
Freight inwards 2,200
Advertisements 4,000
Cash at Bank 7,000

Total 2,67,150 2,67,150

Closing inventory was valued at Rs. 35,000.

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12. X Ltd. made a profit after tax for the year ending 31.03.2021 Rs. 13,50,000 after
considering the following items:
a) Depreciation on Fixed Assets Rs. 25,000
b) Writing off preliminary expenses Rs. 10,000
c) Loss on sale of furniture Rs. 1,000
d) Provision for taxation Rs. 5,60,000
e) Transfer to General Reserve Rs. 14,000
f) Profit on sale of machinery Rs. 6,000
The following addition information is available to you:
31.03.2020 (Rs.) 31.03.2021 (Rs.)
Deferred Tax Asset (net) 1,98,000 1,62,000
Debtors 30,000 24,000
Creditors 30,000 20,000
Bills Receivables 17,000 20,000
Bills Payables 12,000 16,000
Prepaid Expenses 600 400
Calculate Cash Flow from operating activities.

13. The balance sheets of X and Co Ltd. for the year 2018, 2019 & 2020 are given
below: Prepare the Trend Analysis from the given information.
Particulars 2018 2019 2020
Property, Plant and Equipment’s 20,00,000 40,00,000 50,00,000
Investments 8,00,000 10,00,000 12,00,000
Accounts Receivable 2,00,000 8,00,000 9,00,000
Inventories 1,00,000 3,00,000 2,00,000
Prepaid expenses & other current assets 9,00,000 13,00,000 12,00,000

Total Assets 40,00,000 74,00,000 85,00,000

Issued Common stock 12,00,000 24,00,000 28,00,000
8% Preference Share Capital 10,00,000 18,00,000 20,00,000
Reserve Fund 8,00,000 10,00,000 12,00,000
Retained earnings 4,00,000 6,00,000 8,00,000
Long Term Loans 4,00,000 10,00,000 12,00,000
Accounts Payables 2,00,000 6,00,000 5,00,000

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 Total Liabilities 40,00,000 74,00,000 85,00,000

SECTION - C
III. Answer any 2 questions. Each question carries 15 marks (2x15 = 30)

14. Following are the balance sheets of a Vijay & son:

Liabilities 1‐1‐05 31‐12‐05 Assets 1‐1‐05 31‐12‐05
Creditors 36,000 41,000 Cash 4,000 3,600
Loan from ‐ 20,000 Debtor 35,000 38,400
Partner
Loan from Bank 30,000 25,000 Stock 25,000 22,000
Capital 1,48,000 1,49,000 Land 20,000 30,000
Building 50,000 55,000
Machinery 80,000 86,000
2,14,000 2,35,000 2,14,000 2,35,000
During the year Rs. 26,000 was paid as dividend.
Provision for Depreciation on machinery as on 1.1.05 was Rs. 27,000 and on 31.12.05 was
Rs. 36,000.
Calculate Cash flow from Operating, Financing and Investing Activities.

15. The following data represents the ratios pertaining to X Co. Ltd for the year
ending 31/03/2019

Annual sales Rs. 40,00,000

Sales to net worth 4 times
Current liabilities to net worth 50%
Total debts to net worth 80%
Current ratio 2.2
Sales to inventory 8 times
Average collection period 40 days
Fixed assets to net worth 70%
From the above-mentioned particulars prepare the balance sheet of X & Co. Ltd as
on 31/03/2019. Assume that all sales are made on credit.

16. Draw the format of the Balance sheet as per Division II of Companies Act
2013.

17. On 31st December, 2017, the following Trial Balance was extracted from the
books of Mr. Himmat Singh.

Particulars Debit Credit

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 (Rs.) (Rs.)
Dr. Balances:  
Drawings 3,000
Sundry Debtors 20,100
Interest on Loan 300
Cash in Hand 2,050
Stock on 1st Jan, 2017 6,839
Motor Vehicles 10,000
Cash at Bank 3,555
Land & Buildings 12,000
Bad Debts 525
Purchases 66,458
Sales Returns 7,821
Carriage Outward 2,404
Carriage Inward 2,929
Salaries 9,097
Rates Taxes and Insurance 2,891
Advertising 3,264
General Expenses 3,489
Bills Receivable 6,882
Capital 28,000
Sundry Creditors 10,401
Loan on Mortgage 9,500
Bad Debts Reserve 710
Sales 1,10,243
Purchases Returns 1,346
Discounts 540
Bills Payable 2,614
Rent Received 250

TOTAL 163,604 163,604

Prepare Trading and Profit and Loss Account for the year ended 31 st December, 2017
and Balance Sheet as on that date, after making adjustments for the following
matters:

1. Depreciate Land and Building at 2.5 % and Motor Vehicles at 20%.

2. Interest on Loan at 6% p.a. is unpaid for six months.
3. Salaries amounting to Rs. 750 and rates amounting to Rs. 350 are outstanding.
4. Prepaid Insurance amounted to Rs. 150.
5. The provision for Bad Debts is to be maintained at 5% on Sundry Debtors.
6. Provide for manager's Commission at 10% on net profits after charging such
commission.

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7. Stock in hand on 31st December, 2017 was valued at Rs. 6,250.

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