KRISTU JAYANTI COLLEGE BENGALURU (AUTONOMOUS)

UG ONLINE END SEMESTER THEORY EXAMINATION JULY 2021 [IUJUL21]

BBA II SEMESTER
BBA204B21: FINANCIAL ACCOUNTING

TIME: 2 HOURS MAX. MARKS: 70

SECTION – A
Answer any SIX questions. Each question carries SEVEN marks. [ 6 x 7 = 42 ]

1. What you mean by average clause in Insurance? Calculate the amount of claim using the following
details.
Value of stock on the date of fire – 25,000
Value of stock saved from fire – 5,000
Value of the Insurance Policy – 20,000
2. Explain differences between Instalment purchase system and Hire purchase system.
3. On 1st January 2009 S purchased a machine from K on hire purchase basis. The particulars are as
follows:
i) Cash price ₹10,000
ii) ₹ 4,000 to be paid on signing the contract
iii) Balance in three instalments of ₹2,000 plus interest.
iv) Interest charged on outstanding balance at 5%
v) Depreciation at 10% p.a. on Written Down value method.
Calculate interest and Prepare K’s account in the books of purchaser.
4. Write a short note on i) Minimum Rent ii) Short workings iii) Recoupment of Short workings iv)
Landlord
5. On 15.9.2014 the premises and stock of a firm was destroyed but the accounting records were saved
from which the following particulars were available.
Stock on 1.4.2013 - ₹ 1,47,000
Stock on 31.03.2014 - ₹ 1,63,800
Purchases for the year 2013-14 was ₹ 7,96,000
Sales for the year 2013-14 - ₹ 9,74,000
Purchase from 1.4.2014 to 15.9.2014 was ₹ 3,24,000
Sales from 1.4.2014 to 15.9.2014 was ₹ 4,62,400.
Carriage outwards from 1.4.2014 to 15.9.2014 was ₹ 22,000. Stock salvaged was ₹ 60,000, Amount of
policy was taken for ₹ 60,000. There is an average clause in the policy. Show the amount of claim.

6. S& Co took a lease from a landlord for a period of 20 years from 1.7.06 on a royalty of ₹10/ton of ore
raised with a dead rent of ₹ 40,000 and power to recoup short working during the first four years of
lease. The annual output was as under
2006- 2,000 tons, 2007- 3,000 tons, 2008- 4,000 tons, 2009 – 4,500 tons and 2010 – 5,000 tons, Prepare
short workings a/c in the books of Sriram Mines.
7. Distinguish between Fixed and Fluctuating Capital account.
8. Explain about Partnership Deed.
 SECTION – B
(Answer any TWO questions. Each question carries FOURTEEN marks.) [ 2 x 14 = 28]

9. D Coal Company Ltd took a lease of a mine on a royalty of ₹ 1 per ton of coal raised. The dead rent being ₹
60,000p.a. Right to recoup short workings within a period of 5 years. The output for the first 5 years
was as follows:
Year Output
I 20,000 tons
II 68,000 tons
III 1,60,000 tons
IV 2,40,000 tons
V 2,40,000 tons
Pass necessary journal entries in the books of D Coal Company Ltd.

10. A fire accident occurred in the shop of Mahadevappa on 15.12.2014. Calculate the loss from fire and the claim to
be made to the insurance company.
Stock on hand on 01.04.2013 – Rs.30, 600
Purchases from 01.04.2013-31.03.2014 – Rs.1, 22,000
Sales from 01.04.2013-31.03.2014 – Rs.1, 80,000
Stock on hand on 31.03.2014 – Rs.27, 000
Purchases from 01.04.2014-14.12.2014 – Rs.1, 47,000
Sales from 01.04.2014-14.12.2014 – Rs.1, 50,000
Mahadevappa had always valued the stocks on hand at 90% of cost price. Goods worth Rs.18,000 had been
salvaged from fire. He had taken out an insurance policy of Rs.63,000 on the goods, and this policy contained the
average clause. calculate the amount of claim

11. X purchased a Machine on hire purchase system. The total cash price of the machine is ₹ 31,960, payable ₹
8,000 down, and three instalments of ₹ 12,000, ₹ 10,000 and ₹ 4,000 payable at the end of the first,
second and third year respectively. Interest is charged at 5% p.a. Charge depreciation at 10% on straight
line method. Prepare Ledger Accounts in the books of X.

12. K and V were partners sharing profits and losses in the ratio of 3:2. The following balances were extracted from
the books of account for the year ended March 31, 2019.
Debit Credit
Capitals -
K - 60,000
V - 50,000
Current accounts (on April 01,
2018)
K - 2,800
V - 1,600
Drawings - -
K 12,000 -
V 8,000 -
Stock as on 1.4.2018 11,000 -
Purchases and Sales 54,000 80,000
Returns 2,000 1,500
Wages 2,500 -
Salaries 4,000 -
Printing and Stationery 500 -
Bills receivable 12,000 -
Bills Payable 2,000
Debtors & Creditors 36,000 8,000
 Discount 1,200 1,500
Rent & Rates 800 -
Bad debts 1,400 -
Insurance 400 -
Postage and Telegram 300 -
Salesman commission 3,400 -
Land & Building 24,000 -
Plant & Machinery 20,000 -
Furniture 13,500 -
Overdraft - 2,000
Trade Expenses 400 -
Cash in hand 500 -
Cash at bank 1,500 -
2,09,400 2,09,400

Prepare the final accounts for the year ended March 31, 2019 firm taking into consideration the
following:
(a) Stock on March 31, 2014 was Rs. 18,000;
(b) Provision for doubtful debts is to be provided at 5% on debtors;
(c) Outstanding salaries were Rs. 1,000;
(e) Interest on capitals is allowed at 6% per annum and interest on drawings is also charged at 6% per
annum;
(f) Kapil is entitled to a Salary of Rs. 1,200 per annum;
(g) Write-off Land and buildings at 5%, Furniture at 10% and Plant and Machinery at 15%.