Co 2101

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Com. & B.Sc. DEGREE EXAMINATION – COMMERCE, STATISTICS

SECOND SEMESTER – APRIL 2006
TH 59
CO 2101 - FINANCIAL ACCOUNTING & FIN. STATE. ANALYSIS
Date & Time : 26-04-2006/1.00-4.00 P.M. Dept. No. Max. : 100 Marks
PART – A
Answer ALL the questions (10 x 2 = 20 marks)
1. Name the parties interested in Accounting information.

2. What is balance sheet?
3. Distinguish between Gross Profit and Net Profit.
4. What is Double Entry System?
5. Fill in the blanks:
a) Outstanding expenses is a current _________. (liability / Asset)
b) Prepaid Expenses is a current ________. (liability / Asset)
6. What is Trial balance?
7. What is Capital expenditure?
8. Give the rules for Debiting and Crediting.
9. Compute payout Ratio & Retained Earnings Ratio:
Net Profit after tax Rs.5000; Preference dividend Rs.2000 No. of Equity Shares
3000; Dividend per share Rs.0.40.
10. What is Earnings per share?
PART – B
Answer any FIVE questions: (5 x 8 = 40 marks)
11. What is book-keeping? Explain the concepts of double entry system.

12. Explain the advantages and limitations of Ratio Analysis.
13. What is Bank Reconciliation statement? What are the reasons for the difference
between the balance shown by the cash book and the one shown by the pass book?
14. From the following Receipts and payments account, prepare an Income and
Expenditure account as on 31-12-97.
1997 Jan 1 Rs. Rs.

To balance b/d 7,700 By Charities 10,500
To Donations 8,000 By Salaries 4,450
To Subscriptions 4,000 By purchase of furniture 750
To Interest on investments 9,500 By Investments 5,000
To Sale of old furniture (Book 75 By balance c/d 8,575
value Rs.100)
29,275 29,275
One-half of donations is to be treated as income. Rs.450 were owing for
salaries. Interest on investment Rs.500 had accrued but was not received.
656756924.doc Page No. 1

15. Prepare three column cash book from the following transactions for the month of
January
Rs.
Jan1 Balance in hand 250
Balance at bank 3,500
2 Received from customer a cheque
For Rs.500 and discount allowed 25
3 Sold goods for cash 150
4 Paid Ram by cheque 100
Discount Received 10
5 Salaries paid to staff 200
6 Withdrew from bank for office use 500
7 Purchased a typewriter by cheque 500
16. From the following Prepare necessary subsidiary books:
August 1 Bought goods form Daru Rs.11,200

2 Sold goods to David Rs.8,700
2 Bought goods from Batli Rs.11,350
3 Sold good to peepawala Rs.1950
5 Returned goods to Batli Rs.880
8 Peepawala Returned goods Rs.220
11 Sold goods to Ahemdbai Rs.2,800
15 Ahemdbai returned goods Rs.420
17. Calculate a) Current Ratio b) Debt Equity Ratio c) Liquid Ratio d) Fixed Assets
Ratio
Rs. Rs.
5,000 shares of Rs.50 each 2,50,000 Buildings 5,50,000
1,000 8% Preference shares 1,00,000 Stock 1,20,000
2000 9% Debentures 2,00,000 Debtors 1,27,500
Reserves 1,50,000 Prepaid Expenses 2,500
Creditors 75,000
Bank overdraft 25,000
8,00,000 8,00,000
18. Your are required to ascertain cash from operation for the following profit and
loss a/c
Rs. Rs.
To Depreciation 14,000 By Gross Profit 1,60,000
To Salaries 29,000 By Profit on sale of 600
investments
To loss on Sale of investment 2,000
To Rent & Rates 8,000
To Preliminary Expenses 4,000
To Provision for Tax 20,000
To Propored dividend 10,000
To Net Profit 73,600
1,60,600 1,60,600
656756924.doc Page No. 2

PART – C
Answer any TWO questions (2 x 20 = 40 marks)

19. With the help of following Ratio, draw the balance sheet.
Current Ratio 2.5
Liquid Ratio 1.5
Net working capital Rs.300,000
Stock Turnover Ratio (on cost) 6 times
Cross Profit Ratio 20%
Debt collection period 2 months
Fixed assets Turnover Ratio (On cost) 2 times
Fixed assets to shareholders net worth 0.80
Reserves and surplus to capital 0.50
20. From the following Trial Balance of Shri.Rajan, Prepare the Trading and Profit
and Loss Account for the year ended 31-3-98.
Dr. (Rs.) Cr. (Rs.)
Rajan’s Capital 29,000
Drawings 760
Purchase and sales 8,900 15,000
Sales and Purchase Returns 280 450
Stock on 1.4.97 1,200
wages 800
Buildings 22,000
Carriage on purchase 2,000
Trade Expenses 200
Advertisement 240
Interest 350
Taxes and Insurance 130
Debtors and Creditors 6,500 1,200
Bills Receivable and payable 1,500 700
Cash at bank 1,390
Salaries 800
46,700 46,700
Adjustments:
i) Stock on 31st march 1988 was valued at Rs.1500
ii) Insurance was prepaid Rs.40
iii) Outstanding salaries Rs.200 and Taxes Rs.130
iv) Depreciate Building at 2% p.a.
21. From the following Balance sheet, Prepare cash flow statement.
1992 1993 1992 1993
Share Capital 1,00,000 1,50,000 Fixed assets 1,00,000 1,50,000
Profit & loss a/c 50,000 80,000 Good will 50,000 40,000
General Reserves 30,000 40,000 Stock 30,000 80,000
6% Debentures 50,000 60,000 Debtors 50,000 80,000
Creditors 3,00,000 40,000 Bills 30,000 20,000
Receivable
Outstanding 1,000 15,000 Bank 10,000 1,50,000
Expenses
3,85,000 2,70,000 3,85,000 2,70,000
Depreciation on fixed Assets of the year 1993 is Rs.20,000
656756924.doc Page No. 3

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. & B.Sc. DEGREE EXAMINATION – COMMERCE, STATISTICS

Answer ALL the questions (10 x 2 = 20 marks)

1. Name the parties interested in Accounting information.

Answer any FIVE questions: (5 x 8 = 40 marks)

11. What is book-keeping? Explain the concepts of double entry system.

1997 Jan 1 Rs. Rs.

656756924.doc Page No. 1

16. From the following Prepare necessary subsidiary books:

August 1 Bought goods form Daru Rs.11,200

656756924.doc Page No. 2

Answer any TWO questions (2 x 20 = 40 marks)

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