DIVISIONAL ACCOUNTANT - KERALA STATE ELECTRICITY BOARD - PAPER I - BOOK KEEPING.pdf (Size: 847.9 KB / Downloads: 1)

107/2016
bOM-iw-t'
(Pages : 6)
Maximum: 150 marks Answer ALL questions in ENGLISH.
Time: 3_hours



1.Explain accounting equation and illustrate how the equation is unaffected after the occurrence of transactions. .

How would the following errors in the books of business affect the accounts of the same?
Show corrective Journal entries.

Amount
3000 posted to debit of stationary instead of to Mr. Raj in payment of his account.
8000 cost of repairing car shed, charged to buildings account!
6000 for goods sold, posted to the debit of charges.
1000 for wages to workmen for erecting the firm’s new machinery, charged to wages account
2000 posted to charges for the purchase of a Safe
.
©Differentiate between Accounting Period concept and Matching concept. 
(d)On 31rt March 2015, the passbook showed the credit balance of Rs. 1,05,000
(i)Cheques amounting to Rs. 27,500 were deposited in the bank but only cheques of Rs.750P had hot been credited up to 31st March..
(ii)Cheques amounting to Rs. 35,000 were issued but cheque for Rs. 12,000 had not been presented for payment in the bank up to 31* March.
(iii)Bank had given the debit of Rs.350 for sundry charges and also
(iv)Bank had received directly from custbmers Rs. 8,000 and dividend of Rs. 1,300 upto .31* March. 

"Find out the balance as per cash book.
II. (a) Mr. Rahul bought a machinery on lat January 2013 under hire purchase system from Raj Machines. Rs.20,000 is paid on signing the agreement and the balance in 3 equal annual instalments of Rs. 24,000 each. Interest is charged at 20% per annum. Calculate the cash prize of the machine. *
(b) What are the various methods of calculation of Goodwill?

III.
Differentiate between Capital Expenditure and Revenue Expenditure.
(b)Mr. Rahim has three ledgers in use — a debtor’s ledger, a creditor’s ledger .and a nominal ledger which are all kept on self balancing system. From the following particulars, prepare Debtor’s Ledger Adjustment Account and Creditor's . Ledger Adjustment Account as would appear in the nominal ledger for the* month of -March 2015. ‘ (10) .

Balance of Sundry Creditors as on 1/03/2015 7,720
Balance of Sundry Debtors as on 1/03/2015 * * 5,500
Credit Purchases 80,000
Bills Receivables from customers 5,000
Return outwards 100
Allowance received 800
Credit sales 1,00,000
Interest on customers' Accounts overdue for payment. 700
Collection from Debtors • 58,000
Sales Return 1,200
Credit balances transferred from Purchase ledger to Sales ledger ' 150
Cash sales • 4,000
Bills receivable dishonoured , 1,400
Paid to Creditors • 26,000
Bills payable accepted 4,000
Allowances to Customers . 20 
Bad debts written off 120 •
Debit balances transferred from Debtor’s Ledger to Creditor’s Ledger • 500'
IV. (a) A bill for Rs 1,00,000-is drawn by M/S Menon & Co: on M/s Narayan, & Co. and accepted by the latter payable at the State bank of India. Show what entries would be passed in the books of both the parties under each of the following circumstances.'
(i)If they retained the bill' till the due date and then realized it op maturity.
(ii)If they discounted it with their banker, Bank of India for Rs. 98,000,
(iii)If they endorsed it over to their creditors Mathew & Sons in settlement of their
debt Rs. 1,01,000. -
(iv)If they sent the same to their bankers for collection.
(b) What are the objectives of providing depreciation? Consider the case of a Machinery purchased for Rs. 5,00,000 on 1st January 2012 and 10% depreciation on the reducing balance has been written off as depreciation for three years. Show how this* account will appear in the ledger during the period? .

Calculate Prime Cost, Factory following particulars;
Cost, Cost of Production, Cost of sales and Profit from the
Rs. Rs.
Direct materials             1 ,00,000 Depreciation;
Direct wages 30,000 Factory plant 500
Wages of foreman 2,500 Office premises 1,250
Electric power 500 Consumable stores 2,500
Lighting; Factory 1,500 Manager’s salary 5,000
Office 500 Director’s fees 1,250
Storekeeper's wages 1,000 Office stationary\ 500
Oil and water 500 Telephone charges 125
Rent; Factory 5,000 Postage and telegrams 250
Office 2,500 Salesmen’s salaries 1,250
Repairs and renewals; Travelling expenses 500
Factory plant 3,500 Advertising 1,250
Office premises 600 Warehouse charges 500
Transfer to reserves 1,000 Sales 1,89,500
Discount on shares 500 Carriage outward 375
written off
Dividend 2,000 Income tax 10,000
From the following trial balance of Kavitha Enterprises, Prepare Trading and
and Loss Account for the year ended 31st December 2015 and a Balance Sheet
that date:
Dr. ’ Cr. ,
Capital 60,000
Drawings 7,200
Stock on 1st January 2015 20,500
Purchases 68,000
Carriage inwards . 1,500
Sales , 1,40,500
Sundry Debtors 23,500
Sundry Creditors 14,300
Cash in hand 500
Cash at bank 2,200
Carriage outwards 1,700
Salaries 16,000
Factory rent 4,000
Bills receivable 5,300☺
Bills payable 4,200
Insurance 1,200
Furniture 10,000
Machinery 28,000
Office rent 2,000
Manufacturing wages 21,500
Provision for doubtful debts , 1,000
Manufacturing Expenses. 1,500
General Expenses 5.400
2,20,000 2,20,000
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107/2016

The following adjustments are required; '
(i) Stock on 31at December 2015 amounted to Rs. 27,000.
(ii) . Write off Rs. 500 as bad debts and maintain the provision for Doubtful Debts at
5% on sundry debtors.
(iii) Unexpired insurance Rs. 300.
(iv) Depreciate Machinery.by 5% and furniture by 10%.
(v) On 24th December 2015, a fire broke out and destroyed stock of the value of
Rs. 10;000. The insurance company admitted the claim for loss of stock of the value of Rs. 6,000 only and paid the amount on 15th January 2016. (20)
VI. Mr. A does not maintain complete double entry books of accounts. From the following details determine the profit for the year and statement of affairs at the end of the year. Rs. 1,000 (cost) furniture Was sold for Rs. 5,000 on 1.1.2015; 10% depreciation is to be charged on furniture.
Mr. A has drawn Rs. 1,000 per month. Rs. 2,000 was invested by Mr. A in 2015.
01.01.2015 31.12.2015
Stock
Debtors
Cash
Bank
Creditors
Outstanding expense Furniture (cost)
40,000 60,000
30,000 40,000
2,000 1,000
10,000 5,000
15,000 25,000
5,000 * 8,000
3,000 2,000
Bank balance on 1.1.2015 is as per cash took, but the bank overdraft on 31.12.2015 is as per bank statement. Rs. 2,000 cheques drawn in December 2015 have not been encashed within the year. . (15)
VII. (a) A head office at Mumbai has a branch at Kochi. Goods are sent by the Head Office to its branch at. cost which the branch sells both for cash and on credit. The following relate to the branch for the year 2015.
Stock at branch on 1.1.2015 24,000
Branch debtors on 1.1.2015 7,000
Furniture at branch on 1.1.2015 8,000
 Goods sent to branch during the year 1,40,000
Cash sales during the year 82,000
Credit sales during the year 90,000
Cash received from debtors 83,000
Returns by debtors to branch 2,000

Discount allowed to debtors 1,000
Bad debts written off 500
Remittance to branch for expenses 7,000
Stock at branch on 31.12.2015 40,000
Branch debtors on 31.12.2015 10,500
Value of furniture on 31.12.2015 6,400
Prepare Kochi Branch Account to find out the profit at Branch. Also prepare Branch Debtors Account. Show the entries in Profit and Loss Account and Balance Sheet as on
31.12.2015.
Hotel Taste Buds had two departments; Room service and Restaurant. Following is the
Trial Balance of the hotel:
Income from Room Service 46,000
Income from Restaurant 32,000
Provisions 15,500
Stock of provision in the beginning 1,020 .
Cash in hand and at bank 10,000
Capital 2,20,000
Customers debit balance 800
Suppliers' accounts 9,800
Building (l/l0th is used for Restaurant) 2,10,000
Provision for depreciation on buildings 24,000
Furniture and equipments 60,000
General Expenses 27,410
Interest 1,130
Interest accrued 200 .
Income tax 400
Life insurance premium 1,600
Wages 6,000
3,32,930 3,32,930
Additional Info:
(i) The servants in the Room Service Department had occupied a room worth Rs. 120 and took meals worth Rs. 60. Similarly Servants in the Restaurant Department had occupied a room worth Rs. 150 and took meals worth Rs. 90.
(ii) Wages are charged in the proportion of 1/2 to the Room service department, 1/4th to restaurant department and remaining to the general profit and loss account.
(iii) Increase provision for depreciation on building to Rs. 30,000.
(iv) A sum of Rs. 800 representing accommodation Rs. 240 and meals Rs. 560 to be charged to proprietor of the hotel.
Prepare Final Accounts for the year ending 31* March 2015.


VIII. From the following Trial Balance of Northern Railway Co. after the completion of Revenu Account for the half year ended 31 December 2015.
3 1/2%  Preference stock 3,00,000
Ordinary stock 5,00,000
4% Debenture stock 2,00,000
Lines open for Traffic 8,51,950
Lines in course construction 5,000
Lines not commenced 50
Working stock (Engines, carriage etc.) 1,30,000
Contributions to joint lines 50,000
Premium on stock etc. sold 25,000
Purchase of great canal 5,000
Cash at bank 5,000
General stores, stock on hand 10,000
Traffic Accounts due to company 10,000
Due from other companies 1,000
Sundry Outstanding Accounts 4,000
Debts due to other companies 500
Sundry tradesmen 20,000
Fire Insurance fund 1,500
Superannuation Fund 5,000
Balance to credit of Revenue Account 20,000
10,72,000 10,72,000
During the half year, there was an issue of Rs. 10,000 31/2 preference stock at par, which was fully subscribed and paid up, also of Rs. 20,000 ordinary stock fully, subscribed and paid up at a premium of 5%. The expenditure On lines open for traffic was Rs. 25,000, on the lines in course of construction Rs. 1,000 and on working Rs. 5,000.
Prepare Capital Account and Balance sheet. (20)