LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SECRETARYSHIP

Date: 04-11-2017 Dept. No. Max. : 100 Marks

PART A

ANSWER ALL THE QUESTIONS (10 X 2 =20)

1. Calculate gross profit and cost of goods sold from the following information:
Net Sales Rs. 2,00,000; Gross profit is 25% on cost.
2. On 1-1-91, X & Co. purchased machinery for Rs. 4,00,000. Depreciation is to be charged at 10% under
Diminishibng Balance Method. On 31-12-91, half of this machinery was sold for Rs. 1.21,000. Show machinery a/c
for the years 1991 and 1992.
3. Calculate Sales: Cost of goods sold Rs. 2,70,000; Rate of gross profit 25% on sales.
4. Compute Opening branch debtors balance from the following transactions:
Credit sales Rs. 51,000
Received from debtors by the branch Rs. 42,500
Branch debtors (Closing) Rs. 7,700
Discount allowed to customers Rs. 1,800
5. Ram purchased a truck under H.P.System on 1-4-89 for Rs. 5,00,000. He provided 20% depreciation under W.D.V.
method. He had paid down payment and Ist annual instalment but failed to pay second annual instalment. The
vendor has taken away the truck at Rs. 2,81,250. Compute the loss due to repossession assuming the accounts are
closed on 31st march.
Define/What
6. Repossessed stock
7. Inter departmental transfors
8. Self balancing ledgers
9. Branch adjustment a/c
10. Direct expenses

PART B
ANSWER ANY FOUR: (4 X 10 = 40)
11. Briefly explain various methods of providing for depreciation of fixed assets.
12. Distinguish between Hire Purchase and Instalment Purchase system.

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13. A limited company purchased a plant for Rs. 10,000 on 1-1-91. On 1-7-91 an additional plant was bought costing
Rs. 5,000. On 1-7-92, the plant bought on 1-1-91 was sold off for Rs. 4,000. On 1-7-93 a fresh plant was purchased
for Rs. 12,000 and the plant bought on 1-7-91 was sold at rs. 4,200. Depreciation is provided at 10% p.a. on original
cost on 31st December every year.
Draw up the plant account till the end of 31-12-93.
14. Manian Ltd., of Calcutta has a branch at Patna. Goods are invoiced to the Patna branch, the selling price being
cost plus 25%.
The Patna branch keeps its own sales ledger and transmits all cash received to Calcutta. All expenses are paid from
Calcutta. From the following details prepare the Patna branch a/c for the year 1989.
Rs.
Stock (1.1.89) (invoice price) 1,250
Stock ( 31.12.89) (invoice price) 1,500
Debtors (1.1.89) 700
Debtors(31.12.89) 900
Cash sales for the year 5,400
Credit sales for the year 3,500
Goods invoiced from Calcutta 9,100
Rent 400
Wages 340
Sundry expenses 80

15. From the following particulars, prepare the Departmental Trading and Profit and Loss a/c for the year ending 31-
12-97.
Dept X (Rs.) Dept Y (Rs.)
Stock (1.1.97) 9,000 8,400
Sales 42,000 36,000
Purchases 27,000 21,600
Direct expenses 5,490 8,520
Postage 360 360
Stock (31.12.97) 10,800 4,800

Indirect expenses for the entire business was rs. 3,900 which are to be divided in the proportion of sales of the two
departments.
16. A fire was occurred in the Premises of X Ltd on 10.10.91. All stocks were destroyed except to the extent of Rs.
6,200. From the following figures, ascertain the loss of stock suffered by the company:
Rs.
Stock 1.1.90 40,000
Purchases during 1990 1,25,000
Sales during 1990 2,00,000
Stock 31.12.90 25,000
Purchases during 1991 upto the date of fire 1,52,000
Sales during 1991 upto date of fire 1,89,000

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17. Below are given particulars from the books of Shri Ram Patil, a trader for the month of March 1991:
March 1, 1991 Rs.
Opening balance 30,000
March 31, 1991
Total sales for the month 90,000
Sales returns 500
Cash received from debtors 40,000
Bills receivable 15,000
Bills dishonoured 1,500
Discount allowed to debtors 400
Bad debts 350
Transfer from another leger 750
Bills receivable endorsed to suppliers 1,200
Prepare Self balancing ledger.

PART C
ANSWER ANY TWO: (2 x 20 =40)

18. Kumar purchased 2 Machines costing Rs. 80,000 each from Peter on 1-1-1994 on hire-purchase system. The
terms were as follows:
Payment on delivery rs.20,000 for each machine, reminder in 3 equal instalments and also separately the interest at
10% p.a. to be paid at the end of each year.
Kumar writes-off 25% depreciation each year on the diminishing balance method. Kumar paid the instalments due
on 31-12-1994 and 31-12-1995 but could not pay the final instalment.
Peter re-possessed one machine on 31-12-1996 adjusting its value against the amount due. The re-possession was
done on the basis of 30% depreciation on the diminishing balance method, assuming that the balance, still lying due,
will be paid off next year in 1997.
Write up ledger accounts in the books of Kumar and Peter.

19. A Bombay head office sent goods to Madras Branch at 25% profit over cost. From the following details, prepare
the necessary ledger accounts in the books of head office under Stock and debtors system.
Particulars Rs.
Opening stock of goods at branch at invoice price 20,000
Goods sent to branch at invoice price 90,000
Loss of goods in transit at invoice price 6,000
Pilferage at branch at the cost of branch 1,200
Closing stock at branch at its cost to branch 16,000
Sales at branch 1,05,000
Salaries and wages at branch 6,000
Other expenses at branch 3,000

Madras branch received Rs. 4,000 from the insurance company in settlement of the claim for the loss of goods in
transit.

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20. A trader commenced business as a cloth merchant on 1-4-84 with a capital of Rs. 20,000. On the same day he
purchased furniture and fixtures for Rs. 4,000. From the following particulars obtained from his books which do
not conform to strict double entry principles, you are required to prepare Trading and P & L a/c and Balance Sheet as
on 31.3.85.
Rs.
Sales (including cash sales Rs. 10,000) 25,000
Purchases (including cash purchases R.6,000) 20,000
Drawings 1,000
Salaries 2,400
Bad debts written off 200
Trade expenses 800

The trader has used cloth Rs. 600 for private purposes and gave Rs. 1,000 to his son which are not recorded
anywhere. On 31-3-95 his debtors were worth Rs. 7,000 and creditors were Rs. 4,000.
Stock on that date was valued at Rs. 8,000.

21. From the following TriAL Balance of Appu as on 31st march 1994, Prepare a Trading and Profit and Loss a/c for
the year and a Balance sheet as on that date;
Debit Balances Rs. Credit balances Rs.
Stock on 1-4-1993: Sundry creditors 23,500
Raw materials 21,000 Bills Payable 7,500
Work-in-progress 9,500 Sale of scrap 2,500
Finished goods 15,500 Commission 450
Sundry debtors 24,000 Provision for doubtful 1,650
Carriage 1,500 Debts
Bills receivable 15,000 Capital 1,00,000
Wages 13,000 Sales 1,67,200
Salaries 10,000
Postage & telegram 1,000
Repairs 1,100
Purchases 85,000
Cash at bank 17,000
Plant and Machinery 70,000
Furniture 10,000
Rent 6,000
Lighting 1,350
General expenses 1,850

3,02,800 3,02,800

Adjustments:
1. Stock on 31st march 1994:
Raw materials Rs. 16,200; work-in-progress Rs. 7,800; finished goods Rs. 18,100
2. Salaries and wages outstanding were Rs. 900 and Rs. 2,000
3. Machinery is to be depreciated by 10% and furniture by 7.5%
4. Office premises occupy ¼ of total area. Lighting is to be charged as to 2/3rd to factory and 1/3 to office.

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