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FIRST TERM INTERNAL EXAMINATION

III Sem., BCA 2015
Paper Code : BCA 207
Date : -09-2015

Subject : Financial Accounting

( Batch 2014 2017)

Time: 2 Hours

Maximum Marks: 30

(Q1 is compulsory and attempt any 2 questions from the remaining)

1. ABC Ltd. purchased machinery on October 1, 2005 for Rs. 1, 80,000 and paid Rs. 20,000
for its installation. On April 1, 2006, new machinery was purchased for Rs. 1, 00, 000.
On October 1, 2007, machinery purchased in 2005 was sold for Rs. 60,000 and new
machinery was purchased costing Rs. 50,000 on the same date. Company provides the
depreciation of 10% on original cost. Prepare Machinery Account assuming that year
ends on 31st March every year.
(10 Marks)
2. i. Record the following transactions in the journal:
(5 Marks)
Date
Transactions
2013 Jan 1
2
3
15
20
23
25
28
29
30

Started business with cash Rs. 20,000.

Deposited into Bank Rs. 18,000.
Purchased machinery for Rs. 10,000 from Jawahar and gave him a cheque for
amount.
Purchased goods from Naveen costing Rs. 5,000.
Rs. 5,000 & Rs. 1,000 has been drawn for personal use & office use respectively
from the bank.
Furniture costing Rs. 1000 was purchased in furnishing the office
Sold goods to Naresh for Rs. 2,000
Received a cross cheque from Naresh for Rs. 1,860 in full settlement and sent
the cheque to bank.
Sent to Naveen in full settlement a cheque for Rs. 3,500
Paid for wages Rs. 700, stationary Rs. 300 and rent Rs. 1500

ii. Prepare three column cash book from the following:

2014
Particulars
June 1
June 7
June 9
June 12
June 15
June 20
June 25
June 28
June 30
June 30

Cash in Hand
Bank Overdraft
Received a cheque from Bina and deposited into the bank
Paid to Bhuwan by cheque
Paid to Mahesh Rs. 1,200 in full satisfaction by cheque. We
owed to Mahesh Rs. 1,500 for goods purchased
Withdraw from bank for office use
Cheque received from Prithvi
Paid freight Rs. 400, wages Rs. 1000 and rent Rs. 500 in cash
Income tax paid by cheque
Bank Charges

(5 Marks)
Amount
(in Rs.)
1,60,000
1,00,000
50,000
10,000
2,500
15,000
12,000
300

3. From the following data calculate the value of inventory on 31st January, 2010 by (i)
LIFO. (ii) FIFO and, (iii) weighted average method.
(10 Marks)
January 1: Stock in hand 400 units @7.50 each
Purchases:
January 5
600 units @ 8.00 each
January 15
500 units @ 9.00 each
January 25
400 units @ 8.50 each
January 30
300 units @ 9.50 each
Issues:
January 3
January 10
January 17
January 26
January 31

300 units
500 units
400 units
500 units
200 units

4. Comment on Any 5 of the following statements. Your answer should not exceed 50
words each.
(2*5 Marks)
(i)
Accounting is the language of business
(ii) The asset appears always at original cost in case depreciation is credited to
provision for depreciation account.
(iii) The term current assets and liquid assets have synonyms meaning.
(iv) LIFO & FIFO method of inventory gives same closing stock.
(v) The term Current Liabilities is used to denote those liabilities which are payable
after a year.
(vi) FIFO method correlates the current costs with the current market prices.
(vii) There are only three branches of accounting.
5. i. What is depreciation? Why it is needed? Distinguish between SLM and WDV method
of depreciation.
(5 Marks)
ii. Define Inventory. Explain the two inventory systems in detail.
(5 Marks)

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