Financial Accounting

Examination 2018

Group B

11. Define accounting. What are its function. [1+4]

12. Following transactions relating to a business were given to you 31st November 2018.(5) On 30th Chaitra, the cash book showed debit balance Rs. 16,000

1. Balance as per cash book Rs.35,000
2. Cheque issued for payment but not presented at bank Rs.5,000
3. Cheque sent for collection at bank but not credited by the bank Rs.15,000
4. A customer directly deposited Rs.10,000 to the bank but not recorded in cash book.
5. The bank has paid electricity bill of Rs.4,000 under preapproval from the firm but not recorded in cash book.

Required: Bank reconciliation statement

13. The The following information were provided to you by Gurung Suppliers Mhendra Pool
1 November 2018 sales of goods to Shrestha store at Birauta
   50 bags Mansuli rice @ Rs. 2,000 each.
   30 bags Pokharali masino rice @ 2,500 per bag
   70 bags Onion @1500 per bag.
15 November. Sales of goods to Bindabasini store at Bagar
   30 bags potato @ Rs.1000 per bag
   10 bags Sugar @ Rs.3000 per bag (Trade discount 10%)
20 November, Goods sold on cash to Raj Bhai 15 bags potato @Rs.900 per bag.
28 November, Goods sold to Hirachan store matepani
   20 bags Rice @ Rs.1,500 per bag
   20 bags sugar @ 3000 per bag
   100Kg Ghee @Rs.800 per Kg
Required

1. sales book
2. Sales account [4+1]

14. Furniture purchased on 1st January 2013 at Rs.5,50,000. Another Furniture purchased on 1st july 2016 at Rs. 5,00,000. The Furniture purchased on 1st January 2013 has found unsuitable and sold at Rs. 30,000 on 31st December 2016. The account of the business is closed 31st December each year. The company applied diminishing method of depreciation@ 10 percent per year.
Required: Furniture account for five years [5]

15. The following transactions of cash and bank of Tharu for the month of July has given to you.
   2018, July, 1 Opening balance of cash Rs.45,000 and bank Rs.50,000.
   July 5 Goods purchase at Rs.30,000 and payment made by cheque.
   July, 8, A cheque of Rs.40,000 received from a customer and deposited into bank.
   July 16, Goods sold at Rs.50,000 out of which partial payment received Rs.20,000 in cash.
   July, 19, A cheque of Rs.20,000 issued to Himal supplier
   July,22, Cash sales of Rs.30,000
   July, 23, Cash deposited into bank Rs.20,000
   July, 27, Rent paid to house owner Rs.13,000 by cheque
   July, 28 Salary paid in cash Rs.8,000
   July, 30, Electricity bill of Rs.5000 and telephone bill of Rs.3,000 paid by cheque
Required: Double column cash book with Cash and Bank column. [5]

16. The following material transactions of a manufacturing company is provided to you
   2018, December, 1, Opening stock of raw material 1100 units @ Rs.10 each
   2018, December, 5, Purchased 300 units @ Rs.9 each.
   2018, December, 9, Issued 800 units.
   2018, December, 14, Issued 500 units.
   2018, December, 18, Purchased 1,000 units @11 each.
   2018, December, 22, Returned 50 units from issued of 9 December.
   2018, December, 25, purchased 500 units @10 each.
   2018, December, 30, issued 900 units.
Required: Closing stock of material on 31 December, 2018 under First in First out (FIFO) method

17.The Hydropower company Ltd is issued 1,00,000 shares of Rs.100 each. The money called on application Rs.20, on allotment Rs.40 and Rs.30 on first call. The application is received for 90,000 only. The Board of director decided that all the share applications allotted in full. All the shareholders paid money in full except Shrijana holds 300 in first call.
Required: Journal entries in the book of company. [5]

Group C

Attempt any two questions [2x10=20]

18. Defined company. What are the types of company? Justify share differ with debenture.

19.The following transactions provided by Kathmandu trader to you.
July, 1, 2018 Started business on cash Rs.5,50,000 and Furniture Rs.50,000
July, 2, Cash deposited into bank Rs.1,00,000
July,6, Goods purchased from Newa store on credit Rs. 1,00,000 and cash Rs.50,000.
July, 8, Goods sold on cash Rs.30,000.
July, 12, Goods sold to Dangol store at Rs.45,000.
July, 18, Goods of Rs.25,000 purchase from Tamang store.
July, 22, Payment made by cheque to Newa Store Rs. 90,000 in full settlement (discount received Rs.10,000).
July, 25, Cash received from Dangol store as partial payment in cash Rs.24,000 and discount given Rs. 1,000.
July, 28, Purchase of computer for office use at Rs.50,000 and paid made by cheque.
July,29, Goods of Rs.5000 drawn by owner for private purpose.
July 30, Paid salary in cash Rs.12,000 and rent by cheque Rs.8,000
Required: a. Journal entries b. Ledger accounts c. Trial balance [5+4+1]

20. The following trial balance of a trader as on 31 December 2018 given bellow

Particular	Rs	Particular	Rs
To opening stock	43,000	By sales	2,76,000
To Purchase	1,87,500	By Capital	80,000
To wages	18,000	By 12% bank loan	50,000
To carriage inward	5,000	By Creditors	35,000
To Office Stationary	4,000	By Discount and commission	3,000
To office expenses	3,000
To Drawing	2,500
To Computer	50,000
To Furniture	40,000
To Debtors	30,000
To Prepaid Insurance	25,000
To bad debts	2,000
To Discount	4,000
To cash in hand	8,000
To cash at hand	15,000
	4,44,000		4,44,000

Additional information
- Closing stock found Rs.45,000
- Provide depreciation on computer and furniture by 10 percent.
- Prepaid insurance expired by 15,000
- Interest payable Rs.1,000
- Discount and commission receivable Rs.2,000 Required:
a. Trading account
b. Profit and loss account
c. Balance sheet [3+4+3=10]

Examination 2019

Group B

Attempt any Six question

Following cash and banking transactions were given to you.

1, December, Balance of cash in hand Rs. 6,200 and at bank Rs. 25,500.
9, December, Received a cheque of Rs. 5,000 from Pravin.
15, December, Goods purchased at Rs. 12,000 and paid in cash 4,000 and balance by Cheque.
22, December, Cash drawn from bank for office use Rs. 8,000.
31, December, Paid salary Rs. 7,000 by cheque and Rs. 3,000 office rent in cash.
Required: Cash book with a cash and bank column.

3. Following sales transactions were given to you

1, Chaitra, sold following items to Gurung Store, Pokhara.
  20 table fans @ Rs.1500 each.
  10 ceiling fans @ Rs.1000 each.
10, Chaitra, sold following items to Saru Brothers, Damauli
  15 Pressure cookers @ Rs.1000 each
  10 Rice cookers Rs.800 each
 (Trade discount 10 percent)
18, Chaitra, sold 13 pressure cookers @ Rs.900 each on cash to Shrestha store, Gorkha
25, Chaitra, sold following items to Puri Store Parbat
  25 table fans @ Rs.1500 each with trade discount 5 percent.
  10 ceiling fans @ Rs.1000 each.
Required: Sales book and sales-account

4. A company purchase a machinery at Rs. 5,00,000 on 1 January 2015. The company charged 10 percent depreciation under diminishing method. The machine has found unsuitable and sold at Rs. 2,40,000 on 1% July 2017. On the same date another machinery of costing Rs. 7,50,000 was purchased and charged 10 percent depreciation under diminishing depreciation method on 31% Dec. each year

Required: Machinery account from2015 to 2017.

5. Nepal Supply company is registered at 2,00,000 equity shares @ Rs. 100 each. But the company issued 1.00,000 shares to publics. The money called up Rs. 50 on application, Rs. 25 on allotment and Rs.20 on first and final call. The company received application for ) 90,000 shétes and accepted in full. A shareholder Rina holds 200 shares unpaid money of “first and final call.

Required: Journal entries for share application, allotment and first and final call.

6. A manufacturing company provides abstracts of material transactions of July.

1, July, Opening balance of materials 1,000 units @ Rs.10 each.
5, July, Issued 700 units
12, July, Purchased 800, units @ Rs.11 each. 2B,
18 July, Issued 700 units 26 — 280
22, July, Returns 50 units from work order July,5.
24, July, Purchased 700 units @ Rs.12 per unit.

Required: Store ledger under LIFO method

7. What are the features of company? Explain.

8. Describe matching and periodic concepts of accounting with example.

Group C

Attempt any Two question

9. Mr Raj started business from Baishak 2075. He had given following information of business for the month.

1, Baishakh, started business in cash Rs. 3,00,000 and computer Rs. 50,000.
3, Baishakh, Purchased goods on cash Rs. 1,00,000 and credit Rs. 1,00,000 from Thapa supplier.
4, Baishakh, Opened bank account at Prime Commercial Bank Rs. 90,000.
5, Baishakh, goods sold on cash Rs. 50,000 and on credit to Shrestha Rs. 30,000.
10 Baishakh, Goods purchased at Rs. 50,000 on credit from Thapa supplier.
15, Baishakh, Cash received from Shrestha Rs. 28,500 as full settlements.
22, Baishakh, Cash paid to Thapa supplier Rs. 98,000 and discount received Rs.2000.
24, Baishakh, Goods purchased from Nepal suppliers at Rs. 50,000, partial payment made by Cheque Rs. 20,000.
29. Baishakh, Electricity bill Rs. 3,000 and house rent Rs. 10,000 paid by issue of Cheques and salary Rs. 7,000 in cash.

Required: Journalized the above transactions and prepared ledger account of purchase, and Thapa supplier.

10. Following is the trial balance of a tharu Store on the year ending December, 31, 2018

Particulars	Dr Rs	Particulars	Cr Rs
Furniture	1,22,000	Capital	2,88,000
Debtors	90,000	Sales	8,15,000
Purchase	5,20,000	Creditor	40,000
Opening Stock	50,000	Discount Received	5,000
Rent	36,000
Cash in hand and bank	29,000
Drawing	3,000
Salary	48,000
Carriage inward	7,000
Prepaid Insurance	15,000
Discount allowed	4,000
Wages	23,000
Commission to salesmen	12,000
Bad Debts	2,000
Carriage on sales	3,500
Vehicle	1,83,000
	11,48,000		11,48,000

Adjustment
a) Provide depreciation on furniture, 10 percent and vehicle 20 percent.
b) Prepaid insurance expired Rs. 10,000 only.
c) Outstanding salary Rs. 12,000.
d) Closing stock Rs. 40,600

Required: a. Trading account
i) Profit and loss account
ii) Balance sheet (3)

11. Define accounting. Explain scopes of accounting and its functions