SRI SIVANI INSTITUTE OF TECHNOLOGY

1st year 1st SEM MID EXAM, Department of MBA,

Chilakapalem, Srikakulam.
Sub: - Financial Accounting & Analysis (FA&A) Date: 2/12/2010
Max marks: 40 Duration:-2Hrs

Answer any four questions, all questions carry equal marks (4×10=40)
1) Define accounting. Explain its objectives and principles.
2) What is double entry booking system? Explain rules of debit and credit.
3) Define depreciation. Explain causes for depreciation and methods of depreciation.
4) From the following trail balance prepare final accounts for the year ended 31/12/2009.
Particulars Debit Credit
Purchase of materials 32000
wages 13000
Sales 60000 Adjustments:
Salaries 4000 (1) Pre-paid rent 100
Traveling expenses 1000 (2) Depreciation
Carriage inwards 550 On buildings @10% P.A
Insurance 300 On machinery @20% P.A
Commission 650 On furniture @15% P.A
Rent 1000 (3) Outstanding insurance 50
Cash in hand 350 (4) Closing stock 12000.
Cash at bank 5550
Repairs 600
Sundry expenses 110
Loan 6100
Buildings 8000
Machinery 3000
Furniture 1000
Stock (01-01-2009) 11500
Capital 21310
Debtors 9000
Creditors 4200
Total 91610 91610
5) Karteek ltd co. purchased a
st
second hand machine on 1 Jan 1999 for Rs.3, 70,000 and immediately spent Rs.20, 000;
it purchased another machine for Rs.1, 00,000.On 1st July 2001, it sold off the first
machine for Rs.2, 50,000 and bought another for Rs.3, 00,000. Depreciation was provided
on the machine @ 10% on original cost annually on 31st Dec. with effect from 1st Jan.
2002, the Co. changed the method of providing Dep. And adopted the W.D.V method and
rate of Dep. 15% P.A.
6) From the particulars given below write up the stores ledger card: 1988 and adopt the
FIFO & LIFO Method.
January 1988 1 Opening stock 1,000units @ Rs.26 each.
5 Purchased 500 units @ Rs.24.50 each.
7 Issued 750 units
10 Purchased 1,500 units @ Rs.24 each
12 Issued 1,100 units
15 Purchased 1,000 units @ Rs.25 each
17 Issued 500 units
18 Issued 300 units
25 Purchased 1,500 units @ 26 each
29 Issued 1,500 units