SREENIVASA DEGREE COLLEGE-KALIKIRI

II MID EXAMINATIONS-2017
ACCOUNTING FOR SERVICE ORGANISATIONS
II B Com (CA)
Time: 3hrs Marks: 75
Section-A(15 marks)
1. Answer Any Five following questions, each question carries 3 marks 5X3=15
a) Subscriptions b) specific donations c) Double account system d) Capital account e) Non-Banking assets
f) Statutory reserve g) Bonus in reduction of premium h) insurance fund
i)Additional reserve for unexpired risk.
Section- B(60 marks)
Answer any one question from each unit, each question carries 12 marks 5X12=60
1. From the following Receipts and payments account of Krishna charitable Institution for the year
ending 31.3.2014,prepare income and expenditure account and Balance sheet as on that date.
Receipts amount payments amount
To Balance By Charities 14,500
Cash on deposit 5400 By salaries 2,600
Cash on current A/c2400 By rent and taxies 1,200
Cash in hand 300 7,700 By printing 300
To donation 8,000 By postage 100
To subscriptions 7,000 By Advertisement 250
To endowment fund receipts 15,000 BY furniture 750
To legacies 3,000 By insurance 750
To interest on investment 9,500 BY investment 14,000
To interest on deposit 150 By advance to building 5000
To Sales of old news papers 75 By balance
Cash on deposits 8000
cash in current account 2250
Cash in hand 725
_____ ______
50425 50425
Adjustments: Rent due: 2013-250; 2014-300
2.salaries due : 2013-150;2014-450
3. subscriptions due : 2013-200; 2014-400
4. subscription received in advanced :2013-400; 2014-500
Or
2. From the following Receipts and payments account of Krishna charitable Hospital for the year
ending 31.3.2014,prepare income and expenditure account and Balance sheet as on that date.
Receipts amount payments amount
To Balance B/d By Mess Expenses 85000
Cash 20000 By wages 40000
Bank 100000 120000 By Electricity and water 30000
To Room rent By Common room expenses 25000
2013-2000 By Repairs and maintenance 20000
2014-50000 BY indoor games materials 21000
2015-1000 53000 By Medical and First aid 9000
To Electricity and water 5000 BY construction Building 150000
To Mess collection 100000 By balance C/d 28000

To interest on Govt. Securities(50%) 20000

To sale of old furniture 10000
(Book value:12000)
To Donation received for Building 100000
______ ______
408000 408000
Additional information: 1. Room rent receivable 2013-10000;
2. Room rent received in advance : 2013-2000;2014-1000
3. Mess Expenses prepaid 2013-1000;2014-5000
4. Outstanding wages 2013-15000;2014-10000
 UNIT-II
3. From the following information prepare Capital account and Revenue account and Net
Revenue account for the year ending 31.3.2016
Particulars debit credit
Equity shares 600000

Debentures 200000
Land on 31.3.215 150000 -
Land purchasing during the year 60000 -
Mains 31.3.2015 160000 -
Mains 31.3.2016 76000 -
Machinery on 31.3.2015 550000 -
Machinery purchased during the year 60000 -
Sundry creditors - 1000
Depreciation fund - 250000
Debtors for current supplied 40000 -
other book debts 500 -
Stores in hand 6000 -
cash in hand 4000 -
cost of generation of electricity 30000 -
cost of distribution of electricity 9000 -
sale of current - 150000
Meter rent - 5000
Rent, rates, taxes 12000 -
establishment expenses 21000 -
interest on Debentures 10000 -
interim dividend 20000 -
depreciation 20000 -
Net Revenue account 31.3.2015 - 28500
_______ _______
1234500 1234500
Or
4. From the following Trail balance of Social Electric lighting Co. Ltd. For the year ending March
31,2016, prepare Revenue account, capital account and Balance sheet as on that date.
Particulars amount amount
Nominal capital 10000 shares of Rs.50 each -
100000 subscribed -5000 shares, 25 paid - 125000
75000 Debentures,6% interest - 75000
5000 depreciation fund - 5000
Calls in arrears 5000 -
46500 free hold Land 46500 -
20000 buildings 25000 -
30000 machinery 50000 -
25000 Transformers 40000 -
5000 Mains 10000 -
2500 meters 7500 -
1500 Electrical instruments 2000 -
8000 general stores 11750 -
1250 office furniture 1250 -
coal and fuel 9500 -
oil, oil waste 3750 -
repairs 2500 -
coal, oil in stock 500 -
rates and taxes 1500 -
Wages 15000 -
salaries 7500 -

directors fee 5000 -

stationery 3000 -
incidental expenses 500 -
 Law charges 1000 -
sales of meters - 43750
Sales by contracts - 25000
Meter rent - 1500
Sundry creditors - 5000
Sundry debtors 15000 -
cash in hand 16500 -
_______ ______
280250 280250
Provide depreciation on opening balances: on Buildings 2 ½%, Machinery 7 ½%.

UNIT-III

5. From the following balances prepare profit and loss account of Regional Bank Ltd. For the year
ending 31.3.2016
Interest and discount received 124500 Rent, Rates and Tax 12500
Interest on fixed deposits 12500 interest on recurring deposits 14250
Salaries and 12500 interest on saving bank deposits 17250
Rebate on bill discounted 1250 commission and exchange 37250
Advertising 14250 printing and stationary 1150
Postage and telegrams 1450 interest on borrowings 2250
Directors fee 5500 lockers rent 14750
Depreciation 6000 bad debts 2000
Interest on securities 15000 interest on bank over draft and cash
credits18500

Interim dividend paid 12000 transfers fee 12500

Rent received 6500 profit on sale of investments
Or
6. From the following information calculate Rebate on bill discount and prepare Discount account
on 31.12.2015 and pass necessary entries.
Discount received in during the year 67850
Rebate on bill discount on 1.4.2014 2500
Bill discounted 550000
The analysis of bill discounted as shown as follows
Date of the Bill value of the bill term % of discount
th
December 5 150000 4 months 9%
December 9th 225000 3 months 10%
th
December 17 275000 4 months 12%
December 25th 125000 5 months 10%”
UNIT-IV
7. From the following information prepare Revenue account of Sun life insurance company Ltd. For
the year ended 31.3.2014.
Claims by death 76140 commission 9574
Claims by maturity 30110 interest and dividend 97840
Premium 705690 income tax 35710
Transfer fee 2500 surrenders 13140
Consideration for annuity granted 82127 bonus in reduction of premium 980
Annuities paid 53461
Dividend paid to share holders 5500 expenses of Management 31920
 Or

8. The Revenue account of Life insurance company showed the life fund 7317000 before taken the
following items.
a) Claims intimated but not admitted 98250
b) Bonus utilised in reduction premium 13750
c) Interest accrued on investments 29750
d) Outstanding premium 27000
e) Claims covered under re-insurance 40500
f) Provision for taxation 31500
Pass journal entries giving effect to the above adjustments and the life fund.
UNIT-V
9. Prepare a Revenue account in respect of Fire Business from the following details for the year
2015-2016.

Reserve for Un expired risk on 1.4.2015 @50% 180000

Additional reserve 36000
Estimated liability for claims intimated on 1.4.2015: 31000; 31.3.2016-42000
Claims paid 365000
Legal expenses 6000
Medical expenses 4000
Re-insurance recoveries 32000
Premium recovered 486000
Premium on re- insurance accepted 32000
Premium on re- insurance ceded 43000
Commission direct business 48600
Commission on re- insurance accepted 1600
Commission on re- insurance ceded 2150
Expenses of management 90000
Interest and dividend and rent 24000
Profit on sale of investments 3000
Bad debts 800
Create reserve on 31.3.2016 to the same extent as on 1.4.2015.
Or
10. Following balances are extracted from the books of Adarsha general insurance company in
respect of fire insurance for the year 2016
Premium less re insurance 8200000
Interest dividend les tax 200000
Commission on direct business 400000
Commission on re insurance ceded 100000
Commission on re insurance accepted 160000
Claims paid less re insurance 4100000
Expenses of management 540000
Reserve for unexpired risk on 1.1.2016 3000000
Reserve for unexpired risk to be maintained at 50% of net premium and additional reserve to
be increased by 10% of net premium income.
 SREENIVASA DEGREE COLLEGE-KALIKIRI
II MID EXAMINATIONS-2017
FUNDAMENTALS OF ACCOUNTNG
I B Com (CA)
Time: 3hrs Marks: 75
Section-A(15 marks)
1. Answer Any Five following questions, each question carries 3 marks 5X3=15
a) Obsolescence b) Explain any two causes for depreciation c) Over riding commission
d) Account sales f) Secret reserve g) Capital reserve h) Joint venture account i) features of joint
venture j) Noting charges
Answer any One question from each unit, each question carries 12 marks. 5X12=60
UNIT-I
2. Ram Prasad purchased a Machinery worth of 137500 and paid 2500 for installation charges on
1.1.2013. and he purchased a second machinery on 1.7.2013 worth of 50000. On 30.9.2015 he
sold a machinery amounted to 32500 which was purchased on 1.7.2013 on the same date he
purchased a machinery worth of 25000.
Prepare Machinery account under Straight line method by providing 10% depreciation from
2013-2015.
Or
3. X Co. Ltd purchased Machinery on 1.4.2012 worth of 55000 and paid installation expenses
amounted to 3000. He purchased another machinery worth of 20000 on 1.7.2013. he sold a1/4 th
of the machinery on30.9.2014 amounted to 8750 which was purchased on 1.4.2012. on the
same day a machinery was purchased worth of 15000. Prepare machinery account by providing
10 % depreciation under written down value method.
UNIT-II
4. From the following information prepare bad debts account, provision for doubtful debts account
and discount on debtors account.
On 1.1.2015 provision for bad and doubtful debts 12750, provision for discount on debtors 3600
Bad debts during the year 30000
Discount allowed on debtors 500
Debtors at the end of the 31.12.2015 60000
Create new provision for bad and doubtful debts 5% on debtors,3% for discount on debtors.
Or
5. Anil create a provision for repair bill 15000 every year profits. He paid repairs bill in 2012-2850,
2013-4250, 2014-4750,2015-2875. Prepare provision for repair bill account from the above
information.
UNIT-III
6. Sruthi agencies sent 100 boxes of Bangles on consignment to their agent at cost of 2500. But
the invoice price 2850. They paid 2500 for packing expenses, 5000 for freight and insurance.
Consignee took delivery of goods and accepted and returned a 3 months bill amounted to 50000
as an advance. he paid 2500 for customs duties, 1500 unloading expenses, 5000 godown rent
and insurance. He sold 85 boxes of Bangles at 2950 each. He entitled 5% normal commission
on sales as per invoice price and 4% on excess on invoice price. Prepare consignment account
and consignee account in the books of consignor.
Or
7. Swathi agencies send 500 sewing machines on consignment to Rohith agencies worth of 500000
at cost+25 profit on invoice price. They incurred 1500 for packing expenses,5000 for carriage
and insurance. Rohith agencies accepted a 3 months bill and returned amounted to 125000 as
advance. Rohith agencies incurred 6500 for other expenses. Roith agencies sold goods 450
machines at475000. They entitled 5% commission on sales as per invoice price,3% on sales as
per excess on invoice price. Prepare necessary accounts in the books of consignor.
UNIT-IV
8. Sudheer sold goods on credit to Mohith worth of 150000 on 1.4.2014. He drawn a 3 months bill
on Mohith . The bill was accepted and signed by Mohith send to Sudheer. The bill was endorsed
to Rohith by Sudheer. The bill was dishonoured on the due date. Journalize the above
transactions in the books of both parties.
Or
9. Sampath sold goods to Hemonth on credit basis on 1.4.2016. he drawn 3 months bill on
Hemanth for 150000. Hemanth accepted the bill and returned to him. Sampath discounted the
bill with his bank at 9% per annum. The bill was dishonoured on the due date. Pass necessary
journal entries in the books of both parties.
UNIT-V
10. A,B and C were entered in to a joint venture to sold the goods sharing the profits and losses in
the equal ratio. They contributed their capitals 175000,150000,125000 respectively. A was
appointed as working partner on the basis of 5% commission on sales. A purchased the goods
worth of 275000 and paid 95000 for wages. A supplied the goods worth 35000 from his own
stock and paid 1500 for carriage. B supplied the goods worth 35000 and paid 1500 for expenses.
A sold goods amounted to 475000. B agreed to take over the closing stock at 15000. Pass
necessary journal entries and prepare joint venture account and co-vnturers account.
Or
11. Ram and Syam entered in to a joint venture to construct a building worth of 1000000. The
contributed their capitals 550000 and 350000 and deposited in joint bank account. Ram
supplied materials worth of 65000 and paid 5000 for expenses. Syam agreed to pay architecture
fee amounted to 25000 and to bring plant worth of 100000. They purchased the materials worth
of 685000 and paid wages amounted to 115000. The contract was completed and the contract
price was received by cheque 800000 and the balance in shares. The un used stock taken over
by Ram worth of 25000. The shares taken over by Syam at an agreed value 180000. The plant
taken over by Ram at 85000. Prepare necessary accounts in the ledger.