THIRUVALLUVAR UNIVERSITY VELLOREFINANCIAL ACCOUNTING UBA21/SBA32
(KEY)
SECTION A (10X2=20)
1. A subsidiary account is an account that is kept within a
subsidiary ledger, which in turn summarizes into a control account
in the general ledger. A subsidiary account is used to track
information at a very detailed level for certain types of
transactions, such as accounts receivable and accounts payable.2.
Business entity concept, money measurement concept, accounting
period concept, accounting cost concept, accrual concept, matching
concept, realisation concept.3. Thetrial balanceis a report listing
the ending debit and credit balances in all accounts at the end of
a reporting period.4. A method of allocating the cost of a tangible
asset over its useful life. Businessesdepreciatelong-term assets
for both tax andaccounting purposes. 2. A decrease in an asset's
value caused by unfavourable market conditions.5. Expenseswhich
have been incurred during the year and whose benefit has been
derived during the year, but not paid for yet are called
outstanding expenses. At the end of the accounting year, all such
expensesmust be brought into the books; otherwise the profit will
be overstated.6. an account in the books of an organization to
which incomes and gains are credited and expenses and losses
debited, so as to show the net profit or loss over a given period,
a financial statement showing a company's net profit or loss in a
given period.7.
Asingle-entrybookkeepingsystemorsingle-entryaccountingsystemis a
method of bookkeeping relying on a one sided accountingentryto
maintain financial information.
8. No fixed rules, incomplete system, cash book, personal
account, variation in application.9. With ashare allotment,
thesharesare created and issued by the company to the people who
become the company's shareholders.Shareswill generally be issued by
the company at the start of its life and some companies will issue
moreshareslater on.10. If debentures are issued at a price more
than its nominal value (face value) such an issue is called issue
at a premium. For example, if a debenture of Rs. 1000 is offered at
1,050, it is a case of issue of debentures at premium. The excess
of issue price over face value is premium.
Section B (5x5=25)
11. A) 1. Cash A/c Dr9500 To Sales A/c 9500 ( Being goods sold
by cash) 2. Mugunthan A/c Dr7000 To Sales A/c 7000 ( Being goods
sold on credit )
3. Cash A/c Dr12000 To Sales A/c 12000 (Being cash sales made)4.
Purchase A/c Dr3500 To Murthy A/c 3500 (Being purchased goods from
murthy on credit)5. CashA/c Dr14000 To Machinery A/c 14000 (Being
purchased goods from murthy on credit)
19.
20. Share Capital A/c Dr. [ No. of shares forfeited x Amount
called up per share]To Forfeited Share A/c [Amount already
received]To Share Allotment A/c [Amount due but was not Or/and
received]To Share (first / second/ third) Call A/c
Forfeited Shares A/c DrTo Capital Reserve A/c (Profit on reissue
of forfeited shares transferred to capital reserve)
