Financial Accounting Question Paper 2012
[Dibrugarh University BCOM]
Commerce
(General/Speciality)
Course:
101
Full
Marks: 80
Time:
3 Hours
1. (a) Fill up the blanks:
(i)
Heavy advertising to launch a new product is a __. (Capital Expenditure /
Revenue Expenditure / Deferred Revenue Expenditure)
(ii)
Valuation of inventories is account for as per Accounting Standard __.
(iii)
If inventory at branch is shown at invoice price instead of cost price, then
the account which is used for
adjustment is __.
(iv)
Royalty Account is __. (Nominal Account / Real Account / Personal Account)
(v)
An unrecorded liability when paid on dissolution is debited to __. (Realisation
Account / Partner’s Capital Account / Revaluation Account)
(ii) Under
Stock and Debtor System, Branch Stock Account is a Nominal Account.
(iii) Under
Stock and Debtor System, no entry is required for normal loss of stock.
2. (a) Write on the provision of Accounting
Standard 1.
(b) Write on
the features of hire-purchase system.
(c) What is
the purpose of fixing minimum rent?
(d) Mention
the objectives of amalgamation of firms.
3. (a) Karan and Jawahar are partners in a
firm. The Trail Balance of the firm as on 31st March, 2011 was as following:
Trial Balance
|
Particulars
|
Amount
|
Particulars
|
Amount
|
|
Drawings:
Karan
Jawahar
Land and Building
Machinery
Salaries and Wages
Trade Expenses
Sundry Debtors
Discount
Insurance
Advertisement
Cash at Bank
Bills Receivable
Closing Stock (31.03.2011)
Furniture
|
2000
3500
40000
18000
3700
1900
24600
1000
1200
3000
2900
4000
36000
6500
|
Capital:
Karan
Jawahar
Provision for Bad debt
General Reserve
Sundry Creditors
Outstanding Wages
Bank Loan (1.10.2010)
Trading Account (Gross Profit)
|
35000
25000
800
4000
15000
500
8000
60000
|
|
|
148300
|
|
148300
|
Prepare a profit
and loss Account and a Profit and Loss Appropriation Account for the Year ended
on 31st March, 2011 and also a balance sheet as on that date after
taking into consideration the following adjustments:
(i) write off
Rs. Bad Debt provide a 5% provision on the remaining Debtor for Doubtful Debts.
(ii)Interest on
partner’s capital is to be allowed @ Rs.5% p.a.
(iii)Interest on
Bank Loan id to be provide @ Rs. 10%
(iv)Depreciation
is to be provided on Land and Buildings @ 10% p.a.; Machinery @ 12.50% p.a. and
Furniture @5 p.a.
(v) 1/5th
of the Advertisement is to be written off
Or
(b) Discuss the utility and
significance of the financial statements to various parties in the business
concern.
4. (a) Manabendra purchased a
motorcycle on hire-purchase system from M/s Sarmah & C. The sale are as follows:
|
Down
Payment
1st
Instalment
2nd
Instalment
3rd
Instalment
|
40000
43500
39000
34500
|
All the
Instalments are payable at the end of the year and each instalment include
equal amount of cash price in addition to interest. Prepare necessary Ledger
Accounts in the book of to the buyer.
Or
(b) (i) Explain the feature of instalment
purchase agreement.
(ii)
Distinguish between hire purchase and credit sale.
5. (a) The following information
relates to Guwahati Branch:
|
Particulars
|
Amount
|
Particulars
|
Amount
|
|
Stock on 1st January
Branch Debtors On 1st January
Cash sent to Branch For:
Rent
Salaries
Petty Cash
|
111200
6300
1500
3000
500
|
Sales at Branch:
Cash
Credit
Cash Received from Debtors
Stock on 31st December
|
25000
39000
41200
13600
|
You are required
to prepare Branch Account for the year and also the Branch Debtors Account.
Or
(b) Briefly explain the treatment
of the following items in Branch Account:
(i) Cash in
transit
(ii) Goods in
transit
(iii)
Interbranch transaction
(iv) Cash paid
by Branch on behalf of Head Office
6. (a) Raju tooks a lease of mine
for a period of 20 years. Royalty is payable Rs. 1 per ton subject to a minimum
rent Rs.12000 per annum The short working are recoupable during the first three
years of the lease. The output was followings:
2008 = Nil
2009 = 4000
tons
2010 = 20000
tons
2011 = 40000
tons
Give the following Entries in the
books of Raju.
Or
(b) (i) What is Royalty and Surface Account?
(ii)
Distinguish between rent and royalty.
7 (a) P,Q and R are partners sharing profits
and losses equally. On 31st March, 2011 their Balance Sheet stood as
followings :
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Bills Payable
Creditors
Loan from Q
General Reserve
P’s Current Account
Q’s Current Account
P’s Capital Account
Q’s Capital Account
R’s Capital Account
|
16000
119000
25000
30000
15000
15000
20000
100000
100000
|
Cash at Bank
Debtors
Stock
Furniture
Machinery
R’s Current Account
|
15000
125000
290000
40000
120000
30000
|
|
|
620000
|
|
620000
|
The firm was
dissolve on the above mentioned date. P agreed to pay creditors at par . Q took
over the remaining assets were sold for Rs 553000. Bills Payable were retained
for a discount of 100 received for a payment before the due date of maturity.
Expenses of discount amounted to Rs. 12000. Prepare important Ledger Accounts
and Cash Book.
Or
(b) Briefly explain the causes of dissolution of
a partnership firm. Discuss the Garner vs. Murray decision and its applicability
in dissolution of the partnership firm.