Financial Accounting Question Paper Nov' 2014
Dibrugarh University B.com 1st Sem
2013 (November)
Commerce (General/Speciality)
Course: 103
Full Marks: 80
Pass Marks: 32
The figures in the margin indicate full marks for the questions. (New Course)
1. (a) Fill in the blanks : 1x4=4
i. Accounting Standards Board was set up in India
in the year ____.
ii. The cost of goods sold on hire purchase is
transferred to ____ Account.
iii. Royalty paid on sales is debited to ____
Account.
iv. In departmental accounts, each department is
considered as a Separate ____ centre.
i. Accounting principles are formulated by the
government.
ii. The total amounted to be paid by the buyer under
hire-purchase system is called hire-purchase price.
iii. In branch accounting, each branch has separate
entity.
iv. Short working is the excess of minimum rent over
royalty payable for the year.
2. Write short notes on : 4x4=16
1)
The provisions of Accounting Standard – 6
2)
Repossession of goods under hire-purchase system
3)
Inter-departmental transactions
4)
Sublease
3. (a) Following is the Trial Balance of Karan and Arjun as on 31st
March, 2014 :
Trial
Balance
Debit
balance
|
Rs.
|
Credit
balance
|
Rs.
|
Opening Stock
Purchases
Bills Receivable
Cash in Hand
Bad Debts
Machinery
Advertisement
Sundry Debtors
Goodwill
Land & Building
Fuel
Wages and Salaries
Rent & Taxes
Discount
Commission
Furniture
|
1,60,000
4,00,000
4,000
26,000
2,000
1,32,000
16,000
1,00,000
1,40,000
4,50,000
30,000
80,000
40,000
17,200
20,000
30,000
|
Sundry Creditors
Bank Loan
Sales
Bills Payable
Interest
Capital :
Karan
Arjun
|
1,50,000
87,200
8,40,000
40,000
10,000
3,20,000
2,00,000
|
16,47,200
|
16,47,200
|
From the following additional information, you are required to
prepare Trading & Profit & Loss A/c and also a Balance Sheet of Karan
and Arjun for the year ended 31st March, 2014. 4+4+4=16
1)
Closing Stock as on 31st March, 2014
was Rs. 1,20,000.
2)
Depreciate machinery by 10% and furniture by 5%
3)
Create a reserve of 5% on Sundry Debtors for Bad
Debts
4)
Write of ¼th of advertising
Or
(b) (i) Discuss the need for introducing and developing Generally
Accepted Accounting Principles. 8
(ii) Discuss in brief the IFR Standards. 6
4. (a) Prakash & Co. purchased as machine on 01.01.2011 on
hire – purchases basis. The payments were to be made as follows:
On signing the agreement
At the end of the first year
At the end of the second year
At the end of the third year
|
10,000
12,000
7,000
4,400
|
33,400
|
Interest included in Rs. 33,400 was charged on the cash price @
10% p.a. You are required to ascertain the cash price of the machine and write
up Machinery A/c and Hire vendor’s A/c in the books of Prakash & Co. 4+5+5=14
Or
(b) (i) Explain
the features of Installment-purchase system. 6
(ii) Distinguish between Hire-purchase system and Installment-purchase
system. 8
5. (a) Gojen obtained from Brojen a coal mine on lease for five
years from 1st April, 2009 on the following terms :
i.
Royalty is to be paid @ Rs. 2 per ton
ii.
Minimum Rent is Rs. 3,000 per year
iii.
Each year’s shortworking can be recouped during
the subsequent two years subject to a maximum of Rs. 500 per annum.
iv.
If there is any cessation of work due to strike,
the minimum rent may be reduced proportionately with regard to the length of
the stoppage. Production of coal during the five years was as follows:
Year
|
Output (
in tons )
|
2009-10
2010-11
2011-12
2012-13
2013-14
|
1000
1500
1800
1200
1300
|
During the year 2012 – 13 , there was a stoppage in work due to
strike lasting 4 months. From the above particulars, prepare (i) Royalties A/c,
(ii) Short workings A/c and (iii)
Brojen’s A/c in the books of Gojen. Show the Analysis table also. 4+4+4+2=14
Or
(b) (i) What is called ‘Rock Rent’ in Royalty Account. 4
(ii) What do you mean by ‘Recoupment of Short workings’?
What conditions are to be satisfied for recoupment of short workings? 2+3=5
(iii) Distinguish between Rent and Royalty. 5
6. (a) In the context of Branch Accounts, explain the following : 3½x4=14
1)
Goods-in-transit
2)
Cash-in-transit
3)
Inter-branch Transactions
4)
Depreciation of Branch Fixed Assets.
Or
(b) From the following particulars, prepare Departmental Trading
and Profit & Loss A/c in columnar form for the two departments and
thereafter the Combined Income Account of Red-Rose Brothers for the year ended
31st March, 2014.
Particulars
|
Dept.
– A
|
Dept.
- B
|
Stock on 01.04.2013
Purchase from outside
Wages
Salaries
Transfer from Dept. A
Stock on 31.03.2014
Sales to outsiders
|
30,000
2,05,000
10,000
3,600
-
35,000
2,00,000
|
5,000
20,000
1,000
2,400
50,000
12,000
70,000
|
The entire Closing Stock of Department – B represents goods
transferred from Department
– A at cost plus 25%. Administrative and selling expenses amount to Rs. 14,000
which is to be allocated between the two departments in the ration of 6 : 1.
4+6+4=14
(Old Course)
Full Marks:
80
Pass Marks:
32
1. (a) Write ‘True’ or ‘False’ : 1x3=3
i.
Minimum Rent is also known as ‘Rock Rent’ in
Royalty Accounts.
ii.
Unearned Income Account is a liability.
iii.
Registration of partnership firm is compulsory.
(b) Fill in the blanks : 1x3=3
i.
Cash Flow Statement is prepared as per
Accounting Standard ____.
ii.
Hire-purchase transactions are controlled by
the Hire-Purchase Act of ____
iii.
Cash sent by the branch not received by the head
office by the end of the year is debited to ____ Account.
(c) Choose the correct Answer : 1x2=2
i.
Royalty paid on sales is debited to (Trading
Account / Profit & Loss Account / Profit & Loss Appropriation Account).
ii.
If inventory at branch is shown at invoice
price instead of cost price, then the account which is used for adjustment is
(Reserve Stock Account / Stock Reserve Account / Stock Suspense Account).
2. Write brief notes on (any four) : 4x4=16
(a) Instalment-purchase
System
(b) Independent
Branch
(c) Features
of Accounting Income
(d) Garner
vs. Murray Rule
(e) Minimum
Rent
3. (a) (i) How does the money measurement concept limits
the scope of accounting? 4
(ii) Write four points of the necessity of accounting. 4
(iii) Write a short note on Indian Accounting Standards
Board. 4
Or
(b)From the following Trial Balance of Mr. Pathak, you are
required to prepare Trading & Profit
& Loss A/c for the year ended 31st March, 2014 and a Balance Sheet
as on that date. 4+4+4=12
Trial Balance
Debit Balances
|
Rs.
|
Credit Balances
|
Rs.
|
Opening Stock
Furniture
Purchase
Carriage Inward
Bad Debts
Wages
Debtors
Sales Return
Rent
Salaries
Cash
Drawings
Building
Advertisement
Interest on Bank Overdraft
Miscellaneous Expenses
|
50,000
32,000
11,10,600
9,400
3,600
1,04,000
1,60,000
30,000
48,000
1,36,000
17,800
28,000
3,20,000
20,000
14,000
6,800
|
Sales
Creditors
Bank Overdraft
Provision for Doubtful Debts
Discount
Purchase Return
Capital
|
14,00,000
1,45,000
1,00,000
4,200
1,000
40,000
4,00,000
|
20,90,200
|
20,90,200
|
Adjustments:
i.
Closing Stock is valued at Rs. 72,000
ii.
Make a provision for Bad and Doubtful Debts @ 5%
on Debtors.
iii.
Depreciate furniture by 10%
iv.
Provide for Interest on Capital @ 6 % p.a.
4. (a) On 1st January, 2010, Assam Traders purchased a
machine from M/s Jai Hind Machinery on Hire-purchase system. As per agreement,
an amount of Rs. 5,000 paid on signing the agreement and balance in three equal
annual installments of Rs. 20,000 each on 31st December each year.
The hire vendor charged interest @ 5% p.a. on yearly balance. Depreciation was
charged @ 15% p.a. straight-line method. Ascertain the cash price of the machine and
prepare (i) Machinery A/c and (ii) M/s Jai Hind Machinery’s A/c in the books of
Assam Traders. 3+4+4=11
Or
(b) Distinguish between the following: 7+4=11
i.
Hire-purchase System and Installment-purchase
System.
ii.
Complete Repossession and Partial Repossession.
5. (a) Sri Madan Baruah took a colliery from Sri Mohan Singh on
lease for a period of 20 years from 1st
January, 2008 on a royalty of Rs. 16 per ton of coal raised with a Minimum Rent
of Rs. 80,000 per annum and power to recoup short-workings was first four years
of the lease.
Year
|
Tons
|
2008
2009
2010
2011
2012
|
3000
3500
5000
9000
10000
|
From the above particulars, prepare in the books of Sri Madan
Baruah (i) Royalties A/c, (ii) Short workings A/c and (iii) Sri Mohan Singh’s
A/c. 3+4+4=11
Or
(b) What is Royalty? Explain the different types of royalty. Also
distinguish between Rent and Royalty. 2+4+5=11
6. (a) A head office at Kolkata supplies goods to its Dibrugrh
Branch on cost. The branch
sells the goods for cash and on credit and remits the proceeds to the head office
promptly. The branch expenses are being met by the head office by cheque. The
following are the transactions relating to the branch for the year ended 31st
March, 2014:
Stock at branch on 01.04.2013
Debtors at branch 01.04.2013
Goods sent to branch during the year
Total sales at branch (including cash sales
Rs. 1,10,000)
Goods returned by branch
Goods returned by customers
Cash received from debtors
Discount allowed to debtors
Bad Debts written off
Cheque sent to branch for expenses:
Salaries
Rent
Petty Expenses
Stock at branch on 31.03.2014
|
30,000
40,000
2,25,000
3,70,000
10,000
10,000
2,10,000
10,000
5,000
25,000
14,500
500
45,000
|
Prepare Dibrugarh Branch A/c and goods sent to Branch A/c in head
Office books. Show Branch
Debtors A/c as a part of your working note. 6+3+2=11
Or
(b) In the context of Branch Accounts, explain the following: 2+3+3+3=11
i.
Depreciation on Branch Fixed Assets.
ii.
Inter-branch Transactions
iii.
Cash-in-transit
iv.
Goods-in-transit
7. (a) A, B and C are partners in a partnership firm. They decided
to dissolve the partnership
on 31st December, 2013. Their Balance Sheet as on 31st
December, 2013 was as follows:
Balance
Sheet
Liabilities
|
Rs.
|
Assets
|
Rs.
|
A’s Capital
B’s Capital
|
2,00,000
60,000
|
Cash
C’s Capital
Realization A/c (Dr.)
|
1,50,000
20,000
90,000
|
2,60,000
|
2,60,000
|
C is insolvent and cannot pay anything. Pass Journal Entries and
prepare Ledger A/c’s in the
books of the firm: 5+6=11
i.
Just prior to decision in Garner vs. Murray
ii.
After decision in Garner vs. Murray
Or.
(b) What do you mean by Amalgamation of firms? What are the major
objectives of amalgamation? Name the different forms of amalgamation. 2+6+3=11