Financial Accounting Question Paper Nov' 2017
Dibrugarh University B.com 1st Sem
COMMERCE (General / Speciality)
Course: 103 (New course)
Financial Accounting
Full marks: 80
Pass marks: 24
Time: 3 hours
a)
Sales – Gross Profit = Cost of goods sold
b)
There is no difference between Hire Purchase
System and Instalment Purchase system.
c)
Under debtors system, Branch Account discloses
profit or loss of the branch
d)
Royalty account is closed by transferring it to
the Landlord’s account.
(b) Fill in the blanks: 1x4=4
a)
Accounting Standard Board was set up in India in
the year __________.
b)
In hire purchase system, the buyer charges
depreciation on the __________Price.
c)
Selling expenses should be divided among the
different departments on the basis of _____________.
d)
Short working is the excess of_________ over
actual royalty.
2.
Write short notes on (any four) 4x4=16
a)
The provisions of Accounting Standard-6
b)
Termination of hire purchase agreement
c)
Goods in transit
d)
Objectives of Departmental Accounts
e)
Minimum rent
f)
Independent branch
3. (a) Das Co. purchased two
machines of Rs. 5,250 each from Bharat Machine Co. on 1st January,
2011 on hire purchase system. As per agreement, payment to be made Rs. 3,000
down and the balance in three equal annual instalments along with interest @ 55
per annum. Das co. writes off depreciation @ 10% per annum on written down
value method. After having paid the first instalment, the buyer could not pay
the second instalment and the seller took possession of one machine adjusting
the value of other against the amount due taking the machine @ 20% depreciation
on diminishing balance method. Seller, after spending Rs. 100 on repairs, sold
it away for Rs. 4,000. Show the Ledger A/c in the books of both the parties.
Books are closed on 31st December each year. 4+4+4+2=14
OR
(b) What is hire purchase system?
Mention its chief features. Should depreciation on assets be provided for under
hire purchase system? Discuss 3+7+4=14
4. (a) What do you mean by
accounting Standards? Mention the procedure for issuing Accounting Standards.
Distinguish between Accounting Standards and
Accounting Principles 3+6+5=14
OR
(b) The following is the trial
Balance of M/s Arun and Barun, a partnership firm, as on 31st march,
2017 and a Balance Sheet as on that date 4+5+5=14
Trial balance
Dr. Balance
|
Rs.
|
Cr. balance
|
Rs.
|
Purchases
Advertisement
Wages
Bills Receivable
Printing and Stationery
Trade Expenses
Machinery
Sundry Debtors
Goodwill
Fuel
Opening Stock
Rent and Taxes
Land and Building
Interest on Loan
Cash in Hand
Depreciation on Machinery
Discount
Bad Debts
Furniture
|
2,50,000
11,000
1,50,000
10,000
5,000
13,000
72,000
78,000
85,000
24,000
90,000
19,000
1,65,000
8,000
32,000
8,000
4,000
3,000
20,000
|
Sales
Bills Payable
10% IDBI Loan(01.10.2016)
Sundry Creditors
Capital:
Arun
Barun
Commission
|
5,50,000
47,000
2,00,000
48,000
1,00,000
1,00,000
2,000
|
10,47,000
|
10,47,000
|
Necessary adjustment:
a)
Value of Closing Stock – Rs. 75,000
b)
Allow interest on capital of the partners @ 5%
pa
c)
During the year, goods worth Rs. 10,000 has been
destroyed by fire. But the insurance company agreed to a claim of Rs. 7,000
only.
5. (a) (i) Distinguish between
Branch Accounts and Departmental Accounts 5
(ii) How are the inter
departmental transactions recorded in Departmental Accounts? 3
(iii) Explain the basis of
allocation of common expenses over the various departments in Departmental
Accounts. 6
OR
(b) Dipali Electronics Ltd. Opened a branch at
Dibrugarh on 1st April, 2016. From the following figures relating to
Dibrugarh branch, prepare Dibrugarh Branch a/c and Goods Sent to Branch A/c for
the year ended 31st March, 2017:
Rs.
|
|
Goods sent to
branch
Cash sent to branch
for:
Rent
Salaries
Cash Sales
Credit Sales
Cash collected from
debtors
Stock(31.03.2017)
Petty cash
(31.03.2017)
Goods returned by
customers
Discount allowed to
customers
|
42,000
1,800
4,000
15,000
29,000
23,000
5,200
120
1,700
1,300
|
6. (a) What is royalty? What are
its different types? Why is minimum rent important in Royalty A/c? Distinguish
between Rent and Royalty. 2+3+4+5=14
OR
(b) Sri Amit Phukan took a
colliery on lease from Sri Mohan Singh for a period of 20 years from 1st
January, 2011 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. The annual coal raised were: 4+5+5=14
Year
|
Output(in tons)
|
2011
2012
2013
2014
2015
|
3000
3500
5000
9000
10000
|
From the above particulars, prepare the following in the
books of Sri Amrit Phukan:
a)
Royalty A/c
b)
Short workings A/c
c)
Mohan Singh’s A/c
(Old course)
Full marks: 80
Pass marks: 32
1. (a)
Fill in the blanks: 1x4=4
a)
Revenue is generally recognized at the point of
_________________.
b)
In hire purchase system, the buyer charges
depreciation on_________ price.
c)
Royalty paid on sales is debited
to_______________ Account.
d)
After making payment to third parties, the
__________ due to a partner is paid.
(b) Write True and False: 1x4=4
a)
Accounting Standard Board was set up in India in
the year 1977.
b)
The buyer has no option to return the goods in
case of hire purchase
c)
Branch Stock A/c is always prepared at cost
price.
d)
When a partner is not able to meet his
liabilities, he is said to be insolvent.
2. Write short notes on (any four): 4x4=16
a)
IFR Standards
b)
Features of Instalment Purchase System
c)
Sub lease
d)
Independent Branch
e)
Realization Account
3. (a) The following is the Trial
Balance of Mr. Arup Baruah’s business as on 31st march 2017
Trial Balance
Dr. balance
|
Rs.
|
Cr. balance
|
Rs.
|
Opening stock
Purchases
Bills Receivable
Cash in Hand
Bad Debts
Machinery
Advertisement
Sundry Debtors
Goodwill
Land and Building
Fuel
Wages and Salaries
Rent and Taxes
Discount
Interest
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
Commission
Capital
|
1,50,000
87,200
8,40,000
40,000
10,000
5,20,000
|
16,47,200
|
From the following additional
information, you are required to prepare a Trading and Profit & Loss A/c
for the year ended 31st March, 2017 and a Balance Sheet as on that
date: 3+4+5=12
a)
Closing Stock as on 31st March 2017
Rs. 1,20,000.
b)
Depreciation machinery by 10% and furniture by
5%
c)
Create a reserve of 5% on sundry debtors for
doubtful debts
d)
Write off ¼ th of the advertisement
OR
(b) What are Accounting
Standards? State the objectives and scope of Accounting Standards. 3+4+5=12
4. (a) Distinguish between Hire
purchase system of sales and Ordinary Credit sales. Mention any three rights of
hire vendor and three rights of hire purchaser as laid down in the Hire
purchase act,1972. 5+3+3=11
OR
(b) Domdom store purchased a
generator from M/s Bimal Brothers on instalment purchase system. Rs. 12,000 was
payable on delivery on 1st April, 2012 and the balance in four
annual instalments of Rs. 12,000 each on 31st March every year. The
seller charges 5% interest per annum on the yearly balance. The cash price of
the generator on the date of delivery was Rs. 54,551. Depreciation @ 10% per
annum on diminishing balance was written off each year. From the above
particulars, prepare the following Ledger Accounts in the books of Domdom
Store: 4+4+3=11
a)
Generator’s a/c
b)
M/s Bimal brothers A/c
c)
Interest Suspense A/c
5. (a) What do you mean by Branch Accounting? Discuss the
Objects and advantages of Branch Accounting. 3+4+4=11
OR
(b) Luit Ltd. Has a branch at
Duliajan which sells goods at cost plus 25%. From the following particulars,
calculate the value of closing stock and prepare Duliajan Branch A/c for the
year ended 31st March 2017: 3+8=11
Rs.
|
|
Stock at branch on
01.04.2016
Goods sent to branch
Cash Sales at branch
Expenses paid by
Head Office:
Salaries
5,000
Advertisement
2,000
|
22,000
1,78,000
2,00,000
7,000
|
A commission of 10% on the net
profit after charging such commission is to be created to Branch Manager.
6. (a) A took a lease of a
colliery with a minimum rent of Rs. 30,000 per annum merging into a royalty of
Rs. 5 per ton of coal raised with a right to recoup short workings within the
first four years of lease. The output for first five years was given below:
Year
|
Output (in tons)
|
1st
2nd
3rd
4th
5th
|
Nil
3000
5000
7000
8000
|
Prepare necessary Ledger A/c in
the books of the lessee. 11
OR
(b) What is royalty? State its
different types. How does royalty differ from rent? 3+3+5=11
7. (a) What do you mean by
dissolution of a partnership firm? How and under what circumstances a
partnership firm may be dissolved? Discuss
3+8=11
OR
(b) X and Y are two sole traders.
They desire to amalgamate their business and form a new form. The Balance
Sheets of their business as on 31st March,2017 were as follows:
Balance Sheet of X as
on 31st March, 2017
Liabilities
|
Rs.
|
Assets
|
Rs.
|
Sundry creditors
Capital
Profit & Loss
a/c
|
50,000
2,00,000
30,000
|
Furniture
Stock
Cash
|
1,10,000
1,20,000
50,000
|
2,80,000
|
2,80,000
|
Balance Sheet of Y as
on 31st March, 2017
Liabilities
|
Rs.
|
Assets
|
Rs.
|
Sundry creditors
Capital
|
1,10,000
2,60,000
|
Furniture
Stock
Cash
Profit & Loss
A/c
|
1,60,000
1,80,000
6,000
24,000
|
3,70,000
|
3,70,000
|
You are required to:
a)
Close the books of X;
b)
Close the books of y;
c)
Draw up the Balance Sheet of the new firm 4+4+3=11
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