Financial Accounting Question Paper' 2019, Dibrugarh University B.Com 1st Sem Hons Question Papers

Financial Accounting Question Paper' 2019
Dibrugarh University B.Com 1st Sem Hons Question Papers 
2019 (Nov/Dec)
COMMERCE (Core)
Paper: C-101 (Financial Accounting)
Full Marks: 80
Pass Marks: 32
Time: 3 hours

The figures in the margin indicate full marks for the questions

The figures in the margin indicate full marks for the questions

1. (a) Choose the correct answer:                             1x3=3

1)         As an information system, the accounting process serves persons of

A.         Inside the organization.

B.         Outside the organization.

C.         Both inside and outside the organization.

2)         For recognition of revenue at international level, the corresponding International Accounting Standard is

A.         IAS-18.

B.         IAS-21.

C.         IAS-24.

3)         On dissolution of a firm, cash in hand is transferred to

A.         Realization A/c.

B.         Partners’ Capital A/cs in their profit-sharing ratio.

C.         Cash A/c.

(b) Fill in the blanks:                                    1x3=3

1)         Accounting Standards may also be termed as _______ forms of Generally Accepted Accounting Principles.

2)         Accounting Principles are _______ to establish standards for sound accounting practices.

3)         Under debtors system, Branch A/c discloses _______ of the branch.

(c) Write True or False:                              1x2=2

1)         Trial Balance is not an account.

2)         The hire-purchaser may, at any time, terminate the hire-purchase agreement after giving the owner at least 21 days notice in writing.

2. Write short notes on any four of the following:             4x4=16

a)         Straight-line method of depreciation.

b)         Indian Accounting Standard (Ind-AS) 101.

c)          Financial lease.

d)         Independent branches.

e)         Garner vs. Murray decision.

3. (a) What are Accounting Principles? Distinguish between Accounting Principles and Accounting Standards.      2+4=6

Or

(b) Arrange the following balances taken from the Ledger of Saurav Srivastav into a Trial Balance on 31^st March, 2019:

Particulars	Rs.
Cash Trade Debtors Rent Stock (01.04.2018) Bills Payable Insurance Trade Expenses Machinery Depreciation Accumulated Depreciation Salaries Furniture Trade Creditors Cost of Goods sold Advance from a Customer Sales Drawings Capital	9,200 15,000 4,800 18,000 1,500 3,600 5,500 10,000 800 2,400 20,400 4,000 25,000 54,000 1,400 90,000 2,000 27,000

Also Read: Financial Accounting Question Papers (Dibrugarh University)

4. (a) What is meant by business income? What are its features? Discuss the procedure for measurement of business income.                2+3+5=10

Or

(b) (1) Write the salient features of Accounting Standard (AS)-9 with respect to revenue recognition.                     4

(2) X Ltd. bought a machinery for Rs. 30,000 on 1^st April, 2015. One more machinery was purchased on 1^st October, 2015 costing Rs. 20,000. On 1^st July, 2016, a new machinery for Rs. 10,000 was added to the existing machinery. On 1^st January, 2017, one-third of the machinery which was installed on 1^st April, 2015 was sold for Rs. 3,000. The rate of depreciation was 10% p.a. on Diminishing Balance Method. Show the Machinery A/c in the books of X Ltd. The accounting period ends on 31^st December each year.     6

5. Following is the Trial Balance of a trader Mr. Prakash as on 31^st March, 2019:

Particulars	Dr. (Rs.)	Cr. (Rs.)
Stock on 01.04.2018 Purchases Return Outwards Sales Carriage Outwards Rent and Rates Return Inwards Salaries Debtors Creditors Capital A/c Advertisement Cash at Bank Wages Plant and Machinery Furniture Provision for Doubtful Debts Discount Allowed Discount Received	30,000 60,000     1,200 10,000 1,000 7,550 45,000     2,000 6,900 10,000 78,000 2,000   425	750 1,27,000           25,000 1,00,000           525   800
	2,54,075	2,54,075

Prepare Trading and Profit & Loss A/c for the year ended 31^st March, 2019 and Balance Sheet as on that date after taking into account the following adjustments:     3+3+4=10

1)         Stock on 31^st March, 2019 was valued at Rs. 34,220.

2)         Allow interest on capital @ 10% p.a.

3)         Provision for Bad Debts is to be kept at Rs. 1,000.

4)         Depreciate Plant and Machinery @ 10% p.a. and Furniture @ 5% p.a.

5)         The proprietor Mr. Prakash has taken goods worth Rs. 5,000 for personal use.

6. (a) What is ‘hire-purchase system’? What are its features? Should depreciation be charged on fixed assets purchased on hire-purchase system?       3+5+2=10

Or

(b) Blue Bird Co. purchased two machines of Rs. 5,250 each from Kapili Machine Co. on 1^st April, 2016 on hire-purchase system. As per agreement, payment to be made Rs. 3,000 down and the balance in three equal annual installments along with interest @ 5% p.a. Blue Bird Co. writes off depreciation @ 10% p.a. 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/cs in the books of both the parties. Books are closed on 31^st March each year.    3+3+3+1=10

7. (a) Arun of Mumbai has a Branch at Guwahati. Goods are invoiced to the Branch at cost plus 25%. Branch is instructed to deposit cash everyday in the Head Office Account with the bank. All expenses are paid through cheque by the Head Office except petty cash expenses which are paid by the Branch out of all cash receipts.

Prepare Branch A/c in the books of Head Office taking into account the following information:       10

	On 01.04.2018 (Rs.)	On 31.03.2019 (Rs.)
Stock at Invoice Price Debtors Furniture	82,000 31,700 23,400	96,000 42,150 ?

Transactions during the year were:

Cash sales Credit sales Goods invoiced to Branch Expenses paid by Head Office Petty expenses paid by Branch Furniture paid by Branch, on 01.10.2018 (out of cash collection) Depreciation is provided on the Branch furniture @ 10% p.a. on Diminishing Balance Method

Rs. 4,01,300 Rs. 3,72,100 Rs. 6,28,000 Rs. 1,32,000 Rs. 10,450 Rs. 2,500

Or

(b) (1) What are the objectives of keeping Branch Accounts?      4

(2) With respect to Branch Accounts, how will you deal with the following matters?  2x3=6

a)         Depreciation of Branch Fixed Assets.

b)         Goods-in-Transit.

c)          Remittance-in-Transit.

8. (a) (1) What do you mean by dissolution of partnership firm? Discuss the reasons that lead to dissolution of firm. 2+4=6

(2) Distinguish between Revaluation A/c and Realization A/c.      4

Or

(b) Ajay, Bijay and Sanjay were partners sharing profits and losses as 4 : 3 : 3. The firm was dissolved on 31^st March, 2019. The Balance Sheet of the firm on that is given here under. As the process of realization seemed dilatory, it was decided to distribute cash as and when realized and to appoint Sanjay to look after the distribution at a remuneration of 1% of the value of assets realized (other than Cash at Bank) and 10% of the amount distributed to the partners:

Liabilities	Rs.	Assets	Rs.
Capital Accounts: Ajay                              15,000 Bijay                               7,500 Sanjay                          15,000 Sundry Creditors	37,500 16,500	Cash at Bank Sundry Assets	275 53,725
	54,000		54,000

The realizations were:

	Rs.
First Realization Second Realization Third Realization Fourth Realization	16,250 12,750 10,000 7,500

Prepare a statement showing distribution of cash.                       10

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