Financial Accounting Question Paper Nov' 2016
Dibrugarh University B.com 1st Sem
COMMERCE (General/Speciality)
Course: 103
(Financial Accounting)
The figures in the margin
indicate full marks for the questions
(NEW COURSE)
Full Marks: 80
Pass Marks: 24
Time: 3 hours
1. (a)
Fill in the blanks: 1x4=4
a)
Accounting Standard ____ deals with
Depreciation Accounting.
b)
The total amount to be paid by the buyer under
hire-purchase system is called ____ price.
c)
Under Stock and Debtors system, Branch Stock
Account is a ____ account.
d)
Royalty paid on sales is debited to ____
Account.
(b) Write ‘True’ or ‘False’: 1x4=4
a)
Loss of stock by fire is shown on the credit
side of Profit and Loss Account.
c)
In Departmental Accounts, each department is
considered as a separate profit centre.
d)
Royalty Account is a Real Account.
2.
Write short notes on (any four): 4x4=16
a)
IFR Standards.
b)
Instalment Purchase System.
c)
Independent Branch.
d)
Inter-departmental Transactions.
e)
Recoupment of Shortworkings.
3.
(a) What are Accounting Standards? What procedure is adopted for formulating
Accounting Standards? Discuss the objectives of such standards. 3+5+6=14
Or
(b)
Rinku and Tinku share profits and losses equally. From the following Trial
Balance of their business as on 31st March, 2016, prepare Trading,
Profit & Loss Account for the year ended 31st March, 2016 and a
Balance Sheet as on that date: 4+5+5=14
Particulars
|
Amount (Dr.)
|
Amounts (Cr.)
|
Capital:
Rinku
Tinku
Current Account:
Rinku
Tinku
Land and Buildings (at cost)
Machinery (at cost)
Purchases (adjusted)
Sales Return
Salaries
Wages
Rent and Taxes
Furniture
Cash at Bank
Accumulated Depreciation
Debtors
Creditors
Sales
Closing Stock
|
12,000
6,000
60,000
45,000
5,00,000
10,000
60,000
72,000
28,000
25,000
15,000
3,44,000
65,000
|
15,000
15,000
12,000
4,00,000
8,00,000
|
12,42,000
|
12,42,000
|
Adjustment: Accumulated depreciation
includes Land and Buildings Rs. 5,000, Machinery Rs. 6,000 and Furniture Rs.
1,000.
4.
(a) A motorcar was purchased on 1st April, 2012 under hire-purchase
system. The payments to be made Rs. 20,000 down and the balance including interest
@ 5% p.a. as follows: (Rs.)
On 31st March, 2013
On 31st March, 2014
On 31st March, 2015
|
60,000
77,500
84,000
|
The buyer depreciated the motorcar @ 15%
p.a. under Diminishing Balance Method. Ascertain the cash price of the motor
car and prepare Motorcar Account and Hire Vendor’s Account in the books of hire
purchaser. 4+5+5=14
Or
(b)
What is Hire-Purchase System? Distinguish between Hire-purchase Sale and
Ordinary Credit Sale. Mention three rights of each of Hire Seller and Hire
Purchaser as laid down in the Hire-purchase Act, 1972. 3+5+3+3=14
5.
(a) From the following particulars, prepare Departmental Trading and Profit
& Loss Account in columnar form for the two departments and thereafter the
Combined Income Account of Dutta Brothers’ for the year ended 31st
March, 2016: 4+6+4=14
Department – X (Rs.)
|
Department – Y (Rs.)
|
|
Stock 01.04.2015
Purchase from outside
Wages
Salaries
Transfer from Department – X
Stock 31.03.2016
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 – Y represents goods transferred from
Department – X at cost plus 25%. Administrative and Selling Expenses amount Rs.
14,000 which is to be allocated between the two departments in the ratio of 6 :
1.
Or
(b)
(i) What do you mean by inter-branch transactions? State the procedure of
recording such transactions.3+5=8
(ii) Distinguish between ‘Cash-in-transit’ and ‘Goods-in-transit’. 6
6. (a) Explain the following items in relation to Royalty
Accounts: 3+3+4+4=14
a)
Minimum rent.
b)
Shortworkings.
c)
Sub-lease.
d)
Strike and lockout.
Or
(b)
Jai Prakash took lease of a coal mine from Ram Prakash at an annual dead rent
of Rs. 4,000 subject to a royalty payable @ 50 paise per ton of coal extracted.
Shortworkings are recoupable over the first four years of the lease. Jai
Prakash sub-leased a part of the mines to Satya Prakash at an annual dead rent
of Rs. 2,000 subject to a royalty payable @ 75 paise per ton of coal extracted.
The right to recoup Shortworkings was during the next two years following the Shortworkings.
The output for five years were as follows:
Year
|
Jai Prakash
Tons
|
Satya Prakash
Tons
|
Total
Output
|
2011
2012
2013
2014
2015
|
4400
4640
5200
5600
7200
|
1600
2160
2800
3600
4800
|
6000
6800
8000
9200
12000
|
Prepare Royalty Payable Account, Royalty
Receivable Account and Shortworkings Account in the books of Jai Prakash. 5+5+4=14
(OLD
COURSE)
Full
Marks: 80
Pass
Marks: 32
Time: 3
hours
1. (a)
Write whether the following statements are ‘True’ or ‘False’: 1x4=4
a)
Accounting principles are formulated by the
Government.
b)
Hire-purchase transactions are governed by the
Hire-Purchase Act, 1972.
c)
Cash sent by the branch not receive by the head
office by the end of the year is debited to arrear cash account.
d)
Royalty paid on sales is credited to Profit and
Loss Account.
(b) Fill in the blanks: 1x4=4
a)
Valuation of inventories is accounted for as per
Accounting Standard ____.
b)
Profit on repossession of goods sold on
Hire-Purchase System is considered as a ____ profit.
c)
In Branch Accounting, each branch has separate
____.
d)
On dissolution of a partnership firm, cash in
hand is transferred to ____ Account.
2. Write short notes on (any four): 4x4=16
a)
Features of Accounting Principles.
b)
Termination of Hire-purchase Agreement.
c)
Inter-branch transactions.
d)
Amalgamation of partnership firms.
e)
Provisions of strike and lockout in Royalty
Account.
3. (a) The following is the Trial Balance of M/s Baruah and Sharma
Partnership Firm as on 31st March, 2016. Prepare Trading and Profit
& Loss Account for the year ended 31st March, 2016 and a Balance
Sheet as on that date: 3+5+3=11
Trial Balance
Debit
|
Rs.
|
Credit
|
Rs.
|
Bills Receivable
Cash in Hand
Bad Debts
Trade Expenses
Advertisement
Machinery
Sundry Debtors
Goodwill
Leasehold Premises
Fuel
Wages
Purchases
Opening Stock
Rent and Taxes
Discount
|
4,000
4,000
3,000
12,000
10,000
76,000
70,000
75,000
1,60,000
20,000
1,50,000
1,50,000
85,000
18,000
3,600
|
Bank Loan
Sundry Creditors
Sales
Bills Payable
Capital:
Baruah
Sharma
|
80,000
50,000
4,10,600
20,000
1,40,000
1,40,000
|
8,40,600
|
8,40,600
|
Adjustments:
a)
Closing Stock Rs. 60,000
b)
Machinery is to be depreciated @ 10% p.a.
c)
Provision should be made for bad debts @ 2% p.a.
on sundry debtors.
d)
Partners share the profit equally.
Or
(b)
Outline the need for accounting. Briefly describe the principles of accounting
to be followed in preparation of Financial Statements. 5+6=11
4.
(a) Mention four features of Hire-Purchase System. Distinguish between
Hire-purchase System and Instalment Purchase System. 5+6=11
Or
(b)
On 1st April, 2013, M/s Hazarika Traders purchased a car on
Instalment Purchase System. The terms of the contract were as follows:
a)
The cash price of the car was Rs. 1,20,000
b)
Amount payable on signing the agreement was Rs.
45,000
c)
The balance of the purchase consideration was to
be paid in three annual instalments of Rs. 25,000 each together with interest
at 4% p.a. on the outstanding balance.
d)
The car was depreciated at 10% p.a. under Fixed
Instalment Method.
e)
Accounts were closed on 31st March,
each year.
Prepare the following accounts in the books of M/s Hazarika
Traders up to 31st March, 2016: 4+4+3=11
a)
Car’s Account.
b)
Vendor’s Account.
c)
Interest Suspense Account.
5. (a) Write the accounting treatment in Branch Account as regard
to following: 3+4+4=11
a)
Cash-in-transit.
b)
Goods-in-transit.
c)
Depreciation of branch fixed assets.
Or
(b) A Head Office at Kolkata supplies goods to its branch at
Dibrugarh on cost. The branch sells the goods for cash and 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 on 31st March, 2016: Rs.
Stock at branch on 01.04.2015
Debtors at branch on 01.04.2015
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 collected from debtors
Discount allowed to debtors
Bad debts written off
Cheque sent by Head Office towards branch expenses:
Salaries 25,000
Rent 14,500
Petty expenses 500
Stock at branch on 31.03.2016
|
30,000
40,000
2,25,000
3,70,000
10,000
10,000
2,10,000
10,000
5,000
40,000
45,000
|
Prepare Dibrugarh Branch Account and goods sent to Branch Account
in Head Office books. Show Branch Debtors Account as a part of your working
notes. 5+3+3=11
6. (a) Define Royalty. Discuss its various types. Also distinguish
between royalty and rent. 3+4+4=11
Or
(b) Meghna Coal Ltd. took a lease of coal mine for ten years on a
royalty of Rs. 3 per ton of coal raised. The minimum rent was fixed at Rs.
13,000 and there was no any provision of right to recoup Shortworkings. The
coal raised was as follows:
Year
|
Output (in tons)
|
2012
2013
2014
2015
|
3000
4000
6000
2000
|
Pass
Journal Entries in the books of Meghna Coal Ltd. 11
7.
(a) State and explain the decisions and rules laid down in Garner vs. Murray
case. Are these rules applicable in India? 7+5=12
Or
(b)
P and Q were in partnership sharing profits or losses in the ratio of 2 : 1
respectively. They dissolved the partnership and their Balance Sheet on that
date was as follows:
Balance Sheet
Liabilities
|
Rs.
|
Assets
|
Rs.
|
Capital Accounts:
P
Q
Trade Creditors
|
10,000
8,000
2,000
|
Building
Inventory
Cash
|
16,000
2,500
1,500
|
20,000
|
20,000
|
The assets realized Rs. 20,000.
The creditors were paid in full. You are required to pass Journal Entries and
prepare Ledger Accounts for closing the books of the partnership firm. 6+6=12