Advanced Financial Accounting Important Questions For Upcoming Exam, Both CBCS and Non-CBCS Pattern

Advanced Financial Accounting 

Important Question For Upcoming Exam

Dibrugarh University B.Com 5th Sem Hons CBCS Pattern

Unit – 1: Accounts of Banking Companies

Q. List out the form of business in which Banking Company may engage as detailed in Section 6 of the Banking Regulations Act. Or Mention the features of a banking company.             2018

Q. Explain the following in relation to the Banking Company:

a)      Slip system of posting and its merits and demerits      2015, 2018, 2022

b)     Rebate on Bills Discounted and its treatment   2014, 2016, 2017, 2019, 2021, 2022

c)      NPA    2015, 2019, 2021

d)      Non-banking Assets         

e)      Form B of the Banking Company

f)       Format of financial statements of banking companies                2016

g)      Books maintained by banking companies

h)      Money at call and short notice (Schedule 7)      2013SN, 2017SN, 2018SN

i)        Difference between performing and non-performing assets      2016

j)        Inter branch adjustments             2017

k)      Contingent liabilities                    2017

l)        Statutory reserve 2019, 2021

m)   SLR and CRR                     2019, 2022

Q. Write a brief note on various types of advances provided by bank. (Cash Credit, Overdraft, Loan, Discounting) 2015SN, 2021

Q. Write a brief note on various classes of advances (Standard assets, sub-standard assets, doubtful assets, loss assets. Also mention % of provision required in these classes.                       2013, 2022

Q. Give in brief the various provisions of the Banking Regulation Act, 1949 relating to the annual accounts of the banking company.

Q. Explain the RBI’s prudential Accounting Norms as recommended by the Narasimham Committee.      2014

Unit – 2: Accounts of Life Insurance Companies

1.    What do you understand by life insurance and Life Fund? Where does it appear in the final accounts? 2022

2.    Explain revenue account of life insurance companies. How it is prepared? Give a Proforma with imaginary figures.  2018

3.    What is valuation balance sheet (2016SN)? How it is prepared. Distinguish between valuation balance sheet and general balance sheet.     2021SN, 2022SN

4.    Explain the financial statements that are to be prepared by the life insurance companies as per the IRDA Regulations, 2002. Point out the general instruction on preparation of financial statements.    2014, 2021

5.    Explain the method followed for assessing the profit in the life insurance business.

6.    Distinguish between (These differences are included in unit 3)

A) Life insurance and general insurance                     2021

B) Cash bonus and reversionary bonus

C) Life policy and endowment policy.

D) Surrender policy and paid-up value                       2015, 2017, 2021, 2022

E) Re-insurance and Double insurance             2015

7.    Mention the statutory and statistical books maintained by life insurance companies.   Explain their purposes. 2016, 2017, 2019

8.    Explain various items of revenue account of life insurance companies. VVVI

a)           Premium                                       2013

b)           Bonus in reduction of premium   2013, 2018

c)           Bonus                                            2015 

d)           Annuities and Consideration for annuities granted         2022

Unit – 3: Accounts of General Insurance Companies

Q. What is general insurance? Point out the main features of accounts of General Insurance Companies. Explain the Purpose of creating reserve for unexpired risk in insurance business. State its accounting treatment. 2013, 2016, 2017SN, 2017, 2018, 2019, 2021, 2022

Q. What is fire insurance revenue account? Explain how the profit or loss from general insurance business is ascertained and prepare a fire revenue account with imaginary figures and schedules. 2015, 2017, 2018SN, 2021SN

Q. What important points should be kept in mind in preparing the annual accounts of general insurance companies?

Q. What statutory books are required to be maintained by a general insurance company under the Insurance Act?  2018, 2022

Q. How profit is determined in fire insurance business? 2022

Q. Briefly explain schedules to be shown in the financial statements of General Insurance Companies as prescribed by IRDA Regulation, 2002.

Unit – 4: Investment Accounts

Q. What is an investment and Investment account (2015SN, 2018SN)? Mention its nature. What purpose does investment account serve? Pass journal entries for investment account.  2016, 2017SN, 2017, 2019, 2021, 2022

Q. What is columnar investment account? How it is prepared?     2021SN, 2022

Q. Distinguish between:

Ø  Contango and Backwardation

Ø  Jobbers and Brokers                        2014, 2015

Ø  Cum-dividend and ex-dividend        2013, 2016, 2018, 2022

Ø  Cum-interest and ex-interest            2013, 2014, 2015, 2019, 2021

Q. How investment accounts are prepared when there is issue of bonus shares and rights shares by the company? 2018

Q. Practical Problems: Follow previous years question papers and illustrations

Advance Financial Accounting Chapter-wise Notes

Advance Financial Accounting Question Papers

Advance Financial Accounting Solved Papers