Thursday, May 23, 2019

Dibrugarh University B.Com First Sem: Financial Accounting Question Papers (Nov' 2018)

2018
(November)
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)  Answer in one sentence:-                                                      1x4=4
                     i.      What is Accounting Standard?
                   ii.      Who is a ‘Hire Vendor’?
                  iii.      What is ‘interdepartmental transfer’?
                 iv.      What is ‘sub-lease’?
   (b) Find the correct answer from the given alternatives:                           1x4=4
               i.      Unearned Income Account is
(1) a liability
(2) an asset
(3) an expense
             ii.      The total amount to be paid by the buyer under Hire-purchase System is called
(1) cash price
(2) market price
(3) hire-purchase price
            iii.      In Departmental A/cs, each department is considered as a separate
              (1) profit centre            
              (2) cost center
              (3) business centre
           iv.      Royalty A/c is closed by transferring to
               (1) Landlord A/c            
               (2) Profit & Loss A/c
               (3) Shortworkings A/c
2. Write short notes on (any four):                                       4x4=16
a)International Financial Reporting Standards (IFRS)
b)      Instalment Purchase System
c) Independent Branch
d)      Minimum Rent
e)      Recoupment of Shortworkings
3. (a)
                     i.      What do you mean by basic concepts and conventions of Accounting?         2+2=4
                   ii.      Distinguish between Accounting Standards and Accounting Principles.          4
                  iii.      Write a note on Accounting Standard Board set up in India.              6
   (b)  Following is the Trial Balance of M/s Khushbu and Neha, a partnership firm, as on 31st March, 2018. Prepare a Trading and Profit & Loss A/c for the year ended 31st March, 2018 and a Balance Sheet as on that date:        4+5+5=14
Trial Balance
Dr. Balances
Amount
Cr. Balances
Amount
Drawings:-
         Khushbu
         Neha

2,000
3,500
Capital A/cs :
          Khushbu
          Neha

35,000
25,000
Land and Building
36,000
Sales
92,500
Machinery
18,000
Returns Outward
1,300
Salaries and Wages
3,700
Bad Debts Reserve
800
Motor car
10,500
General Reserve
3,000
Trade Expenses
1,900
Creditors
23,000
Carriage Inward
400
Commission
1,500
Royalty
1,800


Purchases
45,300


Returns Inward
45,300


Debtors
24,600


Discount
1,000


Insurance
1,200


Opening Stock
23,800


Advertisement
3,000


Cash at Bank
2,900



1,82,100

1,82,100

Adjustments:
               i.      Closing Stock (31st March, 2018)-Rs.36,000
             ii.      Stock worth Rs. 3,000 uninsured has been destroyed by fire
            iii.      Depreciate machinery by 15% and motor car by 10%
           iv.      Of the debtors, Rs. 600 were bad and should be written off and Reserve for Doubtful Debts should be maintained at 5%
             v.      Khushbu and Neha divides profits and losses equally

4. (a) Distinguish between Hire-purchase System and Instalment Purchase System. Mention four rights of Hire Vendor and four rights of Hire Purchaser as laid down in the Hire-purchase Act, 1972.    6+4+4=14
Or
    (b) A motor car was purchased on 1st April, 2015 under Hire-purchase System. The payment was to be made Rs. 20,000 down and the balances including interest @5% p.a. were to be paid as follows:
On 31st March, 2016
60,000
On 31st March, 2017
77,500
On 31st March, 2018
84,000

The buyer provided depreciation on motor car @ 15% per annum under diminishing balance method.
Ascertain the cash price of the motor car and prepare (i) Hire Vendor’s A/c and (ii) Motor Car’s A/c in the books of Hire Purchaser.                                                  6+4+4=14
5. (a) M/s Dutta Bros. has two departments  A and B. Department A transfers goods to Department B at normal market price. From the followings particulars, prepare Departmental Trading and Profit & Loss A/c and a Combined Income A/c for the year ended 31st March , 2018:                                  4+5+5=14
Particulars
Dept.-A
Dept.- B
General
Stock as on 1st April, 2017
12,000
Nil
-
Purchases
2,77,000
24,000
-
Transfer of goods from Dept.-A
-
84,000
-
Purchase Return
1,000
-
-
Wages
12,000
19,200
-
Stock as on 31st March, 2018
60,000
21,600
-
Salaries
8,000
5,000
-
Printing and Stationery
2,560
1,960
-
Plant and Machinery
-
14,400
-
Salaries (general)
-
-
18,000
Advertisement
-
-
9,600
Bank Charges
-
-
2,400
Sundry Expenses
-
-
3,600
Depreciate Plant and Machinery by 10%. The general unallocated expenses are to be apportioned between A and B departments in the ratio 3:2.
Or
(b) What is ‘Branch A/c’? What are its main objectives? How are inter-branch transactions recorded in Branch A/c?                                                  2+6+6=14
6. (a) Avinash took a colliery on lease with a minimum rent of Rs. 60,000 per annum merging into a royalty of Rs. 5 per ton of coal raised with a right to recoup shortworkings within the first four years of lease. The output for first-five years was given below:
Year
Output (in tons)
1
2
3
4
5
Nil
6,000
10,000
14,000
16,000
Prepare Analytical Table and show the following Ledger A/cs in the books of Avinash:  2+4+4+4=14
               i.      Royalties A/c
             ii.      Shortworkings A/c
            iii.      Landlord’s A/c
Or
(b) 
               i.      Why is Minimum Rent A/c opened in the books of Lessee?                                         4
             ii.      Why is minimum rent important in Royalty A/c?                                                           4
            iii.      Explain the different types of royalty.                                                                              4

(Old Course)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1. (a) Fill in the blanks:                                                             1x4=4
               i.      Accounting Standard Board was set up in India in the year_____.
             ii.      Cost of goods sold on Hire-purchase is transferred to _____A/c.
            iii.      In Branch Accounting, each branch has separate______.
           iv.      When a partner is not able to meet his liabilities, he is said to be_____.
   (b) Write ‘True’ or ‘False’:                                                                                                            1x4=4                                                                                                       
               i.      Accounting Standard 6 deals with Depreciation Accounting.
             ii.      Hire-purchase is an agreement of hiring.
            iii.      Branch Stock A/c is always prepared at cost price.
           iv.      Royalty is in the nature of rent.
2. Write short notes on (any four):                                     4x4=16
a)The provisions of Accounting Standard-1
b)      Termination of Hire-purchase agreement
c) Inter-branch transactions
d)      Rock rent
e)               Rules of Garner vs. Murray
3. (a) What do you mean by ‘Accounting Standards’? Mention the procedure for issuing Accounting Standards.                                         3+9=12
Or
     (b) Sima and Rima share profits and losses equally. From the following Trial Balance of their business as on 31st March, 2018 and a Balance Sheet as on that date:                                              3+4+5=12

Particulars
Dr. Balances
Cr. Balances
Capital:-
Sima
Rima
Current A/c:-
Sima
Rima
Land and Building (at cost)
Machinery (at cost)
Purchases (adjusted)
Sales Returns
Salaries
Wages
Rent and Taxes
Cash at Bank
Furniture
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
15,000
25,000
-
3,44,000
-
-
65,000

15,000
15,000

-
-
-
-
-
-
-
-
-
-
-
12,000
-
4,00,000
8,00,000
-

 
Adjustment:
In the accumulated depreciation, Land and Building-Rs.5,000;
Machinery-Rs. 6,000 and Furniture-Rs. 1,000 have been included
4. (a) Jayshree Company purchased a machine on 1st April, 2016 on Hire-purchase system. The payments were to be made as follows:
On signing of the agreement
At the end of the 1st year
At the end of the 2nd year
At the end of the 3rd year
5,000
6,000
3,500
2,200
16,700

Interest included in Rs. 16,700 was charged on the cash price @ 10% per annum
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 Jayshree Company.                                                                  3+4+4=11
Or
(b) What is ‘Instalment Purchase System’? What are its features? Distinguish between Instalment Purchase System and Credit Sales.                                                                                        2+3+6=11
5. (a) What do you mean by Branch Accounting? What are its features? Distinguish between Branch Accounting and Departmental Accounting.                                                                         2+4+5=11
Or
(b) The Golaghat Head Office supplies goods to its branch at Sivasagar at cost. The branch sells the goods for cash and on credit and remits the proceeds to the Head Office promptly. The branch expenses being met by the Head Office by cheque. The followings are the transactions relating to the branch for the year ended 31st March, 2018:
Particulars
Amounts
Stock at Branch on 1st April, 2017
Debtors at Branch on 1st April, 2017
Goods sent to Branch during the year
Total sales at Branch
(including cash sales Rs. 2,20,000)
Goods returned by Branch
Collection from debtors
Discount allowed
Bad Debts written off
Cheque sent by Head Office towards the branch expenses:
Salaries                               50,000
Rent                                    25,000
Petty expenses                    5,000
                                                ____________
Stock at Branch on 31st March, 2018
60,000
80,000
4,50,000


20,000
4,20,000
20,000
10,000




80,000
90,000
Prepare Branch A/c and Goods sent to Branch A/c in the books of Head Office. Also prepare Branch Debtors A/c as a part of your working note.         6+3+2=11
6. (a)
               i.      What is Minimum Rent? Why is it important in Royalty A/c?                                         2+2=4
             ii.      What do you mean by ‘Recoupment of Shortworkings’? What conditions are to be satisfied for recoupment of shortworkings?                                   3+4=7
(b)  Sri Amrit Baruah took a colliery from Sri Amar Singh on lease for a period of 20 years from 1st April, 2013 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 shortworkings in the first four years of the lease.
The annual coals raised were as follows:

Year
Output (in tons)
2013-14
2014-15
2015-16
2016-17
2017-18
3000
3500
5000
8000
10000

From the above particulars, prepare in the books of Sri Amrit Baruah:                                 4+4+3=11
               i.      Royalties A/c
             ii.      Amar Singh’s A/c
            iii.      Shortworkings A/c
7. (a) In a partnership firm, Arun and Barun are sharing profits and losses in the ratio of 5:3. They decided to dissolve their firm as on 31st March, 2018. Their Balance Sheet as on 31st March, 2018 is given below:
Liabilities
Amount
Assets
Amount
Creditors
Loan from Arun
Loan from Barun
Capital
         Arun
         Barun
9,316
3,684
    600

8,000
5,400
Goodwill
Furniture
Machinery
Inventory
Debtors
Cash
4,000
1,000
2,000
9,200
10,000
      800

27,000
27,000


The assets were realized as follows:
Particulars
Amount
Goodwill
Furniture
Inventory
Debtors
Machinery
2,600
    900
8,300
10,200
8,800

Creditors were paid Rs. 9,120 in full settlement of their claim. Realization expenses amount to Rs. 110. A bill for Rs. 130 due for sales tax was received during the course of realization and this was also paid. Close the books of the firm.                                                                                                                                 11
Or
(b) What is Amalgamation of firms? What are its main objectives? Name the different forms of amalgamation.                                                                                                                                               2+6+3=11

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