Tuesday, May 21, 2019

Gauhati University Question Papers:Financial Accounting-I (Nov-Dec’ 2014)


2014
FINANCIAL ACCOUNTING-I
Full Marks: 80
Time: 3 hours
(The figures in the margin indicate full marks for the questions)
1. Write the meaning of the following:                                      1x10=10

a)         Accounting information.
b)         Accounting standards.
c)          Generally Accepted Accounting principle.
d)         Self balancing ledger.
e)         Hire Purchase price.
f)          Interest Suspense A/c.
g)         Installment Purchase System.
h)         Shortworking under Royalty A/c.
i)           Copyright Royalty.
j)           Sublease under Royalty A/c.
2. Write the answer very briefly:                                             2x5=10
a)         Mention two advantages of Accounting Standards.
b)         State two objectives of Self Balancing Ledger System.
c)          State two features of Sectional Balancing Ledger system.
d)         Mention two disadvantages of Hire Purchase System.
e)         Write the meaning of the term Royalty and Royalty A/c.
3. Write the answer of the following briefly:                                     5x4=20
(a) What is dual aspect principle of accounting – Write a brief note.
Or
Mention the limitations of accounting principles.
(b) State five distinctions between Sectional Balancing and Self Balancing Ledger system.
Or
State five advantages of Self Balancing Ledger System
(c) What are the rights of the hire purchaser under the Hire Purchase Act, 1972?
Or
On 1.1.2011 Kabita Enterprise purchased a computer worth Rs. 60,000 from Bhorali Brothers on installments payment system and paid Rs. 20,000 as down payment. The balance was payable in three equal annual installments of Rs. 15,000 each including interest on 31st December each year.
Calculate the amount of interest to be debited to the Profit and Loss A/c in the year 2011, 2012 and 2013.
(d) State in brief the accounting treatment shortworking under Royalty A/c.
Or
ABC Ltd. is lease of a mine on a royalty of 50 paisa per ton of coal raised with a minimum rent of Rs. 30,000 p.a. and has power to recoup shortworking during the first five years of the lease. The output for the first three years was as follows –
First year.
Second Year
Third Year
15,000 tons
50,000 tons
80,000 tons
You are required to prepare the statement showing the calculation of Royalty and shortworking.
4. Discuss the applications of accounting principles in the preparation of financial statements giving examples.   3+7=10
Or
Mention three needs of Accounting Standards and also state the Accounting Standard setting procedure in India.  3+7=10
5. From the following figures, prepare a Total Debtors Account and a Total Creditors Account for the year ended 31st December, 2013.                                                   10

Rs.
Debtors on 1.1.2013
Creditors on 1.1.2013
Credit Sales
Sales returns
Credit Purchases
Cash received from debtors
Discount allowed
Bills receivable received
Bad debts written off
Bad debts previously written off now recovered
Cash paid to Creditors
Transfer from Bought Ledger to Sales Ledger
Discount received
Bills receivable endorsed to creditors
Bills payable given to creditors
Endorsed bills dishonoured
Sundry charged debited to debtors
Provisions made for discount on debtors
Credit balance in sales ledger on 31.12.2013
Debit balance in purchase ledger on 31.12.2013
60,000
45,000
4,30,000
3,100
3,28,500
3,60,000
4,800
64,000
4,275
900
2,10,000
3,200
5,300
35,000
82,000
5,500
270
320
5,700
3,900

Or
Mr. Suman keeps his accounts under self balancing system. From the following particulars for the years 2013, prepare required adjustment accounts as they would appear in the General Ledger as on 31.12.2013.                                      10

Rs.
Balance of Sundry Creditors as on 1.1.2013
Balance of Sundry Debtors as on 1.1.2013
Credit purchases
Allowances received
Sales
Collection from debtors
Credit balance transferred from Purchase ledger to sales ledger
Bills receivable dishonoured
Paid to Creditors
Credit notes received from Suppliers
Allowances to customers
Bad debts written off
Bills endorsed
Bills receivable as endorsed dishonoured
Cheque dishonoured
Interest charged on dishonoured bill
Credit notes issued to customers
Bills receivable received
Bills payable accepted
6,700
3,800
67,000
900
1,30,000
59,000
600
1,200
39,000
700
500
2,000
480
1,000
2,100
50
1,500
20,800
20,000

6. Chandan purchased a machine from Ranjan on hire purchase system on 1st January, 2010. The cash price of the machine is Rs. 56,000. As per agreement, payment to be made Rs. 15,000 down and the balance in three annual installments of Rs. 15,000 each payable on 31st December each year. Rate of interest is to be charged @ 5% per annum. The machine is to be depreciated @ 10% per annum on written down value method. Chandan closes his books on 31st December year. Chandan could not pay the second installment due on 31st December, 2011 and as a result the hire vendor took possession of the machine.
Show Hire vendor Account and Machine Account in the books of Hire Purchaser.        5+5=10
Or
On 1st January 2010 Akash purchased a machine on installment payment system from Bikash. The cash price of the machine was Rs. 11,175 and payment was to be made as follows: Rs. 3,000 on signing the agreement and the balance in three equal installments of Rs. 3,000 each at the end of each year. 5% interest is to be charged by Bikash per annum. The machine is to be depreciated @ 10% per annum on diminishing balance method.                                              5+5=10
7. Subhash das took a coal mine on lease on 1st January, 2010 on the following terms:
a)         Minimum Rent Rs. 25,000.
b)         Each year’s shortworking can be recovered during subsequent two years.
c)          The minimum rent is to be reduced by 25% in a year when there is any occasion of work due to strike or accident.
d)         Royalty is to be calculated at 50 paisa per ton.
Productions during the last four years are as follows:

Year
Quantity
2010
2011
2012
2013
30,000 tons
35,000 tons
60,000 tons
40,000 tons  (Strike for 3 months)
Prepare Minimum Rent A/c and Shortworking A/c in the books of Subhash Das.              5+5=10
Or
A Ltd. holds a lease of coal mine from B Ltd. at a royalty of Rs. 2 per ton of coal produced with a minim rent of Rs. 8,000 per annum, the shortworking being recoverable out of the royalty of the next two years. After working in the mine for two years, A Ltd. subleased a part of the mine to C Ltd. at a royalty of Rs. 2.50 per ton with a minimum rent of Rs. 4,000 per annum. C Ltd. has a right to recover shortworking during the first three years of the sub-lease.
Annual Production (in tones)

2009
2010
2011
2012
2013
A Ltd.
2,00
2,800
3,800
5,000
4,000
C Ltd.
-
-
1,400
2,000
1,800
Prepare Royalty Payable A/c and Royalty Receivable A/c in the books of A Ltd. for the period from 2009 to 2013.   5+5=10

-000-

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