Gauhati University Question Papers:Financial Accounting-I (Nov-Dec’ 2012)

2012

FINANCIAL ACCOUNTING-I

Full Marks: 80

Time: 3 hours

(The figures in the margin indicate full marks for the questions)

1. Give the meaning of the following:                                            1x10=10

2. Write the answer briefly:                                                        2x5=10

3. Write the answer of the following:                                                        5x4=20

(a) State the limitations of accounting principle.

Or

Write the limitation of accounting standard.

(b) Write the distinctions between Sectional Ledger Balancing system and Self Balancing Ledger system.

Or

What are the advantages of Sectional Ledger Balancing system?

(c) Prantar Purchased a machine from Munukam of hire purchases system whose cash price was Rs. 60,000. On 1^st January, 2009, Rs. 20,000 was paid at the three equal annual installments of Rs. 20,000 each. The rate of interest was 22% p.a.

You are required to calculate the amount of interest included in each installment.

Or

Write the obligations of the hire purchaser under the Hire Purchase Act, 1972.

(d) Debu Enterprise leased some land to Xyz limited at Rs. 5 per ton on the output subject to a dead rent of Rs. 40,000 per annum with the right of recoupment of short working during the first three years of the lease. The outputs for the first 4 years were as follows:

You are required to prepare statement showing the calculation of Royalty and short working.

Or

Write in brief the treatment of Royalty Accounts in the books of Lessor and Lessee.

4. Elucidate the general accepted accounting principles applied in business practices.             10

Or

Explain the authorities involved in formulating Accounting Standards in India.           10

5. From the following information prepare (1) Total Debtors A/c and (2) Total Creditors A/c in the book of M/s Dudul Store on1.1.2012. Balance of sundry debtor was Rs. 32,000 and balance of sundry creditor Rs. 40,000.                  10

Information on 30.6.2012:

Or

From the following particulars, write up necessary Adjustment Accounts as they would appear in the Nominal Ledger of Rural Store.

6. Pankaj purchased a Maruti car and a Tata Sumo from Archana Automobiles on 1.1.2009 on Hire Purchase System. The cash price of the car is Rs. 2,00,000 and of Tata Sumo is Rs. 3,00,000. The amount is payable as 10% down and the balance in 3 annual installments of 30% of the cash price cash along with interest @ 20% p.a. Pankaj depreciates both the vehicles @ 20% of original cost. He pays the 1^st installment in time but fails to pay the 2^nd one. As per the agreement Archana Automobiles seizes the car from Pankaj leaving the Tata Sumo with him. The company values the car taken away at cost less 30%. It sells the reconditioned car at Rs. 1,60,000 after incurring expenses of Rs. 5,000.

Prepare Maruti Car Account and Archana Automobile Account in the book of Pankaj for the full term.                    10

Or

Babu purchased on installment basis a machine from Rubu on 1^st January 2009 for a sum of Rs. 80,000. Rs. 20,000 is to be paid on the signing of the contract and rest in three annual installments of Rs. 20,000 each. The cash price of th machine is Rs. 74,500 and interest in charged by the vendor at 5% p.a. The buyer charges depreciation at 10% p.a. on the diminishing balance.

You required to prepare Machinery A/c, Interest Suspense A/c and Rubu A/c in the books of Babu for the full term.      10

7. Royal Co. Ltd. look lease of a coal mine from Krishna at annual dead rent of Rs. 4,000 subject to a royalty @ 50 paisa per ton extracted. Short working are recoupable over the first four years of the lease. Royal Co. Ltd. sub leased a part of the mine to Jyoti at an annual dead rent of Rs. 2,000 subject to a royalty possible @ 75 paisa per ton extracted. The right of recoup short working was during th next 2 years following the short workings. The Output for five years were as follows:         10

Prepare Royalty Payable A/c, Royalty Receivable A/c in the books of Royal Company Limited for first three years.

Or

Umesh took the lease of a mine from Bubul at a given rate of royalty with a minimum rent of Rs. 20,000 per year. Each year’s excess of minimum rent over royalty is recoverable out of the royalty for the text two years. In the event of any strike and minimum rent not being reached, it was agreed that the actual royalty earned for the year would be the full royalty obligation for the year concerned. The actual royalty for the different years were as follows:

Prepare Royalty Accounts and Bubul Accounts in the book of Umesh.              10

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