Tuesday, May 21, 2019

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

a)         Indian accounting standard.
b)         Accounting conventions.
c)          Neutrality of accounting information.
d)         Self balancing ledger.
e)         Installment purchase system.
f)          Repossession by hire vendor.
g)         Interest in hire purchase system.
h)         Short working under Royalty Account
i)           Lessee in Royalty Accounting system.
j)           Floating right in royalty.
2. Write the answer briefly:                                                        2x5=10
a)         Mention two basic features of accounting principles.
b)         Mention two advantages of self balancing ledger system.
c)          State two basic features of sectional balancing ledger.
d)         Mention the two rights of Hire Purchaser under Hire Purchase Act, 1972.
e)         Define in brief the term ‘Royalty suspense account’.
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 1st 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:
First year
Second year
Third year
Fourth year
6,000 tones
9,000 tones
11,000 tones
7,000 tones
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:

Rs.
Credit Purchase
Credit Sale
Cash sale
Cash purchase
Paid to creditors
Discount received
Cash received from debtor
Discount allowed
Bills payable accepted
Bills receivable received
Return inwards
Return outwards
Rebate allowed to debtors
Rebate allowed by the creditors Rs. 450
Provision for doubtful debt
Bad debt
Bills receivable dishonoured 
Bad debt previously written off now recovered
10,500
20,100
1,700
2,500
21,800
800
18,600
350
4,500
6,000
2,000
1,500
800

400
1,050
850
450

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

Rs.
Debtor’s balance as on 1.1.2011 (Dr.)
Creditor’s balance as on 1.1.2011 (Cr.)
Transactions of the year:
Credit sales
Cash sales
Cash purchase
Discount allowed to debtors
Bills receivable dishonoured
Goods returned by customer
Returns outward
Discount allowed to debtors
Bills payable accepted
Bills receivable received
Interest charged on dishonoured bill
Cash paid to creditor
Cash received from debtors
Discount received
Bad debts
Transfer from bought ledger to sales ledger
Bad debt recovered
Credit purchase
60,000
40,000

53,500
21,200
32,100
400
150
1,100
570
710
4,250
6,100
45
25,200
31,100
300
550
320
110
55,100

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 1st installment in time but fails to pay the 2nd 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 1st 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

Royal Company Limited
Joyti
Total output

Tons
Tons

2005
2006
2007
2008
2009
4,500
4,640
5,200
5,600
7,200
1,500
2,160
2,800
3,600
4,800
6,000
6,800
8,000
9,200
12,000
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:

First year
Second year
Third year
Fourth year
Fifth year
Nil
Rs. 8,000
Rs. 19,000
Rs. 22,500
Rs. 30,000
Prepare Royalty Accounts and Bubul Accounts in the book of Umesh.              10

-000-

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