Financial Accounting Question Paper Nov' 2019
Dibrugarh University B.com 1st Sem
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)
What is IFRS?
2)
What do you mean by repossession of goods?
3)
Mention any one objective of a branch.
4)
What is royalty?
(b) Fill in the blanks: 1x4=4
1)
Accounting Standard Board was set up in India in
the year ______.
2)
The cost of goods sold on hire purchase is
transferred to ______ Account.
3)
Cash sent by the branch not received by the head
office by the end of the year is debited to ______ Account.
4)
Shortworking is the excess of ______ over actual
royalty.
2.
Write short notes on (any four): 4x4=16
a)
Features of Accounting Principles.
b)
Termination of Hire-purchase Agreement.
c)
Inter branch Transactions.
d)
Features of Departmental Account.
e)
Strike and Lockout.
3.
(a) What are Accounting Standards? Discuss the objectives of such standards.
Also distinguish between Accounting Standards and Accounting Principles. 2+7+5=14
Or
(b) Following is the Trial Balance of Ajay and Bijay as on
31st March, 2019:
Dr. Balances
|
Rs.
|
Cr. Balances
|
Rs.
|
Opening Stock
Purchases
Bills Receivable
Cash in Hand
Bad Debts
Plant and Machinery
Advertisement
Sundry Debtors
Goodwill
Land and Building
Fuel
Wages and Salaries
Rent and Taxes
Discount
Commission
Furniture
|
1,60,000
4,00,000
4,000
26,000
2,000
1,32,000
16,000
1,00,000
1,40,000
4,50,000
30,000
80,000
40,000
17,200
20,000
30,000
|
Sundry Creditors
Bank Loan
Sales
Bills Payable
Interest
Capital:
Ajay
Bijay
|
1,50,000
87,200
8,40,000
40,000
10,000
3,20,000
2,00,000
|
From
the following additional information, you are required to prepare Trading and
Profit & Loss A/c for the year ended 31st March, 2019 and a
Balance Sheet as on that date: 4+5+5=14
1)
Closing Stock as on 31st March, 2019
– Rs. 1,20,000.
2)
Depreciation machinery by 10% and furniture by
5%.
3)
Create a reserve of 5% on sundry debtors for
doubtful debts.
4)
Write-off 1/4th of advertising.
4.
(a) What is Instalment Purchase System? What are its characteristics?
Distinguish between Instalment Purchase System and Credit Sales. 3+5+6=14
Or
(b) On 1st April, 2016, Assam Traders purchased
a machine from M/s Jai Hind Machinery on hire-purchase system. As per
agreement, an amount of Rs. 5,000 paid on signing the agreement and balance in
three equal annual instalment of Rs.
20,000 each on 31st March each year. The hire vendor charged
interest @ 5% p.a. on yearly balance. Depreciation was charged @ 15% p.a. on
straight-line method. 4+5+5=14
Ascertain the cash price of the machine and prepare (1)
Machinery A/c and (2) M/s Jai Hind Machinery’s A/c in the books of Assam
Traders.
5. (a) What is Departmental Account? How are the
inter-departmental transactions recorded in Departmental Accounts? Explain the
basis of allocation of common expenses over the various departments in
Departmental Accounts. 2+4+8=14
Or
(b) Jorhat Head Office sent out goods to its Dibrugarh
Branch at cost plus 25%. The branch remits all cash received to the Head Office
and all expenses of the branch are met by the Head Office. From the
particulars, prepare the following in Head Office books:
1)
Dibrugarh Branch Account.
2)
Goods sent to Branch Account.
(Rs.)
|
|
Stock at branch on
01.04.2018 (invoice price)
Stock at branch on
31.03.2019 (invoice price)
Goods sent to branch
during the year (invoice price)
Goods returned by
the branch (invoice price)
Cash sales
Credit sales
Goods returned by
customers
Discount and
allowances to customers
Bad debts
Cash received from
customers
Cash sent to branch:
For salaries 10,000
For rent
2,400
For sundry expenses
2,500
Branch debtors as on
01.04.2018
|
1,800
2,000
1,37,500
7,500
30,000
99,875
4,000
6,000
500
1,04,500
14,900
24,000
|
Show
Branch Debtor’s A/c as a part of working note. 8+4+2=14
6.
(a) (1) Discuss about the different types of royalty. Why is minimum rent
important in Royalty Account? 5+5=10
(2) Distinguish between Rent and Royalty. 4
Or
(b) Sri Ajit Das took a colliery on lease from Sri Ratan
Singh for a period of 20 years from 1st April, 2014 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 shortworking was first
four years of the lease.
The annual coal raised were: 5+5+4=14
Year
|
Output (in tons)
|
2014-15
2015-16
2016-17
2017-18
2018-19
|
3000
3500
5000
9000
10000
|
From the above particulars, prepare the following in the
books of Sri Ajit Das:
1)
Royalty A/c.
2)
Shortworking A/c.
3)
Sri Ratan Singh’s A/c.
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1.
(a) Fill in the blanks: 1x4=4
1)
Accounting Standard ______ deals with
Depreciation Accounting.
2)
Hire-purchase transactions are governed by the
Hire-purchase Act, ______.
3)
Cash sent by the branch not received by the head
office by the end of the year is debited to ______ Account.
4)
Registration of a partnership firm is ______.
(b) Write True or False: 1x4=4
1)
Accounting principles are formulated by the
government.
2)
There is no difference between Hire-purchase
System and Instalment-purchase System.
3)
In Branch Accounting, each branch has separate
entity.
4)
Minimum rent is also known as ‘rock rent’ in
Royalty Account.
2.
Write short notes on (any four): 4x4=16
a)
Instalment-purchase system.
b)
Independent branch.
c)
Sublease.
d)
Realization Account.
e)
The provisions of Accounting Standard-1.
3.
(a) (1) How does the money measurement concept limit the scope of accounting? 4
(2) Write four points of the necessity of accounting. 4
(3) Write a short note on Indian Accounting Standard Board.
4
Or
(b) The following is the Trial Balance of Ajay and Bijay, a
partnership firm as on 31st March, 2019:
Dr. Balances
|
Rs.
|
Cr. Balances
|
Rs.
|
Opening Stock
Purchases (adjusted)
Machinery
Salaries
Wages
Building
Insurance
Freight
Conveyance
Carriage Inward
Rent
Returns Inward
Carriage Outward
Sundry Debtors
Bills Receivable
Cash in Hand
Drawings:
Ajay
Bijay
Closing Stock
|
24,500
1,30,000
50,000
10,000
14,000
60,000
500
3,000
1,400
3,850
2,400
1,600
2,400
18,000
5,250
2,300
3,600
4,200
38,000
|
General Reserve
Reserve for Doubtful
Debts
Sales
Sundry Creditors
Bills Payable
Commission
Capital:
Ajay
Bijay
|
38,000
500
2,35,000
33,700
17,350
450
30,000
20,000
|
3,75,000
|
3,75,000
|
Prepare a Trading and Profit & Loss A/c for the year
ended 31st March, 2019 and a Balance Sheet as on that date after
considering the following information: 3+4+5=12
1)
On 29.02.2019, a fire broke out in the godown
and goods worth Rs. 7,000 were destroyed. Goods being insured, the insurance
company admitted a claim for Rs. 6,000.
2)
Reserve for Doubtful Debts is to be maintained
at 5% of Sundry Debtors.
4.
(a) Distinguish between Hire-purchase System and Ordinary Credit Sales. Mention
any three rights of hire vendor and three rights of hire purchaser as laid down
in the Hire-purchase Act, 1972. 5+3+3=11
Or
(b) On 1st April, 2016, X Ltd. purchased a
machine on hire-purchase basis of payments which were as follows:
(Rs.)
|
|
On signing the
agreement
At the end of the
first year
At the end of second
year
At the end of third
year
|
5,000
6,000
3,500
2,200
|
16,700
|
Interest included in Rs. 16,700 was charged on the cash
price @ 10% p.a.
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 X Ltd. 3+4+4=11
5.
(a) Dutta Co. Ltd. Jorhat invoiced goods to its Dibrugarh Branch at cost plus
30%. The following are the transactions between the Head Office and Branch for
the year ended 31st March, 2019:7+4=11
(Rs.)
|
|
Stock at branch on
01.04.2018 (invoice price)
Sundry Debtors on
01.04.2018
Petty Cash on
01.04.2018
Goods sent to branch
(invoice price)
Total sales effected
during the year
Cash sales
Cash received from
branch debtors
Expenses incurred by
the branch for the year
Sundry debtors on
31.03.2019
Stock at branch on
31.03.2019 (invoice price)
Petty cash on
31.03.2019
|
13,000
25,000
125
65,000
1,10,000
85,000
42,000
11,500
8,000
52,000
65
|
From the above information, prepare Dibrugarh Branch A/c
and goods sent to Branch A/c in the books of Head Office.
Or
(b) In the context of Branch Accounts, explain the
following: 4+4+3=11
1)
Goods in transit.
2)
Cash in transit.
3)
Inter-branch transactions.
6.
(a) (1) What is called ‘rock rent’ in Royalty Account? 4
(2) What do you mean by recoupment of shortworking? What
conditions are to be satisfied for recoupment of shortworking? 3+4=7
Or
(b) A took a lease of a colliery with a minimum rent of Rs.
30,000 per annum merging into a royalty of Rs. 5 per ton of coal raised with a
right to recoup shortworking 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
3000
5000
7000
8000
|
Prepare necessary Ledger A/c in the books of the lessee. 11
7.
(a) A, B, C and D are partners of a partnership firm sharing profits and losses
in the ratio of 2:2:1:1. Their Balance Sheet as on 31st March, 2019
was as follows:
Liabilities
|
Rs.
|
Assets
|
Rs.
|
Capital A/c:
A
14,000
B
12,000
C
2,000
D 1,600
Creditors
Bills Payable
|
29,600
12,000
2,400
|
Fixed Assets
Debtors
Cash at Bank
Surplus A/c (Dr.)
|
20,000
10,000
2,000
12,000
|
44,000
|
44,000
|
On 1st April, 2019, the firm was dissolved. All
assets except cash were realized for Rs. 24,800. Realization expenses were Rs.
200. All the liabilities were discharged at book values. C became insolvent and
he could not bring anything from his private estate.
Close the books of the firm. 4+4+3=11
Or
(b) What do you mean by ‘amalgamation’? What are the
different methods of amalgamation? Mention about the objectives and advantages
of amalgamation. 2+3+3+3=11
Also Read: Financial Accounting Question Papers (Dibrugarh University)
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