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Saturday, July 11, 2020

Dibrugarh University Question Paper (B.Com 1st Sem CBCS Pattern): Financial Accounting (HONS)' 2019


2019 (December)
COMMERCE
(Core)
Paper: C - 101
 (Financial Accounting)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate full marks for the questions
1. (a) Choose the correct answer:                                     1x3=3

1)         As an information system, the accounting process serves persons of
A.         Inside the organization.
B.         Outside the organization.
C.         Both inside and outside the organization.
2)         For recognition of revenue at international level, the corresponding International Accounting Standard is
A.         IAS-18.
B.         IAS-21.
C.         IAS-24.
3)         On dissolution of a firm, cash in hand is transferred to
A.         Realization A/c.
B.         Partners’ Capital A/cs in their profit-sharing ratio.
C.         Cash A/c.
(b) Fill in the blanks:                                                  1x3=3
1)         Accounting Standards may also be termed as _______ forms of Generally Accepted Accounting Principles.
2)         Accounting Principles are _______ to establish standards for sound accounting practices.
3)         Under debtors system, Branch A/c discloses _______ of the branch.
(c) Write True or False:                         1x2=2
1)         Trial Balance is not an account.
2)         The hire-purchaser may, at any time, terminate the hire-purchase agreement after giving the owner at least 21 days notice in writing.
2. Write short notes on any four of the following:                             4x4=16
a)         Straight-line method of depreciation.
b)         Indian Accounting Standard (Ind-AS) 101.
c)          Financial lease.
d)         Independent branches.
e)         Garner vs. Murray decision.
3. (a) What are Accounting Principles? Distinguish between Accounting Principles and Accounting Standards.      2+4=6
Or
(b) Arrange the following balances taken from the Ledger of Saurav Srivastav into a Trial Balance on 31st March, 2019:

Rs.
Cash
Trade Debtors
Rent
Stock (01.04.2018)
Bills Payable
Insurance
Trade Expenses
Machinery
Depreciation
Accumulated Depreciation
Salaries
Furniture
Trade Creditors
Cost of Goods sold
Advance from a Customer
Sales
Drawings
Capital
9,200
15,000
4,800
18,000
1,500
3,600
5,500
10,000
800
2,400
20,400
4,000
25,000
54,000
1,400
90,000
2,000
27,000

4. (a) What is meant by business income? What are its features? Discuss the procedure for measurement of business income.             2+3+5=10
Or
(b) (1) Write the salient features of Accounting Standard (AS)-9 with respect to revenue recognition.           4
(2) X Ltd. bought a machinery for Rs. 30,000 on 1st April, 2015. One more machinery was purchased on 1st October, 2015 costing Rs. 20,000. On 1st July, 2016, a new machinery for Rs. 10,000 was added to the existing machinery. On 1st January, 2017, one-third of the machinery which was installed on 1st April, 2015 was sold for Rs. 3,000. The rate of depreciation was 10% p.a. on Diminishing Balance Method.
Show the Machinery A/c in the books of X Ltd. The accounting period ends on 31st December each year.     6
5. Following is the Trial Balance of a trader Mr. Prakash as on 31st March, 2019:
Particulars
Dr.
Rs.
Cr.
Rs.
Stock on 01.04.2018
Purchases
Return Outwards
Sales
Carriage Outwards
Rent and Rates
Return Inwards
Salaries
Debtors
Creditors
Capital A/c
Advertisement
Cash at Bank
Wages
Plant and Machinery
Furniture
Provision for Doubtful Debts
Discount Allowed
Discount Received
30,000
60,000


1,200
10,000
1,000
7,550
45,000


2,000
6,900
10,000
78,000
2,000

425


750
1,27,000





25,000
1,00,000





525

800

2,54,075
2,54,075
Prepare Trading and Profit & Loss A/c for the year ended 31st March, 2019 and Balance Sheet as on that date after taking into account the following adjustments:           3+3+4=10
1)         Stock on 31st March, 2019 was valued at Rs. 34,220.
2)         Allow interest on capital @ 10% p.a.
3)         Provision for Bad Debts is to be kept at Rs. 1,000.
4)         Depreciate Plant and Machinery @ 10% p.a. and Furniture @ 5% p.a.
5)         The proprietor Mr. Prakash has taken goods worth Rs. 5,000 for personal use.
6. (a) What is ‘hire-purchase system’? What are its features? Should depreciation be charged on fixed assets purchased on hire-purchase system?                              3+5+2=10
Or
(b) Blue Bird Co. purchased two machines of Rs. 5,250 each from Kapili Machine Co. on 1st April, 2016 on hire-purchase system. As per agreement, payment to be made Rs. 3,000 down and the balance in three equal annual installments along with interest @ 5% p.a. Blue Bird Co. writes off depreciation @ 10% p.a. on Written-down value method.
After having paid the first instalment, the buyer could not pay the second instalment and the seller took possession of one machine adjusting the value of other against the amount due taking the machine @ 20% depreciation on Diminishing Balance Method.
Seller, after spending Rs. 100 on repairs, sold it away for Rs. 4,000.
Show the Ledger A/cs in the books of both the parties. Books are closed on 31st March each year.        3+3+3+1=10
7. (a) Arun of Mumbai has a Branch at Guwahati. Goods are invoiced to the Branch at cost plus 25%. Branch is instructed to deposit cash everyday in the Head Office Account with the bank. All expenses are paid through cheque by the Head Office except petty cash expenses which are paid by the Branch out of all cash receipts.
Prepare Branch A/c in the books of Head Office taking into account the following information:    10

On 01.04.2018
Rs.
On 31.03.2019
Rs.
Stock at Invoice Price
Debtors
Furniture
82,000
31,700
23,400
96,000
42,150
?
Transactions during the year were:
Cash sales
Credit sales
Goods invoiced to Branch
Expenses paid by Head Office
Petty expenses paid by Branch
Furniture paid by Branch, on 01.10.2018 (out of cash collection)
Depreciation is provided on the Branch furniture @ 10% p.a. on Diminishing Balance Method
Rs. 4,01,300
Rs. 3,72,100
Rs. 6,28,000
Rs. 1,32,000
Rs. 10,450
Rs. 2,500

Or
(b) (1) What are the objectives of keeping Branch Accounts?                            4
(2) With respect to Branch Accounts, how will you deal with the following matters?                   2x3=6
a)         Depreciation of Branch Fixed Assets.
b)         Goods-in-Transit.
c)          Remittance-in-Transit.
8. (a) (1) What do you mean by dissolution of partnership firm? Discuss the reasons that lead to dissolution of firm. 2+4=6
(2) Distinguish between Revaluation A/c and Realization A/c.                              4
Or
(b) Ajay, Bijay and Sanjay were partners sharing profits and losses as 4 : 3 : 3. The firm was dissolved on 31st March, 2019. The Balance Sheet of the firm on that is given here under. As the process of realization seemed dilatory, it was decided to distribute cash as and when realized and to appoint Sanjay to look after the distribution at a remuneration of 1% of the value of assets realized (other than Cash at Bank) and 10% of the amount distributed to the partners:
Liabilities
Rs.
Assets
Rs.
Capital Accounts:
Ajay                              15,000
Bijay                               7,500
Sanjay                          15,000
Sundry Creditors



37,500
16,500
Cash at Bank
Sundry Assets
275
53,725

54,000

54,000
The realizations were:

Rs.
First Realization
Second Realization
Third Realization
Fourth Realization
16,250
12,750
10,000
7,500
Prepare a statement showing distribution of cash.                                                    10

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