Financial Accounting Question Paper' 2019 | B.Com 1st Sem Non Hons | Dibrugarh University

 2019 (December)
COMMERCE (Discipline Specific Course)
Paper: CC – 102 (Financial Accounting – NON HONS)
Full Marks: 80
Pass Marks: 32
Time: 3 hours

The figures in the margin indicate full marks for the questions

1. (a) Answer in one sentence:                  1x4=4

1)         What is money measurement concept?

2)         What is the main purpose of business income?

3)         What is Del Credere Commission?

4)         What is Trial Balance?

(b) Select the correct alternative answer:         1x4=4

1)         Realization A/c is a / an

a)         Revenue A/c.

b)         Assets A/c.

c)          Nominal A/c.

2)         Joint venture with other Co venture A/c is a

a)         Personal A/c.

b)         Real A/c.

c)          Nominal A/c.

3)           Depreciation is a process of

a)         Valuation.

b)         Allocation.

c)          Selling.

4)         Branch A/c prepared under Final A/c system is in the nature of

a)         Assets A/c.

b)         Liabilities A/c.

c)          Revenue A/c.

2. Write short notes on (any four):           4x4=16

a)         Qualitative characteristics of accounting information.

b)         Need of IFRS.

c)          Revenue recognition.

d)         Records at Head Office.

e)         LIFO and FIFO methods.

f)          Rights of hire purchaser.

3. The partnership firm of X, Y and Z was dissolved on 1st April, 2018. Their financial position just before dissolution was as follows:

Liabilities

Amount

Assets

Amount

Creditors

Bank Loan

Capital:

X

Y

Z

12,000

15,000

 

20,000

23,000

24,000

Cash

Debtors

Stock

Furniture

Investment

12,000

23,000

16,000

10,000

33,000

 

94,000

 

94,000

Assets were realized as under:

Debtors Rs. 19,000; Stock Rs. 13,000; Furniture Rs. 7,000 and Investment Rs. 35,000. Bank loan is paid in full. One computer printer (book value nil) was taken over by X for Rs. 1,000. One customer paid Rs. 2,000 which was earlier written-off as bad debt. Dissolution expenses amounted to Rs. 3,000. Mr. Gangadhar, the Manager of the firm was paid a gift of Rs. 2,000 for his long service in the firm. Creditors were paid Rs. 1,000 less. You are required to prepare the Realization A/c, Partners’ Capital A/c and Cash A/c. The partnership deed was silent on the profit-sharing ratio. 8+4+2=14

Or

What do you mean by dissolution of a partnership firm? Explain the various modes of dissolution of a partnership firm. 5+9=14

4. Guwahati Head Office opened a Branch at Barpeta. The Head Office supplies goods to its Branch at Barpeta at cost. The Branch sells goods for cash and credit and remits the proceeds to the Head Office promptly. The Branch expenses being met by the Head Office by cheque. The following are the transactions relating to Branch for the year ended 31st March, 2019:

 

Rs.

Stock at Branch on 01.04.2018

Debtors at Branch 01.04.2018

Goods sent by the Head Office to the Branch during the year

Cash sales at Branch

Credit sales at Branch

Goods returned by Branch

Goods returned by customers

Cash received from debtors

Discount allowed to customers

Bad Debts written-off

80,000

1,00,000

6,00,000

3,00,000

5,60,000

30,000

25,000

5,20,000

30,000

15,000

Cheque sent to Branch for expenses:

 

Rs.

Salaries

Rent

Petty Expenses

Stock at Branch on 31.03.2019

70,000

25,000

8,000

1,00,000

Prepare Branch A/c and goods sent to Branch A/c in the books of Head Office. Also prepare Branch Debtors A/c in a working note.                    5+5+4=14

Or

(a) What is Branch Accounting? Explain the needs of Branch Accounting.                               2+3=5

(b) Briefly explain the treatment of the following items in Branch A/c:                                    3x3=9

1)      Cash in Transit.

2)      Goods in Transit.

3)      Inter-branch Transaction.

5. Following is the Trial Balance of Dhanjit and Devajit as on 31st March, 2019. You are required to prepare: 4+5+5=14

a)      Trading A/c ;

b)      Profit & Loss A/c for the year ended 31st March, 2019;

c)       Balance Sheet as on that date:                                                                                                       

Trial Balance

Dr. Balance

Rs.

Cr. Balance

Rs.

Stock on 01.04.2018

Purchases

Bills Receivable

Cash in hand

Bad Debts

Machinery

Advertisement

Sundry Debtors

Goodwill

Land and Building

Fuel

Wages and Salaries

Rent and Taxes

Discount

Commission

Furniture

80,000

2,00,000

2,000

13,000

1,000

66,000

8,000

50,000

70,000

2,25,000

15,000

40,000

20,000

8,600

10,000

15,000

Capital:

Dhanjit

Devajit

Sundry Creditors

Bank Loan

Sales

Bills Payable

Interest

 

1,60,000

1,00,000

75,000

43,600

4,20,000

20,000

5,000

 

8,23,600

 

8,23,600

The following adjustments are to be made:

1)      Closing Stock on 31st March, 2019 Rs. 60,000.

2)      Depreciation Machinery by 10% and Furniture by 5%.

3)      Create Reserve of 5% on Sundry Debtors for Bad debts.

4)      Write-off 1/4th of advertising.

Or

(a) What do you mean by depreciation? Differentiate between straight-line method and written-down value method of providing depreciation.                                 2+5=7

(b) What do you mean by inventory valuation? Write the significance of inventory valuation.                      3+4=7

6. On 1st July, 2018, Prakash Ltd. purchased a machine from Bikash Ltd. on hire-purchase system. The cash price of the machine was Rs. 1, 20,000. The payment was to be made Rs. 9,200 on the date of contract and four half yearly installment of Rs. 32,000 each commencing from 31st December. Rate of interest charged 12% per annum. Prakash Ltd. has decided to write-off 20% depreciation per annum on diminishing balance of cash price. On 30th June, 2019, Prakash Ltd. could not pay the 2nd installment and as a consequence Bikash Ltd. reposed.

From the above particulars, calculate the cash price of the machine and prepare the following Ledger Accounts in the books of Bikash Ltd.                                     14

a)         Machinery A/c.

b)         Prakash Ltd.’s A/c.

Or

(a) Define consignment. Discuss fully the nature of relationship between the consignor and consignee.                                 2+5=7

(b) What do you mean by Joint Venture? Explain the features of Joint Venture.              2+5=7

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