Financial Accounting Question Paper' 2019
Dibrugarh University B.Com 1st Sem Hons Question Papers
2019 (Nov/Dec)
Paper: C-101 (Financial Accounting)
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate full marks for the questions
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
Also Read: Financial Accounting Question Papers (Dibrugarh University)
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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