Financial Accounting Question Paper' 2020 (Held in 2021), Dibrugarh University B.Com 1st Sem Hons Question Papers

Financial Accounting Question Paper' 2020  (Held in 2021)
Dibrugarh University B.Com 1st Sem Hons Question Papers 
2020 (Nov/Dec)
COMMERCE (HONS)
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

The figures in the margin indicate full marks for the questions

1. (a) Choose the correct answer:             1×3=3

(i) The liabilities of a firm are Rs. 3,000; the capital of the proprietor is Rs. 7,000. The total assets are

1)         Rs. 7,000.

2)         Rs. 10,000.

3)         Rs. 4,000.

(ii) Stock is valued at

1)         cost price.

2)         market price.

3)         cost or market price whichever is lower.

(iii) At profit margin of 20% on sale price is equivalent to

1)         20% profit on cost.

2)         25% profit on cost.

3)     33.33% Profit on cost.

(b) Fill in the blanks:              1×2=2

1)         The business-entity concept implies that a business unit is _____ from the persons who supply capital to it.

2)         Depreciation on hire-purchase asset is claimed by _____.

(c) Write True or False:                1×3=3

1)         Accounting Standards sets the tone of accounting.

2)         AS-9 applies to revenue arising from hire-purchase, lease agreements also.

3)         A partnership is dissolved on the death of a partner.

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

a)         Capital and Revenue Expenditure.

b)         Financial and Operating Lease.

c)          Stock and Debtors System.

d)         Insolvency of Partners.

e)         Revaluation Account.

3. (a) What do you mean by International Financial Reporting Standards? How does Accounting Standards differ from Accounting Principles?   2+4=6

Or

(b) Pass the opening entry on 1st April, 2020 on the basis of the following information available from the books of Mr. Amit:                 6

	Rs.		Rs.
Cash in Hand Sundry Debtors Closing Stock Input IGST A/c Input CGST A/c Input SGST A/c	60,000 1,00,000 1,20,000 20,000 10,000 10,000	Plant Land and Building Sundry Creditors	2,00,000 5,00,000 4,00,000

Also Read: Financial Accounting Question Papers (Dibrugarh University)

4. (a) Define ‘Revenue’. State the aspects to which revenue recognition does not apply. Give examples of such items. 2+8=10

Or

(b) (i) Define ‘Depreciation’. Why is depreciation provided for?               2+3=5

(ii) Books of A Ltd. showed the following balances on 1st April, 2018 :

a)      Machinery – Rs. 5,00,000.

b)      Provision for Depreciation A/c – Rs. 2,00,000

On 1st April, 2018, a machine had a cost of Rs. 1,00,000 on 1st October, 2015, was sold for Rs. 40,000. The firm writes off depreciation @ 10% p.a. under the Diminishing Balance Method and its accounts are made-up on 31st March each year. You are required to prepare the Machinery Account and Provision for Depreciation Account for the year ended 31st March, 2019.           3+2=5

5. (a) Explain the need of classification of receipts and expenses into capital and revenue in the financial accounting. Also distinguish between Capital loss and Revenue loss.    6+4=10

Or

(b) Following is the Trial Balance of M/s. Kasturi Agencies as on 31st March, 2020. Prepare Trading and Profit & Loss Account for the year ended 31st March, 2020 and a Balance Sheet as on that date:            3+3+4=10

Particulars	Dr. Rs.	Cr. Rs.
Capital Drawings Buildings Furniture and Fittings Motor Van Loan from Hari @ 12% Interest (1 – 4 – 2019) Interest Paid on above Sales Purchases Opening Stock Establishment Expenses Wages Insurance Commission Received Sundry Debtors Sundry Creditors Bank Balance Interest Received	18,000 15,000 7,500 25,000   900   75,000 25,000 15,000 2,000 1,000   28,100   20,000	1,00,000         15,000   1,00,000           4,500   10,000   3,000
	2,32,500	2,32,500

Adjustments:

1)    Closing Stock was valued as on 31st March, 2020—Rs. 32,000.

2)    Outstanding Wages—Rs. 500.

3)    Prepaid Insurance—Rs. 300.

4)    Depreciate Furniture and Fittings @ 10% and Motor Van @ 20%.

5)    Charge interest on Capital @ 10%.

6. (a) What do you mean by ‘Instalment Purchase System’? What are its features? Mention any four distinctions between Hire-Purchase System and Instalment Purchase System.  2+4+4=10

Or

(b) X Company purchased a machine on 1st April, 2017 on hire-purchase system. The payments were to be made as follows:

Particulars	Rs.
On signing of the agreement On 31-03-2018 On 31-03-2019 On 31-03-2020	5,000 6,000 3,500 2,200
	16,700

Interest included in Rs. 16,700 was charged on the cash price @ 10% per annum. You are required to ascertain the cash price of the machine and prepare Machinery Account and Hire Vendor’s Account in the books of X Company.  4+3+3=10

7. (a) (i) What are the main classes of Branch Accounts? Discuss the need of Branch Accounts.  2+4=6

(ii) Mention any four distinctions between Branch Accounts and Departmental Accounts.  4

Or

(b) Sagar Ltd. has a branch at Silchar which sells goods at cost-plus 25%.

From the following particulars, calculate the value of closing stock at Silchar branch and prepare Silchar Branch Account for the year ended 31st March, 2020:            3+7=10

Particulars	Rs.
Stock at branch on 1st April, 2019 Goods sent to branch Cash sales at branch Expenses paid by Head Office: Salaries                    Rs. 5,000 Advertisement       Rs. 2,000	22,000 1,78,000 2,00,000     7,000

Commission of 10% on the net profit after charging such commission is to be credited to Branch Manager.

8. (a) What do you mean by Piecemeal Distribution of Cash? What are its objectives? Discuss the Maximum Possible Loss method of piecemeal distribution.           2+2+6=10

Or

(b) P, Q and R are in partnership sharing profits and losses in the ratio of 2 : 2 : 1 respectively. They agreed to dissolve their firm. Their Balance Sheet as on the date of dissolution was as follows:

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Sundry Creditors Bank Overdraft Capital Accounts: P                       Rs. 19,000 Q                       Rs.   9,000	34,500 20,000 28,000	Cash in Hand Sundry Debtors Investments Goodwill Capital Account: R	4,500 30,500 32,500 12,000 3,000
	82,500		82,500

The assets were realized as follows:

1)         Goodwill—Rs. 2,000.

2)         Investments—Rs. 24,500.

3)         Sundry Debtors—Rs. 20,500.

The expenses of realization came to Rs. 2,000. The partners bring in cash to meet their respective deficiencies. Prepare necessary accounts to close the books of the firm.           10

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