Financial Accounting Question Paper' 2020 (Held in 2021) | B.Com 1st Sem (Hons)

 Dibrugarh University B.Com 1st Sem Question Papers 
1 SEM TDC FACC (CBCS) C 101
2 0 2 1 (March)
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:             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

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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