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

Dibrugarh University B.Com 1st Sem Question Papers 
1 SEM TDC FACC (CBCS) DSC CC 102
2 0 2 1 (March)
COMMERCE (Discipline Specific Course)
Paper: CC–102 (Financial Accounting)

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 each:       1×4=4

1)         What is Financial Accounting Principle?

2)         What is meant by Errors of Commission?

3)         What is independent branch?

4)         What do you mean by Realization Account?

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

(1) On which one of the following concepts is determination of expenses for an accounting period based?

1)         Accounting period concept.

2)         Matching concept.

3)         Cost concept.

(2) _____ explains how revenue is to be determined in Profit & Loss Account of an enterprise.

1)         AS–6.

2)         AS–19.

3)         AS–9.

(3) Inventory should normally be valued

1)         at historical cost or net realisable value whichever is lower.

2)         at net realisable value.

3)         at historical cost or net realisable value whichever is higher.

(4) On the date of agreement, hire purchaser pays an amount which is called

1)         hire-purchase price.

2)         down payment.

3)         Instalment.

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

a)         Bases of accounting.

b)         Causes of depreciation.

c)          Applicability of IFRS in India.

d)         Matching concept.

e)         Characteristics of dependent branch.

f)          Joint venture and consignment.

3. Romen and Prakash have in business together for last three years ending 31st December, 2019 at which date they agreed to dissolve. The capitals at the commencement of the business were Rs. 60,000 and Rs. 40,000. Profits and losses were shared in the ratio of 3 : 2. The results of three years before allowing 10% interest on capitals were as follows:

 

Rs.

2017 (profit)

2018 (profit)

2019 (profit)

60,000

44,400

10,760

Drawings of each partner were Rs. 8,000 per year. Creditors on the date of dissolution were Rs. 32,800. The assets realised Rs. 1,50,000. Expenses of dissolution amounted to Rs. 1,100. Give the necessary accounts to close the books of the firm.                 14

Or

a)    Write the underlying principles of Garner vs. Murray decision in the dissolution of partnership. Is it applicable in India?       5+2=7

b)   Explain the various methods of piecemeal distribution of cash.            7

4. The Bikiron Co. Ltd., Jorhat, opened a branch at Dibrugarh on 1st January, 2019. The goods were sent by Head Office to the branch at selling price being 125% of cost price. The following particulars are available in respect of the branch:

Particulars

Rs.

Goods sent to branch (at cost to Head Office)

Total sales

Cash sales

Cash collected from debtors

Returns from debtors

Bad debts

Branch expenses paid for cash

Damaged goods written off (at invoice price)

Stock on 31st December, 2019 (at invoice price)

3,25,000

4,25,000

2,50,000

1,36,000

7,000

3,800

16,000

4,000

27,000

Write up the Ledger A/c in the books of Head Office to record the above transactions under stock and debtors system. 14

Or

a)    What is branch accounting? What are its objectives?                 2+5=7

b)   What are the main types of branches from accounting point of view? Write three points of distinction between Dependent Branch and Independent Branch.     4+3=7

5. Following are the balances of Mr. Ranjit as on 30th June, 2020:

Dr. Balances

Rs.

Cr. Balances

Rs.

Cash in hand

Cash at Bank

Patent

Salaries

Purchase

Returns Inward

Wages

Fuel and Power

Carriage on Sales

Carriage on Purchases

Stock (1st July, 2019)

Buildings

Freehold Land

Machinery

Investment

Sundry Debtors

General Expenses

Insurance

Drawings

1,080

5,260

15,000

30,000

81,350

1,360

16,960

9,460

6,400

4,080

11,520

44,000

20,000

40,000

20,000

29,000

6,000

1,200

10,490

Sales

Returns Outward

Capital

Sundry Creditors

Rent

1,97,560

1,000

1,24,000

12,600

18,000

 

 

 

3,53,160

 

3,53,160

Taking into account the following adjustments, prepare the Trading and Profit & Loss A/c and Balance Sheet as on 30th June, 2020:         14

1)         Stock on hand on 30th June, 2020 is Rs. 13,600.

2)         Depreciate machinery by 10% and patent by 20%.

3)         Salaries for the month of June 2020 amounting to Rs. 3,000 were unpaid.

4)         Insurance includes a premium of Rs. 340 on a policy expiring on 31st December, 2020.

5)         Bad debts are Rs. 1,450.

6)         Rent received in advance—Rs. 2,000.

7)         Interest on investment of Rs. 4,000 is accrued.

Or

a)        What is meant by business income? What are the main objectives of income measurement?            2+5=7

b)        Distinguish between Capital Expenditure and Revenue Expenditure.             7

6. On 1st November, 2019, Jili Enterprise of Nagaon consigned 250 sewing machines to Monami Enterprise of Sivasagar. The price of the machine is fixed at Rs. 1,500 each being 25% above cost. Jili Enterprise paid packing expenses Rs. 1,000, insurance Rs. 200 and carriage Rs. 2,500. On 31st December, 2019, an Account Sale was received from Monami Enterprise which showed that they had sold 225 machines for Rs. 3,40,000 and had incurred Rs. 1,200 as expenses. Their commission was 5% on sale and del credere commission was 2·5%. They sent a bank draft for Rs. 2,55,000 along with the Account Sale. Prepare the necessary Ledger Accounts in the books of Jili Enterprise. 14

Or

What do you mean by hire-purchase system? Write the features of it. Write the differences between Hire purchase and Credit sales.       2+6+6=14

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