Financial Accounting Question Paper' 2021 (Held in 2022), Dibrugarh University B.Com 1st Sem Hons Question Papers

  Dibrugarh University B.Com 1st Sem Question Papers 
1 SEM TDC FACC (CBCS) C 101
2021 (Held in January/February, 2022)
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) Select the correct answer:                                               1x4=4

(1)      Revenue is considered as being earned when

(a)      Cash is received.

(b)      Production is done.

(c)       Sale is effective.

(2)      Capital expenditure consists of expenditure the benefit of which is not fully consumed in one period but spread over

(a)      Next 3 years.

(b)      Next 5 years.

(c)       Several years.

(3)      Cost of goods sold on hire purchase is transferred to

(a)      Trading Account.

(b)      Profit and Loss Account.

(c)       Profit and Loss Appropriation Account.

(4)      On dissolution of a firm, cash in hand is transferred to

(a)      Realization Account.

(b)      Partners’ Capital Accounts in their profit-sharing ratio.

(c)       Cash Account.

(b) Fill in the blanks:                    1x4=4

(1)       Depreciation is provided on _______ assets.

(2)       A financial lease is a lease where risk and return get transferred to the _______.

(3)       A profit margin of 20% on sale price is equivalent to _______ profit on cost price.

(4)       A _______ branch is one which does not maintain its own set of accounting books to ascertain financial results.

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

(a)       Written-down value method of depreciation.

(b)       Financial lease.

(c)        Independent branch.

(d)       Garner vs. Murray rule.

(e)       Maximum possible loss method of piecemeal distribution.

3. (a) Describe briefly about accounting concepts and accounting conventions of Financial Accounting.     2+2=4

Or

(b) Distinguish between trade discount and cash discount (any four points).                          4

4. (a) Prepare a Purchase Day Book for the month of October 2021 of M/s. Sharma & Co.                                5

2021

October 4:

Purchased on credit from Rajesh Bros. & Co. 10 bags of tea @ Rs. 1,000 per bag.

5 bags of coffee @ Rs. 3,000 per bag.

Trade discount @ 10%

October 16:

Purchased from Durga Enterprises on credit. 20 bags of rice @ Rs. 800 per bag.

2 bags of wheat @ Rs. 500 per bag.

Trade discount @ 5%.

October 20:

Purchased furniture on credit for Rs. 4,000 from Modern Furniture House.

October 25:

Purchased on credit from Sewak & Co.

30 tins ghee @ Rs. 600 per tin.

10 tins mustard oil @ Rs. 500 per tin.

Trade discount @ 20%.

Or

(b) Arrange the following balances taken from the ledger of X & Co. into a Trial Balance as on 31st March, 2021:

 

Rs.

 

Rs.

Cash

Trade Debtors

Rent

Stores

Salaries Payable

Insurance

Other Expenses

Trade Creditors

Cost of Goods Sold

Advance from a Customer

9,200

15,000

4,800

18,000

1,500

3,600

5,500

25,000

54,000

1,400

Land

Depreciation

Accumulated Depreciation

Salaries

Furniture

Sales

Drawings

Capital

10,000

800

2,400

20,400

4,000

90,000

2,000

27,000

5. (a) What are the methods of measuring business income? Explain each of them in brief. Also state the objectives of income measurement.  2+4+3=9

Or

(b) When would the following revenues generated from rendering of services to be recognized? 1½ x 6 = 9

(1)       Installation fees.

(2)       Advertising and insurance commission.

(3)       Financial service commission.

(4)       Tuition fees.

(5)       Admission fees.

(6)       Entrance fees and membership fees.

6. (a) What is depreciation? What are the different causes of depreciation? Distinguish between fixed-installment method and diminishing-balance method of depreciation. 2+4+4=10

Or

(b) The following is the Trial Balance of Sri Arup Das as on 31st March, 2021. Prepare a trading and Profit & Loss A/c for the year ended 31st March, 2021 and a Balance Sheet as on that date:      3+3+4=10

Trial Balance

As on 31st March, 2021

Debit Balances

Amount (Rs.)

Credit Balances

Amount (Rs.)

Sundry Debtors

Drawings

Cash in hand

Cash at Bank

Wages

Purchases

Opening Stock

Business Premises

Bills Receivable

Office Telephone Expenses

General Expenses

Goodwill

22,000

2,000

8,200

30,000

2,500

10,000

30,000

60,000

14,500

3,500

9,000

10,500

Capital

Sundry Creditors

Sales

1,20,000

22,500

59,700

 

2,02,200

 

2,02,200

Adjustments:

(1)  Value of closing stock as on 31st March, 2021 was Rs. 5,000.

(2)  Interest on capital to be provided @ 6% and interest on drawings @ 5%.

(3)  Write off bad debts Rs. 2,000 and provide for doubtful debts @ 10% p.a. on remaining debtors.

7. (a) What is ‘hire-purchase system’? What are its features? Distinguish between hire-purchase system and credit sale (only three points).                                          2+4+3=9

Or

(b) Ratan Stores purchased a generator from M/s. Bimal Bros. on installment purchase system. Rs. 12,000 was payable on delivery on 1st April, 2017 and the balance in four annual installments of Rs. 12,000 each on 31st March, every year. The vendor charges interest @ 5% per annum on the outstanding balance. The cash price of the generator was              Rs. 54,551. Depreciation @ 10% per annum on written-down method was written off each year. From the above particulars, prepare the following Ledger Accounts in the books of Ratan Stores:        3+3+3=9

(1)  Generator’s A/c.

(2)  M/s. Bimal Bros. A/c.

(3)  Interest Suspense A/c.

8. (a) What are the main classes of Branch Accounts? Explain the method of converting figures of Trial Balance of a foreign branch into the home currency of Head Office.    3+6=9

Or

(b) X Ltd. invoices of goods to its various branches at cost and the branches sell on credit as well as for cash. From the following details relating to Delhi Branch, show the Branch A/c in the Head Office. Also prepare Branch Debtors A/c as a part of working note: 7+2=9

 

Rs.

Stock as on 01-04-2020

Stocks as on 31-03-2021

Debtors as on 01-04-2020

Goods received from Head Office

Goods-in-transit as on 31-03-2021

Goods returned to Head Office

Credit sale

Cash sale

Discount allowed to customers

Goods returned from customers

Allowance to customers

Bad Debts written-off

Cash received from customers

General charges

Rent and rates

Wages and salaries

20,000

16,000

32,500

80,000

7,500

800

88,000

46,000

1,280

2,400

600

3,000

57,300

1,840

4,800

8,200

9. (a) A, B and C are in partnership sharing profits and losses in the ratio of 3 : 2 : 1 respectively. The Balance Sheet of the firm on the date of dissolution was as follows:

Liabilities

Amount

(Rs.)

Assets

Amount

(Rs.)

Sundry Creditors

A’s Loan A/c

A’s Capital

B’s Capital

38,500

2,750

15,200

11,200

Cash in hand

Sundry Debtors

Stock

Furniture

C’s Capital (Dr.)

9,860

30,560

18,440

7,200

1,590

 

67,650

 

67,650

The assets realized:

(1)      Stock Rs. 13,840,

(2)      Furniture Rs. 5,150, and

(3)      Debtors Rs. 29,200.

(4)      The Creditors were paid less discount Rs. 250.

(5)      C is insolvent and is unable to bring in anything.

(6)      The expenses of realization came to Rs. 520.

Show the Ledger Accounts as per Garner vs. Murray decision. 10

Or

(b) What do you mean by conversion of partnership into a company? What are the objectives of such conversion? What entries are made in the books of a firm, when a partnership business is converted into a company?           2+3+5=10

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