Financial Accounting Question Paper 2025 [Dibrugarh University BCOM 2nd SEM FYUGP]

Financial Accounting Question Paper 2024
Dibrugarh University BCOM 2^nd SEM FYUGP

COMMERCE (Core)

Paper: COMFINC2/COMBNIC2/COMHRMC2/COMMKTC2

Full Marks: 60 (80 for 2023 Batch)

Time: 2 hours (3 hours for 2023 Batch)

The figures in the margin indicate full marks for the questions.

1. (a) Write True or False: (1*3 = 3)

(i) IAS 31 represents disclosure and presentations of financial instruments.

(ii) Accumulated profit is the bonafide claim of all the partners except retiring partner.

(iii) IFRS are based on fair value.

(b) Fill in the blanks: (1*3 = 3)

(i) Income tax demand under appeal is a ________.

(ii) Share of goodwill brought in cash by new partner is called ________.

(iii) The registration of a partnership firm is ________.

2. Answer the following questions in brief: (1*2 = 2)

(a) Mention two examples of convention of conservatism principles.

(b) Mention two reasons for preparation of Memorandum Revaluation Account.

3. Write short notes on: (4*2 = 8)

(a) Consumable items of not-for-profit organization and its accounting treatment.

(b) Contents of Director's report.

4. (a) "Transactions and events are guided by generally accepted accounting principles subject to laws of land." Explain this statement. 11

OR

(b) (i) How are the Provision for Doubtful Debts Accounts prepared with the help of Journal Entry? (5)

(ii) The following balances are given by Mr. Shekhar as on 31st March, 2024: (6)

Particulars	Rs.	Particulars	Rs.
Capital	1,00,000	Drawings	20,000
Bad debts	1,200	Sundry debtors	20,500
Provision for doubtful debts	2,000	Salaries outstanding	1,000
Prepaid insurance	200	Interest on investment	500
Commission received in advance	400

Consider the following:

1. Further bad debts—500

2. Provision for doubtful debts @ 5% on sundry debtors

3. Interest on capital @ 10% and on drawings @ 5%

Show the treatments in the Final Accounts.

5. (a) Amal, Bimal and Chandra are partners sharing profits in the ratio of their capitals. Bimal retired from the firm at 31st March, 2024, the date on which the Balance Sheet of the firm was as follows: (11)

Balance Sheet as on 31st March, 2024

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Bills Payable	2,500	Land and Building	30,000
Sundry Creditors	7,900	Machinery	28,000
Outstanding Salary	500	Investment (M.V. 4,500)	5,000
Investment Fluctuation Reserve	1,100	Stock	10,000
Capitals:		Debtors                     6,000 Less: Provision            400	5,600
Amal	30,000	Cash	5,000
Bimal	24,000	Input CGST	200
Chandra	18,000	Input SGST	200
Total	84,000	Total	84,000

The following adjustments were made:

(i) Land and building appreciated by 20% and provision for Doubtful Debts was to be 5%. A provision for legal charges payable was to be made at 900.

(ii) Goodwill of the firm be valued at 12,000 and Bimal's share in it be adjusted into the Capital Accounts of Amal and Chandra without opening Goodwill Account.

(iii) 22,000 from Bimal's Capital Account be transferred to his Loan Account and balance be paid in cash.

(iv) New profit-sharing ratio of Amal and Chandra decided to be 3:2.

(v) Stock 5,000 was taken equally by Amal and Bimal at a value of 4,000.

(vi) Investments are brought down to their market value.

Give necessary Ledger Accounts and the Balance Sheet of the firm after Bimal's retirement. (3+4+4=11)

OR

(b) Why is Statement of Affairs important in the single-entry system? Why is it called a Statement and not a Balance Sheet? (5+6=11)

6. (a) Write the steps of conversion of Receipts and Payments Account to Income and Expenditure Account. (11)

OR

(b) Following balances appearing in the books of Z Ltd. as on 1st April, 2023: (6+5=11)

Machinery Account—5,00,000

Provision for depreciation—2,25,000

The machinery is depreciated @ 10% p.a. on the Fixed Instalment Method. The accounting being April to March. On 1st October, 2023, a machinery which was purchased on July 2020 for 1,00,000 was sold for 42,000 and on the same date, a new machine was purchased for 2,00,000. Prepare Machinery Account and Provision for Depreciation Account for the year ended 31st March, 2024.

7. (a) What is stock and debtor’s system in case of hire-purchase system? How are goods repossessed related in the books of accounts under stock and debtor’s method? Explain with accounting treatment. 8+3=11

OR

(b) Explain the following: (3+3+5=11)

(i) Sweat equity

(ii) Strategic report

(iii) Provisions of the Companies Act, 2013 regarding disqualification of an auditor

Additional questions, 20 marks for 2023 Batch

8. (a) (i) Write five limitations of financial statement. (5)

(ii) Explain the situation when reconstitution of firm takes place. (5)

OR

(b) (i) ‘Entity’ and ‘Continuity’ are inter-related. Comment. (5)

(ii) Why are assets and liabilities revalued at the time of retirement of a partner? (5)

9. (a) (i) Why and how is Receipts and Payments Account prepared? (5)

(ii) Discuss the importance of Corporate Accounting. (5)

OR

(b) Explain the following: (5*2 = 10)

(i) Cost audit

(ii) Hire purchase system vs. Credit sales

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