Dibrugarh University| B.COM - (CBCS)| FINANCIAL ACCOUNTING - (C - 101)| Question Paper - (Jan/ Feb) - 2021| 1st Semester
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
(i) Revenue is considered as being earned when
(a) Cash is received
(b) Production is done
(c) Sale is effected
(ii) 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
(iii) Cost of goods sold on hire purchased is transferred to
(a) Trading Account
(b) Profit and Loss Account
(c) Profit and Loss Appropriation Account
(iv) 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
(i) Depreciation is provided on _________assets.
(ii) A financial lease is a lease where risk and return get
transferred to the ________.
(iii) A profit margin of 20% on sale price is equivalent to
________profit on cost price.
(iv) 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. 1000 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:
|
Particulars |
Amount (Rs.) |
Particulars |
Amount (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 2400 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? 1.5x6=9
(i) Installation fees
(ii) Advertising and insurance commission
(iii) Financial service commission
(iv) Tuition fees
(v) Admission fees
(vi) 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 Trail Balance of Sri Arup Das as on 31st
March, 2021. Prepare a Trading and Profit & Loss Account for the year ended
31st March, 2021 and a Balance Sheet as on that date: 3+3+4=10
|
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:
(i) Value of closing stock as on 31st March, 2021 was Rs. 5,000
(ii) Interest on capital to be provided @ 6% and interest on
drawings @ 5%
(iii) 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 sales (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
instalments 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:
(i) Generator's Account
(ii) M/s. Bimal Bros. Account
(iii) Interest Suspense Account
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 Account in the Head Office. Also
prepare Branch Debtors Account as a part of working note: 7+2=9
Stock as on 01.04.2020 - 20,000
Stock as on 31.03.2021 - 16,000
Debtors as on 01.04.2020 - 32,500
Goods received from Head Office - 80,000
Goods in transit as on 31.03.2021 - 7,500
Goods returned to Head Office - 800
Credit sale - 88,000
Cash sale - 46,000
Discount allowed to customers - 1,280
Goods returned from customers - 2,400
Allowance to customers - 600
Bad debts written off - 3,000
Cash received from customers - 57,300
General charges - 1,840
Rent and rates - 4,800
Wages and salaries - 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:
Stock - Rs. 13,840, Furniture - Rs 5,150 and Debtors - Rs. 29,200
The creditors were paid less discount Rs. 250. C is insolvent and is
unable to bring in anything. 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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