Financial Accounting Question Paper' 2019 | Gauhati University | CBCS Pattern

Gauhati University B.Com 1st Sem Question Papers 
4 (Sem–1/CBCS) FAC HC/RC
2019
FINANCIAL ACCOUNTING

Paper: COM – HC/RC - 1026

Full Marks: 70

Time: 3 hours

The figures in the margin indicate full marks for the questions

1. (a) Select appropriate answer from the different alternatives:             1x5=5

1)         Normally method of valuing of asset should not be changed. This principle is known as the principle of

a)         Business entity concept.

b)         Dual concept.

c)          Full disclosure.

d)         Consistency.

2)         In case of hire purchase transactions although legally the hire purchaser does not become the owner of the asset till the payment of last instalment he is allowed to record the asset at full cash price in his books of accounts even on the date of acquisition. This principle of accounting is known as:

a)         Full disclosure concept.

b)         Business entity concept.

c)          Dual concept.

d)         Substance over legal form.

3)         The total amount payable by the hire purchaser as per hire purchase agreement in order to complete the transaction is known as

a)         Hire purchase price.

b)         Face value.

c)          Cash price.

d)         Higher vendor cost.

4)         Debtor system of accounting procedure of dependent branch is also known as

a)         Stock A/c.

b)         Final System.

c)          Stock and Debtor method.

d)         Synthetic System.

5)         Purchase of Goods + Opening Stock + Direct Expenses – Closing Stock =

a)         Gross Profit.

b)         Total Indirect Expenses.

c)          Cost of Goods sold.

d)         Invoiced Price.

(b) State whether the following statements are True or False:   1x5=5

1)         Accounting Standard AS-2 deals with disclosure of significant accounting policies followed in preparing and presenting financial statements.

2)         Under instalment purchase system, the seller treats the transaction as a cash sale.

3)         In the absence of any provision in the partnership deed, profit and loss are shared by partners equally.

4)         For creating a company we use Alt+F2.

5)         The valuation of inventory affects only the income statement.

2. Answer the following questions:        2x5=10

a)         One of the methods of branch accounting a debtor system. Why is it so called?

b)         Mention two features of accounting principles.

c)          Define International Financial Reporting Standard.

d)         Mention two objectives of income measurement.

e)         What do you mean by marshalling of Balance Sheet?

3. Answer the following questions:        5x4=20

(a) Describe the functions of Accounting Standard Board.

Or

Give a brief account of the structure of Generally Accepted Accounting Principles.

(b) State the advantages of using computers in accounting.

Or

Distinguish between manual accounting and computerized accounting.

(c) Write a note on the accounting treatment of Interest Suspense Account in the books of the buyers.

Or

On 1st April, 2016, Mr. A purchased a machine on hire purchase system and paid Rs. 10,000 as down payment and agrees to pay the balance in four annual instalment of Rs. 14,000, Rs. 13,000, Rs. 12,000 and Rs. 11,000 payable on 31st March each year. The vendor charged interest @ 10% p.a. Mr. A provides depreciation @ 10% p.a. on reducing balance method.  Ascertain the cash price of the machine.

(d) What is Trading A/c? Write three objectives of preparing Trading A/c.

Or

X, Y and Z are partners sharing profits and losses in the ratio of 3 : 2 : 1. After preparing of the final account, it was found that interest on drawings @ 5% p.a. had not been taken into consideration. The drawings of the partners were X – Rs. 15,000; Y – Rs. 12,600 and Z – Rs. 12,000. Calculate the total interest on drawings.

4. What is meant by Differed Revenue Expenditure? Explain the basic principle that is taken into consideration in allocating expenditure as capital and revenue with examples.        3+7=10

Or

Define Accounting Standard. Explain the procedure of setting Accounting Standards in India.                      3+7=10

5. X Co. of Delhi has a branch at Shillong. Goods are sent by the Head Office at invoice price which is at the profit of 25% on cost price. All expenses of the branch are paid by the Head Office. From the following particulars, prepare Branch A/c and Goods sent to Branch A/c in the Head Office books:                                        6+4=10

 

(Rs.)

Opening Balance:

Stock at invoice price

Debtors

Petty Cash

Goods sent to Branch at invoice price

Expenses made by Head Office

Rent

Wages

Salary

Remittances made to Head Office

Cash sales

Cash collected from debtors

Goods returned by branch at invoice price

Balance at the end

Debtors

Petty Cash

Stock at invoice price

 

11,000

1,700

100

20,000

 

600

200

900

 

2,650

21,000

400

 

2,000

25

13,000

Or

Ajoy purchased a machine on instalment system from B. K. Co. on 01/01/2014. It was agreed that Rs. 15,000 was to be paid on signing the agreement and a sum of Rs. 15,000 was to be paid annually for 3 years. The cash price of the machine was Rs. 52,300 and the rate of interest was 10%, Depreciation is charged @ 20% on the straight line method. Show the Interest Suspense A/c, Interest A/c, and Ajoy A/c in the books of B. K. Co.                            3+2+5=10

6. From the following Trial Balance of M/s Sharma Traders, prepare a Profit & Loss A/c for the year ended 31st March, 2019 and Balance Sheet as on that date.                                          3+3+4=10

Debit

Amount (Rs.)

Credit

Amount (Rs.)

Cash in Hand

Carriage Outwards

Wages and Salaries

Carriage Inward

Octroi Duty

Motor Car

Investment

Bills Receivable

Sundry Debtors

Plant & Machinery

Furniture

Purchases

Opening Stock

Trade Expenses

Advertisement

Coal and Gas

Insurance

Bad Debts

13,000

2,400

22,100

1,800

1,200

1,77,000

20,000

23,000

1,00,000

90,000

20,000

1,20,000

50,000

1,000

2,700

1,500

1,500

2,000

Loan

Royalty

Sundry Creditors

Discount Received

Reserve

Reserve for Doubtful Debts

Commission

Bills Payable

Capital

Band Overdraft

Sales

2,400

1,200

42,500

2,200

40,000

10,200

1,100

18,000

1,00,000

20,000

3,64,000

 

6,49,200

 

6,49,200

Adjustments:

1)         Closing Stock – Rs. 50,000.

2)         Further Bad Debts – Rs. 3,000.

3)         Depreciate Plant & Machinery and Motor Car @ 10%.

4)         Prepaid advertisement – Rs. 200

5)         Reserve for Doubtful Debts is to be maintained at 5% on Debtor.

Or

Rani and Jonny are partners in a firm sharing profits in the ratio 3 : 2. The Trial Balance of the firm as on 31/03/2019 was as follows:

Debit

Amount (Rs.)

Credit

Amount (Rs.)

Debtors

Furniture

Machinery

Salaries

Insurance Premium on Machinery

Bad Debts

Cash in Hand

Rent

Bank Charges

Carriage Outwards

Depreciation on Furniture

Drawings:

Rani

Johnny

10,000

10,000

31,000

13,200

1,200

200

10,400

6,000

420

1,450

1,000

 

4,000

2,500

Trading A/c

Bad Debts Recovered

Sundry Receipts

Provision for Bad Debts

Commission

Creditors

Rent Payable

Bills Payable

Capital A/c:

Rani

Johnny

41,120

600

1,000

800

250

10,000

200

2,400

 

20,000

15,000

 

91,370

 

91,370

Prepare the Profit and Loss A/c and Profit and Loss Appropriation A/c for the year ended on 31/03/2019 and a Balance Sheet as on that date after considering the following adjustments:

1)         Machinery is to be depreciated by 10%.

2)         Provision for Bad Debts is to be increased by Rs. 200.

3)         Rani was to receive salary @ Rs. 300 per month.

4)         Interest on capital is allowed @ 5% p.a.

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