ASSAM ROJGAR SAMACHAR

Wednesday, October 26, 2011

Dibrugarh University - Financial Accounting 2008


1.       a) Explain the following items and state how they are treated while preparing the Income and Expenditure Account and the Balance sheet of a non-trading concern:
i)        Life Membership fees
ii)       Entrance fees
iii)     Capital grants
iv)     Sale of old fixed assets
                                                                                               
Or

                b) Sri Tezib Ahmed started a business on 1st January,2007 with a capital of Rs 12,000. On the same day, he bought office furniture for Rs 5,000. Sri Ahmed kept his books under single entry system. From the following information, you are required to prepare his trading and profit and loss account for the year ended 31st December,2007 and a Balance sheet as at that date:
               
Particulars
Amount(Rs.)
Total sales (including cash sales Rs 5,000)
Total purchases (including cash purchases Rs 3,000)
Drawings made during the year
Salaries paid to staff
Bad debts written off
Office expenses              
Wages paid                                                                                        
18,000
17,000
1,000
2,000
600
800
500
               
                Sri Ahmed took goods worth Rs 700 for his personal use but omitted to record the same in his book. On 31st December,2007,his debtors were Rs 5,500, creditors Rs 4,000 and Closing stock Rs 7,000.  

2.  a) On 1st January, 2005, Sri B. Baruah purchased a machine from Kamrup Enterprise of Guwahati on hire-purchase system, the cash price of which was payable as Rs 12,000 down and the balance in three equal yearly instalments together with interest @ 10% p.a. The amount of last instalment including interest was Rs 17,600. Depreciation was provided @ 20% p.a. on the machine under diminishing balance method. At the end of three years of service, the machine was sold for Rs 30,000 cash.
Prepare Machinery account and the hire-vendor’s account in the books of the buyer for three years up to 31st December,2007.                                                                                              
                                                                               
Or

b) What do you mean by hire-purchase and instalment-buying system? Mention the distinction between hire-purchase and instalment-buying system with example.
                                                                                                               

3. a) Anil and Bipul are partners of a partnership firm. They share profit and loss in the ratio 5:3. On 31st March, 2007 their Balance sheet was as shown below:

                                                                                       Balance sheet of Anil and Bipul
               
Liabilities
Amount (Rs.)
Assets
Amount(Rs.)
Bills payable
Creditors
General reserve
Capital accounts :
Anil        200000
Bipul      150000
5000
39000
16000


350000
Cash in hand
Stock in hand
Debtors                                49000
Less: provision
for bad debt         1000
Plant and machinery
Land and building
15000
45000


48000
102000
200000


410000

410000
               
On 1st April, 2007 Chandan is admitted as a partner in the firm on the following terms :

i)        Chandan will bring Rs 100000 as capital for ¼ th share of profits. The new ratio will be 2:1:1
ii)       Goodwill of the firm on Chandan’s admission was valued at Rs 120000. Chandan will be required to bring his share of goodwill in cash.
iii)     Stock was depreciated by 10% and provision for bad debts was raised by Rs 1,500.
iv)     Machinery was depreciated by Rs 2000 and land and building was appreciated by 10%.
v)      Creditors include Rs 1000 which were not likely to be paid.
Prepare revaluation accounts, partner’s capital account and the balance sheet of the new firm on Chandan’s admission.               
                                                                                                                                                               
Or


b. i) Write a short note on the rule of Garner Vs Murray.                                                                                                              
    ii) A,B and C are partners in a firm. They decided to dissolve their partnership on 31st March, 2007. On the said date the balance sheet on the firm was as under:
                                                                                                      Balance Sheet
Liabilities
Amount (Rs.)
Assets
Amount(Rs.)
A’s capital                           
B’s capital                           
2000
600
Cash
C’s Capital
Loss on Realization
1500
200
900

2600

2600

C is insolvent and cannot pay anything. Show the necessary accounts in the books of the firm-
                i) just prior to decision in Garner vs. Murray.
                ii) after decision in Garner vs. Murray.                                                                                                                   

4. a) Delhi head office supplies goods to its branch at kanpur at invoice price which is cost plus 50%. All cash received by the branch is remitted to delhi and all branch expenses are paid by head office. From the following particulars relating to kanpur branch, prepare necessary ledger accounts of kanpur branch in the books of the head office:    
Particualars
Amount (Rs.)
Stock with branch as on 1.1.2007 (at invoice price)
Branch debtors on 1.1.2007
Petty cash at branch on 1.1.2007
Goods sent to branch during the year (at invoice price)
Goods returned by branch to head office (at invoice price)
Credit sales at branch
Allowances to customers off selling price (already adjust while invoicing)
Cash received from debtors
Discount allowed to debtors
Cash sent to branch from Head office for expenses :
                Rent                                      2400
                Salaries                                 24000
                Petty cash                           1000                      
Cash sales at branch
Stock at branch on 31.12.2007 (at invoice price)
Petty cash balance at branch on 31.12.2007
60000
12000
100
186000
3000
84000
2000
90000
2400



27400
104000
54000
100
               

Or

b. i) Distinguish between Branch and Departmental Accounts.                                                                                   
    ii) What is ‘cash in transit’ in Branch Accounts? Write a brief note.                                                                        
    iii) Explain with example the basis of allocation of common expenses over the various departments in departmental accounts.                                                                                                                                                                            

5. a) What do you mean by government accounting? Distinguish between government accounting and commercial accounting.                                                                                                                                                                                        
Or
    b) Discuss in detail the basic principles of government accounting.