Friday, October 07, 2016

Dibrugarh University Question Papers: Financial Accounting (Nov' 2015)

2015 (November)
COMMERCE
(General/Speciality)
Course: 103
(Financial Accounting)
The figures in the margin indicate full marks for the questions
(NEW COURSE)
Full Marks: 80
Pass Marks: 24
Time: 3 hours

1. (a) Fill in the blanks:                                                                            1x4=4
                                 i.            Balance Sheet is also known as ____ Statement.
                               ii.            In hire-purchase system, the buyer charges depreciation on ____ price.
                              iii.            Royalty Account is closed by transferring to ____ Account.
                             iv.            Branches are generally classified into ____ types.

(b) Write ‘True’ or ‘False’:                                                                         1x4=4
                                 i.            Profit & Loss Account shows the financial position of a concern.
                               ii.            Profit on repossession of goods sold on hire-purchase system is a capital profit.
                              iii.            Shortworkings is the excess of minimum rent over actual royalty.
                             iv.            In Departmental Accounts, each department is considered as a separate profit centre.

2. Write short notes on (any four):                                                                  4x4=16
a)      Accounting Standard Board set up in India.
b)      Termination of hire-purchase agreement.

c)       Goods-in-transit.
d)      Principles of allocation of common expenses among departments.
e)      Shortworkings.

3. (a) What do you mean by ‘Accounting Standards’? Mention the procedure for issuing Accounting Standards. Distinguish between Accounting Standards and Accounting Principles.          2+6+6=14
Or
(b) The following is the Trial Balance of Ajay and Bijay, a partnership firm as on 31st March, 2015:
Trial Balance
Debit Balances
Rs.
Credit Balances
Rs.
Opening Stock
Machinery
Purchases (adjusted)
Salary
Wages
Buildings
Insurance
Freight
Conveyance
Carriage Inwards
House Rent
Returns Inward
Carriage Outwards
Sundry Debtors
Bills Receivable
Cash in Hand
Drawings:
    Ajay
    Bijay
Closing Stock
24,500
50,000
1,30,000
10,000
14,000
60,000
500
3,000
1,400
3,850
2,400
1,600
2,400
18,000
5,250
2,300

3,600
4,200
38,000
General Reserve
Reserve for Doubtful Debts
Sales
Sundry Creditors
Ajay’s Loan
(Taken on 01.10.2014)
Bills Payable
Bad Debts Recovered
Capital:
    Ajay
    Bijay
38,000
500
2,35,000
33,700
8,000

9,350
450

30,000
20,000

3,75,000

3,75,000
Prepare a Trading and Profit & Loss Account for the year ended 31st March, 2015 and Balance Sheet as on that date taking into consideration the following information:                       4+5+5=14
                                 i.            On 29.02.2015, a fire broke out in the godown and goods worth Rs. 7,000 were destroyed, goods being insured, the insurance company admitted a claim for Rs. 6,000.
                               ii.            Reserve for Doubtful Debts is to be maintained at 5% of Sundry Debtors.

4. (a) What is ‘hire-purchase system’? What are its important features? Distinguish between hire-purchase system and instalment-purchase system.                                    3+5+6=14
Or
(b) Nikhil purchased a machine on hire-purchase system for Rs. 1,12,000. Down payment is to be made Rs. 30,000 and the remaining part is to be paid in three instalments of Rs. 30,000 each at the end of each year. Rate of interest is charged at 5% per annum and Nikhil is depreciating the machine at 10% per annum on written-down value method.  Because of financial difficulties, Nikhil after having paid down payment of Rs. 30,000 and first instalment at the end of first year, could not pay second instalment and the seller took possession of the machine. Seller after spending Rs. 1,700 on repairs, sold it away for Rs. 62,000. Show the Ledger Accounts in the books of Nikhil and the seller to record the transactions.   4+4+4+2=14

5. (a) (i) What do you mean by ‘branch’ and ‘department’?                            2+2=4
(ii) Distinguish between Branch Accounts and Departmental Accounts.          5
(iii) How are the inter-departmental transactions recorded in Departmental Accounts?                  5
Or
(b) The Lakhimpur Head Office supplies goods to its branch at Jorhat at cost. The branch sells the goods for cash and on credit and remits the proceeds to the Head Office promptly. The branch expenses being met by the head Office by cheque. The following are the transactions relating to the branch for the year ended 31st March, 2015:

Stock at branch on 01.04.2014
Debtors at branch on 01.04.2014
Goods sent to branch during the year
Total sales at branch
(including cash sales Rs. 2,20,000)
Goods returned by branch
Goods returned by customers
Collection from debtors
Discount allowed
Bad debts written off
Rs.
60,000
80,000
4,50,000

7,40,000
20,000
20,000
4,20,000
20,000
10,000
Cheque sent by Head Office towards the branch expenses:

Salaries
Rent
Petty expenses
Stock at branch on 31.03.2015
Rs.
50,000
25,000
5,000
90,000
Prepare Branch Account and goods sent to Branch Account in the books of Head Office. Also, prepare Branch Debtors Account in a working note.                                           8+4+2=14

6. (a) (i) What is ‘minimum rent’ in Royalty Account? Why is it important in Royalty Account 3+3=6
(ii) What conditions are to be satisfied for recoupment of Shortworkings?                           4
(iii) Distinguish between ‘Rent’ and ‘Royalty’.                                        4
Or
(b) Mohan Deka took a colliery from Jatin Chaudhury on lease for a period of 15 years from 1st January, 2008, on a royalty of Rs. 16 per ton of coal raised with a minimum rent of Rs. 80,000 per annum and power to recoup short-workings during the first four years of the lease. The annual coals raised were:
Year 2008
Year 2009
Year 2010
Year 2011
Year 2012
3000 tons
3500 tons
5000 tons
9000 tons
10000 tons
From the above particulars, prepare (i) Royalty Account, (ii) Jatin Chaudhury’s Account and (iii) Short-workings Account in the books of Mohan Deka.                                                       5+5+4=14

(OLD COURSE)
Full Marks: 80
Pass Marks: 32
Time: 3 hours

1. (a) Write ‘Correct’ or ‘Incorrect’ :                                                        1x4=4
                                 i.            Unearned Income Account is a liability.
                               ii.            Cost of goods sold on hire-purchase is transferred to hire-purchase Trading Account.
                              iii.            Minimum Rent is also known as ‘Rock Rent’ in Royalty Account.
                             iv.            When a partner is not able to meet his liabilities, he is said to be solvent.

(b) Fill in the blanks:                                                                                  1x4=4
                                 i.            Valuation of inventories is accounted for as per the Accounting Standard ____.
                               ii.            Hire-purchase transactions are controlled by the Hire-Purchase Act of ____.
                              iii.            Royalty paid on sales is debited to ____ Account.
                             iv.            If inventory at branch is shown at invoice price instead of cost price, then the account which is used for adjustment is ____ Account.

2. Write short notes on (any four):                                                         4x4=16
a)      International Financial Reporting Standards (IFRS).
b)      Instalment Purchase System.
c)       Goods-in-transit.
d)      Lease.
e)      Rules of Garner vs. Murray.

3. (a) (i) What do you mean by the basic concepts and conventions of accounting?                                           2+2=4
(ii) Write a note on Accounting Standard Board set up in India.                                  4
(iii) Distinguish between Accounting Standards and Accounting Principles.                        4
Or
(b) Akash and Bikash are partners of a partnership business. The Trial Balance of their firm as on 31st March, 2015 was as under:
Trial Balance
Debit Balances
Rs.
Credit Balances
Rs.
Land and Buildings
Machinery
Drawings:
    Akash
    Bikash
Salaries and Wages
Furniture
Trade Expenses
Sundry Debtors
Discount
Insurance
Advertising
Cash at Bank
Bills Receivable
Closing stock
(on 31.03.2015)
40,000
18,000

2,000
3,500
3,700
6,500
1,900
24,600
1,000
1,200
3,000
2,900
4,000

36,000
Trading Account
(Gross Profit)
Capital:
    Akash
    Bikash
Provision for Doubtful Debts
General Reserve
Sundry Creditors
Outstanding Wages
Bank Loan
(on 01.10.2014)
60,000


35,000
25,000
800
4,000
15,000
500
8,000

1,48,300

1,48,300
Prepare a Profit & Loss Account and a Profit & Loss Appropriation Account for the year ended 31st March, 2015 and a Balance Sheet as on that date considering the following adjustments:                                                                    5+2+5=12
                                 i.            Write off bad debts Rs. 600 and provided for doubtful debts @ 5% on remaining debtors.
                               ii.            Provide for interest on capital @ 5% per annum.
                              iii.            Provide for interest on bank loan @ 10% per annum.
                             iv.            Provide depreciation @ 10% p.a. on land and Buildings, @ 12 ½% p.a. on machinery and @ 5% p.a. on furniture.
                               v.            Write off ¼ of advertising.

4. (a) Distinguish between credit sale and sale under hire-purchase system. Mention any three rights of hire seller and three rights of hire purchaser as laid down in the Hire-Purchase Act, 1972.                                                            5+3+3=11
Or
(b) Kumarendra purchased a motor cycle on hire-purchase system from M/s Bora & Co. The terms of hire-purchase are:

Down payment
1st instalment
2nd instalment
3rd instalment
Rs.
40,000
43,500
39,000
34,500
All instalments are payment at the end of the year and each instalment includes equal amount of cash price in addition to interest.
Prepare necessary Ledger Accounts in the books of the Buyer.                             11

5. (a) (i) What do you mean by inter-branch transactions? Mention about the different methods of recording such transactions.                                                                                      2+4=6
(ii) Discuss about the main objectives of Branch Accounts.                                                5
Or
(b) Jorhat Head Office sent out goods to its Golaghat Branch at cost plus 25%. The branch remits all cash received to the Head Office and all expenses of the branch are met by the Head Office. From the following particular, prepare (i) Golaghat Branch Account and (ii) Branch Debtors Account in the books of the Head Office.                              5+3+3=11

Stock at branch on 01.04.2014 (Invoice price)
Stock at branch on 31.03.2015 (Invoice price)
Goods sent to branch during the year (Invoice price)
Goods returned by the branch (Invoice price)
Cash Sales
Credit Sales
Goods returned by customers
Discount and allowance to customers
Bad Debts
Cash received from customers
Sundry Debtors as on 01.04.2014
Rs.
17,500
18,750
13,75,000
75,000
3,00,000
9,98,750
40,000
60,000
5,000
10,45,000
2,40,000
Cheques sent to branch:

For Salaries
For Rent
For Sundry expenses
Rs.
1,00,000
24,000
25,000

6. (a) (i) What is ‘minimum rent’ in Royalty Account? Why is it important in Royalty Account?                       3+3=6
(ii) What do you mean by ‘recoupment of Shortworkings’? What conditions are to be fulfilled for recoupment of Shortworkings?                                                                                                2+3=5
Or
(b) Raju took a lease of a mine on 01.01.2011 for a period of 20 years. Royalty payable is Rs. 1 per ton subject to a minimum rent of Rs. 12,000 per annum. The Shortworkings are recoupable during the first three years of the lease. The output was:
Year 2011
Year 2012
Year 2013
Year 2014
NIL
4000 tons
20000 tons
40000 tons
Give Journal Entries in the books of Raju to record the above transactions.                         11

7. (a) What do you mean by ‘amalgamation’? What are the different methods of amalgamation? Mention about the objectives and advantages of amalgamation.                         2+3+3+3=11
Or
(b) In a partnership firm, Arun and Barun are sharing profits and losses in the ratio of 5:3. They decided to dissolve their firm as on 31st March, 2015. Their Balance Sheet as on 31st March, 2015 is given below:
Balance Sheet
Liabilities
Rs.
Assets
Rs.
Creditors
Loan from Arun
Loan from Barun
Capital:
      Arun          8,000
      Barun        5,400

9,316
3,684
600


13,400
Goodwill
Furniture
Machinery
Inventory
Debtors
Cash

4,000
1,000
2,000
9,200
10,000
800

27,000

27,000
The assets realised as follows:

Goodwill
Furniture
Inventory
Debtors
Machinery
Rs.
2,600
900
8,300
10,200
8,800

Creditors were paid Rs. 9,120 in full settlement of their claim. Realisation expenses amounted to Rs. 110. A bill for Rs. 130 due for sales tax was received during the course of realisation and this was also paid. Close the books of the firm.                                                                           11

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