Financial Accounting Question Paper’ 2021 (Held in 2022), Gauhati University B.Com 1st Sem, CBCS Pattern

Gauhati University B.Com Question Papers

4 (Sem-1/CBCS) FAC HC/RC

FINANCIAL ACCOUNTING QUESTION PAPER 2021 (Held in 2022)

(Honours/Regular))

Paper: COM-HC-1016/RC-1016

Full Marks: 70

Time: Three hours

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

1. Answer as directed:

A. Select appropriate answer from different alternatives:               1×4=4

(a) Inventories are to be valued at

(1)       Cost price.

(2)       Cost price or net realisable value whichever is lower.

(3)       Cost price or net realisable value whichever is higher.

(4)       Net realisable value.

(b) Which of the following is a limitation of a computer?

(1)       Speed.

(2)       Accuracy.

(3)       Intelligence.

(4)       None of the above.

(c) According to going concern concept, a business is viewed as having

(1)       A limited life.

(2)       A very long life.

(3)       An indefinite life.

(4)       None of the above.

(d) A Balance Sheet shows the financial position of a firm

(1)       For a given period.

(2)       On a particular point of time.

(3)       Over the years.

(4)       For the whole life of the firm.

B. State whether the following statements are True or False:                        1×3=3

(1)       Instalment system is a credit sale.

(2)       Goods returned by the branch debtors to head office is not recorded in Branch Account.

(3)       IFRS are issued by IASC.

C. Fill in the blanks with appropriate word/words:          1×3=3

(1)       The full form of C.P.U. is ______.

(2)       Any expenditure which ______ earning capacity is called capital expenditure.

(3)       The arrangement of assets and liabilities in the Balance Sheet is known as ______.

2. Answer the following questions very briefly:                           2×5=10

(a)       What is a hire-purchase agreement?

(b)       Mention any two objectives of Branch Accounting.

(c)       Mention any two objectives of IFRS.

(d)       Explain any two distinctions between manual accounting and computerized accounting.

(e)       State any two distinctions between capital receipt and revenue receipt.

3. Answer the following questions:           5×4=20

(a) Explain any five distinctions between cash basis and accrual basis of Accounting.               5

Or

Briefly explain the procedure for issuing Accounting Standards in India.                 5

(b) How is revenue recognised as per AS-9?                              5

Or

What is Balance Sheet? Mention any four objectives of preparing a Balance Sheet.      1+4=5

(c) Explain the significance of inventory valuation.                 5

Or

From the following particulars of Sankar Barua, Prepare a Trading Account and ascertain his gross profit for the year ending on 31^st March, 2021:        5

Particulars	Amount (Rs.)
Opening Stock Customs Duty Clearing Charges Wages and Salaries General Expenses Rent Loading and Unloading Charges: On Purchase                   Rs. 12,000 On Sales                            Rs. 1,400 Purchases Dock dues Freight and Carriage on purchases Octroi Duty Carriage on sales Excise Duty Demurrage Return Inwards Returns Outwards Sales Closing Stock	25,000 5,000 500 15,000 1,000 3,000     13,400 3,00,000 5,000 10,000 500 2,500 1,500 2,000 5,000 4,000 6,50,000 90,000

(d) On 1^st January, 2019, Assam Tea Traders purchased a machine from Roy & Co. on hire purchase system. As per agreement, Rs. 20,000 is to be paid on delivery and the balance in three annual installments of Rs. 24,000 each payable on 31^st December each year. The cash price of the machine was Rs. 80,000. Calculate the amount of interest charged each year.    5

Or

Explain any five features of hire-purchase system.                           5

4. Answer question either (a) and (b) or (c) and (d):             5+5=10

(a)       Explain any five distinctions between capital expenditure and revenue expenditure.       5

(b)       Mention any five advantages of computerised accounting system.           5

(c)       Define Accounting Standards. Mention any three of the objectives of Accounting Standards.       2+3=5

(d)       Write a brief note on ready accounting software.                            5

5. From the following Trial Balance of M/S Ram Traders and the other information given below, prepare a Profit and Loss Account for the year ended 31^st March, 2021 and a Balance Sheet as on that date:    10

Trial Balance

Debit	Amount (Rs.)	Credit	Amount (Rs.)
Buildings Salaries Rent Furniture Bad Debt Advertisement Drawings Sundry Debtors Bills Receivable Closing Stock	18,000 12,400 3,500 4,950 600 2,000 3,000 15,000 6,000 9,750	Provision for bad debts Interest Received Creditors Outstanding Wages Capital Bills Payable Trading Account (Gross Profit)	400 400 4,200 900 45,000 2,000 22,300
Total	75,200	Total	75,200

Adjustments:

(1)       Outstanding Salaries Rs. 2,000.

(2)       Furniture to be depreciated by Rs. 950.

(3)       Increase provision for bad debts by Rs. 500.

Or

From the following Trial Balance of Anima and Pratima as on 31^st March, 2021 and other information given below, prepare Profit and Loss Account and Profit and Loss Appropriation Account of the firm for the year ended on 31^st March, 2021 and the Balance Sheet as on that date:        10

Trial Balance

Debit	Amount(Rs.)	Credit	Amount(Rs.)
Machinery General Expenses Furniture Salaries Cash in hand Investments Cash at Bank Bad Debts Sundry Debtors Buildings Publicity	50,000 5,000 10,000 20,000 5,000 12,000 8,000 2,000 40,000 50,000 8,000	Capital: Anima            60,000 Pratima         40,000 Trading Account (Gross Profit) Sundry Creditors Commission	1,00,000 90,000 10,000 10,000
Total	2,10,000	Total	2,10,000

Adjustments:

(1)       Depreciate machinery @ 10% per annum.

(2)       Partners will get interest on capital @ 10% per annum.

(3)       Salary paid in advance Rs. 2,000.

6. Probhat Company of Nalbari has a branch at Tezpur. From the following particulars, prepare Tezpur Branch Account in the books of Head Office for the year ended on 31^st March, 2021:         10

Particulars	Details (Rs.)	Amount (Rs.)
Stock at Branch on 1st April, 2020 Goods sent to Branch during the year Total Sales at Branch Cash Sales at Branch Cash received from debtors Bank draft received from debtors directly Branch debtors on 1st April, 2020 Petty cash at Branch on 1st April, 2020 Goods returned by Branch Cash sent to Branch for expenses: Salaries Petty Cash Rent Stock at Branch on 31st March, 2021 Petty cash at Branch on 31st March, 2021 Abnormal loss of goods (not insured)	12,800 2,600 3,000	15,700 45,600 73,300 19,700 50,200 2,000 16,900 110 3,000       18,400 18,800 90 1,000

Or

M/s. Bakshi Bros. of Tezpur purchased some plants on 1^st January, 2019 on instalment payment system. The cash price of the plants was Rs. 4,00,000 payable as Rs. 1,00,000 down and the balance in three equal annual installments ofRs. 1,00,000 each, interest was to be charged on the unpaid balance at 5% per annum. M/s. Bakshi Bros. closes their accounts on 31^st December each year and depreciation on plants was written off at 10% per annum on reducing balance method. Pass necessary Journal entries in the books of M/s. Bakshi Bros. for three years.               10

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