Financial Accounting Question Paper 2022 [RTU Hojai B.Com 1st Semester]

Financial Accounting Question Paper 2022

Rabindranath Tagore University (RTU), Hojai
B.Com 1st Semester Examination, 2022

Subject: Financial Accounting
Full Marks: 80,  Time: 3 Hours

Instructions:

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

• New Course students should attempt all the questions (Q.1 to Q.7).

• Old Course students should attempt Questions No.1 to Q.6.

Q.1

(a) Fill in the blanks: 1×5=5

(i) In hire purchase system, the buyer charges depreciation on the __________ price.

(ii) According to the __________ principle, closing stock is to be valued at cost price or market price, whichever is lower.

(iii) Amount paid for insurance of building will be treated as __________ expenditure.

(iv) Branch Account prepared under Debtors System is in the nature of __________ Account.

(v) __________ is an accounting software.

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

(i) AS-9 deals with Depreciation Accounting.

(ii) The first IFRS was published in June, 2001.

(iii) Income tax paid by the proprietor from his business cash is debited to Profit and Loss A/c.

(iv) The buyer has the option to return the goods in case of instalment purchase.

(v) Discount allowed to debtors is shown in Branch Account.

Q.2

Answer the following questions briefly (Any Five): 2×5=10

(a) Explain briefly the Matching Principle.

(b) Give two differences between Capital Receipts and Revenue Receipts.

(c) State two utilities of Accounting Standards.

(d) Briefly explain why Hire Purchase System is advantageous in comparison to normal purchase.

(e) What is Branch Adjustment Account?

(f) Briefly explain the need of IFRS.

Q.3

Answer the following questions (Any Four): 5×4=20

(a) Distinguish between Hire Purchase System and Instalment Purchase System.

(b) What are the rights of Hire Vendor under the Hire Purchase Act, 1972?

(c) Explain the Debtors System and Stock and Debtors System of Branch Accounting.

(d) Mention the differences between Manual Accounting and Computerised Accounting.

(e) Distinguish between Cash Basis and Accrual Basis of Accounting.

(f) Discuss the Qualitative Characteristics of Accounting Information.

Q.4

On 1st January, 2021, ABC Ltd. purchased a machine from XYZ Ltd. on instalment system. The cash price of the machine was ₹11,175 and payment was to be made as follows:

• ₹3,000 on signing the agreement.

• The balance in three equal instalments of ₹3,000 each at the end of every year.

Interest @ 3% p.a. is to be charged by XYZ Ltd.

ABC Ltd. decided to write off depreciation @ 10% p.a. on the Diminishing Balance Method.

Books are closed on 31st December every year.

Prepare:

• Machinery A/c

• XYZ Ltd. A/c

for three years in the books of ABC Ltd.

5+5=10

OR

M/s Nath Brothers, having their Head Office at Guwahati, has a branch at Sualkuchi.

The following are the transactions of the Head Office with its Sualkuchi Branch for the year ended 31st March, 2020:

Particulars	Amount (₹)
Stock at Branch (01.04.2019)	20,000
Petty Cash at Branch (01.04.2019)	4,000
Furniture at Branch (01.04.2019)	17,000
Goods supplied to Branch	1,65,000
Goods returned by Branch	2,500
Cash Sales at Branch	2,40,000
Salary	12,000
Office Expenses	3,600
Petty Cash	3,000
Rent	1,400
Closing Stock (31.03.2020)	30,000
Petty Expenses incurred	3,100
Prepaid Salary	1,500
Outstanding Rent	600
Branch Furniture (31.03.2020)	16,150

Prepare the Sualkuchi Branch Account in the books of the Head Office under the Debtors System. 10 Marks

Q.5

State with reasons whether the following receipts would be treated as Capital Receipts or Revenue Receipts: 2×5=10

(i) Started business with ₹80,000.

(ii) Amount realised by sale of goods ₹25,000.

(iii) Rent received from premises sub-let ₹4,000.

(iv) Sale of land costing ₹10,000 at ₹12,000.

(v) Amount received from sale of scraps (empty boxes, bottles, etc.) ₹250.

OR

What are the objectives of Branch Accounting? Distinguish between Branch Debtors A/c and Memorandum Branch Debtors A/c.

5+5=10

Q.6

Following is the Trial Balance of Mr. Rupam Gupta for the year ended 31st March, 2020.

Prepare:

• Trading A/c

• Profit & Loss A/c

• Balance Sheet

after considering the following adjustments:

(i) Closing Stock ₹15,000.

(ii) Commission received in advance ₹1,000.

(iii) On 23rd March, 2020, a fire broke out in the godown and goods worth ₹8,000 were destroyed. The Insurance Company admitted a claim of ₹5,000.

10 Marks

Q.7

Aradhana Motors Ltd. purchased a machine from Jaiswal Motor Co. on Hire Purchase System on 1st April, 2018.

The cash price of the machinery was ₹60,000.

Payment terms:

• ₹12,000 on the date of purchase.

• Balance in six equal quarterly instalments together with interest.

Interest was charged @ 5% p.a.

Aradhana Motors Ltd. provides depreciation @ 10% p.a. on Reducing Balance Method.

Prepare:

• Machinery A/c

• Jaiswal Motor Co. A/c

in the books of Aradhana Motors Ltd. under the Full Cash Price Method.

10 Marks

OR

Pass Journal Entries for the following transactions in the books of M/s Sumon Stores, Guwahati, a registered dealer under the AGST Act. The dealer is entitled to claim Input Tax Credit.

Date	Transactions
Feb. 10	Purchased goods on credit from Delhi ₹1,50,000.
Feb. 12	Purchased office furniture from M/s Furniture Ltd., Guwahati ₹30,000.
Feb. 14	Purchased goods locally on credit ₹60,000.
Feb. 20	Sold goods within Assam for cash ₹2,00,000.
Feb. 25	Sold goods on credit to customers in Meghalaya ₹1,00,000.
Feb. 26	Goods costing ₹5,000 purchased from Delhi withdrawn by proprietor for personal use.
Feb. 28	Goods costing ₹4,000 purchased locally withdrawn by proprietor for personal use.
Mar. 12	Deposited GST after set-off.

Assume CGST @ 6% and SGST @ 6%. Show proper working notes.

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