Financial Accounting Question Paper 2024 [Dibrugarh University BCOM 2nd SEM FYUGP]

Financial Accounting Question Paper 2024

Dibrugarh University BCOM 2nd SEM FYUGP

Paper: COMFINC2/COMBNIC2/COMHRMC2/COMMKTC2

COMMERCE (Core) Financial Accounting

Full Marks: 80, Pass Marks: 24, Time: 3 hours

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

1. (a) State whether the following statements are True or False: 1x4=4

(i) Arrears of fixed cumulative dividend is a contingent liability.

(ii) Memorandum revaluation is a Real Account.

(iii) Depreciation is a non-cash expense.

(iv) There is no difference between installment purchase and credit sale.

(b) Fill in the blanks with appropriate word(s):                1x4=4

(i) _______ is the difference between assets and outside liabilities.

(ii) On _______ of the firm, the books of account will have to be closed.

(iii) Donation received for a specific purpose is a _______ receipt.

(iv) Profit and Loss Account is also known as _______ statement.

2. Write short notes on (any four):   4x4=16

(a) Grouping and marshalling of assets and liabilities.

(b) International Financial Reporting Standards (IFRS).

(c) Liability of a retiring partner.

(d) IFRS-9 Financial Instruments.

(e) Fund-based accounting.

3. (a) From the following Trial Balance of Siraj and additional information, prepare Trading and Profit & Loss A/c for the year ended 31st March, 2023 and Balance Sheet as on that date: 4+5+5=14

Trial Balance as on 31st March, 2023

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
Opening Stock Furniture Purchases Salaries Debtors Wages Rent Sales Return Bad debts written-off Drawings Printing and Stationery Insurance Other expenses	50,000 20,000 1,50,000 30,000 2,00,000 20,000 15,000 10,000 7,000 24,000 8,000 12,000 12,000	Capital Interest earned Sales Purchase return Creditors Provision for bad debts Provision for depreciation	1,00,000 4,000 3,21,000 5,000 1,20,000 6,000 2,000
	5,58,000		5,58,000

Additional Information:

(i) Depreciate furniture by 10% on original cost.

(ii) A provision for doubtful debts is to be created to the extent of 5% on sundry debtors.

(iii) Salaries for the month of March 2023 amounting to Rs. 3,000 were unpaid which must be provided for. However, salaries, included Rs. 2,000 paid in advance.

(iv) Insurance amounting to Rs. 2,000 is prepaid.

(v) Outstanding office expenses Rs. 8,000.

(vi) Stock used for private purposes Rs. 6,000.

Or

(b) What are adjusting entries? Why are these necessary for preparing Final Account? Explain with examples. 4+10=14

4. (a) The Balance Sheet of P, Q and R as at 31st March, 2023, the date of P’s retirement, was as follows:

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Creditors Capital A/c: P Q R	50,000 40,000 40,000 30,000	Goodwill Land & Building Plant & Machinery Furniture Debtors Cash at bank	15,000 40,000 28,000 27,000 24,000 26,000
	1,60,000		1,60,000

The following terms have been agreed upon:

(i) The value of Land and Building should be appreciated by Rs. 10,000.

(ii) Plant and Machinery should be reduced to Rs. 23,000.

(iii) Create provision at 5% on debtors for bad and doubtful debts.

(iv) Create provision of Rs. 700 on creditors.

(v) The entire sum payable to P is to be bought by Q and R in such a manner that their Capital Accounts are in the proportion to their profit-sharing ratio which is to be equal.

(vi) The remaining partners decided not to show goodwill as an asset.

Prepare Revaluation A/c, Capital Accounts, Bank A/c and Balance Sheet. 4+3+3+4=14

Or

(b) What is conversion method under single-entry system? Discuss how you would convert a set of books, which you had been kept on the single-entry system into double-entry with perspective and retrospective effect. 4+10=14

5. (a) (i) Explain the main features of Receipts and Payments Account. 6

(ii) From the following Receipts and Payments Account for the year ended 31st December, 2023 and other details of Dibru Club, prepare an Income and Expenditure Account for the year ended on 31st December, 2023:  8

Receipts	Amount	Payments	Amount
To Balance at bank on 1-1-2023 To Fees for 2022 To Fees for 2023 To Fees for 2024 To Sale of old furniture To Legacies To Donation To Donation for prize fund To Maintenance grant To Capital grant	10,000 900 19,000 1,500 600 11,000 2,000 5,000 6,000 9,300	By Salaries Rs. 2,000 for last year By Honorarium By Meeting expenses By Travelling expenses By Postage expenses By Stationery By Advance By Bank charge By Building construction By Rent, rates and taxes By Closing Balance at bank	12,000 2,000 3,500 2,000 1,000 1,900 1,300 150 19,000 3,000 19,450
	65,300		65,300

Other details:

(1) Salary outstanding Rs. 1,500.

(2) Rent outstanding Rs. 200.

(3) Provide depreciation on furniture Rs. 200 and building Rs. 500

Or

(b) What is depreciation? Why is depreciation important? Mention the features of Accounting Standard (AS)10 related to depreciation.

6. (a) A company purchased a machinery on hire-purchase system for Rs. 56,000, Rs. 15,000 paid down and three installments of Rs. 15,000 each at the end of the year. Rate of interest is charged at 5% per annum. Buyer is depreciating the machine at 10% p.a. on written-down value method. Because of financial difficulties, company after having paid down payment and first installment at the end of first year could not pay the second installment and the seller took possession of the machine. Seller after paying Rs. 500 on repairs of the machine sold it away for Rs. 30,200. Show the Ledger Accounts in the books of both the parties.    14

Or

(b) Explain the following:

(i) Book building process.

(ii) Statutory Audit under the Companies Act, 2013.

(iii) Books of Accounts under Section 128 of the Companies Act, 2013.  14