Hemwati Nandan Bahuguna Garhwal University 2006 B.Com FINANCIAL ACCOUNTING - Question Paper

1. True/False: (a) Rest is preferential under both the provincial Insolvency Act and presidency Town Insolvency Act (b) In the books of lessor the Royalty Reserve Account appears on the liabilities side of the balance sheet. (c) Premiums are recorded in the right side of Reserve of Reserve Account of General Insurance Company.
2. Fill in the Blanks: (a) Accounting in bank book is done according to _________system. (b) If Profit on goods supplied to branch is 40% cost,it will be_______% of Sales.
3. What is the difference ranging from Revenue Account and Net Revenue Account?
4. What is the difference ranging from the insolvency of an individual and insolvency of a firm?
5. On the first January ,2002 a printing company purchased machinery on the installment payment system.The cash Price of the machine is Rs.4000. Rs 800 paid on delivery and 4 annual installment of Rs.800 every are paid on 31 December. In addition interest is to be charged at 6% per annum on yearly balances. Show the vendors Account in the books of the Printing Company for the period of the agreement,assuming that all payments were duly made.
6. A business is carried on in 3 departments A,B and C. The subsequent informations relate to departments on 31-3-2007: Opening Stock: Dept. A-20000,Dept B-18000,Dept C-25000 Closing Stocks: Dept A-4000,Dept B-6000,Dept C-18000 Purchases: Dept A-120000,Dept B-140000,Dept C-80000 Sales: Dept A-180000,Dept B-210000,Dept C-150000 Wages: Dept A-7000,Dept B-10000,Dept C-8000 Space Ratio: Dept A-3,Dept B-2,Dept C-4 Other Expences are as under: (a) Rent and Taxes Rs.18000 (b) Advertisement Rs.9000 (c) Discount allowed Rs.1800 (d) Sundary Expences Rs.30000 (to be divided in 3 department in the ratio of 3,2 and one ) (e)Bad dept Rs.3600 (f)Depreciation Rs.6000 (to be divided equally) On the basis of above informations prepare Departmental Trading and Profit & Loss Account.
7. The Profit as shown by the Revenue Account of an Accident Insurance Company for the year ending 31 March 2006 is Rs.180000 before taking the subsequent into consideration: (i) Claims initimaed and but not paid Rs.20000 (ii) Claims recoverable under reinsurance Rs.6000 (iii) Interest accrued but not received Rs.3000 (iv) Management expences outstanding Rs.8000 (v) Commision due to agents not yet paid Rs.2000 Pass Journal entries for the above omission.
8. Write the nature importance and limitations of th financial statements.
9. explain the chief features and relative advantagges and disadvantages of double Account System as compared with Single Account System.
10. Dr. S.M.Negi wrote a book on Account and gave the right of its printing and sales of Sahitya Bhawan Publication,Delhi at a royalty of 10% on the printed price of the copies sold up to 31 March every year. The printed price of the book is Rs 100. The amount of royalty is paid on 31st August subsequent and books are closed on 31 March.The Publisheres submitted the accounts as under: Year ended-31-3-2001,31-3-2002,31-3-2003,31-3-2004 Copies Printed-3000,3900,5000,6000 Specimen given-350,460,520,700 Damaged-50,80,100,200 Closing Stocks-500,600,800,900

Earning:   Approval pending.