University of Delhi 2010-1st Year B.Com (Hon.) Marketing Management (HONS) FINACIAL ACCOUNTING UNIVERSITY - Question Paper
Financial Accounting Paper
Your Roll No .....................
This question paper contains 24 printed pages]
............
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Paper IIFINANCIAL ACCOUNTING (New Course . Admissions of 2004 and onwards)
Time : Part A : 2V Hours Maximum Marks : Part A - 45 1 For students of Time : Part B : 30 Minutes Maximum Marks : Part B - 10 J Regular College
Maximum Marks : Part A - 61 1 For students
Maximum Marks : Part B - 14 J of SOL
(Write your Roll No on the top immediately on receipt of this question paper)
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Note : Answers may be written either in English or in Hindi; but the same medium should be used throughout the paper.
This question paper has 2 parts. Part A is compulsory for all examinees.
Part B is meant only for those examinees who have not offered computerised
accounts (applicable for students of regular colleges). Students of SOL have
to attempt Part A and Part B Part A and Part B are to be answered on
separate answer-books.
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Note : The maximum marks printed on the question paper are applicable for the candidates registered with the School of Open Learning for the B.A.(Hons.)/B Com (Hons.). These marks will, however, be scaled down proportionately in respect of the students of regular colleges, at the time of posting of awards for compilation of result.
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Part A
1 State with reasons whether the following statements are True or False : 5 i
(i) A business entity can keep its accounts on accrual basis of accounting.
(a) Legal Fees paid to acquire a property is capital expenditure.
(iii) Higher depreciation will not affect cash profit of the business.
(iv) Receipts and Payments Account highlights total income and expenditure
(;v) Deferred revenue expenditure is current years revenue expenditure to be paid in later years
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, 2. (a) Define depreciation. What arethe contributory factors for decline in the value of fixed assets ? 4
(6) Mayur Traders, which depreciates its machinery at 10% p.a. according to Diminishing balance method, had on 1-1-2009 Rs. 4,86,000 balance in Machinery Account Part of the machinery purchased on 1-1-2007 for Rs. 60,000 was sold for Rs. 40,000 on 1st July, 2009 and a new machinery at a cost of Rs 70,000 was purchased and installed on the same date, installation charges being Rs. 5,000.
Mayur Traders wanted to change its method of depreciation on 1-1-2009 from Diminishing balance method to Straight line method
* with effect from 1-1-2007 The rate of depreciation remains the same
as beforej
Show Machinery Account for the year 2009. Also show your working
clearly. 10
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( 4 ) 6002
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T WhR 3 1-1-2009 4,86,000 ?.
I 1-1-2007 60,000 *. 3 fteT W *T#t %m 1 3,
2009 40,000 * 3 fn TT2Tf 3lk 70,000 cTFTcT
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5,000 3TTIT $ I
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The following are the details of material of Sai Mills
1-1-2009 |
Opening Stock |
100 units @ Rs 25 per unit y |
1-1-2009 |
Purchases |
200 units @ Rs. 30 per unit |
15-1-2009 |
Issued for consumption |
100 units |
1-2-2009 |
Purchases |
400 units @ Rs. 40 per unit |
15-2-2009 |
Issued for consumption |
200 units |
20-2-2009 |
Issued for consumption |
200 units |
1-3-2009 |
Purchases |
, 300 units @ Rs. 50 per unit |
15-3-2009 |
> Issued for consumption |
200 units |
( 5 ) 6002
Find out the cost of closing stock as on 31-3-2009 according to
(i) First m first out basis, and {ii) Weighted average price basis,
using perpetual inventory system Also calculate cost of closing inventory on | ||
LIFO basis under periodic system |
14 | |
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1-1-2009 |
snrf |
100 @ 25 Ufa |
1-1-2009 |
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200 $<*>IT @ 30 |
15-1-2009 |
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100 |
1-2-2009 |
400 @ 40 ? | |
15-2-2009 |
200 14 | |
20-2-2009 |
fair faffira |
200 ?)l?4 |
1-3-2009 |
<k I aiqn fnjfftd 1 3HWR u-3-2009 smw |
300 @ 50 |
15-3-2009 |
200 <ni*ici *iici : |
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3 A trader keeps his books of account under Single entry system. On 31st March, 2009, his Statement of Affairs stood as follows *
Liabilities |
Rs |
Assets |
Rs. |
Capital |
2,50.000 |
Furniture (Cost Rs 1,50,000) |
1,00,000 |
Trade Creditors |
5,80,000 |
Stock |
6,10,000 |
Bills Payable |
1,25,000 |
Trade Debtors |
1,48,000 |
Outstanding Expenses |
45,000 |
Bills Receivable |
60,000 |
Unexpired Insurance |
2,000 | ||
Cash and Bank |
80,000 | ||
: |
10,00,000 |
' |
10,00,000 |
The following was the summary of Cash Book for the year ended 31st March, 2010 :
Receipts
Rs
Rs.
Payments
To Balance b/d To Cash Sales To Receipts from Trade Debtors To Receipts from Bills Receivables |
By Trade Creditors By Bills Pi able met By Sundrjxpenses By Drawing 80,000 73,80,000 15,10,000 3,40,000 By Balanced |
75.07.000 8.15.000 . 6,20,700 2.40.000 1,27,300 |
Discount allowed to trade debtors and received from trade creditors amounted to Rs 36,000 and Rs 28,000 respectively. Bills endorsed amounted to Rs. 15,000 Annual Fire Insurance premium of Rs 6,000 was paid every year on 1st August for renewal of the policy. Furniture was subject to depreciation @ 15% per annum on reducing balance
You are also informed about the following balances as on 31st March,
Rs
6.50.000
1.52.000 75,000
1.40.000 5,000
Stock
Trade Debtors Bills Receivables Bills Payable Outstanding Expenses
The trader maintains a gross profit ratio of 10% on sales
Prepare Trading and Profit & Loss Account for the year ended 31st March,
2010 and Balance Sheet as on that date 14
133; 'raft siiprc 37 71 f | 31 2009
2,50,000 |
1,50,000 $.) |
1,00,000 | |
oMIMK 3 <rH<K |
5,80,000 |
few |
6,10,000 |
1,25,000 |
olMK fl |
1,48,000 | |
<Si4 |
45,000 |
60,000 | |
mHM |
2,000 | ||
80,000 | |||
10,00,000 |
10,00,000 |
31 2010 WF<T cf*f SRRI fF#tfect SIT : | ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
o4im<l <i<i fcqi *rai afe *irarct #Ri Tira *rci: 36,ooo |
#( 28,000 *n I 'iifchd fefi Tlftl 15,000 ? *ft I 6,000 ? BI cnflfo a#i tai gtfwt =n TflfM h41<+<ui i 5*
ynBR 'I'm I il 15% c(lRch tJT 'R iftt 3g9R TJ<r4<|W
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STIWt 31 *n, 2010 <Et ?15W (HHfciftsId M <fit ft *jf?ra fartJT trt I :
JZfa 6,50,000
otlimd 1,52,000
TIM 1%fT 75,000
fel ' 1,40,000
3rt <a4 5,000
oqrmt fe>t 10% ?rm syro xstTT t 1 -31 2010 fin sjto 3% Bro-rft 31 3% 35ft ?tr9Pa
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( 9 ) 6002
Or
(a) What is a contingent liability *> Give three examples of contingent liabilities. 4
(ib) Given below is the Trial Balance of Mr. Ramesh as on 31st December, 2009 :
Land and Building Office Machinery Furniture and Fittings Stock on 1-1-2009 Purchases and Sales Salaries:
* Rs 1,20,000
70.000
20.000 16,000
90.000
20.000 10,000
35.000
10.000
15.000
18.000 5,000
20,000
33,000
Rs.
2,20,000
I
Bad Debts
Debtors and Creditors Sales Tax
40,000
Rent, Rates and Taxes i
Advertisement J Drawings
Loan ;o Ashok 16% p.a. on 1-7-2009 Wages
Interest on Loan| Ashok
1,000
( 10 ) 6002 Bills Receivables 10,000 Trade Mark 8,000 Discount 1,000
\
Wages Payable * 2,000
Capital 1,98,000
Bank Overdraft 40,000
5,01,000 5,01,000
Additional Information *
(i) The value of stock on 31-12-2009, Rs. 30,000.
(;ii) Sales include Rs. 5,000 for the goods sold on approval to Hemant. Goods are sold at a profit of 25% on cost. Approval was not received till 31st December.
(i) Furniture purchased during the year for Rs. 5,000 was wrongly debited to Purchases Book.
(w) A cheque of Rs. 8,000 received from customers was deposited m the bank in the last week of December It was reported to have been dishonoured.
(v) Free samples worth Rs 4,000 were distributed during the year.
(vi) Write off further bad dsbts Rs. 2,00. Also create a provision for doubtful debts at 10*% on debtojj
(vii) Depreciate furniture by 10% ar
office machinery by 5%
Prepare Trading and Profit & Loss Ajmnt for the year ended 31st December, 2009 and a Balance Sheets on that date 10
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|
*
1,20,000
70.000
20.000 16,000
90.000
20.000 10,000
35.000
10.000
15.000
18.000
5.000 20,000
33.000
10.000
8.000
2,20,000
40,000
r
t
I
1,000
i |
i
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1-7-2009 16% -Jmte SRt Pltoi
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1,98,000
40,000
5,01,000 5,01,000
/
i
z
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X Co Ltd. purchased on 1-1-2008 from M/s R V Traders four machines having cash price Rs. 80,000 each on hire purchase basis. The payment was to be made as follows :
10% of cash price down, and
25% of cash price at the end of each of the following four years
X Co Ltd paid the first instalment but failed to pay the second instalment due on 31-12-2009 M/s R V Traders repossessed three machines leaving remaining one machine with the buyer The value of three machines was taken at cost less depreciation @ 20% pa on reducing balance method. M/s X Co. Ltd. changes depreciation at 10% p.a on reducing balance method on 31st December of each year.
M/s R V Traders spent Rs 42,000 on overhauling of the machines repossessed and sold two of the repossessed machines for Rs. 1,20,000.
Prepare necessary Ledger Accounts in the books of both the parties 14
X Co. Ltd 1-1-2008 3TR- 31TOR tr -R
3IHI *n :
xTPt 3KT if 25% I
X Co Ltd. 3RI farjj 31-12-2009 ERt 3RT
jjt[ 3 I eft #T flfacT Tfa m
cTFra XR 20% 'lFqf fen W I X Co Ltd. cf<$ 31
iiftra wwft *r 10% r wmft % i
3TR. 3 HnHt tR
42,000 3 fcyfo 3-1*1 1,20,000 I
Jcjidi rRR I
From the following Income and Expenditure Account of Mayur Club for the year ended 31st December, 2009, prepare Receipts and Payments Account for the year ended 31st December, 2009 and a Balance Sheet as on that date .
Income and Expenditure Account
(for the year ended 31-12-2009) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
.\ |
Fixed Assets Investments Cash at Bank Subscriptions Outstanding Subscriptions received in advance Expenses Outstanding Stationery y Telephone Electricity
(Rs)
96.000
54.000 3,600 6,000
12.000
1,200
600
1,400
(Rs)
64.000
94.000 ?
10.000 20,000
800
400
600
31 fWH, 2009 cjsf pHHrdfed SW-oW 3 31 few, 2009 Tnf*<T ak
>T cJrR-'IT5l cRR :
omr | |||
48,000 |
1,56,000 | ||
3,200 |
16,000 | ||
'Slch 3?R TR |
6,400 |
14,000 |
( 16 |
) |
6002 | |
<W<M 3-TR |
12,000 |
24,000 | |
-R |
16,000 |
i|M |
5,400 |
(h<i vfc |
2,400 | ||
wni |
4,000 | ||
fHdl TR |
12,000 | ||
6,000 | |||
"4> UsJ-'Usilfei |
18,800 |
* | |
-q< |
4,000 | ||
3 3m 3#ir -q* |
82,600 | ||
2,15,400 |
2,15,400 |
<sfa> *} 3JcTfl T v . WTT TIM 3hct1 TsT : *H<i WlH |
, 1-1-2009 96.000 54.000 3,600 600 |
31-12-2009 64,000, 94.000 - ? 800 400 |
5. X Co. Ltd , Mumbai invoices goods to its Delhi Branch at cost plus 25%. All expenses of the branch are met by Head Office and cash collected by the branch is sent to Head Office. From the following informations, prepare Branch Account and Goods sent to Branch A/c in the books of Head Office .
Rs.
Branch Stock at mvoice price on 1-1-09 20,000
1
Branch Debtors on 1-1-09 25,000
Branch Furniture on 1-1-09 40,000
Petty Cash on 1-1-09 3,000
*
Salary due for December, 2008 4,000 Goods sent to branch during the year (including
goods in transit) 2,00,000
Goods returned by Branch to Head Office 5,000
Goods returned by customers to Branch 4,000
Loss of goods in transit at I P. (not insured) 10,000
Cash Sales 70,000
t
Cash received from customers 90,000
Goods spoiled at I P (normal) 4,000
l
1,000
2,000
Bad Debts Discount allowed
Petty expenses incurred b Branch 2,000
/
Cheque received from Head Office for Salaries @ Rs. 4,000 p.m.
Rent
48.000
10.000 3,000
50,000
Petty Cash Delivery Van Branch Debtors on 31-12-09 Branch Stock on 31-12-09
1,11,000
30,000
Depreciate furniture and delivery van @ 10%. 14
X Co. Ltd., "3 STHt fc# W3\ 25% Wt
I i tiim eft 'enf oti sra I 3ifa if
Tfars w? 1 ftRfafecT $ otr 35
20,000
25.000
40.000
3.000
4.000 2,00,000
5.000
4.000
{
few, 2008
cri <ft 7TR3I irai Cjfa? qicr %?r)
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I
70.000
90.000
4.000
1.000 2,000 2,000
TJT?3 3 Tira TfaT?
isfaci m Tarra TFn -t?ra (wiri)
?irai sri fef
Tt*IH KFlfrPI fHHfcifefl gnf ifaj ;
4,000
48.000
10.000 3,000
50,000
1,11,000
30,000
?
31-12-09 WII RR
'+i-l[-q< sfR rJ 10% TR ',J5RT
Or
(ct) Distinguish bctwd Hire purchase system and Instalment system. 4
(6) A Head office inces goods to its branch at 20% less than the list price. The list p3 is made up by adding 100% to cost price. Goods are sold to c us tors at list price both by head office and branch. From the following Julars, prepare Trading and Profit & Loss Accounts
P.T.O.
for the year ended 31st March, 2010 to show profit made by Head Office and Branch on Wholesale Basis :
Opening Stock at Cost (at invoice price for branch) Purchases Goods sent to Branch at invoice price Sales Expenses |
Head Office Branch (Rs.) 24.000 1.44.000 1.20.000 6.000 10 (Rs) 60,000 |
(*>) TTfT-sF*! JTlirat 1W OTI# 3 Safari I
(T3) srnt 7ITOI $ 20% TR W
qr rar | i 3 100% Ftrf f 1 171 3VR 3?K ITST, -5JJ3J
% I 3 -3TO m JOB afa TOT 1RT
cim faaft f?rc; 31 2010 cpf sjptr w--
TOFT
(*)
60,000
6,00,000
TOST
00
24.000
1.44.000
1.20.000
6.000
9,00,000
1.30,000
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( 21 ) 6002 Part B
6. A, B and C shared profits and losses in the ratio of 5 : 3 : 2 respectively.
\
On 31st March, 2009 their Balance Sheet was as follows .
| ||||||||||||||||||||||||||||
\ |
The bank had a charge on althe assets. Furniture realised Rs. 6,000 and stock was sold for Rs. 50,0003s private estate realised Rs. 12,000 and his private liabilities i were Rs 1C00. C was unable to contribute anything. A paid one-third of what was <e from him on his own account *
Prepare Realisation Accountjash Account and Partners Capital Accounts,
passing all matters relating Realisation of assets and payment of liabilities
through Realisation Accoun ' 14
J P.T.O.
< 22 ) 6002 A, B C M?T: 5:3:2 3 eTTO-Slf% 3 WHFft f ! 31
*ln"4 |
- fN K | |||
60,000 |
\ |
22,000 | ||
* |
40,000 |
*&* |
96,000 | |
C 1 'JWi T3I |
20,000 |
<1+4 |
2,000 | |
KR |
60,000 |
Wrf-r Hoi i |
80,000 | |
lF il |
20,000 | |||
' |
2,00,000 |
2,00,000 |
50,000 iFTl I B M 12,000
frsft 10,000 ?. vlt i c *fl3TCKR i a %
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Or
i
(a) Explain the rule of Gamer Vslurray.
(6) A, B and C were partners sharing profits and losses in the ratio of 4 3 : 1. Their Balance Sheet as on 31st March, 2009 was as follows :
Liabilities |
Rs. |
Assets |
Rs. |
As Capital A/c |
1,05,000 |
Building |
90,000 |
Bs Capital A/c |
45,000 |
Machinery |
30,000 |
Cs Capital A/c |
75,000 |
Stock |
82,500 |
Bank Loan (Secured) |
13,500 |
Debtors |
90,000 |
Creditors |
39,000 | ||
As Loan |
15,000 | ||
> |
2,92,500 |
2,92,500 |
They decided to dissolve the business. The assets were realised gradually and the net amounts were distributed immediately as
| ||||||||||||||||||||||||||||
Show the distiution of cash among partners using maximum possible |
loss method.
10
(T3) A, B 4 C 4 3 1 t WTftK
r i qi in-4 onno 73 ttfrtt-tft ?xr Tnrrrr sm .
| ||||||||||||||||||||||||||||||||
3#[ *i<hk 1 fsrafei 1 '4' 3 |
cicft if sfa 5 nftrai ih wr $mn pn ;
30 33,000 3,000
30 lent 25,200 2,200
30 . 57,000 4,500
30 WR 68,000 8,000
31 fe*iK 1,08,000 10,000
3lfcR TWI# T WW 3 TfaTS
I
6002 24 12,000
Attachment: |
Earning: Approval pending. |