Centre for Development of Advanced Computing(C-DAC) 2005 M.C.A Financial Accounting - Question Paper

END-TERM exam
Paper Code: MCA-109 Subject: Financial Accounting
FIRST SEMESTER [MCA] - DECEMBER 2005
Time: three Hours (Batch – 2004 & 2005) Maximum Marks: 60

Q. 1. (a) Distinguish ranging from the following:-
(i) Cash Discount and Trade Discount
(ii) Joint Venture and Partnership
(b) discuss the following:-
(i) Contingent Liabilities
(ii) Finance Lease
(iii) Account Current
(iv) Self Balancing Ledger
(v) Objectives of providing Ledger
(vi) Matching of cost and revenue.
Q. 2. What do you mean by ‘normal loss’ and ‘abnormal loss’ in consignment? How are they
treated in the books of account for consignor?
Q. 3. What do you understand by ‘bank reconciliation statement’? discuss its utility as a
control tool.
Q. 4. Elucidate (clarify) the subsequent statement:-
(a) “Agreement of trial balance is not a conclusive proof of accuracy of accounting
records”.
(b) “Accounting formula holds good under all circumstances”.
(c) “Single entry system of book-keeping us an unscientific incomplete and defective
system”.
(d) “Revenue earned and cost of earning revenue should be properly identified for a
period.
Q. 5. What is diminishing balance method of depreciation? define its advantages and
disadvantages.
Q. 6. (a) What do you understand by the following:-
(i) Profitability Ratio
(ii) Turnover Ratio
(iii)Financial Ratio
(b) elaborate the advantages and limitations of Ration Analysis?
Paper Code: MCA-109 Subject: Financial Accounting
Note: Attempt 5 ques. in all, including Q. one which is compulsory.
Q. 7. Under which major head will you classify the subsequent item while preparing the
balance sheet of the company?
(a) Debenture
(b) Capital Reserve Account
(c) Public Deposits
(d) Forfeited Shares Account
(e) Sundry Creditors
(f) Advances received from customer
(g) Bills receivables
(h) Preliminary Expenses
(i) Goodwill
(j) Share Premium
Q. 8. Suman Company has the subsequent Inventory, Purchase and sales data for August :-
Inventory August one 100 Units @ Rs. 5
Purchase August five 600Units @ Rs. 6
August 11 300 Units @ Rs. 8
August 23 400 Units @ Rs. 9
Sales August nine 400 Units
August 18 500 Units
August 28 200 Units
The physical inventory count on August 31 indicates 300 units in hand. calculate the cost
of inventory on hand on 31 August and cost of goods sold for August under every of the
subsequent methods:-
First In 1st Out
Last In 1st Out
Q. 9. (a) What characteristics should an asset possess to be classified as inventory?
(b) Under what circumstances will you treat interest charges as product cost?
(c) Why the Inventory costing method is needed?

Earning:   Approval pending.