Dy ‘The Bhopal School of Social Sciences, Bhopal )2\B.Com., First Semester Examination (Jan. 2023) oe 4) Financial Accounting 4 Paper Code: BCOM101 3)2 [olele[o] dz Question Paper Code: 23S81CP41 me 3 Hrs Max. Marks : 60 Course Outcomes CO1: Acquire conceptual knowledge of basics of ac identify the financial events that need to be recorded in the accounting books. C02: Equip with the knowledge of accounting process for various methods of Depreciation and the preparation of final accounts in the books of a sole trader. CO3: Develop the skill of specific accounting for Branch and Departments. CO4: Describe the role of Royalty and Consignment accounting. COS: Equip with the knowledge of accounting process regarding the winding up (dissolution) of partnership firm in different situations. | J} Questions are framed on the basis of Course Outcomes. Section A (Short Answer Type Questions) Attempt all questions. Each question carries 4 marks. QNo.I Distinguish between Book Keeping and Accountancy? OR ‘State which of the account will show a Debit Balance and a Credit Balance: a) Capital A/c b) Building A/c c) Bank Overdraft Aled) Creditors A/c €) Discount allowed A/c f) Carriage Inward A/c _g) Outstanding expenses. h) Carriage Outward A/c. QNo2 ‘What do you understand by Trading Account? Why is it different from Profit and Loss iy Account? OR From the following particulars, calculate cost of goods sold and gross profit Opening stock Rs. 8,500, Purchases Rs, 30,700, Direct Expenses Rs. 4,800, Indirect expenses Rs. 5,200, Closing stock Rs. 9,000 and Sales Rs. 38,500. QNo3 From the following details, allocate expense among three departments: L, M, N. ‘Department> L M N Sales —_[ Rs. 1,00,000 | Rs. 60,000 Rs. 40,000 Purchases Rs. 30,000 | Rs. 20,000 | Rs. 10,000 ‘Area Occupied 400 Sq.Ft. | 200 SqFt. 100 Sq.Ft. Expenses (Rs.): Bad Debts 400; Rent 3500; Advertising 2000; Carriage Inward 480 OR Prepare Branch Debtors’ Account from the following details of Indore Branch in the books of Mis Aakash, Bhopal. ‘Opening Debiors 5,000 Discount allowed to customers | 500 Credit Sales 30,000 | Bad Debts. 1,500 Cash received from Customers | 10,000 | Goods Returned By Customers | 3,000 1QNo4 QNo.5 sold stock with consignee? OR a hs Prepare an analytical table of royalties from the following: a) Minimum Rent — Rs.10,000 p.a. b) Royalty — Re. 1 per ton c) Short-workings are recoverable during the first 3 years d) Output during the first three years = 2,000, 5,000 and 15,000 tons respectively. How valuation is done for un: Write the assets & the liabilities which are taken to realization account? OR What do you mean by Amalgamation of partnership firms? What its advantageous? Section B (Long Answer Type Questions) Attenapt all questions, Each question carries 8 marks, QNo6 QNo7 ‘What are accounting concepts? Explain any six concepts OR Pass Journal entries in the books of Raghu from the following transaction: 2022 June 1 — Raghu started business with cash Rs.80,000; Goods Rs. 40,000 and furniture Rs. 20,000. June 2 Sold goods to Nandlal of the list price of Rs. 20,000 at trade discount June4 —Nandlal returned goods of the list price of Rs. 4,000 ae June 8 Received from Nandlal Rs. 14,150 in full settlement of his account, June 10 Purchased goods from Brij Mohan ofthe lst price of Rs, 10,000 at 15% trade discount. ‘ June 13 Returned goods to Brij Mohan of the list price of Rs. 1,000 Tune 16 Settled the account of Brij Mohan by paying cash under a discount of 4% June 18 Purchased goods from Anil Rs.5,000; Sunil Rs.10,000 : Paid cash to Anil Rs. 1,900 and discount received Rs. 100 June 19 June 20 Paid Rs. 9,800 to Sunil in full settlement of his account. June 28 Sold goods for cash ofthe list price of Rs. 10,000 @10% trade discount and 5» cash discount. % Explain any four methods of Depreciation Following balances were extracted from the books of Vijay on 31st March, 2022: [ Particulars Rs. Particulars on] Capital 72,45,000 | Loan at Drawings 120,000 | Sales lee General Expenses 47,400 | Purchases ee Building 1,10,000 | Motor Car ao Machinery ‘93,400 | Provision for Doubtful Debts 3,000 ‘Stock on Ist April, 2021 1,62,000 | Commission (Cr.) ~ 13200 Insurance 13,150 | Car Expenses a Wages 72,000 | Bills Payable sean Debiors 62,800 | Cash 300 Creditors 25,000 | Bank Overdraft — Bad Debts _ 5,500 | Charity en Prepare Trading and Profit and Loss Account for the year ended 31st March, 2022 and Balance Sheet as at that date after giving effect to the following adjustmenter (@) Stock as on 31st March, 2022 was valued at Rs. 2,30,000. (©) Write off further Rs, 1,800 as Bad Debts and maintain the Provision for Doubtfi] Debts af 5%. - (©) Depreciate Machinery at 10%. (@) Provide Rs. 7,000 as outstanding interest on loan. 2Qno8 QNo.9 QNo.10 > oe principles or basis of allocation of different expenses among different OR aye and Company of Bhopal has their branch at Gwalior which sells goods for cash From the following transactions between the Head Office and Branch Office for the year ending 31st March, 2021; prepare Gwalior Branch Account: Rs. Stock at 1* April, 2020 [20,000 | Goods Supplied to Bran Cash sent to Branch for: (Rent 200 ; Other Expenses 100) 300 ‘Cash received from Branch during the year 60,000 Closing Stock at 31st March, 2021 15,000 Closing Balance of Petty Cash 10 ‘What do you mean by consignment? What entries are passed in the books of consignor? OR Hemanth leased an oil well from Venkat Oil Ltd. on 1-1-2010, The minimum rent was Rs.2,00,000 and royalty was Rs.20 per ton of crude oil raised. The short-workings were recoverable in the succeeding two years of such short-workings. The output during the first 4 years were — 5,500; 8,000; 11,250; 12,500 tons. Prepare Royalty Ale, Short-workings Alc and Venkat Oil Ltd’s A/c in the books of Hemanth. Explain Gamer VS Murray Rule in case of fixed & floating capital. How it is different from the Indian Practice Rule? OR 'A and B agreed to dissolve their business of Partnership on 31% March, 2021 on which data their Balance Sheet was as follows bed Rs. Creditors 12,000 | Cash 2,000 A’s Loan 16,000 | Debtors 10,000 Capitals: Rs. Stock “0000 A 40,000 Plant - 28,000 | «. B 20,000 60,000 | Goodwill 8,000 88,000 38,000 ‘The partners share profits and losses in the ratio of their capital. The Sundry Debtors realized Rs. 8,400, Stock Rs. 36,000, Plant 20% less than the book value and the Goodwill Rs. 12,000. The creditors were paid-off at a discount of 5% and the cost of dissolution accounted to Rs. 1,200. Open the dissolution account and other accounts showing disposal of cash balance. eeeB.Com, First Semester Examination (March 2022) Financial Accounting Paper Code: BCOM101 & Question Paper Code: 22S1CP41 Roll No, Max. Marks: 60 Attempt all questions, Each question QNo.1 QNo.2 QNo.3 QNo4 QNo.S Section A (Short Answer Type Questions) carries 4 marks, Explain the qualitative characteristics of Accounting Information. OR Prepare trial balance from the following information: : Purchases Rs. 40,000; Provision For Doubtful Debts Rs 5,000; Discount Received Rs 3,000; Bad Debts Written Off Rs. 1,000; Livestock Rs 4,000; Capital Rs 90,000; Sundry Creditors Rs 22,000; Amount Due from Vinod Rs 45,000; Carriage Inward Rs 10,000; Carriage Outwards Rs 6,000 and Profit & Loss Account (Dr.) Rs 14,000. ‘Write a short note on accounting features, OR Define the term “Voucher entry.” Discuss type of voucher entries in Tally. From the following particulars, calculate cost of goods sold and gross profit: Opening stock Rs. 8,500, Purchase Rs.30,700, Direct Express Rs.4,800, Indirect expenses Rs. 5,200, Closing stock Rs. 9,000 and Sales Rs. 38,500. OR Explain the effects of depreciation on Profit and Loss Account and Balance Sheet. Show the accounting treatment for the following: * Reserves in the Balance Sheet atthe time of admission of a new partner. . Partner A has contributed Rs 60,000 and B has contributed Rs.40,000. There is an 8% interest on capital provided in the partnership deed but there is a loss of Rs. 10,000 during the year. OR Explain how ‘mutual agency’ relationship between the partners. Also discuss whether a minor can be made a partner in the partnership firm, Discuss the Objects of Keeping Branch Accounts. OR Explain the financial statements to be prepared for Non-Profit Organization. Section B (Long Answer Type Questions) Attempt all questions. Each question carries 8 marks. QNo6 Pass journal entries for the following transactions: i. Paid wages in cash for installation of a new machinery Rs.2,500 ti, Bricks, cement, etc, for Rs.1,50,000 and timber for Rs.2,00,000 purchased for the construction of building. Payment was made by cheque. Hi, Goods valued at Rs.2,500 distributed from stock as samples, as pat ofan advertising campaign. iv. Paid rent Rs.25,000 and income tax Rs, 5,000. Received commission of Rs.10000 by cheque, half of the amount is in advance. Wi A pew machine of Rs.2,40,000 was purchased in exchange of an old machine valued at Rs.50,000 and the balance through cheque vii, Paid rent of building Rs. 15,000 by cheque. Half of the building is used by the proprietor for residential use, Received cash from Mohan Rs.10,000 for bad debts written off last year. 1 osQNo7 QNos QNo.9 Blucidate the application of the following Accounting Princip] a OR Jes in recording of financial transactions and also in preparing financial statements. i. ii, iii, iv. v. Business Entity Going Concem Accrual Periodicity Consistency Prudence Materiality viii, Cost Explain the option available in company feature menu & its application. o1 What do you mean by company set-up features? Explain different types of accounting features in Tally. ERP 9. ‘What do you mean by the adjustments in financial statements? Explain the important adjustments, ‘Record the 1 S< 2B What is Revaluation A/c? Discuss why revaluation the time of admission of a new partner? Show the oR following adjustment entries on 31st March 202 Rent for 3 months amounting to Rs.900 outstanding. Salary for the month of April 2021 Rs. 7,500 has been paid in advance. Interest eared but not received amounting to Rs. 2,000. Charge depreciation at 5% on machinery worth Rs. 5,000 and at 10% on building worth Rs. 20,000. Allow interest on capital of Rs. 20,000 at 5%. Charge interest on drawings of Rs. 800 at the rate of 5%. of assets and liabilities is required at = treatment of revaluation in the books of partnership firm. 31, Given below is the Balance Sheet of A and B, provision for bad and doubt unrecorded to the extent of accounts, and show the Balance ‘who are carrying on partnership busine 12.2021. A and B share profits and losses in the ratio of 2:1" Zi Trt Tibia ‘Amount (Rs) | Assets Amount (Rs) Bills Payable 10,000 | Cash in Hand 10,000 Creditors 58,000 | Cash at Banke 40,000 Guistanding Exper 2,000 | Sundry Debtors 60,000 Capitals: 3,30,000 | Stock '1,80,000 et B 1,50,000 Plant 1,00,000 Buildings 1,50,000 3,00,006 — 4:00.00 a Ratner on the date of the balance sheet on the following terms: Rs. 1,00,000 as his capital and Rs. 60,000 as his share of goodwill for Gd Plant is to be appreciated to Rs. 1,20,000 and the value of ‘et be appreciated by 10%, (iii) Stock is found over valued by Rs. 4,000. (iv) A tful debts is to be created at 5% of debtors. (v) Creditors were Rs. 1,000. Prepare the revaluation account and partners’ capital Sheet after the admission of C.QNNo.10 Mis Sandeep, having head office at Dethi has a branch at Kolkata, The Head office does wholesale trade only at cost plus 80%, The Goods are sent to Branch at the wholesale price i.e. Cost plus 80%: The branch at Kolkata wholly engaged in the retail trade and the goods are sold at cost to Head office plus 100% following are the details furnished for the year 31 March , 2021 Particulars Head Office | Kolkata Branch Opening Stock 1,25,000 = Purchases 21,50,000 = Goods sent to Branch at Wholesale price 7,38,000, = Sales 23,79,600 730,000 Office expenses 50,000 4,500 Selling expenses 32,000 3,300 Staff Salary 50,000 8000 You are required to prepare Trading and profit & loss account of head office and Branch for the year ending 31 March 2021. OR ‘The following is the Receipts and Payments Accounts of Gandhi Club, Modi Nagar for the year ended 31 March, 2021: Receipts Amount Payments Amount To Balance bid 1,500 | By Salaries 1,400 To Subscription 2014-15 1,400 | By Advertisement 750, ‘To Subscription 2015-16 2,100 | By Furniture 1,300 To Subscription 2016-17 1,200 | By Investment 1,500 To Donation 1,460 | By Newspaper 50. To Entrance Fee 1,540 | By Creditors 2,000 To Profit on Entertainment 600 | By Balance c/a 2,845 To Interest on Investment 45 97845; 9,845 On T* April 2020, the assets and liabilities were: Building Rs 8000, Furniture Rs 2,700, Creditors Rs 2,000 Adjustments: 1. Total members 250, each pays Rs 10 as subscription. 2. Interest on Investments @6% p.a. for 6 months is accrued. 3, Half of the entrance fees is to be capitalized. 4. Salary has been paid up to 31* January 2021 only 5. Depreciation on furniture including purchases at 10% Prepare Income and Expenditure Account for the year ended 31 March, 2021 and Balance Sheet as on that date.