You are on page 1of 14

MODEL PAPER

B.Com Iyr. Examination 2011-12


FINANCIAL ACCOUNTING
Time : 3 Hours
M.Marks: 75
Part A [ Marks : 45]
Time : One and half hours
Answer all questions. All questions carry equal marks.
Part B [ Marks : 30]
Time : one and half hours
Answer any three questions out of five. All questions carry equal
marks.
1. Cash book is a
i ri r
a. Ledger account
b. Subsidiary account
c. Subsidiary journal and ledger account.
d. None of these
2. The accounting equation based on dual aspect concept is-
l,i (iiii iiiln ii -ii r
a. Capital = liabilities- Assets
b. Liabilities= Capital + Assets
c. Assets = Equities
d. Capital + Assets = Claims of outsiders
3. Prepaid insurance is an example of
((n i-i iri r
a. A liabilities
b. An asset
c. An expense
d. An income
4. Debit note provides basis for preparing
l- i- i l iii -n ni r
a. P/R Book
b. Sales book
c. S/R book
d. Purchase book
5. A Schedule of balances drawn from ledger is called
iiniri l iii i; i (ii i rini r
a. A trial balance
b. A statement of affairs
c. A balance sheet
d. A statement of account
6. Sales are equal to
l( i r
a. Cost of goods sold + Net profit
b. Net profit+ expenses + cost+ goods sold
c. Gross Profit+ cost of goods sold+ expenses
d. None
7. Error of principle arises when
l,i-i i il, rini r
a. There are wrong castings and wrong postings
b. There is a partial omission in recording
c. Distinction is not made in Capital and revenue
d. S/R recorded as P/R
8. Freight Rs. 250 paid on new machine was charged to carriage
inwards account, it is an error of
i -ii iii zra . inl iii iin - lii ni, r il, r
a. Principle
b. Commission
c. omission
d. Compensatory
9. The basic function of financial accounting is to
l(-ni ii i - i r
a. Record all business transactions
b. Interpret the financial data
c. Assist Mgt. in performing functions effectively
d. Attain non-economical goals
10. IF total charge of depreciation and maintenance are
considered, the method which provides a equal change in P & L
a/c is
l -~ ri ( i ii( i i ii i ni iiril iin - -i
ii ini r
a. SM
b. WDV
c. G F Method
d. Annuity method
11. Depreciation is a method of
-~ ri l(li r
a. Valuation
b. Allocation
c. valuation and allocation both
d. none of these
12. Depreciation on a machine of Rs. 4000 at 10% for 3 years by
reducing balance method will be
i-n ii l(li a lnin i : (i - aaa . i -ii -~
ri rini
a. 2916
b. 1000
c. 100
d. 900
13. If abnormal loss occurs before reporting the normal loss, the
burden of normal loss will be
i-i ril r l i-i ril rini r ni i-i ril i ii rini
a. Good quantity
b. sales quantity
c. Abnormal loss as well as good quantity
d. None of the above
14. Del credere commission is allowed to the consignee to
bear
iii i liii -ii i (r l li ini r
a. Normal loss
b. Abnormal loss
c. Indirect expenses
d. Loss of Bad debts
15. "Joint venture with Y" is an example of
(Y ii n iini iri r)
a. Nominal a/c
b. Memorandum a/c
c. Real a/c
d. Personal a/c
16. Under sectional balancing, the ledger which is usually made to
balance is
(ni n - l iiniiri i nln li ini r (r r
a. Debtors ledger
b. Creditors ledger
c. General ledger
d. none of these
17. General ledger adjustment a/c are opened in
i-i iiniri -ii iini - iii ini r
a. Sales ledger
b. Purchase ledger
c. Neither in sales nor in purchase ledger
d. In both
18. "Goods on consignment is sent at proforma invoice price at
25% profit on cost, at the end of year goods remained unsold of
Rs. 1000. Consigner will show it in his books at
i i -ni - ; nini
a. 12500
b. 10000
c. 12000
d. 8000
19. Average clause is application for claim computation, when
i(i liii - in (iii in rini r
a. there is a under insurance
b. there is a over insurance
c. no insurance
d. none of these
20. In case of average clause the loss is suffered by both the
insurer and insured
in i- ( i-iiii ,ii ril (r i ini r
a. In equal ratio
b. only by insurer
c. In ratio of risk covered or policy
d. none of these
21. If net profit is Rs. 100,000, total stauding charges Rs. 6000 of
which Rs. 1000 are uninsured and sales is Rs.10,00,000, the rate
of gross profit is
ii i rini
a. 10%
b. 16%
c. 6%
d. 15%
22. H. P.P. is
lii -~ r
a. Cash price
b. Cash price + interest payable
c. Sales price
d. None of these
23. Down payment in higher purchase agreement is made on
lii i - nn inni li ini r
a. On date of agreement
b. With first installment
c. with last installment
d. when goods is repossessed
24. Receipt and payment account is prepared on
iln inni iini ii ini r
a. accrual basis
b. cash basis
c. Realization basis
d. none of these
25. Income and expenditure account is just like a
i iini i iini r
a. Cash book
b. Profit and loss account
c. Capital account
d. none of these
26. Legacies are generally treated as
(in i ii i li ini r
a. As revenue receipt
b. as expenditure
c. as an income
d. capitalized in B/s
27. Standard turn over means
-i l( r
a. Turn over in indemnity period.
b. Turn over in previous year corresponding to indemnity
period.
c. Reduction in turn over.
d. Annual turn over.
28. When actual royalty is less than minimum rent amount of
difference is known as
(i-nl( lii i~, n- li - ri, ni n i ili
rini r
a. Short warnings
b. excess warnings
c. rent
d. none of these
29. Excess warning means
lii ili ii r
a. Minimum rent - actual royalty
b. actual royalty - minimum rent
c. Nazrana
d. None of these
30. Patent royalty is calculated on
-( lii i~ i nii i ini r
a. On basis of production
b. on basis of sales
c. on both basis
d. none of these
31. Inter branch transactions means
-i iiii (ri ii r
a. Transaction between branches
b. Transaction between branches & H.O.
c. Both a and b
d. none of these
32. Branch keeping only few memorandum books and cash book
for own transactions is known as
iiii i (rii l ri ( s --i -n ini r,
rini r
a. Domestic branches
b. Dependent branches
c. independent branches
d. none of these
33. Balance of branch adjustment account is transferred to
iiii -ii iin i ii r-ninin li ini r
a. on B/s
b. On P &L of branch
c. general P &L a/c of H.O.
d. none of these
34. rent of departmental store is shared by departments
l(iini ii i li l(li l(iini - i-i ini r
a. Equally
b. on sales ratio
c. in ratio of area occupied
d. none of these
35. Departmental profit/ loss is transferred to
l(iini iiril i r--iinin li ini r
a. Trading a/c
b. In general Profit- loss account
c. In balance sheet
d. None of these
36. Advertisement expenses are charged to departments in
l(ni i i l(iini - i-i ini r
a. Sales ratio
b. In purchase ratio
c. Equally
d. none of these
37. In a partnership , minimum of number at partners is
inii - - inii i n- i r
a. 10
b. 20
c. 2
d. 5
38. In the absence of deed, partner shall share profits in the ratio
i ii( - ii l(ii in rini
a. 2 : 3
b. 1 : 1
c. 2 : 3
d. 4 : 5
39. Liablities of partners in a firm is
- - inii i il-( rini r
a. Limited
b. unlimited
c. Personal
d. Joint
40. Interest on drawing is a
iri i r
a. Income
b. expense
c. Both
d. None of these
41. Partner's current account balances are
inii i iini ii rin r
a. Debit
b. Credit
c. Debit or credit
d. none of these
42. In absence of deed, interest on capital is payable at
i ii( - i i l-ni r
a. 5 % p.a.
b. 10% p.a.
c. 6%p.a.
d. nothing
43. When capital accounts are fluctuating , loss due to insolvency
of a partner be share as per rule of Garner v/s Murray in ratio of
ni i- - l- i l(nii i iin ri ni l(ili
i ril i i-i ini r
a. Fixed capitals
b. Profit-sharing
c. adjusted capitals
d. none of these
44. Premium paid by new partner on admission be shared by old
partners in ratio of.
ini ,ii i; ni ii i ili i inii ,ii l in
- i-i ini
a. Sacrifice
b. Gaining
c. old profit ratio
d. Equally
45. In absence of deed, interest as advance by a partner is payable
at
i ii( - ini ln- i rini r
a. 6% p.a.
b. 5%p.a.
c. 10 % p.a.
d. 12% p.a.