This question paper contains 16+3 printed pages] Roll No. LILI I S.No. of Question Paper: 8408 Unique Paper Code 2 22411101 J Name of the Paper Financial Accounting Name of the Course : B.Com. Hons.) Semester I Duration :3 Hours Maximum Marks : 55 Note : (Write your Roll No. on the top immediately on receipt of this question paper.) (Sa wet & frend Gt are feu Te Prater eas ste sraEAia fafae 1) Answers may be written either in English or in Hindi; but the same medium should be used throughout the paper. feuoit : ya waa a Se ST or feet feat we an | difsu; afer at sai wl mea we a a afew | Attempt all questions. Show your workings clearly. at wei & ae dif: srt erie are wy a aeigas (@)_ Explain the need and importance of Accounting Standards. 5 cel wnat at sragaeat Sik Tet aaa Or/(3taaN) (@) Explain the convention of ‘Materiality’ giving examples. Does Materiality contradict ‘Full Disclosure’ ? 5 Se AI EU haa S afrana (aia) ast caren sf) aa ifaw ‘qo wade’ a dea aa & 2 PTO.(o) From the following Trial Balance of Geeta, you are required to prepare (2) 8408 10 (i). Trading and Profit and Loss Account for the year ended on 31st March, 2017, and (ii) Balance Sheet as on that date. Debit Balances z Credit Balances z Stock on 1-4-2016 70,000 | Capital 3,00,000 Plant and Machinery 3,50,000 | Wages Outstanding 4,000 Rent 30,000 | Sales 5,00,000 Depreciation on Plant and Creditors 45,000 Machinery 15,000 | Bills Payable 16,000 Wages 20,000 | Discount 12,000 Salary for 11 months 11,000 | Commission 8,000 Cash 27,000 Purchases 2,70,000 Debtors 80,000 Discount 2,000 Carriage Inwards 4,000 Bad debts 6,000 8,85,000 8,85,000 Adjustments ( Stock on 31st March, 2017 was 2 96,000. (ii) Stock destroyed by fire was ¥ 6,000 and the Insurance Company accepted a claim for 7 3,600.(3) 8408 (iii) & 1,600 paid as rent of the office was debited to Landlord account (included in Debtors). (iv) Write off further bad debts 7 4,000. Sales include sales on return basis. Approval for sale of = 2,500 has not been received till 1-3-2017. The rate of gross profit on this sale was 25% on cost. aha & frafafiad aaa aaa a anaat war @ : @ 31 Ar 2017 A ware ad SH fre oo wa aIN-a GT, TAT Gy Ta fafa a acta vies are ae z war te z 1-4-2016 eter 70,000 | sit 3,00,000 wie ud agit 3,50,000 | Asgdt aera 4,000 frat 30,000 | fant 5,00,000 wiz ws ae AER 45,000 aera (Aa) 15,000 | 24 faa 16,000 asgtt 20,000 | = 12,000 1 Fé ar ar 11,000 | ate 8,000 tag 27,000 aie 2,70,000 AER 80,000 z 2,000 aa TET 4,000 6,000 8,85,000 8,85,000 PTO.aarator : (31 Ad, 2017 BT Rls 96,000 ATI @) am 4 Fe BA Ste 6,000 a aa at Hart 3 x 3,600 a aa eter fran Gi) Brees S feat S ws A yar feu ve z 1,600 FHM As S GM A oem fae me (eer Feit) (iv) % 4,000 F awa wo az GTA sea 7M fast fama arret & sree we 81 31-3-2017 aH % 2,500 at faat H faa eas ve fret &1 ea fat KR WHA oY a a aITA We 25% eH! Or (3AM) Prepare an Income and Expenditure Account for a College for the year ended 31st March, 2017 and a Balance Sheet as on that date from the following information : 10 Receipts | Payments z Cash (1-4-2016) 50,000 | Pay and Allowances 22,00,000 Postage Stamps (1-4-2016) 700 | Books for Library 50,000 Tuition Fees 2,00,000 | Postage and Stationery 12,000 Fines 10,500 | Newspapers 2,000 Annual Grant from Government] 30,00,000 | Science Lab Equipment 22,000 Interest on Securities 28,000 | Repairs and Maintenance 18,000 Rent from use of Hall 70,000 | Audit Fees 8,000 Grant for Building Fund 20,00,000 | Additions to college building | 30,00,000 Cash in hand (31-3-2017) 46,600 Postage Stamps (31-3-2017) 600 53,59,200 53,59,2005) The College had the following assets on 31st March, 2016 : Furniture — % 3,00,000; College Building — % 4,00,00,000; Library Books — % 80,000; Science Equipment — % 3,00,000; 10% Investments — 3,00,000 and Oustanding Tuition fees — % 22,000. Provide for Depreciation on the closing balances of the following assets : Land and Buildings @ 5%; Furniture @ 15% and Library Books and Science Equipment @ 20%. 31 rd, 2017 A Tara BU as SH fee uw we a soa |r TAR aifae aa frefafad arert a set fafa at acta vite wt aiec : vafteat z aaa z FRE (THF) (1-4-2016) arm fea] (1-4-2016) @Rr wa wR wer a aff ager wrayfeat ae ears ga & arin a fern var fafa & fae agen 50,000 700 2,00,000 10,500 30,00,000 28,000 70,000 20,00,000 an ak 7a aresrt & fer fara se wa eer WaTaR-Ta fear ca STR We Ud warara Faw YEH alas fatter 4 of wereA VHS (31-3-2017) erp fem]! (31-3-2017) 22,00,000 50,000 12,000 2,000 22,000 18,000 8,000 30,00,000 46,600 600 53,59,200 PTO.(6) ates & 7a 31 ae, 2016 frefafad aaftet af: Tria — & 3,00,000; sles fates — zx 4,00,00,000; ergartt fararel — & 80,000; faa STH — F 3,00,000; Fra 10% — % 3,00,000 TM FHT ZARA wre — & 22,000. Pefafad venir & aaa wa nw yee yer wif : yf wd WaT @ o%; Wie @ 15% TH Tet fead sit faa soRCT @ 20%! X purchased a second-hand machinery on 1-2-2015 for % 80,000; paid & 12,000 for its overhauling and 8,000 for its installation which was completed by 31-3-2015. The company provides depreciation on its machinery at 20% p.a. on diminishing balance method from the date it was put to use and closes its books on 31 December every year. On 1-10-2016, a repair work was carried out on the machine and % 5,000 were paid for the same. The machine was sold on 31-10-2017 for a sum of % 21,000 and an amount of & 2,000 was paid as dismantling charges. Prepare Machinery Account and Provision for Depreciation on Machinery Account from 2015 to 2017. 6 X 7 1-2-2015 Ft % 80,000 7 we yet aia aidl, saat mea S few % 12,000 den gaat carr FH fre z 8,000 a Ta fren Hh 31-3-2015 dH Ye va sent x oe 31 ae ww art yea F sain ak ae we at fate 8 vedt Fa vata we 20% wf ad at ae a art aeind Arras yer wet FI 1-10-2016 Hl AM Te A aI aT feat aT sik% 5,000 Bt Tart feat Tart AR wT 31-10-2017 #1 % 21,000 F Fa fea Tar sit & 2,000 et ORT ar pra faser yew FH wa A fea wa 2015 @ 2017 a Aviad Ge an Agia aM Ke AeA wae Fae aifarm ‘What is the significance of inventory valuation ? What is the difference between Periodic and Perpetual System of Inventory Valuation ? 4 Tea gal year at a neat @ ? srafeen wd afta ae get yee vata Ham six & ? Or/(aaN) Kavita purchased a machine for % 80,000 on Ist April 2015. She charges depreciation on Straight Line Method and closes her books on December 31st every year. The machine has a useful life of 8 years after which it can be sold for 7 8,000. She purchased another machine on May Ist 2016 for % 45,000 with 5 years useful life and nil residual value. In 2017, the first machine was sold for % 50,000 on June 30th when a new machine was purchased for % 30,000 with 3 years useful life and % 3,000 as residual value. Prepare the machinery account for the 3 years ending December 31, 2017. faa 3 1 sie, 2015 # & 80,000 4 ww aia aid) ae dh tar dala T Wee a ant at @ ak wee ad 31 fea A at Gers aig at td G1 aia aT 8 ae ar srt Stara & fram ae = z 8,000 Faq oT aaa 81 Sat 1 FE 2010 HS Ha S sear star sik YS safe yer F Ha % 45,000 F us si eta adh! 2017 F sect ae P.T.O.(8) 8408 30 3H FF & 50,000 4 aa At 7g wah 3 aa S seat street are aa HAIG YET % 3,000 are uH aE Axia z 30,000 F aeiets 31 faa, 2017 @ waa a aa 3 aa & fee aid art dar aif Calculate the value of closing inventory according to Weighted Average Method on March 31, 2019 : March 01 (Stock in hand) 600 units @ & 12 per unit March 05 Purchases 7,500 units @ & 13 per unit March 10 Sold 6,000 units @ % 15 per unit March 12 Sold 1,100 units @ & 18 per unit March 14 Purchased 5,000 units 13 per unit March 22 Sold 4,500 units @ % 23 per unit March 30 Purchase returns 500 units (out of goods purchased on March 14) 31 ard, 2019 @ afta sted fafa BS aqER Baa Art Eat ACI st TT wife: o1 ard (aa F whe) 600 afte @ % 12 via afre 05 ard 7,500 afte @ % 13 Wa afte wt ate 10 AP 6,000 Bre @ % 15 wha afre et fast 12 Arf 1,100 ae @ & 18 wha afre at farset 14 ard 5,000 ate @ % 13 Wa are aetdt mE 22 ard 4,500 afte @ % 23 wha afre wt fast 30 ard at ade amet soo afe (14 ard #t GMa me aA FA(a) 8408 Sharma sold 5 machines costing % 1,00,000 each to Verma on hire purchase basis on 1-1-2016. Verma paid % 1,00,000 on the above date and agreed to pay the balance in five yearly instalments of ¥ 80,000 each together with interest @ 10% p.a. starting from 31-12-2016. Verma charges Depreciation @ 10% p.a on Diminishing Balance Method. Books are closed on 31st December every year. Verma could not pay the third instalment in time whereupon Sharma repossessed two machines at an agreed value of cash price less 40%, Sharma sold one of the repossessed machines for % 45,000 after incurring % 2,000 on its repairs. ‘Show relevant accounts in the books of both the parties showing all your workings. 7 wat 3 11-2016 a fareen HA SHIT TL We F 1,00,000 FT ATA caret uta asi aat at ast ani a acer fates a e 1,00,000 a1 ya feat en de af aT BATA 31-12-2016 B YR VA ae wf TH @ 10% Ft @ ora S we ¢ 80,000 + uta feed A a ee S fae we EI ani 3 aaa wy vehi we via ad 10% qesere age fea Ke eT 31 fear # gerd aie a ort €) aa se ara died fara a gra aa ax ae frae wat 3 a ave aI ae AEA A 40% SH FEMI TI we Gate fran wai A geier at ng weit a a ww He 2,000 F AEE wari & ae x 45,000 4 aa fea aaa at ari-faaen feat ee Sat vei et geval af wafad ant free! How is Operating Lease different from Financial Lease ? waren veg fata year 8 fea var fit ?( 10 ) Or/(3IAM) (@__ From the following particulars find the profit for the year ended 31-03-2019 using Stock and Debtors System. The gross profit is 30% on sale price : 2018 April] Stock in the shop April Instalments Overdue April Stock out with the customers at H.P. price 2019 March 31 Stock in the shop March 31 — Instalments Overdue Goods purchased for sale on H.P. during the year Cash received during the year Goods repossessed (Instalments due 5,000) valued at 7 z 18,000 20,000 40,000 63,000 22,000 1,85,000 1,80,000 2,000 fra fear & ete aan Sean vefa a sat aa BE 31-03-2019 A BATA add fre ay ad aif) fast yea He aH oy 30% 8 : 2018 lata gan A ete 13a arn fret Lave HP. Wea Ww meat a7 stock out 2019 4M ger Wf ete 315 aera fred aad che Hp. fast & fae ade ca am ad & eh wa aa Art #1 Ge (aera fExt 5,000) yfera 63,000. 22,000 1,85,000 1,80,000 2,000(i) () Give Journal entries in the books of Lessee in case of Financial Lease. fia veer} wa A weeeres at qeat fo oa vfafed? ifr (@) Mrs. Lahiri & Daughters, Delhi has a branch at Jaipur. Goods are invoiced at cost plus 25% which is the selling price of the branch. From the following, prepare Jaipur Branch Account (Debtors System) to calculate the profit for the year ending 31st December, 2018 Balances as on January 1, 2018 Branch Stock at Invoice Price Branch Debtors Branch Cash (for Petty expenses) Transactions during 2018 Goods invoiced to Branch 3,00,000 Goods returned by branch to head office 12,500 Credit sales at branch 1,75,000 Cash sales at branch 90,000 Cash received from Debtors at branch 1,76,000 Cash sent for Rent and Salaries to branch 28,000 Discount allowed to branch debtors 1,000 Petty Expenses at Branch 3,000 Balances as on 31st December, 2018 Branch Stock Branch Debtors(12) 8408 sit aed wa Afzal, feet at sage A UH war Fi Ae aMTA + 25% tae oR utfea fran sia & St men ar fama yea @1 Frafefad a, 31 fearat 2018 Bara BA aa aE S fer aH wt OT |e F fey TA wat ara (27K vefa a) dan wife : 1 wad, 2018 SY AH TAT aime eI K weal ele Ura SER wal tes (qe aal & fer) ad 2018 & @RM crea aie era at are AST ERA ERI Ve Safes Hl Ale ATT urea 4% sar fast wren H aae fast war 4 trai & ura tag fara wi an & fae yee we a AT wren @aent at ge at orqafa ct 7g wa a qa ad 31 fea, 2018 HT AT TAT wal ee ara Sree 3,00,000 12,500 1,75,000 90,000. 1,76,000 28,000 1,000 3,000(6) (13°) ‘A Company has 3 Departments for which the details are given as follows Department A Department B_ Department C Floor Area occupied 20% 30% 50% Sales 1,00,000 2,00,000 3,00,000 No. of Employees 100 120 150 Allocate the following expenses to the 3 departments : Rent = 80,000 Lighting % 12,000 Selling Expenses % 42,000 Labour Welfare Expenses = 18,500 we ser & de fam & fis faa frerqar fea mE : ferart A faut B ferart C afied wet uf 20% 30% 50% fast 1,00,000 2,00,000 3,00,000 ata at den 100 120 150 am faut #1 srdfeq at : ferrat % 80,000 War = 12,000 fast ad % 42,000 = 18,500@ ( Or/( 3A) 14) M/s XYZ Ltd. has branches at Delhi and Agra and goods are invoiced at cost plus a profit of 20% on sales. The following information is available of the transactions at Delhi branch for the year ending 31st March, 2018 Stock at Invoice Price (1-4-2017) Debtors (1-4-2017) Petty Cash (1-4-2017) Petty Cash (31-03-2018) Debtors (31-03-2018) Stock at Invoice price (31-03-2018) Transactions during 2017-18 : Goods sent to branch (at cost) Goods retumed by branch to HO (at invoice price) Cash sales Credit sales Normal loss at IP Goods Pilfered at IP Cash sent for petty expenses Bad debts at Delhi branch Goods retumed by Debtors 7 40,000. 12,000 150 250 11,000 50,000 261,000 15,000 1,05,000 1,80,000 350 3,000 32,000 400 500(15) 8408 You are required to calculate the profit by making the Branch Adjustment and Profit and Loss Account under Stock and Debtor System. 4. xyz fa. af fect oar amma 4H mari & ak wea ama aan fast we 20% & aM afer ators a AT ra &1 31 Arh 2018 A waa AA a ad & fee feet mar ¥ arty at feifefiaa amant sae & : aie Ara Ww Re (1-4-2017) ‘CARR (1-4-2017) GI WHS (1-4-2017) Ge WHS (31-03-2018) ‘AR (31-03-2018) ate AST RTH (31-03-2018) 2017-18 & Sha SA : Ural Bl Are AST (MTA HR) Wa Ee yer araira ear aa Aon (ators AT wR) ae fast san fast PR wars att IPR Ae aed aa Gaal & few vee tT feet war H arity azo eran er Ae are 40,000 12,000 150 11,000 50,000 2,61,000 15,000 1,05,000 1,80,000 350 32,000( 16 ) 8408 ame! Rae ak SeR salt F sits meat Ussete sear c—eht Gar ret aM at TORT wee (6) State the basis of allocation of common expenditures among different departments. 3 fafa foam cha am oi & ardeq a are aaa A, B and C were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. As on December 31, 2018, they decided to dissolve the firm and B was appointed to realise the assets and distribute the cash. B is entitled to 5% commission on the amounts received from stock and debtors. The Balance Sheet of the firm on the date of dissolution was as below : 10 Liabilities z | Assets z Creditors 6,00,000 | Cash at Bank 15,000 Capital Accounts : Debtors 4,55,000 A 3,00,000 Stock 5,00,000 B _2,00,000 5,00,000 | Profit and Loss Account 1,00,000 Capital Account - C 30,000 11,00,000 11,00,000 B reported that the assets realized as : Debtors % 4,50,000; Goodwill % 20,000 and stock & 3,50,000. Creditors were paid % 5,75,000 in full settlement. However, an old liability of the firm was found that was omitted from the books and had to be paid % 25,000. C was insolvent and paid only 50% of what was due from him on his own account. Prepare Realisation Account, Bank Account and Partners’ Capital Accounts.(17) 8408 A BINC4:3:3% agra Fay ak a ga ae ae WH HE S ater 91 31 fewer, 2018 H se wl Sr sin ae ar heen farm atk Bat waft wl aye BA se THdt feats we H fee frgaa fen wa Bela ate Sent A ara Ukr we 5% a a Han 81 fener at fate we we at ada vite frei van at : eam z uftamfrat z eR 6,00,000 | aH tas 15,000 st aa : eR 4,55,000 A 3,00,000 wa 5,00,000 B —_2,00,000 5,00,000 | =H-eft erat 1,00,000 hit aa -c 30,000 11,00,000 11,00,000 BA warn fe anf st age eq yar e : PAK © 4,50,000; GAM & 20,000 ik whe & 3,50,0001 Arar at yh ya FT % 5,75,000 24 8) wef wh ar ue ye afar oe men a fa qa & wea fen eH aM Ba % 25,000 HI YAM feet aT ac feafern et wT sie wes GM Fact 50% FI YAM fea wT at wget ara, te ara an ate & Pst |@a area PTO.( 18 ) Or/ (3a) Sarita, Gunjan and Reema are in Partnership. The following is their Balance Sheet as on 31st March on which date they dissolved the partnership. They share profit in the ratio Sr32) 10 Liabilities Assets Secured Loan 1,00,000 | Cash at Bank 20,000 Creditors 2,20,000 | Debtors 3,00,000 Gunjan’s Loan 50,000 | Stock 5,00,000 Sarita’s Capital 3,00,000 | Profit and Loss Account . 1,00,000 Gunjan’s Capital 2,80,000 | Reema’s Capital Account 30,000 9,50,000 9,50,000 It was agreed to repay the amounts due to the Partners as and when the Assets were realized. There was a contingent liability for % 15,000. Expenses of Realisation were estimated at % 10,000. Assets realized as follows 15th April & 50,000 Ist May 1,96,000. Contingent liability was paid % 10,000. 31st May 1,84,000. Actual expenses amounted to % 8,000. Prepare a statement showing the distribution of cash among the partners.( 19 ) 8408 afta, asa ait ten arftert 4 €1 31 arf ah saat ade vie frafatiad + fore fer 8 anfient ait at tt 81 5.3.08 aqua am aw dan at = : gaat z z 1,00,000 20,000 eR 2,20,000 3,00,000 SH FT 50,000 5,00,000 attr at st 3,00,000 | @ra-eft erat 1,00,000 Tr at hi 2,80,000 | tn ar dsit crear 30,000 9,50,000 * 9,50,000 va vier st age ef at uteri F aan of gant we ent ei © 15,000 # fore sreaferas 2am et age & we 10,000 @A a AAA eT Ta vferafeat fer yar aga e : 15 SY — % 50,000 14g 2 1,96,0001 seafarers eat a ya fara z 10,000 31 % 1,84,0001 arRafae ad x 8,000 4 uniter & ata adh S ferro at caf aren feafa-faacr fax sites 8408 19 18,000