Total Pages: 02 KNU/2021/SEM I/BCOMHC101

UG 1st Semester Examination- 2021

Award: B.Com. (Honours)
Discipline: Commerce
Course Type : CC-1
Course Code : BCOMHC101
Course Name: Financial Accounting
Full Marks: 40 Time: 2 Hours
The figures in the right-hand margin indicate full marks. Candidates are required to give the answers
in their own words as far as practicable. Illustrate the answers wherever necessary.

1. Answer any five questions : 5x1=5

(a) What is the full form of GAAP?

(b) Define accounting
(c) What is Recurring Expenditure?
(d) Give an example of Deferred Revenue Expenditure.
(e) What is meant by Cash Down Price?
(f) What is pro forma invoice?
(g) What is entity concept?
(h) What is meant by dissolution of a partnership firm?

2. Answer any five questions : 5x2=10

(a) Distinguish between Capital expenditure and Revenue Expenditure.

(b) What are the adjustment accounts opened in General Ledger in case of Self Balancing
system?
(c) What is Piecemeal Distribution in connection with the dissolution of Partnership?
(d) What is the treatment of abnormal loss in the books of the consignor?
(e) What is contingent liability? Give one example.
(f) What is Del-credere Commission?
(g) What is journal proper?
(h) What is Account Sales?

3. Answer any three questions: 3x5=15

(a) Distinguish between hire Purchase system and Instalment payment system.

(b) State in brief the decision of Garner vs. Murray case. Is the rule in Garner vs. Murray
applicable in India?

(c) Distinguish between sectional balancing system and self-balancing system.

(d) A of Mumbai sent goods worth Rs. 12000 to B of Kolkata to be sold on a 5%

commission. Rs. 300 were spent on sending the goods. B sold three fourth of the
goods for Rs. 10000 and spent Rs. 600 in connection therewith. Insurance premium of
Rs. 150 was also paid by B. A fire broke out and destroyed the remaining goods. Rs.
3000 were recovered from the insurance company.

Prepare Consignment Account in the books of A

 (e) From the following information, prepare Debtors Ledger Adjustment Account to be
maintained in the General Ledger, where Self-Balancing System is followed:
Opening Balance of Debtors Rs. 25,000 (Dr.)
Opening Balance of Debtors Rs. 600 (Cr.)
Credit Sales during the year Rs. 75,000
Cash received from Debtors Rs. 50,000
Discount Allowed Rs. 2,000
Bad Debts written off Rs. 700
Reserve for Bad Debts Rs. 1,000
Bad Debts Recovered Rs. 100
Bills Receivable received from customers Rs. 2,000
Bills dishonored Rs. 500
Closing Balance of Debtors Rs. 100 (Cr.)

4. Answer any one question: 1x10=10

(a) Explain: (i) Going Concern Concept (ii) Doctrine of Conservatism (5+5)

(b) Mr X sells goods on hire purchase basis at a profit of 50% on cost. Prepare Hire
Purchase Trading Account from the following particulars :
Rs.
Hire Purchase stock (at selling price) on 1.1.2020 9,000
Instalment due on 1.1.2020 5,000
Goods sold on hire purchase during the year (at selling price) 87,000
Cash received from hire purchase customers during the year 60,000
Goods repossessed (instalment due Rs. 2000) valued at 500
Hire Purchase stock (at selling price) on 31.12.2020 30,000
Instalment due on 31.12.2020 9,000

(c) Mr. A, Mr. B and Mr. C were partners in a firm sharing profits and losses in the ratio
of 2:2:1. The Balance Sheet as on 31st December, 2021 was as follows:

Liabilities Rs. Assets Rs.

Sundry Creditors 25,000 Cash 3,000
Bills Payable 12,000 Sundry Debtors 20,000
Capital A/Cs: Mr A 40,000 Less, Provision 1,000 19,000
Mr B 40,000 Closing Stock 30,000
Mr C 30,000 110,000 Furniture 10,000
Reserve 15,000 Plant & Machinery 40,000
Building 60,000
162,000 162,000

On 31st December, 2021 Mr B retired. The terms of retirement provided the

following:
(i) Goodwill of the firm to be valued at Rs.20,000.
(ii) Furniture and Plant & Machinery are to be depreciated @ 10% and @ 5%
respectively.
(iii)Provisions for doubtful debts is to be increased to Rs.1,500.
(iv) The Reserve is to be transferred to the Capital Accounts of the partners.
(v) The amount due to Mr B is to be transferred to a separate Loan Account
carrying interest @ 10% p.a.
Show the Partners Capital Accounts, Revaluation Account and the Balance Sheet
immediately after Mr B’s retirement.