DOMBIVLI SHIKSHAN PRASARAK MANDAL’S,

K.V. PENDHARKAR (Autonomous) COLLEGE OF ARTS, SCIENCE AND

COMMERCE,
DOMBIVLI (EAST), DIST. THANE

FYBAF SEM 1
INTERNAL EXAM 2
FINANCIAL ACCOUNTING I

 Due date of submission of assignment is 18th October,2022

 Name your assignment in the mentioned format- Name- Roll No- Subject
 Submit your assignment in hardcopy to Asst. Prof Shruti Bhosle.
Allocate the following indirect expenses

1. Freight inward, octroi etc.

2. Depreciation, repairs
3. Insurance of Assets
4. Staff welfare
5. Contribution to P.F./ESIS
6. Costs of Stores department
7. Costs of Personnel department
8. Costs of Repairs workshop
9. Costs of Canteen
10. Production/Factory expenses
11. Selling & Distribution Expenses
12. Rent, taxes, repairs of building
13. Power
14. Administrative/Office expenses
15. Lighting

2. A, B, C are three departments of Departmental Store. Following are some mutual ratios:
Departments
A B C
(i) Sales Ratio 3 2 1
(ii) Space Occupied Ratio 1 1 1
(iii) Employees Ratio 4 3 2
(iv) Purchases Ratio 7 2 1
Allocate the following expenditure in three departments :
(1) Advertisement Expenses Rs 4200
(2) Salary Rs 4500
(3) Bad Debts Rs 2400
(4) Rent Rs 1800
(5) Purchase Expenses Rs 2000
(6) Carriage Inward 300
(7) Carriage Outward 1200

3. Difference between Capital Expenditure and Revenue Expenditure

4. Difference between Capital Receipt and Revenue Receipt

5. Difference between Hire Purchase Agreement and Instalment Purchase Agreement.

6. State whether the following are Capital expenditure/receipt or revenue expenditure/receipt

(1) Customs duty paid on raw materials purchased.
(2) Wages paid to carpenter for making furniture.
(3) Sale of old machinery.
(4) Term Loan taken from Bank.
(5) Commission received on Sales.
(6) Brokerage paid on Purchase of Land.
(7) Purchased a plot of land for rs 25,00,000 and paid & 1,00,000 fees for registration and
allotment.
(8) Received Rs 3,00,000 on issue of 15% debentures.
(9) Interest of & 8,000 paid on Bank Overdraft.
(10) Paid Rs 6,000 as Excise duty on goods manufactured.
(11) A petrol engine of a passenger bus was replaced by a diesel engine, Rs 70,000.
(12) Paid 2 1,00,000 as tees for renewal of license for factory.
(13) Received Rs 2,000 as dividend on shares.

6. Explain Hire purchase and what are the features of Hire purchase

7. Explain Hire purchase and what are the contents or terms in Hire purchase.

8. Explain AS10. Brief about the items for which AS10 does not apply.

10. From the following illustration analyse the terms of Hire purchase agreement. (Like Hire
Purchaser, Hire Vendor, cash price, Interest, Hire purchase price, Down payment, Instalments)
On 1st January, 2021 M/S Monika Metals purchased one compressing Machine from HMT Ltd. On
hire purchase system the cash price of the machine is Rs.3,20,000. The firm paid down payment
Rs.1,00,000 on 1st January 2021 and balance in 3 annual instalment of Rs.80,000, 80,000 and
82478 respectively on 31st December of every year. Rate of interest is 5%p.a.

AS 10 Property, Plant and Equipment prescribe the accounting treatment

for properties, P&E (Plant and Equipment) so that the users of financial
statements could recognize and appreciate the information about the
investment made by any enterprise in property, P&E and the also
understand the changes made in such investments.

Recognition of Asset under AS 10 Property, Plant and Equipment

The cost of property and P&E should be recognized as an asset only if: (i) it
is apparent that the future economic benefits related to such asset would
flow to the business; and (ii) the cost of such asset could be reliably
measured.
Applicability of AS 10 Property, Plant and Equipment

AS 10 is to be applied in accounting for property, P&E (Plant and

Equipment) and this standard are not applicable to:

(a) biological assets which are related to agricultural activities except for
bearer plants. The Standard is applicable to bearer plants, however, it
doesn’t apply to the produce on bearer plants; and

(b) wasting assets which include mineral rights, expenses related to

exploration for and extraction of oil, minerals, natural gas and other non-
regenerative resources.