This question paper contains 1648 printed pages] Roll No, S.No. of Question Paper; 6611 Unique Paper Code : 52411101 FC Name of the Paper : Financial Accounting Nameofthe Course: B.Com.(Prog.) CBCS Semester Jal Duration :3 Hours ‘Maximum Marks : 75 (Part A: 24 Hrs., Part B : 30 Minutes) (Part A: 55 marks, Part B : 20 marks) (Write your Roll No. on the top immediately on. receipt of this question paper.) . (weve F fred at arn feu ae Prtiea Sar at seein ferfaw 1) Note : © Answers may be written either in English or in Hindi; but the same medium should be used throughout the paper: femoft : a yews a ott ar fect feet cH om F cise; afer a aR am mem we a dat afer 1 This question paper has ‘wo parts. Part A is compulsory for all the examinees. Part B is meani for only those examinees who have not offered Computerized Accounts. Part A dnd Part B are to be answered on separate answer-books. ‘Attempt All questions, Show your working notes clearly. Fa wea Hatta 1 amr ‘ay at enka @ fae afar) 31 am ‘a’ daa a vend & fare 8 fa weytiga Setar ar fees wei fee a) am ‘ay’ aan at ‘a! aah ay yaa, sa afer Hat) eet get ga ai soar oR ee wT A card PTO.(2) 6611 PART A (att ‘31) State with reasons whether the following statements.are true or false. (@__ Expenditure which results in the acquisition of a fixed asset of enduring benefits, is a capital expenditure. (®) _InIndia, accounting standard are issued by Securities and Exchange Board of India (SEBD. i: (©, The provision for discount on debtors is calculated before deducting the provision for doubtful debts from debtors. 3 ar afed saga fr srifefad wer ae € seat ara: @ te 2a fren cio, cafe am 3 at wrt wate at wa ear %, ita om aa 21 () are 4, sates ae, ada wfayfa wa fama ag (sEBD art ant fre aH 1 © Pe Rw SF wae a vitae, seri Fa wer ao A Wau ay wer & ae fen orm 3 (@) - Distinguish between wasting assets and fictitious assets by giving examples. 5 (®) Write short notes on any two of the following (Accrual Concept (i Convention of Consistency / (iif) Limitations of Accounting 8@ ® ‘© C3) 6611 sorta versie ten carafe uefa a, sere 2a, araiie afar ‘ aifefar 4 8 fet dow afd ofr fated ; @ SI sae @ FABIA st vitae Gi) Farer st dh) ar (sta) The following is the Trial Balance of Mr. Flipside as on 31st March, 2015 : Particulars (Debit) | [Particulars (Credit) z Stock (1-4-2014) 93,600 | Flipside’s Capital 1,73,380 Purchases © 648,400] Sates 7,79,200 Retum Inwards 17,200 | Return Outwards 11,600 Carrigge Inwards 37,200 | Sundry Creditors 29,600 Rent & Rates, 11,400 | Bank Loan @ 8% per annum Salaries : 18,600] (1-4-2014) 40,000 Sundry Debtors 48,000 | Miscellaneous Income 1,100 Interest on Bank Loan 2,400 | Discount received 8,380C4) 6611 _ Advertisement 30,000 Cash at Bank 6,000 Discount allowed 3,600 * Fumiture 10,000 General Expenses 22,906 Insurance 1,800 Postage and Telegrams 4,660 Cash in Hand 760 Travelling Expenses 1,740 Drawings 80,000 Computer 10,000 10;43,260 10,43,260 Adjustments (Stock as on-31st March, 2015 was 7 1,09,000. (i) Sales include ® 5,000 for goods sold on approval basis. Goods'are sold at a profit of 25 percent on cost. Approval was not received till 31st March, 2015. (iii) Write off bad debts of % 600. Create a provision for doubtful debts @ 5 percent.C5) 6611 (iv) Advertisement expenditure relates to launch of a new product. This amount is to be written off over a period of 5 years. (v) Depreciate furniture @ 10% per annum and computer @ 20% per annum. (vi) A new machinery was purchased on credit and installed on 31st March, 2015, costing % 15,000. No entry for the same has yet been made in the books, Prepare Trading Account, Profit and Loss Account for the year ending 31st March, 2015 and Balance Sheet as on that date after making necessary adjustments. 13 314M, 2015 @ af frrrags at ude afar ar dom et: : ait Gite) t | ait ates) z te (1-4-2014) 93,600 | fremags at Yi 1,73,380 wa 6,43,400 | fast 7,79,200 ret are 17,200 | are areett 11,600 aa TE AIST 37,200 | fafa GaeK 29,600 feca der wari at 11,400, is am @ 9% ats : ar 18,600 | (1-4-2014) 40,000 fafirr erere 48,000 | faferr sare 1,100 ae on os 2,400 | Fe wret at 8,380 Feary 30,000 P.T.O.CG») 6611 aa i tae 6,000 ging 3,600 wit 10,000 aa ory 22,900 apn 1,800 oe wa afer 4,660 wet tas 760 aaa oe 1,740 FETT 80,000 rT 10,000 10,43,260 . 10,43,260 aaratert @ 31 APE, 2015 BH lw z 1,09,000 a1 (a) fat St oe A arpier — fast Bz 5,000 wits F1 Ara, aT WK 25% aS STI we Ta TAT S131 URL 2015 aH AA A ayer ura vat wa a (i) © 600 Sara ao FAM faa en itera Baer F fare sie a waa afore @) far oe, we ae we & fae H fer wT et am za ate AS ad at aaft F Bern ar 21 oF3. (7). 6611 @) WHR Te 10% aie te aC TR 20% aie st a a we oA (v) 31 APE, 2015 BF 15,000 arma St we ag aR soe eet we aan wa eafaa ft ae fen wan fq eh fee yest A ane vfatte ad at me) ART VAIS RS EY, 31 AS, 2015 Hl aay at aS fore sara Ter eTA-aAA am tar fe ae sa fafa a gea-wa aaa *(@ What do you mean by ‘depreciation’ ? Brielly explain he provisions of Accounting Standard 6 (AS-6). 5 (0) The following are th inventory details of Sri Mills for the month of October, 2015 Date ‘Transaction Units Price per Unit (%) 1-10-2015 Opening Stock 1100 30. 7-10-2015 Purchases 700 2 15-10-2015 Issued for Consumption 600 = 16-10-2015 Purchases 500 35 20-10-2015 Issued for Consumption 1300 > 29-10-2015 Farchases 750 37 31-10-2015 | Issued for Consumption 475 - Prepare Stores Ledger Account and calculate value of closing stock as per FIFO.and LIFO ‘method urider perpetual system of inventory valuation. 8 P.T.O.6611 (@@ Free F aman waea & 2 calor wAe-6 (As-6) FH waum daa A. ) area | ar ot fea st sega, 2015 He # greed ar fea fet mae: fate Fear wet [ae ae 1-10-2015 arf eis 1100. 30 7-10-2015 wa at 700 32 ‘102015 sri & fee ort : 600 _ 16-10-2015 a St, 500 35 20-10-2015 ora & fer art 1300 _ 29-10:2015 wa at 730 37 31-10-2015 sind ort 415 — ead cet aa Tar aif aan sed Aer Sh aaa vaht. B ayET FIFO 7 Liro fafirat gra afar ete an aca a aif31st March, 2015 : (9 Or ) (sreren).' (©) The following is Receipts and Payments Account of Countryside Club for the year ended Receipts and Payments Account For the year ending 31st March, 2015 6611 Receipts Amount [Payments Aniount @ ® Cash in hand (1-04-2014) 22,500 | Bank Overdraft (1-04-2014) 46,300 Subscriptions : Sofa purchased on 1-04-2014 | 21,750 2013-14 4,500 Honorarium to Singer 45,000 2014-15 2,43,000 Salaries 43,500 2015-16 2.250 2,49,750 | Sundry Expenses = 49,500 Donations 4,350 | Drama Expenses 13,350 Life Membership Fees 10,050 | Stationery 21,300 , Interest on Securities 7,200 | Balance as 31st March, 2015 : Sale proceeds on Old Cash in Hand - 8,250 Cupboard (Nil Book Value) 1,800 | Cash at Bank 46,500 2,95,650 | 2,95,650 PTO.( 10 ) 6611 Prepare Income and Expenditure Account for the Club for the ydar ended 31st March, 2015 ‘and Balance Sheet as at that date having due regard to ‘the following additional information : ( Stock of Stationery on 31st March, 2014 was & i,875 and on 31st March 2015 was % 1,305. : (i Outstanding Salaries for the year amounted to & 8,250. (ii) The club has 2160 members paying annual subscription of & 125 each. « (iv) Prepaid Sundry Expenses on 31st March, 2014 were & 11980. () As on 31st March, 2014, Building stood at 3,67,500; Computer at € 15,000 and Investments at € 97.500, (vi) Depreciate building, sofa and computer @ 6% per annum.: “13 31 ar, 2015 at war ad & fry armat artes dere ar waits de a era fer wa ae aw afafer ora at atoms: afte site sera wrat ai ard, 2015 wt BET at fare Ge Ea ® 22,500 | da staegre (14 t 7 | 14-2014) 46,500 fee: ja (i. 4.2014 FY eer) | 24,750 i / | Tee eer 45,0002014-15. 2,43,000 2015-16 2,250 7 arse weer wT way 1 eT Wet areata fast, - (et Geel AE) 2,49,750 4,350 10,050 7,200 1,800 2,95,650 fafaa oa a a ad eat 31 ard, 2015 ae tag aa teas 6611 43,500 49,500 13,350 21,300 8,250 46,500 2,95,650 31. ard, 2015 at Gar a & fore aera a ora tke ora eM aA TaN Freaferfiat atefer arent & ae A qea-wa area: () | Bed a Khe 31 TE 2014 FT 1,875 MT TM 31 APE 2015 SH F 1,305 A (i) WHS fae 2a ae = 8,250 M1 (iii) aaa $200 wee Baa vee ww ale sive ¢ 105 8 (iv) 31 FA, 2014 a fata aa Hz 1,980 yt ca a (o) 31 Ad, 2014 Ht eT F 3,67,500; HEART F 15,000 Ta Frat z 97,500 AI (i) er, SH a HA Toy ois at at a yee cA P.T.O.4, (12) 6611 (@) Angel Cabs purchased 3 cars costing % 5,00,000 each from Freedom Motors on Ist April 2012 on hire-purchase basis. The terms of delivery were as follows : @ 20% of the cash price to be paid on signing the agreement, (i) Balance in three annual instalments plus interést, (iti) Interest is charged on outstanding ‘lance @ 10% per annum, (iv) Depreciation to be charged @ 20% as per diminishing balance method. Angel Cabs could not pay the final instalment. Freedom Motors repossessed 2 cars on’ 3st March, 2015 by charging deprevition @ 30% as pet dirhinishing balance méthod, \ Additionally, they spent % 40,000 on repairs and. sold the 2 cars for a total price of % 4,00,000. Assume that their books are closed on 31st March every year. Show Cars Account and Freedom Motors Account in the books of Angel Cabs and Angel Cabs’s Account and Goods Repossessed Account in the books of Freedom Motors. 13, 1 ate, 2012 A Gar Fey A wiey ted a 3 ait, x 5,00,000 Ha ER at ama % fear se mR ade aye at wd fer ot: © waght ve wee SAS a Me YET FT 20% TATA @ Wa PAM os aia de feed a) Gi) AIS, FMT RK 10% als et ee a aT we (iv) ARASH 20% Ft WS wed By fale Qoama aM® ¢ 2B.) 5 6611 waa da afer fea yma a ae TE) oftoaes wien Fed 3 wed an PAR 8 0% we omer 2 wt ger ee ot) we tte Se = 40,000 FAT wR aed fae aan Sai a BA < 400,000 a ara Fa Gi am cifae 3 ot gerd ft ad 31 ard at ae aed t1 User How a gael Fae arn car vier ted ara caiet cat eter ded at “gaat i van dea a ga ma set a den aif B Or (siren) Dinesh and Vikas jointly underwrite and place on, the market 50,000 shares of Neha Photocopiers Ltd. of % 10 each. It was agreed withthe company that they would be allotted 2,000 shares as fully paid towards their remuneration. Their profit-sharing ratio is 3:2. ; ; Applications were received from the public only for 45,000 shares. Dinesh paid % 4,000 for printing arid advertisement in addition to 60% of the amount required to take up undersubscription: Vikas financed the balance amount, These are accounted for through Joint Bank Account. All the shares including those allotted for remuneration were sold. Dinesh sold, 3,000 shares for & 35,000 and Vikas sold the remaining shares for % 48,000, Vikas incurred expenses of & 2,000. Sale proceeds were retained individually. Prepare: Joint Venture Account, Joint Bank Account and Co-venturers’ Accounts. 13 PTO.“@ (14) 6611 fete an faare 7 cigaa wo 8, Fer Heated fees F x 10 wht fae 50,000 We ort ae an sat Te CA a a aS fet ae eal fe Sort se SF aafeaties & ae ae yl ETAT we 2000 Sen srahea faa ait saa c-at aer eA aT aya 3: 2 21 aunt & dee ont fee me aan sa a Fae 45,000 tee ana wT RU fem a ae-atien dad at OF few raven. uf. at 60% feat Tar Fam wa fares & fore z 4,000 we fe! feeprea A te of a PTA fran 3 ait fen-aars we daae de a Sem | fee me oat & few siafea wed afer at vad aa few mas free Fz 3,000 TR % 35,000 Fa men fama ¥ Ba Bax z 48,000 Fa feu) feesra 7 x 2,000 aet & fore feu fast @ ra erate ahi 3 oma-amt wa wa ct gat sem um, ag tH am da dat wad S a aan sfc XYZ company is having its head office at Gwalior and has a branchi at Surat. Goods are invoiced to branch at cost plus 332% The following information is given for the year ended 31st March, 2015 : Particulars z Branch Stock (Invoice Price) as on 1-04-2014 55,200 Branch Debtors as on 1-04-2014 69,000Branch Stock (Invoice Price) as on 3153-2015 Branch Debtors as on 31-03-2015 Good sent to Bravch (Invoive Price) Return of goods by Customers to Branch Cash Sales Collection from Debtors Branch Expenses aed ; Normal Loss Bad Debts Branch Debtors’ cheque dishonoured Prepare : (i) Surat Branch Stock Account (i) _ Surat Branch Debtors Account (iif) Surat Branch Adjustment Account (iv) Surat Branch Profit and Loss Account 6611 110,400 83.950 11,04,000 13,800 4,14,000 6,21,000 1,23,050 2,300 1,000 3,450 11,500 . PTO.( 16 ) 6611 Neil marr ele rae ae aren es HB ee 335 5% haw Ae wort Son om 1 Fa aT, 31 ard, 2015 a wma ad & few suey S ferarot / z wren ete sis Yea A (1-04-2014) . 55,200) Wa BARK (1-04-2014) ° 69,000 ret eles store AEA WE 31-3-2015) 1,10,400 SAL SAAN (31-03-2015) 83,950 wea ware Asn (ahs yea) : 11,04,000 tes ser rar at aa ait 13,800 “ang facet 7 4,14,000 eer} & ora afr 6,21,000 | Wat BRI fe me wy 1,23,050 mE 2,300 wars af 1,000 ae at 3,450 wean gant A seater far 11,500® “C17 ) ; 6611 tan aifae : @ WW wa ese aa (ii) A Wa GR Ga Gi) HA War ASA UT (ey) RI Wer at aa a |r Or (ar) SV Silks, Varanasi: consigned 1400 sarees to Modern Fabrics of Pune @ & 1,050 per unit on Ist July 2014. The consignor paid % 15,000 towards freight and carriage and % 6,000 towards insurance. 35 sarees were totally destroyed for which insurance company paid 7 5,250 in full. settlement of the claim. Moder Fabrics took the delivery of consignment on 10th July 2014 and accepted a bill drawn on them by SV Silks, Varanasi for % 1,05,000 for 3 months. On 31st July, Modern Fabrics reported that 1225 sarées were sold for € 1,750 per unit after incurring following expenses : Advertisement % 3,500, Salaries € 10,500 and Rent % 3,500. Commission piyable to consignee is @ 5%, on total sales plus del eredere of 2% on total sales. Modern Fabrics sold the remaining stock for % 78,750 on credit to Mr. X, ‘who was declared bankrupt after a month and only 20p in a rupee was realized from him ¢ Show Consignment Account and Modern Fabrics Account in the books of SV Silks. 8 PTO.© C18) $611 Waal. face, aed 31 Geng, 2014 ae 1,050 wf gare Bt ee A. 1400 arel Hiet fora, ya a Atta ati dew Tod a gas F fare x 15,000 war ah & fer % 6000 ed feel 35 at at ae afm a oad aa sat foe ater wer A aS yeh fre Fz 5,250 a1 ya fava - uted fsa 9 ta wer 10 gerg, 2014 wore fire ae ea. farce art fefaa 3. me = % 1,05,000 a1 fatter fart een fear 31 gerd at Het Bfaae 3 gan at fe se 1,205 akat ¢ 1,750 at ae a aa ar PRRMET We € 3500, Bete ¥ 10,500 amt PTE We & 3,500 wr fara Root Bl waet feet we 5% at ae a acters aan 2% at aS Ba Bex aries 2a 81 ated efsaa tae oft waa at x 78,750 9 vm Fa for ae cm re ag eae tae aie am ae SH od a ae 20% @ aga & a 1 waa. fees at geet ten een gar asd Shae wren dee ara How will you treat normal and abnormal loss of stock in branch accounting according to Debtors’ system ? 5 aac vafa 8 wer age 4 a ae aed aft a ea eater ater 2 :19 ) PART B (art ‘ay 6611 (@) Write a short note on maximum possible loss method of piecemeal distribution. 5 ~ @) VK, PK and DK were equal partners and their Balance Sheet as on 31-3-2015 was as follows : Liabilities “Amount | Assets “Amount ®@ ® Creditors 2,00,000 | Plant and Machinery 1,00,000 Bank oan (secured against Landand Building 1,15,000 Plant and Machinery) 50,000 | Fumiture and Fixtures 40,000 VK’s Loan 65,000 | Inventory 40,000 Capital ‘Accounts Debtors 35,000 VK 40,000 | Computer 15,000 DK 25,000 } Cash in hand 2,500 PK’s Capital 32,500 3,80,000 | 3,80,000 The firm was dissolved on the above date. VK and DK could not contribute anything and PK contributed % 10,000 only. All of them were declared insolvent; PTO.© 20) 6611 Assets realized the following amounts : Inventory & 2,500, Plant and Machinery % 50,000, Land and Building % 40,000, Furniture and Fixtures 10,000, Debtors & 19,250 and Computer & 8,250, Realization expenses amounted to 2,500. Prepare Realisation Account, Partners’ Capital Account, Déficiency Account,Cash Account and Liabilities Account. 15 @ Seeger A foram worn wht wae wt TH elena fe feat : | (6) VK, PK @ DK Bar aan S WM 31-3-2018 Hl SST Y-TA Fa spre qT: eam @ | arava. ® wer 2,00,000°| tatiz ae ARIF 1,00,000 os em (wale we Tei af aa sor 1,15,000 & favs feta) 50,000 | Wifax ua fora 40,000 VK E01 65,000 | gre 40,000 hi a: eR ‘| 35,000 VK 40,000 | HARK, 15,000 DK 23,000 | weit tary 2,500°° PK at dit 32,500 3,80,000, | 3.80,000(21) 6611 saat fafa al we ot sin ae fe Ta) VK aa DK ae. aren A Se We aa PK wT Are, Fae % 10,000 F Wa si Baal ctenfern sa we fear TH caf 8 age ga war ws FAA F 2,500, Are Jar AHA F 50,000, fH Ten TAA 40,000, Fatat wa fieaTAT % 10,000, SAR X 19,250 AM HMRC F 8,250. ARR HB | z 2,500 Bs aget ara, aeri & Yt wa, FH Ceficiency) Ga, TES GMI Ter Saat Ga can aifae Or (aaa) (a) Briefly explain the uling of Gamer Vs. Murray and its applicability in India. 5 (6) A,B and C are in partnership sharing profits in the ratio of 3: 1 : 1 respectively, they dissolved their partnership on 31st March, 2014, when the Balance Sheet of the firm stood as tinder : Balance Sheet as on 31st March, 2014 Liabilities ‘Amount | Assets ‘Amount ® ® Creditors 30,000 | Bank 37,500 Bills Payable 25,000 } Debtors 58,000 B’s Loan 40,000 | Stock ~~ 39,500 Capital Accounts Investments 42,000 A . | 90,000 | Machinery 48,000 B 75,000 | Building 90,000 @ 55,000 3,15,000 3,415,000 PTO,(@) (2) 6611 The machinery was taken over by B for € 45,000. A took over the investments for % 40,000. Building was taken over by C for ® 95,000. The remaining assets realized as under : Debtors % 56,500 Stock % 36,500 . Creditors were settled at a discount of 5%. Bills Payadle were taken over by C for % 23,000. The liabilities amounting to % 3,000 not shown in the books were also paid. An office computer not shown in the books of the firm realized 9,000. Realisation expenses amounted to % 3,000. To close the books of the firm, you are required to prepare Realisation Account, Partners? Capital Account and Bank Account. 15 ark waa wt de a afenfea fram a fir of wifi der sare fae wa ae una Foamy dat 7( 23.) 6611 > ® A BITC WR F311 S aT A aaa ser HAF wT 31 Ard 2014 #T aed in we ar Fla ea 1 sa fer SRT TE-TA wa var a: 31 Ard 2014 wat Aer-wa aad yet | eet 7 ® ®. aAER 30,000 | a 37,500 2 fafa fac 25,000 | S7aR 58,000 Bl 40,000 | ar 39,500 sit a: frat 42,000 A 90,000 | Feit : 48,000 B 75,000 | a4 90,000 Cc 55,000 3,15,000 3,15,000 BA % 45,000 4 Aer A ef, a > & 40,000 4% Frade fare aac Xz 95,000 Fw A a fea Mo aad 8 aget wa wer | : erent & we a . © 56,500 & 36,500 PTO.( 4) 6611 eran a 5% ge fraen fn ser 2a fates faa atc fee & form & 23,000 # fermi & 3,000 a stew Suan, fire yeah ae Rraren wn, BETA sh eT We Hrafera a we ERR, fA ot Gea a vel cefar m, a4 fea wer sie sa8 & 9,000 age eu aaet a wd: % 3,000 Sra ; wi at gaat a aq ac & few cach a, de aa ae aed & gst ant tan afer 6611 24 8,000