OCULEAKED PAPER

ACCOUNTING-L
FINANCGIAL
GOBIND KUMAR JHA 9874411552

B. Com. (Semester – I CCF)

Financial Accounting
Final Mock Test
Group – A (5 X 3 = 15)
(Any 3 out of 5 questions)
1. What do you mean by Accounting Theory? State the relation between Accounting Theory and
Accounting Practice. [2018(H)]

2. A trader has credited certain items of sales on approval aggregating Rs. 10,000 to the sales account. Of
these, goods to the value of Rs. 3,000 have been returned and taken in stock at Rs. 1,500 through the
record of return was committed in accounts and in respect of another parcel of Rs. 1,000 (cost being Rs.
500), the period of approval did not expire on the closing date. [2019(H)]
Show adjustment and correcting entries in the books of the trader.

3. There was a difference in the trial balance of Mr. Ranjan, a trader, on 31.12.2022 and subsequently on
going through the books of the following errors were located:-
a) Purchase of furniture for Rs. 1,000 passed through Purchase Book.
b) An amount of Rs. 550 received from Gopal was posted to his account Rs. 5,500.
c) Rs. 800 received from a debtor Amit, has been treated as cash sale.
d) Discount allowed Rs. 150 was wrongly credited to Discount Received Account.
e) Sales day book overcast by Rs. 200.
Pass the Journal Entries to rectify the above errors. [2021(H)]

4. State the objectives of issuing Accounting Standards. [2019(H)]

5. The value of physical stock was verified on 23rd March, 2019 at Rs. 2,50,000. Determine the value of
closing stock as on 31.03.2019 given that the following transactions took place between 23.03.2019 and
31.03.2019: [2017(H)]
a) Purchases made between 23.03.2019 and 31.03.2019 amounted to Rs. 20,000, but out of these,
goods worth Rs. 8,000 were delivered on 6th April, 2019.
b) Sales during the above period Rs. 40,000 at 25% gross profit on sales.

Group – B (10 X 3 = 30)

(Any 3 out of 5 questions)
1. State with reasons whether the following are Capital or Revenue Expenditure:-
a) Expenses incurred in connection with obtaining a license for starting the factory for Rs. 10,000.
(Capital)
b) Rs. 1,000 paid for removal of inventory to a new site. (Revenue)
c) Rings and Pistons of an engine were changed at a cost of Rs. 5,000 to get fuel efficiency.
(Capital)
d) Money paid to Mahanagar Telephone Nigam Ltd. (MTNL) Rs. 8,000 for installing telephone in
the office. (Not any expenditure. It’s an asset)
e) A factory shed was constructed at a cost of Rs. 1,00,000. A sum of Rs. 5,000 had been incurred
in the construction of temporary huts for storing building material. (Capital)
GOBIND KUMAR JHA 9874411552

2. The following details were extracted from the books of ABC Ltd. for the year ended 31.07.2019:
July 1, 2018 Sales Ledger Balance Total – Rs. 40,000 [2019(H)]
July 31, 2019 Sales – Rs. 90,000
Return from Customers – Rs. 8,000
Cheque received from customers – Rs. 80,000
Cheque dishonoured – Rs. 300
Bills accepted by customers – Rs. 2,700
Bills dishonoured – Rs. 400
Noting charges on the dishonoured bill – Rs. 10
Bad debt written off – Rs. 1,600
Interest on customer’s overdue account – Rs. 100
Carriage charged to customers – Rs. 200
Cash discount allowed – Rs. 1,800
Show the General Ledger Adjustment Account as it will appear in the Sales Ledger.
3. A trader purchased a machine on 01.04.2016 at a cost of Rs. 2,00,000 and installed it at a cost of Rs.
20,000. The scrap value of the machine was estimated at Rs. 20,000 and its effective life is 5 years. On
01.04.2018 the machine was sold for Rs. 1,20,000 and another machine of the same type was purchased
at a cost of Rs. 1,00,000 on that date. Installation cost of the machine is Rs. 4,000. The scrap value of
this machine was estimated at Rs. 14,000 and it’s life is 10 years. [2020(G)]
Show Machinery Account for the years 2016-17, 2017-18 and 2018-19 in the books of the trader.

4. On 31st December, 2020, Sundry Debtors and Provision for Bad Debts stood at Rs. 90,000 and Rs. 6,750
respectively. During the year 2020, Bad Debts amounting to Rs. 4,560 were written off. On 30th June,
2020 an amount of Rs. 580 was received on account of a debt written off as bad last year. The Debtors
list on 31st December, 2020 was verified and it was found that amongst Sundry Debtors amounting to
Rs. 65,940, an amount of Rs. 940 was to be written off as bad. It was decided to maintain the provision
for bad debts at the same percentage as it was on 31st December, 2019.
Prepare Bad Debts Account and Provision for Bad Debts Account. Also, show how the relevant items
would appear in the Profit & Loss Account and Balance Sheet as on 31.12.2020. [2019(H)]

Group – C (15 X 2 = 30)

(Any 2 out of 3 questions)
1. From the following balances, prepare Trading and Profit & Loss Account for the year ended 31.12.2021
and Balance Sheet as on that date in the books of Mr. Arijit Mukherjee, a trader: [2021(H)]
Particulars Dr. (₹) Cr. (₹)
Capital 2,80,000
Opening Stock 1,00,000
Purchases 4,00,000
Salaries 70,000
Building 1,10,000
Cash in Hand 2,000
Cash at Bank 1,35,000
Bills Receivables 10,000
Rent, Rates and Taxes 8,000
Miscellaneous Receipts 10,000
Sales 7,20,000
Bad Debts 3,250
Miscellaneous Expenses 13,450
GOBIND KUMAR JHA 9874411552

Advertisement 22,900
Furniture 1,10,000
Debtors 1,45,000
Creditors 80,000
10% Loan on Mortgage 70,000
Interest paid on the loan 3,000
Prepaid Expenses 4,000
Drawings 30,200
Bills Payable 30,000
Bank Charges 3,200
Travelling Expenses 10,000
Insurance 10,000
11,90,000 11,90,000
Additional Information:-
a) Closing Stock at cost Rs. 57,000 (Market Value Rs. 56,000).
b) Rs. 2,500 received as loan from Rohan credited to Debtors.
c) Outstanding salary Rs. 500.
d) Goods worth Rs. 20,000 were destroyed by fire and insurance claim admitted Rs. 15,000.
e) Miscellaneous receipts represent sale of furniture on 30.06.2021. (W. D. V. Rs. 12,000 on 1.1.2021)
f) Depreciation on fixed assets @ 10% p.a.
g) Provision for bad debts to be maintained @ 5%.

2. The following is the Receipts and Payments Account of Park View Club in respect of the year ended
31st March, 2021: [2017(H)]
Receipts ₹ Payments ₹
Opening Balance 1,02,500 Salaries 2,08,000
Subscription Received Stationary Purchased 40,000
2019 – 20 4,500 Rent 60,000
2020 – 21 2,11,000 Telephone Expenses 10,000
2021 – 22 7,500 2,23,000 Investments 1,25,000
Net Cash Realised from 1,55,000 Sundry Expenses 92,500
Sports Meet Closing Balance 45,000
Income from Investment 1,00,000
5,80,500 5,80,500
Additional Information:-
a) There are 450 members each paying an annual subscription of Rs. 500. On 1st April, 2020,
outstanding subscription was Rs. 5,000.
b) There was an outstanding telephone bill of Rs. 3,500 on 31st March, 2021.
c) Outstanding sundry expenses as on 31st March, 2020, totaled Rs. 7,000.
d) Stock of stationary: On 31st March, 2020 – Rs. 5,000 and On 31st March, 2021 – Rs. 9,000.
e) On 31st March, 2021, Building stood in the books at Rs. 10,00,000 and it was subject to depreciation
@ 5% p.a.
f) Investment on 31st March, 2020 stood at Rs. 20,00,000.
g) On 31st March, 2021, income accrued on investments purchased during the year amounted to Rs.
3,750.
Prepare an Income and Expenditure Account for the year ended 31 st March, 2021 and a Balance Sheet as
on that date.
GOBIND KUMAR JHA 9874411552

3. The following balances are available from the books of Somnath, a small trader, as on 31st December,
2020 and 2021: [2021(H)]
31.12.2020 (₹) 31.12.2021 (₹)
Building 60,000 60,000
Equipment 1,20,000
Debtors 48,000
Creditors 32,000
Stock 34,000
Bank Loan 20,000 16,000
Cash 32,000 62,000
The transactions of Somnath during the year ended 31.12.2021 were as following:-
₹
Collection from Debtors 1,86,000
Payment to Creditors 1,22,000
Expenses 32,000
Drawings 6,000
Cash Purchase 40,000
Equipment Purchased (01.10.2021) 14,000
Additional Information:-
a) Cash sales amounted to 10% of total sales. Credit sales amounted to Rs. 1,80,000.
b) Credit purchases were 80% of total purchases.
c) Somnath sells goods at cost plus 33⅓%.
d) Equipment is to be depreciated by 10% per annum and building by 2%.
e) Difference in Cash Book, if any, is to be treated as drawings or introduction of capital by the
proprietor.
You are required to prepare the Trading and Profit & Loss Account of Somnath for the year ended
31.12.2021 and a Balance Sheet as on that date.