VBU | B.COM(HONS.) SEMESTER 1 ACCOUNTANCY QUESTION PAPER 2019-2022 | FINANCIAL ACCOUNTING 1

 Total pages: 7                                                                                    

                                                                                                                                                                                              VUG(1)-Com(1)  

                                                                                                              Fin.A/C(312) 

                                              2019-2022

                                                         Full marks : 80 

                                                          Time: 3 hours  

                    Answer any four questions in which Q.No. 1 is compulsory.

                                The question are of equal value.            

Candidates are required to give their answers in their own words as far as                                                                          participatable.

1. True or False

(a) Journal is a book of original entry.

(b) Royalty account is a real account.

(c) In case of hire purchase system Interest Suspense Account is prepared.

(d) Under the instalments purchase system, the buyer debits assets account with            the full cash price.

(e) Trial balance is left unaffected by compensating errors.

(f) Excess of income over expenditure is shown on the debit side of income and                expenditure account.

(g) Accounting principles are not rigid.

(h) Any loss on realisation is not transferred to Insolvent Partners Capitals                      Accounts.

(i) Dissolution expenses are recorded in the debit side of Realisation Account.

(j) Addition to building is a revenue expenditure.

2. NTPC got the lease of colliery in Tandwa on the basis of 50 paise per tonne of            coal raised with a minimum rent of Rs.5,000 per annum to Mines Board,                    Hazaribagh. The tenant has a right to recoup shortworkings durings the first            four years of the lease. The production in tonnes was as follows : 2015 = 2000            tonnes, 2016 = 6000 tonnes, 2017=10000 tonnes, 2018= 18000 tonnes, 2019=                20000 tonnes.

Show the journal entries in the book of company (NTPC).

3. A school agrees to purchase from Samsung Company some T.V. sets on Hire              purchase System payable over a period of five years by annual instalments of            Rs. 10000 over a period of five years. The Samsung Co. charges interest at 4%          p.a. on the yearly balances.

        Show the necessary ledgers accounts accounts in the books of the school. Charge depreciation @ 10%p.a.

Note: The present value of Rs. 1 p.a. for 5 years at 4% is 4.4518.

4.Followings is the Balance Sheet of A and B who shares Profits Losses equally :

    Liabilities                       Rs.                                         Assets                          Rs.

   Capital                                                                       Machinery                    9000

   A 10000                                                                      Plant                            10000

   B 7000                        17000                                      Debtors                         2500

   Creditors                    3000                                        Bank                             2500

    A's Loan A/C            4000

                                                                                                                                                                      

                                    24000                                                                                24000

They decided to dissolve the firm. Assets are realised as follows :

Machinery 20% less than book value, plant 10% less than book value , Debtors Rs. 2000, the creditors were paid off at discount of 10%, Cost of liquidation =  Rs. 500.

Open necessary accounts for dissolution.

5. Explain the working of Garner vs Murray decision. In this applicable in India         also ? How the partners accounts will be affected if the decision does not apply ?

6. What is Trial Balances? Why and how it is prepared ?

7. What is three column Cash Book ? How are transaction entered in it ? 

8. Short Notes : Any Two :

   (a) IFRS

   (b) AS-I            

   (c) Capital expenditure 

   (d) Piecemeal distribution 

   (e) Ledger

                                                                                                                                                              

                          THANK YOU