Unique Paper Code 1861
Revised 0 of 8

Financial Accounting2016

B.Com (Hons) · 4 questions

Duration: 1.2 HoursMaximum Marks: 35

From an older CBCS paper

Reworded by Kunji from the printed paper. The original paper belongs to the University of Delhi. See DU's question bank.

Before you start

  1. Numbers and theory. 5 numerical parts and 3 theory parts. Numericals take longer to lay out, so give them your freshest time.
  2. Pace. Two minutes a mark: about 10 minutes for each 5-mark question, with nothing spare in 1.2 hours. Pick your side of each OR before you start writing.
  3. Keep score. Every part opens a worked answer checked against the books. Turn the key when you have revised it; the boxes at the top fill in, on this device.

1.

5 marks
· ~10 min
True or false, with reasons: five statementsState, with reasons, whether each statement below is True or False : (a) Legal fees paid for acquiring a property is capital expenditure. (b) An advance received from a supplier is not treated as income or sales. (c)…(5)

2.

10 marks
· ~20 min
Final accounts with stock worked back, a fire loss and manager's commissionFrom the particulars below, prepare, for the year ended 31st December, 2014, the Trading and Profit & Loss Account, and the Balance Sheet as on that date : Adjustments : Charge depreciation on Building @ 5%, Machinery @…(10)
OR
Cricket club: Income and Expenditure Account and Balance SheetFrom a Cricket Club's Receipts and Payments Account below and the further information, prepare, for the year ended 31st March, 2015, the Income and Expenditure Account and a Balance Sheet on that date : Further…(10)

3.

10 marks
· ~20 min
(a)Perpetual versus periodic inventory systemsDistinguish between the Perpetual Inventory System and the Periodic Inventory System.(3)
(b)Value of stock by FIFO and the perpetual weighted averageDetails of a spare part of Silver Mills are below : If the company follows the methods below, find out the value of stock as on 31-3-2015 : (i) FIFO (ii) Weighted Average Method under Perpetual Inventory System.(7)
OR
(a)Machine account with an exchange and a fire loss (WDV)On 1st January 2010, Siddhi bought machine 'A' for ₹ 36,000 and machine 'B' for ₹ 24,000. On 1st January 2011 she bought a machine 'C' for ₹ 60,000. On 1st January 2012 machine 'A' went out of order, and a new machine…(7)
(b)Convergence with IFRS and whether it is neededWhat is meant by convergence of IFRS ? Is such convergence needed at all ?(3)

5.

10 marks
· ~20 min
Branch accounts at invoice price (Stock and Debtors System)Pune head office supplies goods to its Nashik branch at invoice price, which is cost plus 50%. The branch remits all the cash it receives to Pune, and the head office pays all Branch expenses. The particulars of Nashik…(10)

— End of the paper —