Unique Paper Code 7761
Revised 0 of 9

Financial Accounting2017

B.Com (Hons) · 5 questions

Duration: 1.2 HoursMaximum Marks: 37

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. 6 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 whether each statement below is true or false, giving reasons: (a) Accumulated Depreciation is a sum of cash being accumulated to replace fixed assets. (b) Under the stock and debtor system, the branch account is…(5)

2.

10 marks
· ~20 min
(a)Four needs of IFRSBriefly explain any four needs of IFRS.(2)
(b)Change from diminishing balance to straight line with retrospective effectA Company's Plant and Machinery Account shows a debit balance of Rs 1,76,868 on April 1, 2006. Incorporated in April 2003, the company has followed the practice of charging a full year's depreciation each year on the…(8)
OR
(d)Closing stock by FIFO and the perpetual weighted averageDetails of the material of Om Mills are below: Find out the closing stock's cost as on 31.3 2009 on : (i) First in first out basis (ii) Weighted average price basis, with the perpetual inventory system.(8)

3.

10 marks
· ~20 min
Final accounts with goods on approval, free samples and provisionsFrom a trader's Trial Balance below, on March 31st, 2005, prepare, for the year ending 31st March, 2005, the Trading and Profit and Loss Account, and the Balance Sheet as at that date, after giving effect to the…(10)
OR
Cultural society: Income and Expenditure Account and Balance SheetA Cultural Society's Receipts and Payments Account for the year ended on 31 December, 2014 is below: After considering the points below, prepare, for the year ended 31 December, 2014, the cultural society's income and…(10)

4.

2 marks
· ~4 min
OR
(c)Lease: meaning and four advantagesWhat is a Lease? State any four advantages of a lease.(2)

5.

10 marks
· ~20 min
Branch Account in the head office books (Debtors System)Farreach Ltd. invoices goods to its branch at a price of cost plus 20%; the branch sells both for cash and on credit. It meets its expenses from the cash collected from debtors and from cash sales, and remits the cash…(10)
OR
Branch Stock, Debtors, Adjustment and Profit and Loss Accounts (Stock and Debtors System)Mahima Stores of Bhopal runs a retail branch at Indore. The head office makes all purchases, and charges the branch at cost plus 50%. The Indore branch remits all the cash it receives to Bhopal. The branch pays its…(10)

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