Unique Paper Code 1201
Revised 0 of 6

Financial Accounting2018

B.Com (Hons) · 3 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. 4 numerical parts and 2 theory parts. Numericals take longer to lay out, so give them your freshest time.
  2. Pace. Two minutes a mark: about 30 minutes for each 15-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.

15 marks
· ~30 min
(a)The matching principle; when revenue is recognisedExplain the 'Matching Principle'. When is revenue said to be recognised ?(4)
(b)IFRS: meaning and why they are neededWhat are International Financial Reporting Standards (IFRSs) ? Explain why IFRSs are needed.(5)
(c)Closing inventory, cost of goods sold and gross profit: FIFO and weighted averageAccording to FIFO and the Weighted Average Method, calculate on March 31, 2017 the value of closing inventory, the Cost Of Goods Sold and the Gross Profit : 6 March(6)

2.

10 marks
· ~20 min
Final accounts of a sole trader with adjustmentsFrom the Trial Balance below, after making the necessary adjustments, prepare, for the year ending March 31, 2017, the Trading and Profit and Loss Account, and the Balance Sheet on that date : 10 Further Information :…(10)
OR
Income and Expenditure Account and Balance Sheet of a clubThe Receipts and Payments Account below, for the year ending 31st December 2016, is presented to you : Further information is available : (a) The members number 450, and the annual subscription per member is ₹ 1,200. At…(10)

4.

10 marks
· ~20 min
Branch accounts at invoice price (Stock and Debtors System)Mehta & Sons, Agra has a branch at Moradabad, to which goods are invoiced at cost plus 25%, the branch's selling price. From the details below, prepare the Branch Stock Account, the Branch Debtors Account, the Branch…(10)

— End of the paper —