Unique Paper Code FAH21
Revised 0 of 17

Financial Accounting2021

B.Com (Hons) · 4 questions · 2 parts still being checked

Duration: 1.8 HoursMaximum Marks: 55.0

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. 18 numerical parts and 1 theory parts. Numericals take longer to lay out, so give them your freshest time.
  2. Pace. Two minutes a mark: about 28 minutes for each 13.75-mark question, with nothing spare in 1.8 hours. Move on when the time is up.
  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.

13.75 marks
· ~28 min
(a)Stock of a business that is not a going concern1(a)The Closing Stock cost ₹ 7,50,000. Its Realizable value is 120%, and Realizable Expenses are 5%.In the Income Statement of Malhotra co, which is not a going concern, at what amount stock wil be shown. [2 Marks](2)
(b)Depreciation of a business that is not a going concernIn the Trial Balance of Kunal co, which is not a going concern, Property,Plant & Equipment appeared at ₹ 75,00,000. Property,Plant & Equipment are subject to depreciation @10% on WDV basis.Property,Plant & Equipment's…(2)
(c)Revenue on a sale with an agreement to repurchase (AS 9)P Ltd. agreed with Q Ltd. to sell goods costing ₹ 3,00,000 at a profit of 20 % on sale, and the sale took place on 1st February, 2021. The same day, P Ltd. made a further agreement with Q Ltd. to repurchase the same…(3)
(d)Net revenue from advertisement rights recognised in June 2021 (AS 9)DESH Advertisers obtained advertisement rights, for a one day world cup cricket tournament due in May 2021, for ₹ 1,200 lakhs in February 2021.By 31/3/2020, they had paid ₹ 750 lakhs to secure these advertisements…(3)
(e)Finance lease versus operating leaseGive any four points of difference between a Finance Lease and an Operating Lease. [3.75 Marks](3.75)

3.

13.75 marks
· ~28 min
(a)Net credit sales at the branch (Stock and Debtors method)PARAMOUNT Ltd. Lucknow invoices goods to its Pune and Patna offices at 20% below the list price, which is cost plus 50%, and instructs them to make cash sales at invoice price, and to make credit sales at list price.…(3)
(b)Cash sales at the branch (Stock and Debtors method)PARAMOUNT Ltd. Lucknow invoices goods to its Pune and Patna offices at 20% below the list price, which is cost plus 50%, and instructs them to make cash sales at invoice price, and to make credit sales at list price.…(3)
(c)
Provision for discount on branch debtors (Stock and Debtors method)Being checked
(3)
(d)
Closing stock at the branch (Stock and Debtors method)Being checked
(4.75)

4.

13.75 marks
· ~28 min
(a)Club restaurant: profit as per the Restaurant Trading AccountHIMALAYA CLUB, which also runs a Restaurant, gives you the information below: 1. BALANCES, OPENING AND CLOSING 2. PAYMENTS: Suppliers of Sports Materials ₹ 16,200,Miscellaneous Expenses ₹ 1,11,675,Wages ₹…(3)
(b)Club: subscription credited to the Income and Expenditure AccountHIMALAYA CLUB, which also runs a Restaurant, gives you the information below: 1. BALANCES, OPENING AND CLOSING 2. PAYMENTS: Suppliers of Sports Materials ₹ 16,200,Miscellaneous Expenses ₹ 1,11,675,Wages ₹…(2)
(c)Club: miscellaneous expenses debited to the Income and Expenditure AccountHIMALAYA CLUB, which also runs a Restaurant, gives you the information below: 1. BALANCES, OPENING AND CLOSING 2. PAYMENTS: Suppliers of Sports Materials ₹ 16,200,Miscellaneous Expenses ₹ 1,11,675,Wages ₹…(2)
(d)Club: sports materials consumedHIMALAYA CLUB, which also runs a Restaurant, gives you the information below: 1. BALANCES, OPENING AND CLOSING 2. PAYMENTS: Suppliers of Sports Materials ₹ 16,200,Miscellaneous Expenses ₹ 1,11,675,Wages ₹…(2)
(e)Club: stationery consumedHIMALAYA CLUB, which also runs a Restaurant, gives you the information below: 1. BALANCES, OPENING AND CLOSING 2. PAYMENTS: Suppliers of Sports Materials ₹ 16,200,Miscellaneous Expenses ₹ 1,11,675,Wages ₹…(2)
(f)Club: bank balance in the closing Balance SheetHIMALAYA CLUB, which also runs a Restaurant, gives you the information below: 1. BALANCES, OPENING AND CLOSING 2. PAYMENTS: Suppliers of Sports Materials ₹ 16,200,Miscellaneous Expenses ₹ 1,11,675,Wages ₹…(2.75)

5.

13.75 marks
· ~28 min
(a)Departmental gross profit with inter-departmental transfersMEGH & DHANUSH gives you the information below for the year ending 31st March, 2021: Additional Information: (a) Closing Stock: Department A ₹ 3,90,000, Department B ₹ 7,80,000. At each department, 30% of the Opening…(4)
(b)Departmental gross profit ratiosMEGH & DHANUSH gives you the information below for the year ending 31st March, 2021: Additional Information: (a) Closing Stock: Department A ₹ 3,90,000, Department B ₹ 7,80,000. At each department, 30% of the Opening…(4)
(c)Stock reserve on departmental closing stocksMEGH & DHANUSH gives you the information below for the year ending 31st March, 2021: Additional Information: (a) Closing Stock: Department A ₹ 3,90,000, Department B ₹ 7,80,000. At each department, 30% of the Opening…(4)
(d)Departmental net profitMEGH & DHANUSH gives you the information below for the year ending 31st March, 2021: Additional Information: (a) Closing Stock: Department A ₹ 3,90,000, Department B ₹ 7,80,000. At each department, 30% of the Opening…(1.75)

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