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Unique Paper Code 887

Revised 0 of 16

Financial AccountingJanuary 2025

B.Com (Programme) · 5 questions · 1 part still being checked

Duration: 3 HoursMaximum Marks: 90

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

Before you start

Most asked here. Depreciation, PPE and AS 10 (10 papers), Branch accounts (10 papers), Not-for-profit organisations (9 papers). These come back almost every year, so learn them first. The asked N× note beside each part counts the DU papers that set its topic.
Numbers and theory. 10 numerical parts and 7 theory parts. Numericals take longer to lay out, so give them your freshest time.
Pace. Two minutes a mark: about 36 minutes for each 18-mark question, with nothing spare in 3 hours. Pick your side of each OR before you start writing.
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.

18 marks
· ~36 min

(a)True or false, with reasonsasked 9×State, giving reasons, whether the statements below are true or false (any six). (i) One of the quantitative characteristics of the financial statements is relevance. (ii) When a reliable estimate of the amount can't be…(12)

(b)Short notes: GAAP; adjusting and non-adjusting eventsasked 5×Write a short note on any two of these : (i) Generally Accepted Accounting Principles (GAAP). (ii) Adjusting events versus Non-adjusting events. (iii) AS versus IND-AS. (2×3=6)(6)

2.

18 marks
· ~36 min

(a)Inventory (AS 2) and the significance of its valuationasked 8×Define the term Inventory as given in AS 2. Also, explain the significance of the valuation of inventory.(6)

(b)Machinery Account, straight line method, with a part soldasked 10×A trader imported a machine on 1st July 2020 for ₹4,80,000, paid custom duty and freight ₹96,000 and incurred erection charges ₹1,44,000. Another machinery costing ₹2,40,000 was purchased from the local market on…(12)

OR

(a)Cost, residual value and depreciable amountasked 10×Explain these terms: (i) Cost of an asset, (ii) Residual value of assets, and (iii) the Depreciable amount.(6)

(b)Closing stock and cost of goods sold by FIFO, perpetual systemasked 8×Given below are the details of the material for certain items of M/s. Kavita & Co.: Under the perpetual Inventory valuation system, find out, as on 20.02.2024, the cost of the closing stock and the cost of goods sold…(12)

3.

18 marks
· ~36 min

(a)Final accounts of a traderasked 9×From a trader's Trial Balance on March 31, 2024, given below, prepare the Trading and Profit and Loss Account for the year that ended 31st March 2024 and the Balance Sheet as at that date: Additional Information : (i)…(12)

(b)Order of using SGST input tax creditasked 5×M/s Pramod Enterprise has ₹72,000 in the electric credit ledger on account of an input tax credit of SGST. As per the electronic liability register, the output GST payable is as follows : Determine in what order the ITC…(6)

OR

(a)Club: Income and Expenditure Account and Balance Sheetasked 9×Given below is the receipt and payment account of Riverbend Club for the year ended 31st March 2024: Receipt and Payment Account for the Year ending 31st March, 2024 Having due regard to the additional information given…(12)

(b)Prize Endowment Fund in a club's final accountsasked 9×How would you deal with the items below, when the final accounts of a social club are prepared for the year ending 31st March 2025:(6)

4.

18 marks
· ~36 min

(a)Debtors System and Stock and Debtors Systemasked 10×Under Branch Accounting, differentiate between Debtors System and Stock and Debtors System.(6)

(b)Branch Account and Goods Sent to Branch Account (Debtors System)asked 10×A head office in Lucknow has a branch in Kanpur, to which the head office invoices goods at cost plus 25%. From the particulars below, prepare Branch Account and goods sent to branch account in the head office's books:…(12)

OR

Branch accounts under the Stock and Debtors Systemasked 10×Meerut head office supplies goods to its branch at Civil Lines, Agra, at invoice price, that is, cost plus 50%. The branch remits all the cash it receives to Meerut, and all the expenses are paid by the head office.…(18)

5.

18 marks
· ~36 min

(a)Departmental Trading Account with a common gross profit percentageasked 5×Ramesh Ltd. has three departments: A, B, and C. These departments supply the information below for the year ended 31st March 2025 : You are required to prepare Ramesh Ltd.'s departmental trading account, assuming the…(12)

(b)

Finance lease: meaning, types and featuresBeing checked

(6)

OR

(a)Lease: gross investment and unearned finance incomeasked 6×AB Ltd. leased a machine to AC Ltd. on these conditions: The discounting factors for the 1st year to the 5th year are, in turn, 0.8696, 0.7561, 0.6575, 0.5718, and lastly 0.4972, respectively. Calculate: (i) the Gross…(12)

(b)Departmental accounting and its advantagesasked 5×What is meant by Departmental Accounting? Also, state the advantages of Departmental Accounting.(6)

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