Download PTU B.Com 2020 Dec 1st Sem 75091 Financial Accounting Question Paper

Roll No.
Total No. of Pages : 05
Total No. of Questions : 18
B.Com (Hons) (2018 & Onwards) (Sem.?1)
FINANCI AL ACCOUNTING

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Subject Code : BCOM-102-18
M.Code : 75091
Time : 3 Hrs. Max. Marks : 60
INST RUCT IONS T O CANDIDAT ES :
1 .

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SECT ION-A is COMPULSORY cons is ting of TEN questions carrying TWO marks
each.
2 .
SECT ION-B cons ists of F OUR Sub-sec tions : Un its-I, II, III & IV.
3 .

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Eac h Sub-section contains TWO questions each , carry in g T EN ma rks e ach .
4 .
Student has to attempt any ONE que stion from ea ch Sub -section.
SECTION-A
Write short notes on the following :

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Q1 GAAPs
Q2 Royalty accounts
Q3 Realization concept
Q4 Provision for unrealized profit
Q5 Revenue and deferred revenue expenditures

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Q6 Incomplete voyage accounting
Q7 Accounting in the books of consignee
Q8 Branch accounting systems
Q9 Apportionment of expenses and incomes in departmental accounts
Q10 Consolidated Profit and Loss Account

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SECTION-B
UNIT-I
Q11 Define the term `Accounting Concepts'. Distinguish it from accounting conventions. Also
briefly explain fundamental accounting concepts which form the backbone of accounting?
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Q12 Md. Amir was the sole proprietor of a garage. He owned the buildings and charged the
business a rent of Rs. 1,000 p.a. The trial balance on 31st Dec., 200X was :
Rs.
Rs.

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Purchases :
Sales :
Cars-new and second hand
1,05,000
Cars-New and second hand

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1,00,110
Petrol
30,000
Petrol
34,150

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Materials including tyres,
1,11,270
Tyres, accessories, etc.
12,520
accessories, etc.

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Stock of petrol?1-1-200X
11,270
Repairs
41,070
Stock of Materials?1-1-200X

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1,000
Capital account
52,660
(tyres, accessories, etc.)
Cost of motor show room

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13,880
Furniture
4,000
Plant
3,00,000

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Wages :
Mechanics
21,630
Petrol pump attendants
1,940

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Office
4,190
Rates and insurance
2,530
Rent to 29th Sep. 200X

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750
Office expenses
9,200
Balance at bank
1,100

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Cash in hand Total
20
Total
2,40,510
2,40,510

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You are given the following Information :
a) Rates Rs. 1,400 p.a. were paid for next three months in advance for the next year.

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b) Depreciation is to be charged at 15% p.a. on plant and 5% p.a. on furniture.
c) Stocks on 31st Dec., 1,965 were :
Cars Rs. 1,56,00, petrol Rs. 850; materials (including tyres, accessories, etc.) Rs. 3,200.
d) Materials used on repair jobs cost Rs. 2,500.
e) Petrol used on demonstration runs costs Rs. 450.

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f) Mechanic's time on reconditioning second hand cars costs Rs. 1,500.
g) The manager is entitled to 10% commission on profits after charging such commission.
You are required to prepare trading and profit and loss account for the year ended 31st
Dec., 200X and the balance sheet as on that date.
UNIT-II

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Q13 Explain and illustrate the following terms used in connection with the royalties accounts :
a) Dead Rent
b) Right to recoupment
c) Redeemable dead rent
Q14 Lead and follow agreed to enter into a joint venture the purchase and sale of second hand

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motor cars and to share the profits in the ratio 3:2
On 1st December, 20?1, Lead bought eight cars for Rs. 73,600 and on December 5 he paid
tax and insurance amounting to Rs. 2,560. On December 31, he sold these cars for
Rs. 99,200 of which he remitted Rs. 16,500 to Follow, paying the balance to his own bank
account.

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On 20th December 20?1, Follow bought five cars for Rs. 62,000 and on December 25, he
paid tax and insurance amounting to Rs. 2,600 and repairs amounting to Rs. 3,900. He sold
three cars on January 2, 20?2 for Rs. 51,000 which he paid into his own bank account. It
was agreed that Lead should take over the other cars at valuation of Rs. 28,000 and the
venture was closed 10th January, 20?2.

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You acquired to prepare a) Memorandum joint venture account, and b) the account of joint
venture with follow in the books of Lead.
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UNIT-III

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Q15 What are usual `direct' and `indirect' changes in department accounts? Discuss the
principles of allocation of such items at the time of preparation of final accounts.
Q16 X Ltd. has two departments A and B. From the following particulars prepare the
consolidated Trading Account and Departmental Trading Accounts for the year ending
31-12-20?5 :

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Particulars
A
B
Opening stock (at cost)
20,000

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12,000
Purchases
92,000
68,000
Sales

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1,40,000
1,12,000
Wages
12,000
8,000

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Carriage
2,000
2,000
Closing stock :
i) Purchased Goods

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4,500
6,000
ii) Finished Goods
24,000
14,000

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Purchased goods transferred
By B to A
10,000
By A to B
8,000

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Finished goods transferred
By A to B
35,000
By B to A
40,000

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Return of finished goods
By A to B
10,000
By B to A
7,000

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You are informed that purchased goods have been transferred mutually at their respective
departmental purchase cost and finished goods at departmental market price and that 20%
of the finished stock (closing) at each department represented finished goods received from
the other department.
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UNIT-IV
Q17 What are the characteristics of Independent Branches? Discuss the accounting treatment for
transactions by head office as well as by branch office. Illustrate.
Q18 TS Co., Delhi, has a branch at Kolkata. It invoices goods to the branch at selling price

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which is cost plus 33.33%. From the following particulars prepare a branch account at
(i) Cost price and (ii) at invoice price. Show also branch debtors account and goods sent to
branch account in the books of TS Co., Delhi.
Stock on 1st January, 2015 (invoice price)
15,000

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Debtors on 1st January, 2015
11,400
Goods invoiced to the branch during the year at invoice price Sale at Branch:
67,000
Cash

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31,000
Credit
37,400
68,400
Cash received from debtors

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40,000
Discount allowed to customers
300
Bad debts written off
250

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Cheque sent to branch :
?Salaries
5,000
?Sundry Expenses
1,700

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6,700
Stock on 31st December, 2015 (invoice price) Rs 13,400
NOTE : Disclosure of identity by writing mobile number or making passing request on any
page of Answer sheet will lead to UMC against the Student.
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