📝 COMMERCE (Financial Accounting) Exam Paper - 2024
This paper is for BCM 2 (Sem-1) and has a Full Marks of 60. The Time allowed is 2½ hours.
1. Answer the following questions as directed: ( 1\times8=8 )
* (a) IFRSs are intended to harmonize accounting practices all over the world.
* (b) Matching concept is based on accrual basis of accounting.
* (c) A Trading Account is prepared to find out Gross profit.
* (d) Debit balance of Profit and Loss Account shows net profit. (False)
* (e) Under instalment system, ownership of the goods passes to buyer only after the payment of the last instalment. (False)
* (f) Under synthetic system, stock-in-transit is shown on the credit side of the Branch Account. (False)
* (g) The full form of C.P.U. is Central Processing Unit.
* (h) Computerized accounting systems can significantly reduce the likelihood of human errors in calculations and data entry. (True)
2. Answer in brief any six questions: ( 2\times6=12 )
* (a) Define Accounting Standard.
* (b) Very briefly explain any two objectives of IFRS.
* (c) What do you mean by money measurement concept?
* (d) What is capital receipt?
* (e) What is Balance Sheet?
* (f) Mention any two objectives of preparing a Trading Account.
* (g) Mention any two disadvantages of hire purchase system.
* (h) Very briefly explain any two objectives of Branch Accounting.
* (i) Very briefly explain any two advantages of Computerized Accounting.
* (j) Mention any two key features of Tally 9.
3. Answer any four questions in short: ( 5\times4=20 )
* (a) Briefly explain any five points of distinction between cash basis and accrual basis of Accounting.
* (b) Briefly explain any five key principles of revenue recognition as per Accounting Standard 9.
* (c) Explain any five distinctions between capital expenditure and revenue Expenditure.
* (d) Write a comprehensive note on inventory valuation and its significance.
* (e) From the following particulars, prepare a Trading Account and ascertain the gross profit for the year ended on 31st March, 2024:
| Particulars | Amount (Rs.) |
| :--- | :--- |
| Purchases / ক্ৰয় | 55,000 |
| Sales / বিক্রয় | 96,000 |
| Carriage Inward / ক্ৰয় পৰিবহণ খৰচ | 5,000 |
| Carriage Outward / বিক্রয় পৰিবহণ খৰচ | 6,000 |
| Freight / ভাড়া | 16,000 |
| Dock Duty / ডক ডিউটি | 1,000 |
| Wages / মজুৰী | 6,000 |
| Returns Inwards / বিক্রয় ফিৰৎ | 4,000 |
| Returns Outwards / ক্ৰয় ফিৰৎ | 2,000 |
| Packing Charges / প্যাকিংৰ খৰচ | 3,000 |
| Closing Stock / সামৰণী মজুতপণ্য | 16,000 |
| Trade Expenses / ব্যাৱসায়ীক খৰচ | 2,300 |
* (f) Briefly describe any of the five key users of Financial Accounting Information.
* (g) On 1st January, 2024, Bharat Ltd. opened a Branch at Kolkata. From the following particulars, pass the necessary Journal entries in the books of Head Office:
| Particulars | Amount (Rs.) |
| :--- | :--- |
| Goods sent to Branch / শাখালৈ প্রেৰিত সামগ্ৰী | 35,000 |
| Cash sent to Branch for expenses / খৰচৰ বাবে শাখালৈ প্ৰেৰিত নগদ ধন | 6,000 |
| Cash Sales at Branch / শাখাত নগদ বিক্রয় | 48,000 |
| Stock at Branch on 31st December, 2024 / 31 ডিচেম্বৰ, 2024 তাৰিখে শাখাত মজুত পণ্য | 30,000 |
* (h) Briefly explain any five distinctions between manual accounting and computerized accounting.
4. Answer any two questions: ( 10\times2=20 )
* (a) Following is the Trial Balance of Sadhu and Madhu as on 31st March, 2024:
* Debit Balances (Rs.): Plant and Machinery (40,000), Salaries (15,000), ESI Contribution (800), Freight on Sales (3,000), Building (54,000), Goodwill (15,000), Computer (10,000), Sundry Debtors (48,200), Bad debt (1,400), Cash at Bank (1,200), Furniture (10,000), Bills Receivable (30,000), Fixed Deposit (15,000), Cash in Hand (650), Drawings: Sadhu (12,000), Madhu (8,000), Closing Stock (20,000). Total: 2,84,250.
* Credit Balances (Rs.): Capital Account: Sadhu (80,000), Madhu (40,000), Trading Account (Gross Profit) (94,310), Creditors (32,940), Bank Loan (21,000), Sundry Receipts (300), Bills Payable (14,000), Reserve Fund (1,000), Sale of Scrap (200), Bad debt Recovered (500). Total: 2,84,250.
* Adjustments:
* (i) Partners are entitled to get Interest on Capital @ 5% p.a..
* (ii) Depreciate Machinery @ 10% p.a..
* (iii) Transfer 10% of Net Profit to Reserve Fund.
* Requirement: Prepare Profit and Loss Account and Profit and Loss Appropriation Account for the year ended on 31st March, 2024, and a Balance Sheet as on that date.
* (b) Asomi Industries has a branch at Itanagar. The branch sells goods both in cash and on credit. Prepare a Branch Account and Goods sent to Branch Account in the books of Head Office for the year ended on 31st March, 2024, using the following particulars:
| Particulars | Amount (Rs.) |
| :--- | :--- |
| Balance of Stock on 1^{\text{st}} April, 2023 | 30,000 |
| Balance of Debtors on 1^{\text{st}} April, 2023 | 12,000 |
| Balance of Petty Cash on 1^{\text{st}} April, 2023 | 200 |
| Goods sent to Branch during the year | 60,000 |
| Goods returned to Head Office by Branch | 1,000 |
| Cash Sales at Branch | 40,000 |
| Credit Sales at Branch | 55,000 |
| Sales Returns at Branch | 300 |
| Bad debts written off | 400 |
| Discount allowed | 200 |
| Cash sent to Branch for: Salaries (Rs. 2,000), Rent (Rs. 1,000), Petty Cash (Rs. 2,000) | 5,000 |
| Petty Expenses paid by Branch | 1,800 |
| Cash collected from Branch Debtors | 70,000 |
| Balance of Stock on 31^{\text{st}} March, 2024 | 25,000 |
* (c) Delhi Transport Company purchased a car on 1^{\text{st}} April, 2020, on hire purchase basis. The cash price of the car was Rs. 1,12,000, out of which Rs. 30,000 was paid on signing the agreement and Rs. 30,000 was paid annually for three years. Interest was charged @ 5% p.a. and depreciation was written off @ 20% p.a. on reducing balance method.
* Requirement: Prepare the necessary Ledger Accounts in the books of the Delhi Transport Company for three years.
* (d) Guwahati Constructions Ltd. purchased a plant from Mumbai Machinery Ltd. on instalment system on 1^{\text{st}} April, 2019, paying Cash Rs. 10,000 and agreeing to pay three further instalments of Rs. 10,000 each on 31^{\text{st}} March of each year. The cash price of the plant is Rs. 37,250. Interest is charged @ 5% p.a. Guwahati Constructions Ltd. writes off depreciation @ 10% p.a. on written down value method.
* Requirement: Pass necessary Journal entries in the books of Guwahati Constructions Ltd. for three years.
* (e) Briefly describe various types of Accounting packages.
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