DU Solved Question Papers
Financial Accounting
Previous Year Question Paper with Solution
B.Com. (Programme) · Sem 1
Dec 2025 Examination
munotes.in
Mumbai
B.Com. (Programme) Sem 1 Financial Accounting Dec 2025 Question Paper with Solutions
First published on munotes.in on 26 October 2026.
Published by munotes.in, Mumbai.
Model answers written and edited by the munotes.in editorial desk.
Passages from this volume may be quoted, in print, online or by an AI system, with credit: name munotes.in and link to this volume's page. The volume may not be reproduced as a whole. Full terms at munotes.in/content-license.
munotes.in is an independent study resource for students of University of Delhi. It is not affiliated with University of Delhi, and is not endorsed by it.
The University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.
The question paper reproduced here is the paper as set by University of Delhi at the Dec 2025 examination.
Contents
The questions below are the paper as University of Delhi set it at the Dec 2025 examination, in the order it was set.
MarksPage
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the Dec 2025 examination, reproduced as University of Delhi set them, in the order it set them. Nothing has been reworded, added or left out. Only the answers are ours. See the original question paper.
Duration 3 hours · Total marks 90 · 16 questions answered
Instructions printed on the paper
- N.B. (1) Write your Roll No. on the top immediately on receipt of this question paper. (2) Attempt all questions. (3) All questions carry equal marks. (4) Use of a Simple Calculator is allowed. (5) Answers may be written either in English or Hindi; but the same medium should be used throughout the paper.
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q1
a and b · 18 Marks
(a)State with reasons whether the following statements are true or false (any six).[12]
- (i) Accounting performs only one function, i.e., maintenance of systematic accounting records.
- (ii) Expenses incurred to keep the machine in working condition are capital expenditure.
- (iii) An expenditure intended to benefit the current period is revenue expenditure.
- (iv) All the enterprises are required to apply Ind AS.
- (v) An outstanding expense account is a nominal account.
- (vi) Going concern, Consistency, and accrual are the fundamental accounting assumptions.
- (vii) As per the consistency principle, accounting policies once adopted for similar items should be followed consistently from year to year and should never be changed under any circumstances.
- (viii) Accrual means recognition of revenue as it is earned and of costs as they are paid.
Answer
For full marks, cover: any six statements, each with a clear verdict and a reason in two or three sentences. All eight are answered here so that students can choose.
(i) Accounting performs only one function, i.e., maintenance of systematic accounting records
False. Keeping systematic records is only the first function of accounting. Accounting also classifies the recorded transactions in ledger accounts and summarises them in the trial balance and financial statements. It analyses and interprets the results and communicates them to owners, lenders, government and other users. Its purpose is to provide useful financial information for decisions, not merely to keep records.
(ii) Expenses incurred to keep the machine in working condition are capital expenditure
False. Expenses to maintain a machine in working condition only keep the asset at its existing level of efficiency. Repairs, servicing, oiling and replacing small parts are examples. They do not increase its capacity or life. They are revenue expenditure, charged to the Profit and Loss Account. Only spending that increases the earning capacity or life of the machine, such as a major overhaul that adds years of use, is capital expenditure.
(iii) An expenditure intended to benefit the current period is revenue expenditure
True. Revenue expenditure is spending whose benefit is used up within the current accounting period, such as wages, rent, salaries and repairs. It is charged in full to the Profit and Loss Account of the year. Capital expenditure, by contrast, benefits several future periods and is shown as an asset.
(iv) All the enterprises are required to apply Ind AS
False. Ind AS (Indian Accounting Standards converged with IFRS) apply only to certain classes of companies under the Companies (Indian Accounting Standards) Rules, 2015. These are mainly listed companies and unlisted companies above a set net worth, with their holding, subsidiary and associate companies. Other companies follow the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2021. Non-corporate entities, such as sole traders and partnership firms, follow the Accounting Standards issued by the ICAI.
(v) An outstanding expense account is a nominal account
False. An outstanding expense, such as salary outstanding, is an amount owed to persons for services already received. The account represents a liability to those persons, so it is a representative personal account, not a nominal account. It appears on the liabilities side of the Balance Sheet. The expense itself, salary, is the nominal account.
(vi) Going concern, Consistency, and accrual are the fundamental accounting assumptions
True. AS 1, Disclosure of Accounting Policies, names going concern, consistency and accrual as the three fundamental accounting assumptions. If they are followed in preparing financial statements, no specific disclosure is required. If any of them is not followed, the fact must be disclosed.
(vii) Accounting policies once adopted should never be changed under any circumstances
False. Consistency requires that accounting policies be followed from year to year, so that results can be compared. But a change is allowed if a statute or an accounting standard requires it. It is also allowed if it gives a more appropriate presentation of the financial statements. When a policy is changed, its effect must be disclosed.
(viii) Accrual means recognition of revenue as it is earned and of costs as they are paid
False. Under the accrual basis, revenue is recognised when it is earned and costs when they are incurred. It does not matter whether cash has been received or paid. Recognising costs only when paid is the cash basis. The statement is correct about revenue but wrong about costs.
Conclusion. Statements (iii) and (vi) are true. Statements (i), (ii), (iv), (v), (vii) and (viii) are false. The reasons rest on the functions of accounting, the capital and revenue distinction and the scope of Ind AS. They also rest on the classification of accounts and AS 1's fundamental assumptions.
The rest of the answers
The rest of the answers come with the DU B.Com. (Programme) Semester 1 solved papers.
You have read the question paper and its first answer in full. Buy the solved papers once and you can read every answer of every solved paper in this semester.
Solved papers: ₹499 Already bought it? Sign in
The question paper itself stays open to everyone.
Found an error in this volume? Report it and we will check it against the paper.