B.Com In Banking & Insurance (BCBI) Sem II 2016 2017 Sep 2017 FYBBI SEM II ATKT EXAM FIN. ACC. Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 a. Say True Or False 5 marks
   • 1) Down Payment is the initial amount payable at the time of signing the hire purchase 7 2) Drawings are deducted from capital
   • 3) An inventory costing method that assumes that those items which have been first in 8 inventory are sold first is LIFO
   • 4) AS 6 is for Depreciation Accounting 7 5) Capital expendittre is Abnormal expenditure
   • b. Fill In The Blanks 7 1. Under the hire purchase system, depreciation is provided on
   • 2. Return outwards appearing in Trial Balance are deducted from
   • 3. Inventories should be valued at cost or net realizable value whichever is
   • 4. The subscribed capital is that part of the _ which is agreed to be taken up by the public Acounting Standard is for Valuation of Inventory
   • c. Match the following columns. 3
   • 1) inventory should be valued at | bills
   • c)lower of cost and net realisable
2. Q2 M/s Hindustan Ltd. Purchased truck from the Bharat Motors on Hire Purchase Basis. The cash price of the truck was Rs. 12,80,000. The amounts were payable as under: Rs. 400,000 on the date of purchase i.e. 1“ January 2013 Rs. 3,29,000 on 31" December, 2013 Rs. 3.20,000 on December, 2014 Rs. 3,29,812 on December, 2015 The BHarat Motors Ltd., charged interest at 5% p.a. on the unpaid amount. The purchasing company decided to write off as depreciation 20% on the diminishing balance each year. You are required to give Truck A/C, Ltd A/C, Interest A/C and Depreciation A/C in the books of M/s Hindustan Ltd. (15)
3. Q2 State whether the following is capital or revenue expenditure or income; Give 15)
   • 1) Cost of acquisition of Plant & machinery
   • 2) Repainting of Factory building
   • 3) Amount spent on uniforms for the
   • 4) Amount spent for removing and reinstallation of machinery
   • 5) Cost of raincoats and umbrellas for employees
   • 6) Wages paid to the workers for erection of new machinery
   • 7) Sales tax collected from purchaser of goods
   • 8) A sam of Rs. 20,000 paid for obtaining a license to carry on business
   • 9) Received 00,000 on the issue of 5% Debentures
   • 10) A plant worth Rs. 7,00,000 is brought by proprietor for business activities
4. Q3 On 1* january 2010, M/s Kirloskar & co. purchased a plant costing Rs. 280,000 and spent Rs. 20,000 for installation. The company decided to adopt reducing balance method of depreciation, the depreciation being provided at 20% p.a On 1* July, 2012 machinery costing RS. 60,000 purchased on 01-01-2010 was sold for Rs 41,040. You are asked to show the Plant A/C ant Depreciation A/C for 3 years ending 31" December every year and also give P&L A/C Extract and Balance Sheet Extract. (15) Ltd. has an authorized capital of Rs. 5,50,000 equity shares of Rs. 10 each. The company issue for public 5,00,000 equity shares, monies being payable as under On application Rs. 3 per share On allotment Ks.4 per share (including premium of Rs. 2) On first call Rs. 3 per share On and final call Rs, 2 per share Mr. Rakesh to whom 5000 shares were allotted fail to pay 1“ and call You are required to give journal eniries in the books of S Itd
5. Q4 Calculate by FIFO and Weighted Average Cost of inventory valuation, the cost of goods sold and value of closing inventory from the following data: (15)
6. Q4 The Trail Balance of Mrs. MAnjula as on 31" December, 2015 was as follows: Work-in-Process 10,000 Bills Payable 28.500 Finished Goods 15,500 Sales of Scrap 1.500 Repairs of Plant 1,200 Repairs of office Cash at Bank 2,300 Plant and Machinery 90,000 Following additional information is provided to you: I. Closing stock as on 31 December, 2015 was: Raw Material Rs. 30,800, Finished
   • 3. 25% of the lighting expenses and rent is to be charged to office premises and the remaining amount is to be charged to factory
   • 4. Depreciation is to be written off on Machinery at 10% p.a. and Furniture at 5% p.a
   • 5. Provision for doubtful debts is to be maintained at 10% You are required to prepare manufacturing A/C, Trading A/C, profit and loss A/C for the year ended 31/12/2015 and Balance Sheet as on that date. (15)
7. Q5 Write short notes. (Any 3) 15 marks
   • 4) Depreciation Accounting
   • 5) Manufacturing Accounting

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