B.Com. (Investment Management) SEM I 2022 2023 Nov 2023 INV. MGT. INTRODUCTION TO ACCOUNTING I Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A) Multiple Choice Questions (8 out of 10) 8 marks
   • 1. The process of recording of business transaction in the journal is called 2 is a brief explanation of journal entry
   • (a) Statement (b) Narration (c) Note (d) None of these
   • 3. Capital expenditure is expenditure
   • 4. expenditure means an expenditure carrying probable future benefits 5; is the purchase price payable if full payment is made immediately
   • 6. Which Accounting standard deals with recognition of revenue of revenue
   • (a) AS 1 (b) AS 2 (c)AS9 (d)
   • 7. Trade-mark is
   • 8. Accounting standard | is
   • (a) Recommendatory (b) Mandatory (c) Optional (d) No longer valid
   • 9. Drawing are deducted from
   • 10. Return outwards appearing in Trial Balance are deducted from
2. Q1 B) State whether the following are true or False: (7 out of 10) 7 marks
   • 1. Revenue expenditure is recurring in nature
   • 2. Under hire-purchase the buyer has the option to return the goods
   • 3. The number of instalments must be contained in the hire-purchase agreement
   • 4. Bank reconciliation statement is prepared at the end of every month
   • 5. Debit balance of Pass book represents overdraft
   • 6. Profit and Loss A/c shows the financial position of the concern
   • 7. Balance sheet is a position statement
   • 9. Balance of Manufacturing A/c is Gross profit
   • 10. AS stands for accounting statement
3. Q2 (A) Abhi Chemicals has the following Ledger Balances as on 31-3-2018. VCD FYBIM/ SEM-I /SUB Introduction to Accounting- I Hrs /75Marks The following additional information is available: 15 marks
   • 1. Closing Stock: Materials Rs. 2,10,000; Work-in-progress Rs. 12,500 and Finished Goods Rs.2,07,500
   • 2. Depreciation to be provided at 2 % % on factory shed, 10% on machinery & 15% on furniture
   • 3. Repairs and rent and taxes are to be apportioned between Factory & Office in the ration of 3:2
   • 4. Reserve for bad & doubtful debts to be provided at 4% on debtors
   • 5. Insurance Premium covers a period of 1 month in advance You are required to prepare Manufacturing, Trading and Profit & Loss Account for the year ended 31" March 2018 & Balance Sheet as on that date
4. Q2 (B) Journalise the following transactions in the books of Shri Ganesh Mar 1 Mr. Akash started business with cash Rs.1,50,000 Mar5 | Withdrew goods worth Rs.1000 for personal use Mar 22 | Received Rs.4,500 from Ms. Aarti on account
5. Q3 (A) The Car Mart company purchases a motor car from Autoriders company on a hire purchase agreement on January 1,2011, paying cash Rs.10,000, and agreeing to pay further three instalments of Rs.10,000 each on 31* December each year. The cash price of the car is Rs.37,250 and the Autoriders Company charges interest at 5% p.a. The Car Mart company writes off 10% p.a. as depreciation on the reducing instalments system. You are required to Journalise the transactions for all the years in the books of Car
6. Q3 B) On 1-1-2010 M has purchased a Rs.8,000 at the time of delivery. The Cash price was Rs.48,000. The balance amount was paid in the following four instalments on the 31" December every year with interest @ 5% on cash price: Rs.12,000 on 31-12-20210; Rs.11,500 On 31-12-2011; Rs.11,000 on 31-12-2012; and Rs.10,500 on 31-12-2013. Machinery was to be Depreciated at 10% p.a. on reducing balance method. Prepare Machinery A/c and Vendor’s A/c in the books of M. Use Full Cash price (Credit purchase) method Journalise the following transactions in the Books of Mr. Ram and post them into its Jan. 1 Stock of goods on hand 40000 Jan. 4 Bought goods for cash 5600 Jan. 7 Bought goods from Anna 6000 Jan.10 | Returned goods to Anna 800 Sold goods for cash 17000 Jan.17 Sold goods to Prabhat 4600 Prabhat returned goods to us 600 Value of goods destroyed by fire A/c 1000 VCD BIM/ SEM-I /SUB — Introduction to I Hrs Jan. 28 Goods distributed as free samples 400 Stock as on 31" January is Rs. 30000/
7. Q4 (B) State which of the following expenses are capital or revenue. Explain with reasons: 15 marks
   • 1) Expenditure incurred on overhauling machinery
   • 2) Taxes paid
   • 3) Cost of goodwill purchased
   • 4) Heavy expenditure incurred on advertisements
   • 5) Cost of construction of a building
   • 6) Amount spent on uniform of workers
   • 7) White-washing of the factory of building
   • 8) Cost of stores consumed in manufacturing machinery for installation in own factory
   • 9) Wages paid for construction of the building extension
   • 10) Import duty on raw material purchased
   • (A) Distinguish between: Capital Receipts and Revenue Receipts. 8
   • (B) What is Manufacturing Accounts? 7
8. Q5 Write short on: (3 out of 5) 15 marks
   • (b) AS 2
   • (c) Characteristics of Capital Expenditure
   • (d) AS 9

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