GOVT ASSOCIATE COLLEGE OF COMMERCE FOR (W) GUJRAT

D.COM. II (Mid Term) Exams 2024

FINANCIAL ACCOUNTING (MANUAL)
PART-A (OBJECTIVE)
Time: 0:30 Marks 20
Note: This part is compulsory. It should be attempted on the Question Paper. Cutting, overwriting, and use of
lead pencils are not allowed.
Q.1. Choose and tick the correct answer: - (20x1) =20
1. Subscription received in advance is: -
a. An Income
c. An Asset
b. A Liability
d. An expense
2. Utility stores are treated as: -
a. Trading concern
c. NGO
b. Non-trading concern
d. Service Enterprise
3. Sale of old newspapers is treated as: -
a. Expense
c. liability
b. Income
d. Asset
4. Manufacturing companies sell product: -
a. They produce
c. In raw new form
b. They purchase
d. In old form
5. Income statement is prepared to know: -
a. Gross profit
c. Financial position
b. Net profit
d. Net capital
6. Gross profit means: -
a. Income - Expense
c. Asset-Liability
b. Asset-Capital
d. Net Sales- Cost of good sold
7. Under applied FOH is added in: -
a. Cost of raw material consumed
c. Factory cost
b. Cost of good manufactured
d. Cost of goods sold applied
8. Machinery purchased during a year is: -
a. Asset
c. Revenue
b. expense
d. loss
9. The cost of oldest lot is charged to production under:
-
c. Average Method
a. LIFO Method
d. None of the three
b. FIFO Method
 10. FIFO stands for: -
a. First in First Out c. First in First option
b. Favourable in First Out d. None of the
11. Material purchased is recorded in column: -
a. Receipt c. Balance
b. Issue d. Cash
12. A partnership must have at least: -
a. 10 members c. 20 members
b. 02 members d. 05 members
13. Interest on capital is deduct from: -
a. Capital c. Profits
b. liabilities d. Asset
14. A minor is one who has not attained the age of: -
a. 25 years c. 20 years
b. 22 years d. 18 years
15. The written agreement of partnership is called: -
a. Partnership deed c. Contract
b. Certificate d. Consent
16. The number of partners in case of banking business is limited to: -
a. 10
c. 30
b. 20
d. 15
17. A partner who neither invests, nor take part in business is called as: -
a. Senior partner
c. Nominal Partner
b. Active partner
d. Sleeping partner
18. Capital receipts is shown as: -
a. Income & Expenditure account
c. Balance Sheet
b. Income Statement
d. None of the three
19. Income and Expenditure Account reveals: -
a. Income statement
c. Balance Sheet
b. Trial balance
d. Work sheet
20. FECTO sugar mill limited is a: -
a. Manufacturing Concern
c. Non Trading Concern
b. Trading Concern
d. Service Concern
 PART-B (SUBJECTIVE)
Time: 2:15 Marks: 50

SECTION-I

Q.2. Give the short answer to any twenty-five from the following questions: -
1. What is meant by material costing system?
2. What is work in process?
3. What are the objective of non -trading concerns?
4. What is variable cost?
5. What is under applied factory over head?
6. Define manufacturing concerns.
7. What is weighted average cost?
8. What do you mean by Legacy?
9. Write down method of Material Costing?
10. Define Direct Material.
11. Define donation.
12. Define Entrance fee.
13. Define conversion cost.
14. What is meant by Material Requisition?
15. Define Direct Material.
16. Define Direct Labour.
17. Define average method.
18. Define Honorarium.
19. Enlist of two disadvantages of average method.
20. Define periodic inventory system.
21. Define Life Membership Fee.
22. Give any three example of factory overhead.
23. Define subscription in arrears.
24. Define business.
25. Who is an active partner?
26. What is partnership deed?
27. Give three advantages of partnership.
28. What is meant by good will in partnership?
29. Define minor partner.
30. Define sleeping partner.
31. Define business enterprises.
32. Define prime cost.
33. What is difference between cost and expense?
34. What is meant by operating expenses?
35. What is meant by the cost of goods sold?
36. Define “Store ledger Card” or “Bin Card”.
37. Define Material Consumed.
38. What is purchased Invoice?
 SECTION-II
Note: Attempt any three (3) Questions. (10x3=30)
Q.2. Record of Bilal Ahmed shows the following receipt and issues of material during January: -
1. Inventories 3800 units @ Rs. 12.
4. Issued 1200 units to factory.
5. Return 100 units to seller.
8. Purchase 800 units Rs. 14 per unit.
12. Issued 1000 units to factory.
17.Issued to factory 800 units.
20.Purchase 550 units for Rs.15 per unit.
25.Return 50 units from factory which issue on 12th January.
26.350 units issued to factory.
30.Bought 1200 units @ Rs.13.50.
Required: Compute ending inventories by FIFO and LIFO Method.
Q.3. Murtasim & Co gives you the following information. Prepare Cost of Goods Sold Statement for the year
ended on 31st December 2022.
Opening inventory Closing inventory
Material………………………………..Rs 20000 Rs 18000
Work in process……………………….Rs 13000 Rs 15000
Finish Goods…………………………..Rs 17500 Rs 18600
Raw material purchased.........................Rs 50000
Direct labour...........................................Rs 40000
FOH 90% of Direct labour cost
Indirect Material.....................................Rs 6000
Indirect Labour.......................................Rs 7000
Depreciation of Plant.............................Rs 12000
Misc. FOH.............................................Rs 10000
Q.4. Convert the following receipts and payments account into income and expenditure account for the
year ended 31st December.
RECEIPTS RS PAYMENTS RS
Balance c/d 1240 Drinks expenses 500
Annual subscription 1630 General Expenses 550
Membership fee 240 Salaries 550
Interest 180 Furniture 800
Sundry receipts 50 Stationery 125
Entrance fee 250 Repairs 150
Balance b/d 915

TOTAL 3590 TOTAL 3590

Adjustments:
1. The annual subscription in arrear amounted to Rs 350.
2. Gereral expenses Rs. 75 and Salaries Rs. 150 are outstanding at the end of year.
3. Rs 100 is to be written ooff as depreciation on furniture.

Q.5. Alam, Akbar and Aslam are partners with a capital investment of Rs. 50,000; Rs. 40,000 and Rs.
30,000 respectively. The partnership deed contains the following terms: -
a) Investment to be provided @ per annum on capital.
b) Akbar is entitled to draw salary of Rs.2000 per month.
c) Alam is to get commission @ 10% after charging (a) and (b) above.
d) Remaining profits and losses is to be divided in the ratio of their capitals.
Net profit of the firm for the year ended 31st December amounts to Rs. 65,000.
REQUIRED:
Prepare General Journal and Income Distribution Statement.