E.

J
Eaminanin
Paper.2024(DU)

contains 24 printed pages.] Your Roll No...

paper
question
This QuestionPaper 1406
of
No.
hique
Paper
Code 2412081103
Paper DSC 1.3 Financial Accounting (2024)
ofthe
Name Course B.Com, (H)
the
Nameof I UGCF
Semester Maximum Marks :75
Duration: 3Hour
InstructionsforCandidates

yourRoll1 No. on
the top immediately on receipt of this question paper.
Write should be used throughout the
. be written either in English or Hindi; but the same medium
Answers may
2
paper.
AttemptallI guestions. All questions are compulsory and carry equal marks.
3.
questions are to be attempted together.
Partsoffthe
4.
of each question
and its parts are given alongside.
5, Marks
workings clearly.
6 Show all your
Calculator allowed.
7. Use of Simple the future of accounting.
(9)
role of Al and technology in
1 (a) Wite a note on the examples. (3)
items with example. Give two
(b) Explain the meaning of prior period
involved in the following statements:
(c) State the accounting principles the near future.
business enterprise will not be sold or liquidated in
(i) It assumes that a
goodwillis not recorded.
(ii) Self- generated directly disclosed in financial
statements.
and marketing manager is not
(iii) Rift between production accounting year.
unsold is carried forward to next
(iv) Value of inventories left
as sales.
a customer is not recorded
(V) Advance received from capital. (6)
account is deducted from his
(vi) Bike purchased by proprietor from business
OR
Give two examples of each.
distinguish between exceptional and extra-ordinary items. (9)
(a) Define and requirements in respect of such
items?
What are the disclosure
Explain any two in brief. (9)
are the fundamental accounting. assumptions as per AS-1.
0) What recognition
as per AS 9 and date of
Indicate in each case the amount of revenue that can be recognised
(a)
of revenue.
2022. XYZ Ltd vas
credit to XYZ Ltd. For Rs. 250 crores on 8th Nov.
() ABC Ltd, sold goods on On 10'h Januarv
these goods but their export order was cancelled in Dec. 2022.
planning to export was requested to
decided to sell the same goods in the local market. ABC Ltd.
2023 they Ltd. directors of ABC
discount of I5 % but they agreed to give discount of l0%. The
offer aprice to XYZ Ltd. Comment.
want to adiust the sales figure to the extent of the discount given
Ltd, showrOom
returbishing of their
were sold to Siya Mart but due to
() On 21-3-2023 clothes worth 60,000clothes were delivered on 12-4 2023.
request,
Deing underway on their consignment basis of
(1) On 15th Jannary 2022 garments worth 4,00,000 were sent to Anand on
as on 3lst March. 2022
lying with Anand
Which 25% garments unsoldwere
E,2 Financial Accounting: Concepts and Applicationg

(iv) On lst November, 2021 garments worth 2,50,000 were sold on approval basis. The period of
approval was 4 months after which they were considered sold. Buyer sent approval for 75%
goods up to 31st December, 2021 and no approval or disapproval received for the remaining
goods till 31st March, 2022. (2x4)
(b) Murli group had Property, Plant & Equipment (PP&E) with book value of Rs. 80,00,000 on 31st
March 2023.As part of their practice of revaluing the assets on yearly basis, the Fair Value was assessed
on 31st March 2022. Pass the necessary Journal Entry in following cases:
(1) If Fair Value as a result of Revaluation done on 31st March 2023 was Rs. 86,00,000.
(i) If Last year the property was revalued downwards by Rs. 3,00,000 and decrease of that asset
was recognized in the Profit and Loss Account and Fair Value as a result of Revaluation done
on 31st March 2023 was Rs. 86,00,000.
(iii) If Last year the property was revalued upwards by Rs. 8,00,000 and increase of that asset was
recognized in revaluation reserve account and Fair Value as a result of Revaluation done on3lst
March 2023 was Rs. 69,00,000. (2x3)
(c) List four items of inventory where Ind AS-2 is not applicable. (4)
OR

(a) A company acquired a patent at a cost of Rs. 50,00,000 for a period of ten years and its product life
cycle is also ten years. The company capitalised the cost and started'amnortising it as per AS 26. After
net
two years it was found that the product life cycle may continue for another five years only. The
11,00,000.
cash flows from the product during these 5 years are expected to be 9,00,000, 11,50,000,
10.00.000 and 8.50,000. Find out amortisation expense of the patent for each of these years company
flows.
changed amortisation method from straight line method to ratio of expected cash (8)

(b) Mr. Jatin gives the following information relating to the items forming part of the inventory as on
31.03.2019. His enterprise produces product P using Raw Material X.
X
(i) 900 units of Raw Material X (purchased @ 100 per unit). Replacement cost of Raw Material
as on 31.03.2019 is 80 per unit.
incurred till date is 245
(ii) 400 units of partly finished goods in the process of producing P. Costcost of * 50 per unit.
per unit. These units can be finished next year by incurring additional
(iii)) 800 units of Finished goods P and total cost incurred is 295 per unit. Expected selling price of
product P is 280per unit, subject to a payment of 5%'brokerage on selling price.
Determine how each item of inventory willbe valued as on 3t.03.2019.
(6)
Also calculate the value of total Inventory as on 31.03.2019.
sells advertising space
(c) Sun Publications publishes a monthly magazine on the 15th of every month. It the balance
in advance and
in the magazine to advertisers on the terms of 80% sale value payable
sale of space for the March 2023 issue was made
within 30,days of the release of the publication. The
3,20,000 on 10-3-2023
in February 2023. The magazine was published its scheduled date. It received
and 80,000 on 10-4-2023 for the March 2023 issue.
Discuss in the context of AS 9 the amount of revenue to be recognized and the treatment of the amount
received from advertisers for the year ending 31-3-2023. What will be the treatment if the publication
(4)
is delayed till 2-4-2023?
3. From the following information of Mr. Ram, prepare Manufacturing Account, Trading & Profit and LOSS
Alefor the year ended 2022 and Balance Sheet as at that date:
Particulars Dr. () Cr() Particulars Dr. () Cr ()
Cash 300 Bank 7800

Creditors 12000 Factory wages 41000

Eramination Paper. 2024 (DU) E.3

Stock on 1.42021: 158000

Sales
Raw material 12000 1500
Repairs to plant
Work-in progress 14000
Packing and transport 2200
Finished goods 3000 Plant bought on 1.10.2021 4000
Office Salaries 7000 Debtors 21000
Rent and taxes 3000 Light and Heat 1000

Purchases 67000 General expenses:

Capital Alc 73200 400
Factory
l.4.2021 30000 700
Plant as on Office
1800 7200
Insurance Factory power
Furniture 1800 Drawings 16000

Discount received 800 Bank charges 200

1200
Provision for Doubtful debts 2000 Bad debts
246000 246000
Advertisement 1900 Total
Additional Information :
() Closing stock valued as per AS 2 is as under:
(a) Raw material 7,000;
(b) Work-in-progress 3,500;
(c) Finished goods 19,000; and
(d) Packing material 300,
(ii) The following items are to be provided
(a) Factory power ?1,100;
(b) Rent and taxes 800;
(c) Light and heat 300;
(d) General expenses factory 100;
(e) General expenses office 100; and
() Insurance prepaid 400.
furniture @ 5% p.a.
(ii) Provide depreciation on plant @ 10% p.a. and on
(1v) Increase provision for doubtful debts by ? 1,000.
the
insurance are to be allocated to the factory and 20% to
(V) 80% of rent and taxes, 1light and heat and (18)
office.
OR

(a) ABCClub has following balances as at January 1, 2022

50,000
Sports Fund
paid) { S0,000
10% Sports Fund Investments (Face value 60,000 fully
Transactions of the year
Donation for Sports Fund received during the year 716,000
E.4 Financial Accounting: Concepts and Applications

Sports Prizes awarded during the year ?8,000

Interest received on Sports Fund Investments during the year ?5,000
Expenses incurred on sports events during the year ?4,000
Interest received on General Fund Investments during the year 20,000
How will you deal with the above items while preparing the Income and Expenditure Account for the
year ended 31st, December, 2022 and Balance Sheet as on that date. Show the extracts of final statements
(6)
(b) In 2022, the subscriptions received by Modern Club of Delhi were 20,450 including 250 for 2021
and 500 received in advance for 2023. At the end of 2022, total subscriptions outstanding were
* 750. The subscriptions due but not received at the end of the previous year i.e., 31.12.2021 were
400 while subscriptions received in advance on the same date were 900. Calculate the amount of subscriptions
to be credited to Income and Expenditure Account for the year ending 31.12.2022. (6
(c) How will you deal with the following items while preparing the Income and Expenditure Account for
the year ended 31st December, 2022 and Balance Sheet as on that date :
Particulars As at 31st December

2022 () 2023 (7)

Creditors for Stationery 15,000 25,000
Stock of Stationery 45,000 35,000
During 2022, payments made to the creditors for Stationery amounted? 1,50,000 and cash purchases
of Stationery amounted to 20% of the total purchase. (6)
4. XYZ Ltd. invoices goods to its branch at cost plus 20%. The branch sells goods for cash as well as on
credit. The branch meets its expenses out of cash collected from its debtors and cash sales and remits
balance of cash to head office after withholding 10,000 necessary for meeting immediate requirements of
cash. On 1st April, 2020 the assets at the branch were as follows :

Account Balance ()
Cash in Hand 10,000

Trade Debtors 3,84,000

Stock at invoice price 10,80,000

Furniture and Fittings 5,00,000

During the accounting year ended 31 March, 2021, the invoice price of goods dispatched by the head
office to the branch amounted to 1,32,00,000. Out of the goods received by it, the branch sent back to
head office goods invoiced at 72.000, Other transactions at the branch during the year were as follows:
Amount ()

Cash sales 97,00,000

Credit sales 31,40,000

Cash collected from customers 28,42,000

Discount allowed to debtors 58,000

Returns by customers 1,02,000

Bad debts written ot 37,000
8,42,000
Expenses paid by branch
On 1 January, 2021 the branch purchased new furniture for 1,00,000 for which payments were made by
head office by means of acheque. Head office also paid commission of 60,000 to branch manager by
E.5 was Prepare2021
March,
ended
his (18) 20%invoice payments.
Head () Amount 12,00010.000 1,27,000
1,10,000 30,000
75,000 30
000
1,45,000
74,800 30,00015,000 45,635
24,000 13,365
40,000 3,000 9,500
241
Method
Expensesyear's(18)period. present (8)
hand
charging each. factor
at to of
method. Kolkata at daily Debtors
Branch lease their
in madeprompt basis lakh P.V.
cash 1 after thereof
remitted year I of income.
3
Balances Mumbai the
and profits and be on :below Details
Office. & Rs. sum
to Stockon three cost
outstanding Mumbai 15% end that: is
valuethethe
year arc given
transactions
balances was finance
Diminishing
branch
net thatat
sales
cash
are charging A/c, underyear aforinformedthatequal
office
for
the discountcollections this, cost adjustment 7,47,30,200 residual
Branches
at are Alc at way unearned
of of will
2022-23 (Out 80% price). after debtors,
Debtors a
were
give
to
price
catalogue
price are unguaranteed
suchasset
on @10% ofthe
branch (cost) which catalogue profits Branch You the
6,000 p.a.books
of
head its instructionsyear catalogue to
Branch costs in the
instructed
is suppliers H.O. H.0. against net allowed Lessor. structured andrespectively.
16%
@ to all the Mumbai that of
amounting (at
goods and for at at
branch
Mumbai to
: to to: to
directly Branch
branch directly price) pilferage 6%
of Mumbai estimatedvalue payment
commission
OR branch
local be lifethe
with year
depreciation
to the invoices Office
manager invoice
@
commissionAccount, to usefulto beenresidual 0.75l
expenses in 50%
plus the Mumbai fromend. : : normal anddiscount revert and
lease
Company.
Account Head
cost
H.0.)of
close
the
branch Customers Customers at A/c its wouldvaluehavethe and
annual
a Office
in
Delhi list
Branch
price. at H.0. 3,000 through Stock payments
to and to to from left-unsold Loss for over of 10%. 0.826
branch entitled
subject
is which the
1S
cost its cost till branch Mumbai to Debtors insurance :Outstanding
a
to
Branch eguipment residual that
Branch at Branch branch (Rs. entitled made asset the
by Debtors.
Branch
Opening
Branch (at Credit Branch Credit Branch &Profit
is 0.909.
with rate ascertain
paid Kolkata fire Paid
2021 manager
is branch by is
Kolkata to Mumbaibe payments, the lease
guaranteed together
interestare
and by 6,000
purchased by by by by the at :ExpensesManager
Allowed is commission
such Branch to term
(DU) Furniture its
Head are branch At
Stock to received returnedreturned from
Goods is leased annual
Emination
March, remnitted goods to to3
2024 Account
braassumi
nch ng
commis ion.
price at
salesexpenses Sent
from
to Rs. Sales
Credit recovered Prepare
provision lease
required
Paper 000,10,agaiStoBrnckanch
Sales
Cash Implicit
values
31Oncheque. wiLtthSunny
d list credit of Transferof
DetailsOpening GoodsGoodsTransfer Goods GoodsCash
Discount
of of Branch Branch Mumbaiprompt has
the The The
1
years
branch
thethanless ails
and
Goodsstock Loss Loss
Required:assumingLtd. After (iii) for
and of (1) (ii) are
priceAll Alc trend (a)
X
0u 10%
SN 10 12 13 14 15 16 17
1 2 3 9
 regardingDept.
Applicationg Z 10,00022,0005,00045,000 10,5005,000 15 2,70024,000 2,400 providing
(10) lease
1,000 100 1,500
Amount
) 2,700 2,2501,800 7,500 1,000 3,000 Gautam
1,2022.
April only0.756 for the(10) departments
these
depreciation
lessee
thebe .869, for (Units)
Stock
Closing
and information after yearof will lessee
the
Concepts expiry
Y
Dept. 5,000
44,000
12,000 67,500
8,75010,0001,250 20 200 2022 on each machineryare by the
15,00,000
of 15%chargesconsideredregarding 300 400
of
FinancialAccounting: March, the
The end books
on at Ltd
Z. the thefactors
46,880
31st At of Gautam be the information
and:belowX Dept. 18,000 7,500 90,000
66,000 22,500
10,0001,50025 300 being
Y ended years. value value to in
X, value of entries
machinery
given valueresidual respectively,
departments year 3 present (Units)
Stock
Opening
fairis Relevant
is the termresidual journal
2023 the
for the the of 100 200
Ltd.lease
threeMarch, Account thatandyearvalue Pass departments.
units)
(in
Department OR S.K,theaguaranteed
p.,a, third
estimates theyear,
having
31st fromas
ft.) Loss 15% 2023.
well andCalculate
each two
sq. Department
Storeended (in & lease
as Ltdis second
Department Profit has return in March,
through
Dept. machine charges Purchases
(Units)
year
Departmental on Ltd S.K. basis,
and machine Gautam of first, 31st
each each each
consumed
by
rate linefinance business
the 5%. However, 1,0002,000
Trading the
for each by in at of ending
departments
three in occupied
employees furniture
on
Depreciation Debts a of 6,00,000, endstraight
implicit
a furniture :Information
Additional LabourDepartmentaltooklife
welfare
expenses Ltd, the its
is Stock
Opening Taxes Electricity
Expenses andyear carries
:below
Jason Particulars Debtors at
end Stock
Closing Bad economic
outwards
Carriage Ltd,
spaceof Electricity inwards
Carriage allowed
Discount
received
Discount
S.K,Theat on it accounting
0.657
Purchases of Number Advertisement and for Gautam pays 30,000, p.a,recordingLtd given
Particulars provision the
M/s. Sales ValueFloor Rates 33% Dept.
Prepare The Ltd Star
Salaries
Rent, to and is
(b) (a) (b) A
13
E.6
E.7 (8)
respectively.
years.
two
15
Rs. departments
last
and the
32,000
10 for
Rs. bothprice
Rs. is
B for sale
cost
of and
sameand
A account.
a Dept.is purchase
total
sales
for trading
at to in
made unit
(DU):Information
Additional profit
departmental
change
per
2024 were Pricegross
no
Paper Purchasses
of is
Selling
Rvamination There
Rate Prepare
() (i) (ii) (iw)