Financial Accounting & Analysis — DU Bachelor of Business Administration (Financial Investment Analysis) Previous Year Question Papers

1. (a) From the following transactions of Shri Pankaj Kukreja, write up journal entries with narration: April 1 Assets: Cash in hand - € 5,000; Cash at bank - $ 90,000; Stock of goods - 7 8,000; Machinery - 7 20,000; Building - 7 1,25,000; Furniture - 7 3,000; Sanya owes - 7 25,000; Tanya Owes - $ 15,000; Liabilities: Loan from Mrs. Nidhi Kukreja - $ 70,000; Sum owing to Hema - R 50,000 April 2 Sold goods to Kavita - & 12,000 April 8 Received from Kavita - $ 11,950 in full settlement April Payment to Hema - · 9,500 by cheque and received a discount of $ 100 April 15 Purchased 100 shares of LM Limited @ $ 75 per share (face value of 7 100 per share); brokerage paid 5% April 25 Bought goods worth & 5,000 from Jaya and supplied the same to Priya for 7 April 26 Paid salaries to staff & 6,000 and recovered from travelling salesman 7 1,500 for goods supplied to him after deducting his travelling expenses & 50 April 28 Old furniture sold for $ 500 April 29 Sold 50 shares in LM Limited for 7 80 per share, brokerage paid 7 75. April 30 Paid Municipal Taxes · 200 (b) What are the main differences between Capital and Revenue Receipts? Provide examples for each. 2. The following is the trial balance of Sahil as on 31" March, 2025; Accounts Debit 3 Credit E Capital Account 8,00,000 Drawings Account 60,000 Stock on 1st April, 2024 4,50,000 1.. Sundry debtors 4,00,000 Freight and Octrol 46,000 Trade expenses 5,000 Advertising expenses 50,000 Insurance premium 4,000 Bad debts 16,000 : Provision for bad debts 9,000 Cash in hand 52,000 Goodwill (at cost) 2,00,000 (i) Stock on 31 March, 2025 was valued at ? 5,30,000. (i) Salaries have been paid so far for 11 months only. (ili) Unexpired insurance included in the figure of 7 4,000 appearing in the trial balance is 7 1,000. (iv) Commission earned but not yet received amounting & 1,220 is to be recorded in the books of account. (vi) Manager is to be allowed a commission of 10% of net profits after charging such commission. (vill) Only one-fourth of advertising expenses are to be written off. Prepare the trading and profit and loss account for the year ended 31st March, 2025 and balance sheet as on that date. [18] 3. (a) Explain the conceptual framework of IFRS. What are the difficulties or challenges in adopting (b) What is meant by Generally Accepted Accounting Principles (GAAP)? Highlight the benefits of having generally accepted accounting principles in the globalised world. [10] 4. Following are the accounting information of AirCase Ltd. BALANCE SHEET as on 31st March (Rs. in lakhs) I. Equity and Liabilities Share Capital 250 250 Reserve and Surplus 100 116 Creditors and other current liabilities 25 129 TOTAL LIABILITIES 495 595 Fixed Assets 200 260 Cash/Bank 20 20 Other Current Assets 25 25 Misc. Expenditure 70 60 TOTAL ASSETS 495 595 Additional Information: Profit before interest and tax 150 Calculate the following ratios for the year 2024-25: