Financial Accounting — DU B.Com (P) Previous Year Question Papers

(a) State with reasons whether the following statements are true or false (any six). (1) Accounting performs only one function, i..., maintenance of systematic accounting records. (ii) Expenses incurred to keep the machine in working condition are capital expenditure. (iii) An expenditure intended to benefit the current period is revenue expenditure. (iv) All the enterprises are required to apply Ind AS. (V) An outstanding expense account is a nominal account. (Vi) Going concern, Consistency, and accrual are the fundamental accounting assumptions. (vii) As per the consistency principle, accounting policies once adopted for similar items should be followed consistently from year to year and should never be changed under any circumstances. (vili) Accrual means recognition of revenue as it is earned and of costs as they are paid. (6x2=12) (b) Write short notes on any two : (i) Money measurement assumptions (11) Prior period items (iii) Data Analytics in Accounting (2x3=6) 2. (a) Explain the important points of AS-2 Accounting for Inventories. (6) (b) The Plant and Machinery Account of a Company had a debit balance of Rs. 1,47,390 on April 1, 2019. The company was incorporated in April 2016 and has been following the practice of charging full year's depreciation every year on the Diminishing Balance System @15% p.a. On 1st April, 2019, it was, however, decided to change the method from Diminishing Balance to Straight Line with prospective effect. At the same time, management reviewed the useful life of the machine and estimated that it will probably work for a further period of 7 years with a scrap value of On 1st April, 2019, a new machine was purchased for Rs. 50,000 and will be depreciated @10% p.a. on a straight line basis. All the other machines were acquired in 2016-17. Show the Plant and Machinery Account from 2016-17 to 2019-20 as per (12) the provisions of AS-10.. (a) Explain the important of points of AS 10 with regards to plant, property and (b) The following are the details of material in respect of certain items of M/s. Date Particulars Units and Cost per unit 01.09.2021 Opening Balance 350 units a Rs 30 per unit 04.09.2021 Purchases 115 units a Rs 35 per unit 06.09.2021 Issue 250 units 09.09.2021 Issue 125 units 15.09.2021 Purchase 575 units @ Rs 20 per unit 19.09.2021 Issue 400 units 26.09.2021 Purchase 180 units @ Rs 50 per unit 29.09.2021 Issue 65 units Find out the value of closing stock as on 30/09/2021 by using the perpetual system of recording of inventory according to FIFO and the weighted average price method. (12) 3- From the following trial balance and additional information of M/s. Ashutosh & Sons., prepare Trading and Profit and Loss Account for the year ended 31" March, 2018, and Balance Sheet as on that date : Cr. (Rs.) Opening Stock 8,12,525 Purchases and Sales 2,51,000 1,52,630 Debtors and Creditors Power and Fuel Bills Receivable and Bills Payables Loan to Ram @ 10% p.a. (on 1/12/17) 22,260 General Expenses