BCOM 1st Year Financial Accounting Mock Paper – I Short Question Answer
BCOM 1st Year Financial Accounting Mock Paper – I Short Question Answer :- This Post is very helpfull for all student BCOM, M.COM, M.A, B.SC. In this post, all the mock test papers and question answers related to BCOM have been provided in full. By reading this, students will get maximum help in their studies.
Table of Contents
Mock Paper – I
(Short Answer Questions)
Note: This Section contains one question of ten parts requiring short answers. Each part carries 4 marks.
- (i) What are the main systems of financial accounting?
(ii) Explain the significance of going concern concept.
(iii) What is journal? Why and how is it sub-divided?
(iv) Legal expenses incurred in depending a suit for breach of a contract to supply goods. Is it capital or revenue expenses?
(v) Differentiate between trading A/c and profit & loss A/C.
(vi) What is statement of affairs?
(vii) Explain a wholesale branch.
(viii) What is the difference between hire-purchase system and instalment purchase system?
(ix) Explain shortworking recoverable and shortworking irrecoverable.
(x) A and B are partners in the firm sharing profit in the ratio of 3: 2. A and B surrender 1/2 of their respective share in favour of C. C is to bring his share of premium for goodwill in cash. The goodwill of the firm is estimated 40,000. Pass the necessary journal entries:
(a) Goodwill retained in the business.
(b) Half of goodwill is withdrawn by the old partner.
Section-B, C, D & E
(Descriptive Answer Questions)
Note: Each Section contains two questions. Attempt one question from each Section. Each question carries 15 marks. Answer must be descriptive.
- Prepare trading and profit & loss A/c and balance sheet with the help of the following trial balance:
|Particulars||Dr. Amount (Rs)||Cr. Amount ) (Rs)|
|Debtors and creditors||15,000||16,000|
|Bills receivable and bills payable||6,000||4,000|
|Cash in hand||4,000||–|
|Bank overdraft @ 10%||–||24,000|
|Purchase & sales||40,000||64,000|
|Salaries & wages||6,000||–|
|Bad debts and bad debts reserve||2,000||3,000|
(i) Closing stock 8,000.
(ii) Purchase of furniture 5,000 has been included in purchase A/c.
(iii) Salaries are prepaid 1,000 and wages are outstanding 2,000.
(iv) Goods worth 600 have been distributed as free samples and the goods worth * 400 have been withdrawn by owner for personal use.
(v) Provide 10% depreciation on machinery and furniture.
(vi) Building is to be appreciated by 5%.
(vii) Provide 5% for bad debts provision and 2% for discount on debtors.
- Classify the following expenses between capital and revenue, stating reasons in each case:
(i) Rs 4,000 spent on dismantling, removing and reinstalling plant and machinery to a more convenient location; Rs 600 paid for removal of stock to new site.
(ii) An old plant costing 17,000 was purchased; 1,200 were paid on its carriage; this plant was repaired at a cost of 4,800; 1,500 was paid to an engineer as honorarium who had supervised its installation.
(iii) During the year 1,800 were spent on the repair of various machines.
(iv) * 550 spent as lawyer’s fees to defend a suit claiming that the firm’s factory site belonged to the plaintiff. The suit was successful.
(v) 12,000 were spent on heavy advertising in connection with the introduction of a new product
(vi) 200 were paid as municipal tax in connection with a building which was purchased this year for 20,000
(vii) A sum of 1,300 was spent on whitewashing and painting of new factory.