Financial Accounting BCOM 1st Year Mock Paper – II Short Question Answer
Section-C
- According to Insolvency Act, prepare a proforma of a statement of affairs using imaginary figures and how deficiency accounts is prepared give a sample.
- What are the rules for converting the trial balance received from a foreign branch into head office currency? Explain.
Section-D
- Mr. Y purchased 7 trucks on hire-purchase system on July 1, 2013. The cash price at the time of delivery of each truck was 50,000 each. He was to pay 20% of the cash purchase price on delivery and the balance in 5 half-yearly instalments starting from 31-12-2013 with interest @ 5% p.a.
On Y’s failure to pay the instalment due on 30-06-2014 it was agreed that Y would return 3 trucks to the vendor and remaining 4 would be retained by him. The vendor agreed to allow him a credit for the amount paid against these 3 trucks less 25%.
Show the relevant accounts in the book of Y assuming that books are closed in June every year and depreciation @ 20% is charged on trucks.
- Mahesh took a lease for ten years from Govind on 1-1-95 and paid 5,000 as Nazrana. The rate of
royalty is 50 paise per tonne of output and the minimum rent is * 4,000 per annum. Shortworking of a year can be recouped in the next two years with the condition that only 50% of the excess of royalty over minimum rent can be utilised for recouping shortworking. The figures of royalty are as under:
| Year | 1995 | 1996 | 1997 | 1998 |
| Royalty (Rs) | 2,000 | 2,500 | 5 ,000 | 7,000 |
Pass journal entries in the books of Mahesh for the above transactions.
Section-E
- Arjun, Bhim and Sohan are partners. Their fixed capitals are 2,00,000, R1,50,000 and Rs. 1,00,000 respectively. According to the partnership agreement, Bhim and Sohan are entitled to annual salaries of 10,000 and Rs. 7,500 respectively. Interest on capital is payable at 5% per annum, but no interest is charged on drawings.
The profits are divisible as first Rs. 60,000 Arjun 50%, Bhim 30% and Sohan 20% and balance in equal ratio. The profits for the year ending as on 31st March, 2012 before charging interest on capitals but after paying partners’ salaries amounted to 1,00,500. Partners’ drawings were as below: Arjun Rs. 40,000, Bhim Rs. 37,500 and Sohan 20,000. The balances in partners’ current account in the beginning of the year were:
Arjun Rs. 15,000 (Cr.), Bhim Rs. 2,500 (Cr.) and Sohan Rs. 5,000 (Dr.).
Prepare profit and loss appropriation account and the current accounts of the partners.
- Explain the difference between hire-purchase system and instalment payment system.
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