ST .

XA VI ER 'S COLLEGE
(AUTONOMOUS)
KOLKATA

'1 st SEMESTER EXAMINATION

NO VE MB ER -D EC EM BE R2 ~3
I
B. Com.
C1BC230111T Mon day, Dece mbe r 18 2023
'
9:00 AM to 12:00 Noon
FINANCIAL AC CO UN TIN G - 1 3 hours
Full Marks : 70

REA D THE SE INS TRU CTI ONS FIRST:

• Of the questions attempted, the answers to
· · ·
in the question pape ·
se ounta m pen or a -pomt pen o
f
• Answ er in your own words as far as practicable. ~
• Do not write anything on the question paper other than
your Roll No.

. .
At the end of the exanunatt · work sJ:urely together.
on, fasten a11 yo~r
· · b k
The marks are given m rac et s { ] at the end of each question or part question.

The ques tion pape r consists of 7 pages.

2023 1
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·n be ev al ua te d.
UE S T IO N S.
'

AnS'A
-~ questions.
-er Af!IY Ebt,·c
. th e ac co un tin g ye ar ct· [5 x3 =1 S\
... Prakash Is a re ta ile r Du rin g en m g on 31 .3 .2 02
1. ,..,r. ·~ao
itetn @ ' o ea ch an d so \
d 10.,_ 0
n um· ts @ ~1 15 0 ea
3 he pu rc ha se d
12 00 un its of an . . n of 8% on sa le M r ch th ro ug h hi s ag en t
who cJ,arged a comm 1ss10 s. · Pr ak as h al so pa id
ds th ~1 4, 00 0 as ge ne ra l
nses. But to w ar th e en d of th is ye ar e f ar k et pn.ce
ex !: th e un so ld st oc k 7 fe ll do w n to ~7 00 pe r un its
sh ou ld be va lu ed . . .
H . th un .
2 W ha t 1s e acco t'i ng tre at m en t of Legacies
\ ,.h
m ca se of a N on -P ro fit
•
3. Su e~ a \J •
1
, ·td pu rc ha se d a m ac hi o 00
ne fo r ~s.o • 0 on J
O rg an iz at io n?
line m et ho d for de pr ec an ua ry 1, 20 19 an d fo llo w ed
ia tin g th e m ach'me. Th e es tim t d • st ra ig ht
d th e re sid ua \ va lu e es a e us ef ul lif e of th e M ac hm . •
ye ar s a n tim at ed w as ~lO ,OOO e 1s 8
th e diminishing ba la nc . O n 1. 1. 20 22 , it w as de ci de d
e m et ho d of ch ar gi•ng de p · · to fo llo w
machinery ac co un t fro re ci at io n @ 15 % pe r an
m th e ye ar en de d 31 ·12 20 19 nu m. Sh ow th e
4. Fr om th e following to th e ye ar en de d 31 .1 2. 20 22 .
ex tra ct s of Receipts &
club, co m pu te th e Pa ym en ts A/C an d ad
am ou nt of subscripti_ di tio na l in fo rm at io n of
Ex pe nd itu re ac co un t on \h at w ou ld ap pe a
for th e ye ar en de d 3l 3 2 ar in its In co m e
w ou ld be pr es en te d in .0 - 02 3. Also sh ow an d
th e closing Balance Sh ho w th e re la te d ite
ee t of th e year. ms
R ec ei pt s & Pa ym en
ts A/C fo r th e ye ar en
de d 31 .0 3. 20 23 (i nc
R ec ei pt s . lu de s)
To Su bs cr ip tio ns
. ~ I Pa ym en ts
. . .
A dd iti on al in fo rm at
I· 4, 50 ,0 00 i :f
io n:
I
Su bs cr ip tio n ou ts ta nd 31 .0 3. 22
in g 31 .0 3. 23
Su bs cr ip tio n re ce iv ed 90 ,0 00
in ad va nc e 1, 80 ,0 00
5. Pa ss th e re ct ifi ca 1, 35 ,0 00
tio n en tri es fo r th e fo 90 ,0 00
fo r th e ye ar en de d 31 llowing er ro rs while
.0 3. 20 23 of a tr ad er pr ep ar in g th e Final A
: cc ou nt s
(a) Pl an t w or th ~1 0,
00 0 pu rc ha se d on 30
(b ) W ag es in cl ud e ~2 .0 9.20 22 was included
,0 00 fo r in st al la tio n in Pu rc ha se s.
(c) ~5,1 00 re ce iv ed of th e Pl an t
fr om a de bt or w ho
re co rd ed as ca sh sa le se ba la nc e was w rit
s. te n off as ba d, ha s
6. Fr om th e fo llo w in be en
g in fo rm at io n, yo u ar
31 st , 20 23 w ill be tr e re qu ire d to state ho
ea te d in final ac co un w th e un so ld st oc k on
t: M ar ch
(i) Closing st oc k ap •
pe ar ed in ad di tio na
pl an to f~1 s, oo o. l ad j~ tm en t at ~3 .5
0, 00 0. lt in cl ud es va
;-' /. 1 lu e of
(ii ) Th e ba nk ov er dr 1
af t w as gi ve n on hy
m ar gi n of 15 % an d po th ec at io n of sto ck
th e ov er dr af t ba la nc -in -tr ad e. Th e ba nk
e on th e do si ng da te ha s a
th e m ax im um ba la w as ~2 0,00 0 le ss th an
nc e th at co ul d ha ve
ov e rdra ft ap pe ar ed be en dr aw n ba se d
in th e tr ia l ba la nc e at on th e m ar gi n. Ba nk
~8 0, 00 0.
[l .S +l .S }

20 23
2

11
 The
~ Sunri. se Ltd. has started a manufacturing unit aft er co ns tru cti ng an eq uip me nt
. · 1 d . hough it wa s rea dy for
equipment be gins co mm ereta pr o uct1on in August 2023 alt . 23. St ate wi.th
. . d . Ap 20
ril
production m June 2023 an construction was completed in
preciation.
so ~s w_h en sh ou ld the co mp an y sta rt charging de
rea sta tem en ts:
8
wi th rea so n wh eth er yo u agree with the following
· ~JQ>lam
ers hip is revenue rec eip t
('.! ;e es rec eiv ed for life me mb
e' is ndt an expense.
('.'.~ Sa lar y paid in ad va nc rch ase d to bring it into
wo rki ng
d- ha nd ma ch ine ry pu
secon
(m) Cost of rep air s on
co nd iti on is a rev en ue expense.

GROUP J.J
[7><5=35J
ion s.
An sw er ANY SEVEN qu est ancial Capital
be tw ee n "Ph ysi cal Capital Maintenance an d Fin
9. Give the differences
Maintenance. or ted in the
ati on , de ter mi ne the value of stock to be rep
orm
10. From the following inf sis.
sh ee t un de r: a) ite m- by item basis and b) Group ba
balance

Historical Cost (t) Ne t Re ali za ble Value (tJ

Na me of th e ite ms 2,20,000
Ink Pen 2,00,000
5,50,000
Gel Pen 6,00,000
7,30,000
Kids Toys 7,00,000
1,6 0 ,00 0
Religious Book 1,50,000 2 , 70 ,00 0
2,9 0,0 00
Te xt Bo ok s . .
en tal Ac co un tm g 1s sum pt1ons.
ndam . The followmg
11. Write sh or t no te on Fu cu sto me rs on a Sale or Return basis
nd s go od s to
12. M/s. Sunshine Ltd se 23.
rin g the month of March 20
transactions too k place du e or return basis at co st plu
s 25 % - { 24 ,00 0
od s to cu sto me rs on sal
March 2n d - Se nt go
ed by cu sto me rs {9,000
March 10 th - Goods ret urn val { 10,500.
s from customers for appro
March 17 th - Received let ter pro va l {4 ,500 of which tim e pe rio d
is no t
stome rs aw ait ing ap
March 23 rd - Goods with cu
ed to
ov er.
ur n tra nsa cti on s as ord ina ry sales. You ar e req uir
e or ret
The ac co un tan t rec ord s sal ok s of Su nshine Ltd. ass um ing tha
t the
al En tri es in the bo
pass the ne ce ssa ry Journ
31 st March. 2023 .
accounting ye ar closes on 1st January 20 20 an d sp en t { 3,0 00 on
Mach ine ry for { 37 ,00 0 on
13. A firm pu rch ase d an old ch ipe wa s pu ~chased for :f 10,000. On 1st
July
2021 , an oth er ma
its installation. On 1s t July d on 1 st
January 2020, wa s so ld for
{ 28 ,00 0
wa s pu rch ase
2022, the machinery, which { 25 ,00 0 was purchased. On 1st J~l
y 20 23 ,
w ma ch ine ry co sti ng
and on the sam e da y a ne Jul y 20 21 wa s sold for :t 2,000. De
prectation is
pu rch ase d on isr
the machine which wa s rne thod. The firm changed the
me tho d an d
nu m on str aig ht lin e
charged @ 10 % pe r an st
effect from 1 Jan ua ry 20
21 an d th e ra te
ba lan ce me tho d wi th
ad op ted the diminishing s close on 31 st December ev
ery year. Pr ep are
% pe r an nu m. Th e bo ok
was increased to 15 20 .
r ye ars from 1s t January 20
Machinery account for fou

3
2023
 r

it Sales, Cash emb ezzle d by cashier, Closing

14. Calculate the amo unt of Cred it Purchase, Cred
bala nce (at bank ) from the following information:
sales of the prev ious year, out of which
(a) Sales for the year were 20% high er than the
prev ious year were '{ 5,00 ,000
20 % sales were cash sales. Total sales duri ng the
cheq ue only.
(b) Paym ents for all the purc hase s were mad e by
it customer~ pay by cheque only.
(c) Goods were sold for both cash and credit. Cred
of the nfb nth on the last date of each
(d) The acco unta nt send s to the bank the collection
office expenses ~ 1,20 0 and l 500 as
mon th after paying salar y of l 2,00 0 to the,d erk,
pers onal expe nses of the prop rieto r.
revealed the following:
( e) Analysis of the bank pass book of the year end

Part icula rs :{

Paym ent to cred itors 3,00,000

Paym ent of rent (full year ) 16,0 00
Cash depo sited into bank duri ng the year 80,0 00

(t) Bala nces were

Part icula rs Opening ff) Closing (t)
I
1,00 ,000 1,20,000
Deb tors
82,0 00 1,46 ,000
Cred itors for good s
Cash in hand 1 28,0 00
Cash at Bank 38,0 00
able cash in the cash box.
Ont. he last day of the year the cash ier emb ezzle d with the avail [1+1 +2+1 ]
~~, ,.. I .. ,
ing profits and losses in the ratio of 3:2.
15. F~rm X & Co. con~ists of partn ers A and B s~~
ts and losses in the ratio of 5:3.
F1rm Y & Co. cons ists of partn ers B and C shar mJ profi
amate and form a new firm M/s XY
On 31 st March, 2023 , both the firms decided to'fiamalg
& Co. whe rein A, Ban d C wou ld be partn ers shar,
ing profits and losses in the ratio of 4:5:1.
tion were as under:
The Balance Shee ts of the two firms before amalgama
Bala nce Shee t as at 31.0 3.20 23
Assets X&C o. Y&C o.
Liab ilitie s X&Co. Y&Co.
('<) (t)
{f) {f)
3,00,000 -
,1 Building
Capital : 2,40,000 -
3,00 ,000 - Machinery
A I
1,80,000
2,00 ,000 1,50 ,000 1 Vehicles
B 1,00,000 40,0 00
C
- 1,00,000·. Stock 1,60 ,000
1,20,000
1,00 ,000 80,0 00 t Debtors
Reserves Bank 80,0 00 60,0 00
Cred itors 2,40 ,0~0. 1,10 ,000 ( cash and 8,40 ,000 4,40 ,000
8,40 ,000 4,40 ,000

& Co. was valued H,50,000 and that ofY

As per the term s of amalgamation, Goodwill of.X
ed in the books of the new firm, the
& Co. '{80,000. GoodwiJJ Account was not to be open
of the pa~tners. .
adju stme nts being reco rded throu gh capital accounts
ired to adJuSr the Goodwill amo ngst
You are requ ired to give a single journal entry requ
er
the partn ers. Workings shou ld form part of your answ

4
2023

\
r~ re
. ..,.f%f{

?,:

in partnership sharing profits a: losses in the ratio of 3:2:1 respectively.

/ They decided to dissolve their business on 31.12.22 on which date the Balance Sheet was
as fo ll ows:

f Liabilities
Capital Accounts:
s 77,400
l

Motor Car
Assets
Land and Building
l
61,620
10,320
M 21,360 Investment 2,160
D 22,200 1,20,960 Stock 39,060
Loan Account: D 6,000 Debtors 22,560
Creditors 20,640 Cash 11,880
1,47,600 1,47,600
The assets were realised and it was agreed that cash should be d1stnbuted as and when
realised and the partners' capital account would be settled under surplus capital method
Calculate surplus and absolute surplus of capital.

17. {a)·Mr. Rathi, carries on his business from a rented premise. For the year ended on March
31 st 2023, rent of ~10,000 per month was paid for the first 10 months and two months
(February and March) rent remained unpaid. Mr. Rathi recorded in his books of
account a rent of ~1,00,000 only for the year ended on 31.3.2023. State whether Mr.
Rathi is correct or not with reason in recording this transaction in his books of
account for the purpose of preparation of Final Account for the year?
(b) Distinguish between dissolution of partnership and dissolution of partnership firm. [3+2]

- GRQYP~c- -------T-,,.;.-~--
,
Answer ANY TWO questions. (

[2x10=20}
18. Prakash, Ganesh and Rajesh are partners sharing profits and losses in the ratio 5:3:2 .
Their balance sheet as on 31.3.2023 is as follows: ,
Liabilities · - Amount (t) ·' !- -, . Assets - - Amoimt{l)
Prakash's Capital 2,40,000 Plant & Machinery
2,16,000
Ganesh's Capital 96,000 Furniture w• 48,000
Rajesh's Capital 48,000 Stock J

1,20,000
Reserve Fund 1,20,00 0 Sundry Debtors
96,000
Joint Life Policy Reserve 1,60,000 Joint Life Policy
1,60,000
Loan 50,000 Cash
. 1,20,000
Sundry Creditors 46,000 l
7,60,000
7,60,000
They decided to dissolve the firm. The amounts realized from the assets are:
Plant & Machinery ~2,04,000; Stock U,68,000 and sundry debtors ~88,000. Prakash took
over the furniture at 90% of its book value. The Joint Life Policy was surrendered for
?t l,35,000. Creditors allowed discount of 5% and r ealization expenses amounted to
~3000. Rajesh agreed ·to receive U,15,000 in full satisfaction of his rights, title and
interest in the firm. ' /
There was an u nrecorded liability for rent of l6,000 which wa s paid during the year.
, '
2023 \
5
 -r
You are requ ired to prep are:
(a) Realization Account
(b) Part ner's Capital Account &
(c) Cash Acco unt
(4+3+31
19. The following is the Trial Balance of Mr.P as
at 31.0 3.20 23:
Deb it Bala nces
"
Deb it Bala nces
(con t'd) " Credit Bala nces
"
Drawings 20,0 00 Inter est
3,00 0 Capital 3,40 ,000
Office Equi pme nt 2,20 ,000 Office Expe nses 32,0 00 Sales 3,30 ,000
Purc hase s 1,68 ,000 Debt ors 4,30 ,000 Retu rns 8,00 0
Retu rns 10,0 00 Bills Receivable 20,0 00 Bad Debt s 52,9 00
Reco vere d
Bad Debt s 10,0 00 Inve stme nt 1,00 ,000 Disc ount Received 2,00 0
Carr iage Inwa rd 10,0 00 Open ing Stoc k 1,08 ,000 Cred itors 4,04 ,000
Carr iage Outw ard 14,0 00 Cash 1,01 ,100 Bills Paya ble 11,2 00
Disc ount Allo wed 4,00 0 Rent 8,00 0 Bank Ove rdra ft 58,0 00
Sale s Com miss ion 8,00 0 \
10% Loan (take n 60,0 00
f on 1.4.2 2)
12,6 6,10 12,6 6,10 0
0
I
Add ition al infor mati on:
(a) The mark et price of the closing stock as on 31.0
3.23 was '{1,3 3,00 0. How ever, the cost
of such stoc k was :tl,60 ,000 . I

(b) Prov ide for depr eciat ion on office equi pme nt
@10 % p.a.
(c) Goo ds cost ing :t20, 000 was destr oyed by fl.lie
on March 29, 2023 , the insu ranc e
com pany ad::epteil a claim to
(I
tt,l
(
exten
, ,,, -
t 6f 60%
~ v, r--t,-
~ ly and paid th,e claim mon ey on C

ApriJ 10, 2023 . , t 1'

(d) Of the bills receivables, a\bill of :t8,000 is disho .
nored. No entry has been mad e m the

\
book s of acco unt.
·
(e ) W nte ff :t18 000 as bad debt s and main tain a provision for
o , bad debt @5%.
(f) Man ager is entit led to a comm issio n of 5% fi
of the net pro 1t be1ore
c h · h'
c argm g 1s io
-----
I
com miss ion. .
You are requ ired to prep are a Trad mg and Prof Account for the year ende d
it & Loss
31.0 3.20 23 and a Bala nce Shee t on that date.

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2023
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 he Inc om e and Ex d.
11
202 1 . pen itur e Acc oun t of th e Winners Club for the yea r end ed 31s t March,
IS as foll ows :

Expenditure f Income f
To Sal arie s 95,ooo By Sub scri ptio n 1,50 ,000
To Gen era l Exp. 20,000 By Ent ran ce Fee 5,0 00
To Au dit Fee 5,000 By Collection for Annual Spo rts 65,0 00
Me et
To Sta tion ery and Prin ting 9,000
To Sec reta ry's Hon ora rium 20,000
To Inte res t 2,000
To Ban k Cha rge s 1,000
To Dep reci atio n on spo rts equ ipm ent 6,000
et
To Exp end itur e on Ann ual Spo rts Me 50,000
To Cap ital Fun d (Su rplu s) 12,0 00

2,2 0,0 00 -
2,2 0,0 00
'c
Oth er Info rma tion :
Particulars
I f I
12,000 /
20
Sub scri ptio n out stan din g on 31.0 3.20 9,000
31.03.2020
Sub scri ptio n rece ived in adv anc e on 15,000
21
Sub scri ptio n out stan din g on 31.03.20 5 ,400
-----==- , --
-

31.0 J.20 21 -= 1!11111~

Sub scri ptio n rece ived in adv anc e on
~

8,000
Sal arie s out stan din g on 31. 03. 202 0 9,00 0
Sal arie s out stan din g on 31. 03. 202 1 ~:
4,00 0 I
Aud it fee out stan din g on 31. 03. 202 0 ,.
,,,.,.,,,.,,.,.., - - - 5,000-
.,r/
Aud it fee out stan din g on 31. 03. 202 1 ', 1,20 0
es pre pai d on-31. 03. 202 1 52,000
Gen eral exp ens
Spo rts equ ipm ent as on 31. 03. 202 0 54,0 00
on 31.03.2021
Spo rt equ ipm ent afte r dep rec iati on
Oth er bal anc es as on 31. 03. 202 1: 2,00 ,000
Fre eho ld Gro und 40,0 00
32,0 00
Ban klo an
Cas h& Ban k r end ed 31s t
eipts and Pay men ts Account for the yea
You are req uire d to pre par e the Rec [5+ 5]
31s t March, 202 1.
March, 202 1 and Balance she et as at
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7
2023