Major Financial Accounting Question Paper 2017, Dibrugarh University B.Com 1st Sem Question Papers

(1) Sales – Gross Profit = Cost of Goods Sold.

Ans: Correct Answer: True. This is the basic formula for calculating the Cost of Goods Sold (COGS). Sales minus Gross Profit gives you the COGS

(ii) There is no difference between Hire-purchase System and Instalment Purchase System.

Ans: Correct Answer: False. There are differences between the two systems, mainly in terms of the transfer of ownership and the right of termination

(iii) Under debtors system, Branch Account discloses profit or loss of the branch.

Ans: Correct Answer: True. Under the debtors system, a Branch Account is prepared in such a way that it discloses the profit or loss of the branch

(iv) Royalty Account is closed by transferring it to the Landlord's Account.

Ans: Correct Answer: False. The Royalty Account is typically closed by transferring it to the Profit and Loss Account, not the Landlord’s Account

(i) Accounting Standard Board was set up in India in the year ____.

Ans: 1977

(ii) In hire-purchase system, the buyer charges depreciation on the _____ price.

Ans: Cash price

(iii) Selling expenses should be divided among the different departments on the basis of _____.

Ans: sales

(iv) Shortworking is the excess of ___ over actual royalty.

Ans: minimum rent



2. Write short notes on (any four): 4x4=16

(a) The provisions of Accounting Standard-6

Ans:Accounting Standard 6 (AS 6) is related to "Depreciation Accounting." It provides guidelines for the accounting treatment of depreciation in financial statements. AS 6 outlines the methods of calculating depreciation, the useful life of assets, and the residual value of assets. It also specifies the disclosure requirements related to depreciation in the financial statements of an organization.

Provision for depreciation- It's a provision created to record the value of depreciation on assets separately. The purpose of this account is to transfer the total amount of depreciation into the assets account at the time of sale of the assets.

(b) Termination of hire-purchase agreement

Ans: Terminating a hire-purchase agreement can be done in several ways, depending on the circumstances and the terms of the agreement. Here are some general methods for termination:

Voluntary Termination by the Hirer: The hirer can return the goods and terminate the agreement at any time. This is useful if the hirer can no longer afford the payments or no longer needs the goods.

Termination by the Owner: If the hirer breaches the conditions of the agreement, the owner may issue a notice of termination.

By Performance: The agreement is terminated when the hirer exercises the option to purchase the goods.

(c) Goods in transit

(d) Objectives of Departmental Accounts

(e) Minimum rent

(f) Independent branch