2023 FINANCIAL ACCOUNTIN' Paper : MDC-1 Full Marks : 75 — MDC The figures in the margin indicate full marks. Candidates are required to give their answers in their own words as far as practicable. Group - A 1, Name any five users of accounting information. 5 or, Name the accounting concepts and conventions which are applicable in each of the following cases bs (@ A business is considered as an artificial person separate from its owner. Gi) Unsold stocks are valued at cost or net realisable value, whichever is lower. (i) Only monetary transactions are recorded in the books of accounts. jv) Financial Statements are prepared at the end of each accounting year. (v) Every transaction has two aspects. 2, Name the subsidiary books of original entry, where the following transactions are recorded. You may assume that the trader is engaged in the business of ready-made garments. bs (@ Goods purchased for € 20,000 from Hrishikesh by cheque. (i) Sold goods to Hiran for € 35,000 on credit. i) Goods returned by Hiran & 2,500. Gv) A bill of & 32,500 drawn on Hiran, (¥) Furniture worth 40,000 purchased on credit from Steel & Co. or, Fill in the blanks picking up the correct one from the bracket : 1s (@ Amount spent for repairing of Machinery is a (Capital /Revenue Expenditure). Gi. Registration costs incurred for acquiring @ building is a (Capital /Revenue Expenditure). i) Wages paid for installation of Machine is a (Capital /Revenue Expenditure). (iv) Salary paid to employees is a____ (Capital /Revenue Expenditure. (0) Premium money paid for insuring stock is a__ (Capital /Revenue Expenditure). Please Turn OverYAS Sm}-Financial Accounting--MDOMDCHCCR) (2) ' %+ From the following information, ascertain profit for the year ended 31.03.2023 under accrual basis ¢ accounting : Income received in cash during the year 2022-23 1,02,000 Accrued income as on 31.03.2023 32,000 Pre-received income as on 31.03.2023 = 12,000 Expenses paid during the year 2022.23 = 72,000 Outstanding expenses as on 31.03.2023 = 5,000 Group - B 4. On 01.04.2021, Sen & Co. purchased 3 machines at a cost of 110,000 each. Charges for installati and earriage inward amounted to & 10,000 per machine, The scrap value of each of the machines estimated to be € 20,000 after 5 years, $2,01-10.2021, it purchased another machine for € 90,000. The life ofthe machine is estimated to 4 years with scrap value 10,000. On 31.12.2022, one of the 3 machines purchased on 01.04.2021 was damaged due to an accident an serap sold for & 23,000, Prepare Machinery Account for the years 2021-22 and 2022-23, 1 Or, ) State two points of ditference between Bad Debt and Provision for Doubtfal Debt. (©) Trial Balance as on 31.05.2028 of Saha Bros, includes the following items : Provision for Doubtful Debt (01.04.2022) = 25,000 Bad Debt = 10,000 Sundry Debtors & 1,43,000 {he entity on scrutiny, found that € 13,000 receivable from Mr. Himma i recoverable and so decided to write it off as bad. Prepare Bad Debt Account and Provision for Doubtful Debt Account forthe year 2022-23 inthe books of Saha Bros. Provision for doubtful debt is to be created at 8% of Debtors. 46 5. The following errors were detected after preparation of the Trial Balance. Show Journal entries to rectify the errors, 10 (Sales Day Book overcast by % 469. (An amount of & 55 received from C. Adhikery was posted to his account as & 550. GDA payment of& 9,500 towards cos of stamps for registration of new land debited to Leyal Charges Account. (@) Cash paid to Sujay Barman for € 10,000 wrongly debited to Sujay Bardhan as & 1,000 (¥) Discount allowed ® 500 to Mr. X credited to Discount Received Account.@) Or, (2) From the following information, calculate the value of closing inventory on 31st March, 2023, using FIFO method : Date Particulars March 01, 2023 Opening Stock : 200 kg @ & 10 per kg March 06, 2023 Purchase : 1,200 kg @ % 11 per kg. March 15, 2023 Issued : 900 kg March 21, 2023 Purchase : 1,600 kg @ & 12 per ke. March 28, 2023 Issued : 1,300 ke (b) A trader closed his books on December 31st, 2022. Stock was, however, taken on January 7, 2023 and the value of stock taken was % 51,200. Find the value of stock as on 31st December, 2022 from the following information @ Goods purchased and received during the period 01.01.2023 to 07.01.2023 amounting to 5,000; (i) Goods sold and despatched during the period 01.01.2023 to 07.01.2023 amounted to @ 7,600; Gil) Rate of gross profit @ 25% on sales. 64 6. From the following information, prepare the Debtors’ Ledger Adjustment Account and Creditors’ Ledger ‘Adjustment Account as they would appear in the General Ledger of Clarion Ltd. : 10 [= z Opening Debtors (Dr) 60,000 | Opening Creditors (Cr.) 28,000 Total sales 44,000. | Discount Received 500 (including cash sales 4,000) es 1,000 Total Purchases 22,000. | Payment to Creditors 16,000 (including cash purchase € 2,000) ee 1900 Discount Allowed 1,500 | Ledger to Debtors Ledger Received from Debtors 20,000. | Closing Creditors (Dr.) 1,000 Bills Payable accepted 8,000 Bad Debis 2,000 Please Turn Over(st Sm,)-Financial Aecounting-!-MDCMDC-1ICCF) (4) Group -C 7. From the Trial Balance of Datta Bros. as on 31.03.2023, you are required to prepare Trading and Prof & Loss account for the year ended 31.03.2023 and a Balance Sheet as on the date after makin necessary adjustments. 1 Particulars Dr. @) Particulars cr ®@ Purchases 1,20,000 | Sates 2,00,000 Debtors {60,800 | Creditors 48,800 Return Inward 4,000 | Discount Received 1.200 Discount Allowed 4,000 | Return Outward 4,800 ding 90,400 | Capital 1,22,400 Depreciation on Building, 4,000 | Profit on sale of asset 4800 Income Tax 4,000 | Provision for doubtful debts 4,000 Wages 8,000 | Commission 3,200 Salaries 12,000 Stock in Trade (01.04.2022) 40,000 Trade Expenses 8,000 Insurance 800 Cash in hand 33,200 3,89,200 3,89,200 Adjustment : (Stock in trade on 31.03.2023 : & 40,000. Stock valued at 8,000 was destroyed by fire on 15.03.2023 for which insurance company admitte ii) w a claim of @ 4,800. Nothing has been recorded in the books. Out of Purchased goods, € 8,000 was distributed as free sample, Maintain provision for doubtful debts @ 5% on Deblors and provision for discount @ 2% 0 Debtors. siesta(5) st Sm)-Financial Accounting-1-MDCIMDC-ICCF) 8. The following is the Receipts and Payments Account of North Calcutta Club for the year ended 31.12.2022 : Receipts and Payments Account Receipts Amount (%) Payments Amount (2) To Balance b/d By Salaries 18,500 Cash in hand 8,500 By General Expenses 10,000 Cash at Bank 10,000 By Audit Fees 2,500 18,500 | By Printing & Stationery 6,000 ‘To Subscription 39,000 | By Interest & Bank Charges 3,000 To Entrance Fees 10,500 | By Rent 3,500 ‘To Donations 12,000 | By Periodicals & Newspapers 4,000 To Sale of Periodicals, 500 | By Flectricity Expenses 2,500 By Balance c/d Cash in hand 6,000 Cash at Bank 30,500 80,500 80,500 Additional Information : (Salaries Outstanding on 31.12.2022 : & 2,500 i). Subscription Outstanding on 31.12.2022 :& 3,500 Gi) Assets and Liabilities as on 01.01.2022 were as follows ~ Assets Fumiture - & 12,500; Sports Equipments —% 10,000; Subscription Outstanding ~ @ 4,000. Liabilities : Outstanding Rent —€ 500 (Gv) Depreciate Fummiture and Sports Equipments by 10% p.a (¥) Donations and Entrance Fees are to be transferred to Income & Expenditure A/c. Prepare () An Income & Expenditure A/c for the year ended 31.12.2022; and (i) A Balance Sheet as on that date. 10¥5 or, Mr. Soumik does not maintain his books of accounts under double entry system, The following details are obtained from his books of accounts. (Figures in 2) [ Yearended | Fumiture [ Debtors | Creditors [| Cash | Stock (01.01.2022 | 25,000_[ 15,000 | 10,000 [42,300 [16,000 31122022 | 22,500 |? | 12,000 | 40,800 [14,000 Please Turn OverFilet Sm)-Financial Accounting--MDCIMDC-UCC) — (6) ‘Transactions during the year = ® ®@ Goods purchased in cash 12,000 | Received from debtors, 70,000 ‘Total sales during the year 1.14300 | Payment to creditors 42,500 Cash sales 17,900 | Cash withdrawn for personal use 2,400 Expenses paid 32,500 Mer, Soumik wants to maintain Provision for doubtful debts @ 5% on closing debtors Prepare () A Trading and Profit & Loss Account for the year ended 31.12.2022; and 15 (ii) A Balance Sheet as on that date.