ACC201 Financial Accounting

Financial Accounting TU Board 2024 question paper

22 questionsSit this paper (timed)

Tribhuvan University

Bachelor of Business Administration

Semester 2 · TU Board 2024

Course Title: Financial Accounting (ACC201)

Full Marks: 100Pass Marks: 50Time: 3 Hrs

Candidates are required to give their answers in their own words as for as practicable.

Group A

Brief Answer Questions(10 × 2 = 20)

  1. 1.

    Define patent.

    2
  2. 2.

    What is intangible asset?

    2
  3. 3.

    What do you mean monetary concept?

    2
  4. 4.

    What do you mean by GAAP?

    2
  5. 5.

    What are the different types of cheque?

    2
  6. 6.

    The following particulars are provided to you: Profit for the year Rs 40,000 Loss on revaluation Rs 21,000 Gain from cash flow hedges Rs 26,000 Gain on sale of investment Rs 25,000 Required: Statement of Other Comprehensive Income as per NFRS

    2
  7. 7.

    The following transaction is given: ➢ Started business with Cash Rs 150,000, machinery Rs 60,000, and stock Rs 40,000 ➢ Salary paid Rs 55,000 including an advance of Rs 5,000. Required: Accounting Equation.

    2
  8. 8.

    You are given the following information about the PQ Company Ltd on 31st December 2022: ParticularsAmount Rs.5000 equity shares of Rs.100 per share500,000Share premium150,000Retained earnings200,000Total shareholder's equity750,000 The following transition occurred during the year 2023: Issued an additional 2,000 shares of Rs 100 each at Rs.120 each. The company earned a Net Profit of Rs 75,000 during the year. The company declared and paid a dividend of Rs 40,000 during the year. Required: Statement of change in Equity at the end of 2023.

    2
  9. 9.

    Advance Company acquired Cheeps-making machinery of Rs 1,000,000 with a salvage value of Rs 100,000. It has the expected capacity of producing 450,000 packets of cheeps during its life. It produces 110,000 packets of cheeps in year 1 and 150,000 packets in cheeps in year 2. Required: Depreciation for the year 1 and year 2.

    2
  10. 10.

    The following information are given: ➢ Rs 60,000 was invested as a capital ➢ Purchase goods for Rs 200,000 and paid partially Rs 150,000 on cash Required: Journal Entries

    2

Group B

Short Answer Questions: (Attempt any SIX Questions)(6 × 5 = 30)

  1. 11.

    Write about accounting process.

    5
  2. 12.

    Differentiate between revenue and capital expenditure with examples.

    5
  3. 13.

    What is ledger? Why it is needed?

    5
  4. 14.

    Following are the information of assets of a Company: ParticularsYear 1Sales10,000Cost of Sales6,000Gross Profit4,000Expenses1,500Depreciation500Interest on Working Capital800Interest on loan400Profit before tax800Provision for Tax200 Required: Vertical Analysis

    5
  5. 15.

    The following transactions are given: 1st January 2021 Machinery purchased Rs 300,000. 1st July 2022 Additional machinery purchased Rs. 400,000. 30th June 2023 Machinery purchased on 1st January was sold for Rs. 270,000. Additional Information: ➢ Depreciation is to be provided at the rate of 15% per annum on the basis of Straight Line Method. ➢ Accounts are closed on 31st December, each year. Required: Machinery account from 2021 to 2023

    5
  6. 16.

    The bank statement of a company shows a balance of Rs. 50,000 on 30th Ashwin 2081. However the company balance showed a different balance of Rs 36,000. On the investigation, the following differences were noticed: ➢ Outstanding cheque Rs 30,000 ~ ➢ Deposit in transit Rs 20,000 r

    5
  7. 17.

    ➢ A customer's cheque of Rs 5,000 was return with the bank statement marked NSF. ~ ➢ Collection of notes receivable for Rs 4,000 and interest on investment Rs 2,000 * ➢ Bank charge Rs 2,000 for the service provided by the bank ~ ➢ Bank paid Rs 11,000 but the company recorded Rs 16,000 in its statement. Required: Bank reconciliation statement The following particulars are extracted from the trial Balances of a manufacturing firm. Tax paid70,000Dividend paid30,000Office supplies90,000Dividend received30,000Sales1,200,000Sundry debtors180,000Raw material purchase550,000Factory overheads100,000Manpower cost250,000Selling overhead50,000Capital employed600,000Depreciation expenses60,000Interest expenses20,000Motive power10,000 Required: (a) Value-added statement and (b) Net profit for the year

    5

Group C

Long Answer Questions:(Attempt any THREE Questions)(3 × 10 = 30)

  1. 18.

    "Accounting information is essential for taking right decisions in any organization." Explain.

    10
  2. 19.

    Write about concept, importance and limitations of accounting standard.

    10
  3. 20.

    The Trial Balance of KK company as of 31st December 2023 is given below: ParticularsDebit (Rs.)Credit (Rs.)Equity share capital-300,000Building200,000-Copyright20,000-10% Debenture-100,000Interest on Debenture5,000-Revenue from operation-470,000Purchases250,000-Salaries & wages35,000-Cash at bank40,000-8% Investment100,000-Account payable-76,000Account receivable40,000-Commission received-18,000Prepaid insurance24,000-Office rent26,000-Plant & Equipment200,000-Marketing expenses30,000-Interest on investment-6,000Total970,000970,000 Adjustment: ➢ Stock at the end of the year Rs 50,000. ➢ Depreciation on Building is 5% and Plant & Equipment is 15%. ➢ Salary to be paid Rs 5,000. ➢ Prepaid insurance expired during the year Rs 20,000. Required: a) Profit and Loss Statement for the year ending 31st December. b) Statement of Financial Position as on 31st December.

    10
  4. 21.

    The KK Company's Statement of Profit and Loss account and Statement of Financial Position for two years have been given below: Statement of Profit and Loss for the year 2023ParticularsAmount (Rs)Revenue from operation1,200,000Less: Cost of sales(800,000)Gross margin400,000Add Other income (including dividend received Rs 10,000)60,000Total460,000Less: Distribution expenses(100,000)Less: Administrative expenses (write-off of goodwill Rs 10,000 and depreciation of Rs 90,000)(260,000)Operating Profit100,000Less: Finance cost(25,000)Net profit before tax75,000Less: Provision for tax(18,750)Net profit after tax56,250Less: Dividend paid(6,000)Retained Earnings50,250 Statement of Financial Position of a company for 2022 and 2023Assets20222023Non-Current Assets:Property, plant and equipment500,000600,000Intangible assets (Goodwill)40,00030,000Investments160,000220,000Total Non-Current Assets700,000850,000Current Assets:Inventories/Stock40,00050,000Cash and cash equivalents50,00060,000Account receivables60,00050,000Trade and Other receivables50,00040,000Total Current Assets200,000200,000Fictitious Assets--Total Assets (Total Non-current and Current Assets)900,0001,050,000Equity:Share capital @Rs.100 each500,000600,000Reserve/Retained earnings30,00080,250Non-controlling interests--Total Equity530,000680,250LiabilitiesNon-Current Liabilities:10% Loans and borrowings250,000351,000Total Non-Current Liabilities250,000351,000Current Liabilities:Trade and other payable50,000-Income tax liabilities-18,750Provisions70,000-Total Current-Liabilities120,00018,750Total Liabilities (Total Non-current and Current)370,000369,750Total Equity and Total Liabilities900,0001,050,000 Required: Statement of Cash Flow under NFRS

    10

Group D

  1. 22.

    The XYZ Company's Statement of Profit and Loss account and Statement of Financial Position for two years have been given below: Statement of Profit and Loss for the year 2080ParticularsAmount (Rs.)Revenue from operation6,00,000Cost of sales(400,000)Gross profit200,000Other income20,000Total220,000Distribution expenses(60,000)Administrative expenses(115,000)Operating profit45,000Financial cost(7,500)Net Profit37,500 Statement of the financial position of a company for 2079 and 2080Assets20792080Non-current assets:Property, plant, and equipment200,000250,000Intangible assets10,0007,500Investment (long-term)45,00055,000Total Non-current Assets:255,000312,500Current Assets:Inventories / Stock20,00030,000Cash and cash equivalents25,00030,000Account receivable20,00015,000Trade and Other receivable15,00020,000Total current assets80,00095,000Fictitious assets--Total assets335,000407,500Equity:Share capital @Rs.100 each200,000225,000Reserve/Retained earnings45,00082,500Non-controlling interest--Total Equity245,000307,500Liabilities:Non-current liabilities:10% Loan and Borrowing60,00075,000Total non-current liabilities60,00075,000Current liabilities:Trade and Other payable15,00025,000Income tax payable--Provision15,000-Total current liabilities30,00025,000Total liabilities90,000100,000Total Equity and Liabilities335,000407,500 Required: Financial analysis for 2080: a) Current ratio (2:1) b) Acid test ratio (1:1) c) Debt to total capital ratio (less than 40%) d) Stock turnover ratio (at least 8 times) e) Total assets turnover ratio (more than 1 time) f) Net profit margin (at least 12%) g) Return on assets (at least 5%) h) Return on equity (at least 7%) i) Average sales period (45 days or less than 45 days) j) Account receivable turnover ratio (at least 8 times) k) Comment on the above result.

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