BC01 Financial Accounting B.Com Question Bank : vmou.ac.in
Name of the University : Vardhman Mahaveer Open University
Degree : BCOM
Subject Code/Name : BC-01 – Financial Accounting
Year : I
Document Type : Question Bank
Website : vmou.ac.in
Download Model/Sample Question Paper : https://www.pdfquestion.in/uploads/vmou.ac.in/3499-BC-01_226.pdf
VMOU Financial Accounting Question Paper
Time: 3 Hours
Max. Marks: 80
Note: The question paper is divided into three sections A, B & C. Write Answers as per the given instructions.
Related : Vardhman Mahaveer Open University BBA05 Fundamentals of Business Statistics BBA Question Bank : www.pdfquestion.in/3492.html
Section – A
Very Short Questions :
1 Define Accounting.
2 Who are the users of accounting information-
3 What do you understand by accounting concept-
4 Explain the meaning of feasibility-
5 What is accounting period concept-
6 What are the rules of making journal entries in accounts-
7 What are special purpose subsidiary books-
8 Different between sales Book & sales account-
9 Explain are difference between capital expenditure & Revenue expenditure-
10 What do you mean by accounting principals-
11 “Is it possible to combine two or more transaction is a single in journal-
12 Explain the difference between trial Balance & Balance Sheet-
13 Which Book is known as invoice book-
14 When posting in done in ledger-
15 What is a ledger-
16 What does the debit Balance of personal account-
17 What is suspense account-
18 What is compensating error-
19 Give one object of a Trial Balance.
20 What types of errors which do not affect the trial Balance-
21 When is suspense account opened-
22 Give one courses of one sided error.
23 What is meant by Rectifying entry-
24 What is depriciation-
25 Explain two couses of providing depriciation.
26 Give on advantage of fixed installment system-
27 What is scrap value of an Assets-
28 How are secret Reserve created-
29 What is Profit and Loss-
30 Explain one difference between Reserve & Provision-
31 Explain one difference between Revenue Reserve & capital Reserve.
32 Are secret Reserve shown in the Balance sheet-
33 What statement are mainly included in find account-
34 How will you show the interest on capital in final account.
35 What is Balance sheet-
36 What is the Journal entry will be passed for prepaid insurance premium-
37 What are deferred Revenue expenditure-
38 What is debtors system of Branch accounts-
39 What do you understand by inter Branch transaction-
40 “Explain Cash in Transit”-
Section – B
Short Questions :
1 Define the purpose of maintaining subsidiary books.
2 Record the following transactions in purchase returns book.
3 What are the advantages of keeping ledger-
4 What is meant by balancing of accounts- Why an account is balanced-
5 What do you mean by trial balance- What are its objects and functions-
6 What is a suspense account- When it is opened and how it is closed-
7 Rectify the following errors.
8 A machinery was purchased for Rs. 40,000 on Ist Jan. 2005 and spent Rs. 4000 on its erection. The estimated effective life of the machine is 10 year break-up value of Rs. 3000 prepare machinery account providing depreciation for 5 years by fixed Installment method.
9.The Balance of provision for bad debts account on 31st December 2006 was Rs. 8000. In the year 2007 bad-debts written off were Rs. 2000. At the end of the same year Rs. 1000 are to be written off as further bad debts. at the end of year 2007 debtors were Rs. 51000. The provision for bad debts is to be kept at 5% of debtor by the trader.
10. What do you understand by secret reserve- How it is created ?
12 What are closing entries? Give four examples of closing entries.
Rs.Opening stock 7500 Purchase 7500 Sales 10000 Sales Return 1000
Purchase Return 500 Carriage 750 Carriage outward 500
octroi 500 factory expenses 2500 Closing stock 8000
14 What is profit & loss account? How does it differ from trading account?
15 On 31st December, 2010 Sunday debtors of K. Bros. amounted to Rs. 582000 out of which Rs. 2000 proved bad & is to be written off. A bad debts reserve of 2 ½ % is to be created and a provision for discount is to be made at 1 ½ %. Give journal entries recording the above transactions and show the position of final accounts.
16 What is Cash book? State different types of cash book.
17 Define depreciation and state why is it necessary to charge depreciation?
18 What points should be taken in mind while calculating the depreciation? explain.
19 What is the difference between dual aspect concept and accounting period concept.
20 Discuss the main difference between joint venture and partnership.
Section – B
Essay type Questions :
1 What is meant by assets? Explain its various types.
2 Explain the meaning and nature of accounting standards.
3 Explain the consistency and conservation conventions of accounting.
4 “Ledger is the principale book of accounts.” Do you agree with this view? Illustrate.
5 What do you meant by subsidiary Book? Can it serve any purpose? Write the name of classification of journal.
6 Explain the various methods of preparing trial Balance.
7 How would you rectify the errors after closing the accounts?
8 What are the different types of errors? Explain each one.
9 What is depreciation? Why is it provided? Explain methods of recording depreciation.
10 What is working capital? How is it calculated? What are its various types?
11 Write explanatory notes on: (i) Goods in transit (ii) Inter Branch Transaction (iii) Cash in transit (iv) Depreciation on Branch fixed assists.
12 Explain the main accounts to be prepared in stock and debtors methods.
13 Atul traders. Allahabad opened their retail branch at Mumbai. The goods are supplied meets its expenses out of its cash sales and remits the Balance to H.O. after keeping some balance with it for expenses the branch does only cash sales. From the following particulors prepare the branch a/c it books of H.O.
14 Asha locks, Jaipur has a retail Branch at ajmer, to whom goods are supplied at cost plus 25%. Form the following particulars relating to the Ajmer Branch find out its profit or loss for the year 2013 using stock and debtors methods.
15 What do you understand by sectional Balancing system of ledgers? Explain its merits and demerits and also describe the working of sectional Balancing systems of ledgers.