Previous year paper of Financial Accounting of UTU BSc-IT 2014. Uttarakhand Technical University Conducted Examination of the Professional Courses. Here we provide a previous year question paper of BSC-IT First semester subject is Financial Accounting. Check out all question paper, exam pattern, Syllabus, result.
Previous year paper of Financial Accounting of UTU BSc-IT 2014
Time: Three Hours] [max. marks: 70
Note: Attempt any five questions. All questions carry equal marks.
Question 1. Explain the following accounting conventions:
- Convention of materiality
- Convention of consistency
- Convention of prudence or conservatism
- Convention of full disclosure
- What is trial balance? Why do we prepare it and what are the different methods to prepare it?
- From the following trial balance, you are required to prepare trading and Profit and Loss A/C for the year ending 31st march, 2001 and balance sheet as on that date:
Adjustment :
- Closing Stock is valued at Rs. 36,000.
- Rent is paid@ Rs. 2000 per month.
- Salaries Rs. 8000 and interest on Bank Overdraft Rs. 2500 is outstanding.
- Private purchases amounting to Rs. 5000 have been debited to purchases Account.
- Make a provision for bad and doubtful debts at 5% on debtors.
- A new sing-board costing Rs. 4000 is included in Advertising.
- Depreciate furniture and fittings by 10%.
- The capital of A Ltd. is given as :
8000 equity shares of Rs. 10 each = 8, 00,000
9% 30,000 preference shares of Rs.10 each = 3, 00,000
Total = 11, 00,000
The following information is available:
Profit after Tax @ 60% = Rs. 2, 70,000
Depreciation = Rs. 60,000
Equity Dividend Paid = @ 20%
Market Price of equity share = Rs. 40
You are required to calculate:
- Cover for Preference dividend
- Cover for equity Dividend
- Earnings per share
- Price earnings ratio
- The XYZ Co. Ltd. Is considering the purchase of a new machine. Two alternative machines (A and B) have been suggested, each costing Rs. 4, 50,000. Cash flow After Tax ( CFAT) are expected to be as follows:
| Year | CFAT for machine A (Rs.) | CFAT for machine B (Rs.) |
| 1. | 40,000 | 1,20,000 |
| 2. | 1,20,000 | 1,60,000 |
| 3. | 1,60,000 | 2,00,000 |
| 4. | 2,40,000 | 1,20,000 |
| 5 | 1,60,000 | 80,000 |
The company has a target of return on capital of 10 percent and on this basis, you are required to compare the profitability of the machines and state which alternative you consider financially preferable.
(Note: The P.V.F at 10% discount rate is 0.909, 0.826, 0.751, 0.683, and 0.621 for the year one to five respectively).
- Explain different methods of Inventory costing.
- Fixed cost is Rs. 1, 00,000 and percentage of variable cost to sales is 66.66%. If at 100% capacity sales are Rs. 6, 00, 000, find out the break-even point and the percentage sales when it occurred. Determine profit at 75% capacity.