IGNOU BCOC-131 December 2020 Previous Year Question Paper

Q1.(a) What are the qualitative characteristics of accounting information ? Briefly explain. 6

(b) What do you mean by the Principle of Double Entry ? Give the rules of Debit and Credit with suitable examples. Also explain the accounting equation with examples. 7,

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Q2.There was a difference of = 430 in a Trial Balance. It was placed in the Debit side of Suspense Account. Later on the following errors were discovered. Pass the rectifying entries and prepare the Suspense Account : 15,5

(6) Purchase Book was overcast by = 100.

(ii) Sales Book was overcast by = 1,000.

(iii) Goods for = 800 purchased from Umakant, though entered in the Purchase Book has not been posted to his account.

(iv) An amount of = 500 has been posted to the credit of Commission account instead of = 570.

(v) Goods sold to Bharati for = 4,400 has been posted to her account as = 4,000.

(vi) Goods sold to ‘X’ for 750 were recorded in the Purchases Book.

Q3.Define Depreciation. What factors should be considered for determining the amount of depreciation ? Explain the merits and demerits of written down value method. 3, 5,

Q4.What are the characteristics of Hire Purchase Agreement ? Discuss the rights of a Hirer under Hire Purchase Agreement. Describe the difference between the accounting treatment under the ‘Hire Purchase System’ and the ‘Instalment Payment System’. 5, 7,

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Q5.“Joint Venture is a temporary partnership.” Comment and explain, how does it differ from the ‘Partnership’ and ‘Consignment’. 6, 7,

Q6.How are branch balances incorporated in Head Office books at the end of the accounting year and how do you deal with purchase and depreciation of branch fixed assets whose accounts are maintained at the Head Office level ? 6,

Q7.Define Computerized Accounting System.

Q8.Distinguish between manual and computerized accounting system. Explain the considerations which are required to be kept in mind while choosing Accounting Software. 3, 7,

Q9.‘A’ of Sonipat consigned 500 bicycles to ‘B’ of Chennai to be sold on his account and at his risk. The cost of one bicycle was = 200. ‘A’ paid = 5,500 as freight and insurance and received = 40,000 as advance from ‘B’. B paid = 1,000 as Octroi and Cartage, = 1,500 as Rent, and = 1,200 as Insurance. 410 bicycles were sold by ‘B’ for = 1,10,000. B was entitled to a Commission of 5% on sale @ = 250 per bicycles and 25% of any surplus price realized.

Q10.Give journal entries in the books of ‘A’ and prepare Consignment Account. 14,

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Q11.Briefly explain the following concepts: 4x5=20

(a) Conservatism concept

(b) Consistency concept

(c) Full disclosure concept

(d) Materiality concept 20 He #1 BCOC-131 5,5

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