Bharathiar University 2007 Bachelor of Computer Science (B Level) BCS Advanced Accounting BCS 308 - Question Paper

Bad debts 21,100
Debenture interest paid 1,80,000
Share capital 40,00,000
12% debentures 30,00,000
P/L a/c 2,62,500
General reserve 2,50,000
Sales 41,50,000
Adjustments :
(a) Depreciate machinery by 15%
(b) Write off Rs. 5,000 from preliminary expenses
(c) Closing stock value Rs. 9,50,000.
10. White Ltd. agreed to acquire the business of Green Ltd. as on 31.3.2005. The summarised balance sheet of Green Ltd. as on that date was as follows :
Liabilities Rs. Assets Rs.
Sh. cap. sh. of Rs. 10 each 6,00,000 Goodwill 1,00,000
Reserves 1,70,000 Land 2,30,000
P/L a/c 1,10,000 Plant 4,10,000
5% debentures 1,00,000 Stock 1,68,000
Current liabilities 20,000 Debtors 36,000
Cash at bank 56,000
Total 10,00,000 10,00,000
The consideration payable by White Ltd. was as follows :
(a) A cash payment of Rs. 2.50 for every share in
Green Ltd.
(b) Issue of 90,000 shares of Rs. 10 every at an agreed value of Rs. 15 per share.
White Ltd. also agreed to discharge the 12% debentures of Green Ltd. at a premium of 20% by allotment of 14% debentures at 96%.
While computing the agreed consideration, the directors of White Ltd. valued the subsequent assets at values noted against them : Land Rs. 7,50,000, Plant Rs. 4,50,000, Stock in trade Rs. 1,42,000, Debentures - subject to an allowance of 5% to cover doubtful debts.
The cost of liquidation came ton Rs. 5,000 which was borne by White Ltd.
Give ledger a/cs to close the books of Green Ltd. and the opening entries in the books of White Ltd.
11. A Ltd. invited applications for 80,000 shares of Rs. 10 each, at a premium of Rs. 2.50 per share payable as follows :
On application, Rs. 3, On allotment Rs. 4.50 (including premium). On first call Rs. 2, On IInd and final call Rs. 3.
Applications were received for 1,70,000 shares, out of which applications for 10,000 shares were rejected and application money was refunded. The allotment was made
pro-rata to the remaining applicants. Money overpaid on application was used against the allotment money due.
Anil to whom 2,000 shares were allotted, failed to pay the allotment money and on his following failure to pay the 1st call, his shares were forfeited. Sunil, who holds 1,200 shares failed to pay the 2 calls and his shares were forfeited after the final call. Out of the forfeited shares, 2,400 shares reissued at the rate of Rs. eight per share as fully paid, including Anil’s forfeited shares.
Pass necessary journal entries.
12. A and D are sharing profits in the ratio of three : 1. Their firm’s balance sheet as on 31.3.2000 was as follows :
Rs. Rs.
Creditors 37,500 Cash at bank 22,500
General reserve 8,000 Bills receivable 13,000
Capital a/cs : Debtors 16,000
A 60,000 Stock 40,000
B 32,000 Furniture 11,000
Land and buildings 35,000
Total 1,37,500 Total 1,37,500
They admit G into partnership on 1.4.2000, on the subsequent terms :
(a) That G pays Rs. 30,000 as his capital for a 5th share in the future profits.
(b) That a goodwill a/c be raised in the books of the new firm at a value of Rs. 40,000
(c) That stock and furniture be decreased by 10% and 5% provision for bad debts to be created on debtors.
(d) That the value of land and buildings be appreciated by 20%
(e) That the capital a/cs of the partners be re-adjusted on the basis of their profit-sharing arrangements and any additional amount be debited or credited to their current account.
Show that P/L adjustment a/c, capital accounts of the partners and the opening Balance Sheet of the new firm.
13. Bengal Coal Limited leased a colliery on 1.1.2000 at a minimum rent of Rs. 15,000 and a royalty of Re. one per ton with a stipulation to recoup short workings over the 1st 3 years of the lease. The output for the 1st 4 years of the lease was (in tons) : 8,000 : 13,000 : 21,000 and 18,000 tons respectively. Pass necessary journal entries in the books of the company for the above transactions.
14. Following is the Balance Sheet of A, B and C who share profits and losses in the ratio of two : two : 1.
Rs. Rs.
Sundry creditors 15,000 Cash in hand 2,000
Capital a/cs : A 15,000 Sundry debtors 12,000
B 12,000 Stock 22,000
C 4,000 Furniture 10,000
46,000 46,000
The business was dissolved and cash received gradually - Rs. 10,0000, Rs. 15,000 and Rs. 8,000 finally. Show the distribution of cash under proportionate capital method.
15. B Limited has a hire-purchase department. Goods are sold on hire-purchase at cost plus 60%. From the subsequent particulars prepare
(a) Hire-purchase Trading a/c
(b) H.P. Stock a/c
(c) Instalments due a/c
(d) H.P. Stock Reserve a/c
(e) Goods sold on H.P. a/c and
(f) Goods repossessed a/c and obtain the profit or loss made by the company.
2000 Rs.
April 1 Goods on H.P. (at hire-purchase price) 1,60,000
Instalments due (customers paying) 10,000
Goods sold on H.P. during the year
(at H.P. price)
8,00,000
Cash received during the year 5,60,000
Goods received back (H.P. instalments
unpaid Rs. 20,000) valued at
3,000
2001
March 31 Goods with H.P. customers
(at H.P. price)
3,60,000

Earning:   Approval pending.