Bhavnagar University 2007 B.Com Advanced Accountancy - Question Paper

Pass the journal entries of lessee.
PART B — (4 × 15 = 60 marks)
ans any 4 ques..
All ques. carry equal marks.

9. and are partners in a firm sharing profits and losses as and respectively. The Balance Sheet as on 31st Dec. 2004 was as follows :
Liabilities Rs. Assets Rs.
Sundry creditors 25,000 Building 50,000
Loan payable 15,000 Machinery 40,000
Reserve fund 16,000 Stock 25,000
Capital P 30,000 Furniture 10,000
Q 40,000 Debtors 18,000
R 25,000 (–) Reserve 500 17,500
Cash in hand 8,500
1,51,000 1,51,000
R retires on 31st Dec. 2004 subject to the subsequent conditions :
(a) A good will a/c is created in the books at Rs. 24,000
(b) Machinery to be depreciated by 10%
(c) Furniture to be depreciated by 5%
(d) Stock to be appreciated by 15% and factory building by 10%
(e) Reserve for doubtful debts to be raised to Rs. 2,000.
Prepare necessary ledger a/c and show the Balance Sheet of the new firm.

10. The subsequent is the Balance Sheet of and . Their profit sharing was three : two : 1. You are needed to show the distribution of cash in proportionate capital method. Also prepare realisation account.
Liabilities Rs. Assets Rs.
Creditors 15,000 Cash 10,000
Bills payable 5,000 Sundry assets 50,000
Capital A 20,000 P & L a/c 6,000
B 10,000
C 16,000
66,000 66,000
The assets were realised as follows :
1st intalment Rs. 16,000, second instalment Rs. 16,000 and last instalment Rs. 3,000.

11. A company issued Rs. 2,00,000 in 5% debentures of
Rs. 100 every at par, repayable at the end of five years at a premium of 6%. A sinking fund at 4% compound interest is created for redemption of debentures.
You are require to prepare sinking fund account and sinking fund investment account for five years (Re. one per year at 4% compound interest amounts to Rs. 5.4163 in five years).

12. Carbon Pvt. Ltd. company was incorporated on 1.7.2004 to take over the business carried on by C and Co., as a going concern with effect from 1.4.2004. The subsequent is the P & L a/c for the year ended 31.3.2005 of Carbon Pvt. Ltd.
Rs. Rs.
To Opening stock 1,20,000 By sales (upto 30.6.04
To Purchase 1,75,000 Rs. 1,00,000) 3,00,000
To bal c/d 75,000 By closing stock 70,000
3,70,000 3,70,000
To Adm. expenses 18,000 By balance b/d 75,000
To director fees 3,000
To selling expenses 36,000
To audit fees 1,000
To preliminary exps. 3,000
To Net profit 14,000
75,000 75,000
You are needed to prepare a statement showing profit prior to and after incorporation.

13. The subsequent is the Balance Sheet of Ltd., as on 31.12.06.
Liabilities Rs. Assets Rs.
Share capital Land and building 1,00,000
20,000 shares of Plant and Machinery 1,50,000
Rs. 10 every 2,00,000 Furniture 2,500
Debentures 1,00,000 Stock 90,000
Creditors 30,000 Debtors 25,000
Reserve Fund 25,000 Bank 12,600
P & L a/c 25,100
3,80,100 3,80,100
The company is absorbed by AB Ltd., on the above date. The purchase consideration being.
(a) Discharge of debentures at 5% premium
(b) Taking over the liability for creditor
(c) A payment of Rs. seven in cash and 1 more share of Rs. five every in AB Co. Ltd. at a market value of Rs. eight every in exchange of 1 share in XY Ltd.
The cost liquidation Rs. 5,000 is to be paid by AB Ltd.
Prepare necessary accounts in the books of XY Ltd.

14. ‘‘ ’’ of Chennai purchased goods for his 3 departments as follows :
Dept. X – 200 units
Y – 1400 units Total cost Rs. 5,100
Z – 400 units
Sales of the 3 departments were as follows :
Dept. X – 180 units @ Rs. 15 p.u.
Dept. Y – 1500 units @ Rs. 18 p.u.
Dept. Z – 450 units @ Rs. six p.u.
Other info about stock in the beginning was as follows :
Dept. X – 100 units
Y – 400 units
Z – 60 units.
X informs you that the rate of gross profit is the identical in all departments. You are needed to prepare Departmental Trading Account.

15. ‘‘ ’’ Traders, Bangalore have a branch at Chennai to which goods are sent at cost price to be sold for cash and credit.
Stock on 1.1.01 Rs. 27,000
Debtors on 1.1.01 Rs. 9,000
Bank balance on 1.1.01 Rs. 8,400
Cash sales Rs. 14,400
Goods returned by customer Rs. 540
Discount allowed to customers Rs. 1,320
Cash remitted to H.O. by branch Rs. 75,000
Expenses paid by the branch :
Wages and salaries Rs. 1,200
Miscellaneous expenses Rs. 600
Stock on 31.12.01 Rs. 19,260
Goods sent to branch Rs. 54,000
Goods returned to H.O. by branch Rs. 1,080
Credit sales Rs. 72,000
Cash collected from customers Rs. 66,000
Bad debts written off Rs. 780
Rent, Rates of insurance paid by H.O. Rs. 1,500
From the above particulars, you are needed to prepare (a) branch a/c (b) branch debtors a/c (c) branch expenses a/c
(d) branch P & L a/c and (e) branch bank a/c.

Earning:   Approval pending.