Bhavnagar University 2008 M.Com Insurance Management ADVANCED ACCOUNTING - Question Paper

M.Com. DEGREE EXAMINATION, MAY 2008.
First Year
Commerce
ADVANCED ACCOUNTING

Time : 3 hours Maximum : 100 marks
PART A — (5 × eight = 40 marks)
ans any 5 ques..
All ques. carry equal marks.
1. Explain the different kinds of accounting convention.

2. Raman keeps his books on Single Entry basis. Prepare a statement of Affairs as on 31.10.05 and a statement of Profit or Loss for the period ending 31.10.2005.
Assets and liabilities 1.11.2004 31.10.2005
Rs. Rs.
Bank Balance (Cr.) 560 (Dr.) 350
Cash on hand 10 50
Debtors 4,500 3,600
Stock 2,700 2,900
Plant 4,000 4,000
Furniture 1,000 1,000
Raman had withdrawn Rs. 2,000 during the year and had introduced additional capital of Rs. 4,200 on 1.7.2005. A provision of 5% on Debtors necessary. Write off Depreciation on plant at 10% and furniture at 15%. Interest on capital is to be allowed at 5% p.a.
3. The Revenue Account of a life insurance company indicates the life assurance fund on 31st March 2005 at Rs. 62,21,310 before taking into account the subsequent items :
(a) Claims covered under reinsurance Rs. 12,000
(b) Bonus utilized in reduction of life insurance premium Rs. 4,500
(c) Interest accrued on securities Rs. 8,260
(d) Outstanding premium Rs. 5,410
(e) Claims intimated but not admitted Rs. 26,500
What is life assurance fund after taking into account the above omission?

4. A purchasing company agrees to problem 3 shares of
Rs. 10 each, Rs. seven paid-up (quoted in the market at Rs. 15) for every 5 shares in the vendor company. obtain the number and amount of shares to be issued by the purchasing company if the vendor company has Rs. 5,00,000 paid-up shares capital of
Rs. 10 each, Rs. five pai-up (quoted in the market at Rs. 8).

5. From the balance sheet provided beneath prepare a consolidated balance sheet of X Co. Ltd. and its subsidiary
Y Co. Ltd. The interests of the minority shareholders of Y Co. Ltd. are to be shown in the consolidated balance sheet.
Balance sheet of X Co. Ltd. and Y Co. Ltd. as on 31.12.2005
Liabilities Rs. Rs. Assets Rs. Rs.
X Y X Y
Share capital : Land and
2,00,000 shares Buildings 1,52,00,000 –
of Rs. 80 each 1,60,00,000 Plant and
20,000 shares of machinery 22,40,000 3,20,000
Rs. 80 each 16,00,000 Shares in Y Co.
General reserve 80,00,000 – Ltd 18,000
Creditors 48,00,000 3,20,000 shares of Rs. 80
Profit and Loss each 28,80,000 –
appropriation a/c 16,00,000 24,00,000 Stock 48,00,000 8,00,000
Debtors 32,00,000 11,20,000
Cash at Bank 20,80,000 20,80,000
3,04,00,000
43,20,000 3,04,00,000 43,20,000

3,04,00,000
43,20,000 3,04,00,000 43,20,000
6. A, B, C and D were partners sharing profits and losses in the ratio of six : four : six : 4. On the date of dissolution their position was as follows :

Earning:   Approval pending.