Annamalai University 2008-3rd Year B.Com " 330 / 710 ADVANCED ACCOUNTANCY " Part IV v ( Common with ., I.B and - Accounting and Finance ) - Question Paper

Register Number:

Name of the Candidate :

5 15 1 B.Com. DEGREE EXAMINATION, 2008

(THIRD YEAR)

(PART - IV )

(PAPER - V)

330/710. ADVANCED ACCOUNTANCY

( Common with B.Com., I.B. and B.Com. -Accounting and Finance )

(Including Lateral Entry and Double Degree )

December ]    [ Time : 3 Hours

Maximum : 100 Marks

Answer any FIVE questions.

All questions carry equal marks.

(5 x 20 = 100)

1. Arun and Balan who shared profits in the ratio of 3 : 2 took a joint life policy on 1st May, 1999 for Rs. 30,000. The annual premium was Rs. 1,300. The surrender value of the policy was :

1999    -    Nil.

2000    -    Rs. 400.

2001    -    Rs. 900.

2002    -    Rs. 1,450.

Balan died on 15th September, 2002 and the amount of the policy was received on December- 31, 2002. The books are closed on December-31, each year.

Show Joint Life Policy and Joint Life Policy Reserve account.

10. rfnjJLDLD, S6BT6Urfl - 1, 2002 - LD 6OT5T(5 (LpS)6t) jl6ualy5nrfli_L6l0i5j 0,13158)61x611 0S)S)_|t96S) (ol ff, it, a    15,000 {)}, 65ST15S) 2_rfl_| ldS5, (ol ff, it, a

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0. 1,700 (LpS)6UITLb 6OT5T(5 ) njjifjli'n LD.

0. 1,600 jj}rj6ff5TI_ITLb 6OT5T(5 plLlil LD.

0. 5,500 (n> 6bt rr) n ld 6OT5t(5 ) rpjifjii'n ld Q a rT u u i_ G sli 6OT5T ld .

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2. The balance sheet of a firm on 31st March,

2002 was as follows :

Liabilities	Rs.	Assets	Rs.
Aruns capital Balans capital Charless capital Creditors	5.000 4.000 3.000 2.000	Buildings Investments Book debts Cash	8,000 2,000 2,000 2,000
	14,000		14,000

The firm was dissolved on March-31, 2002. Creditors were paid at a discount of 5 %. Arun agreed to take over the buildings at Rs. 9,000. Balan took the investments at Rs. 1,500 and Charles took the book debts at Rs. 600. The expenses of realisation came to Rs. 110. Close the books of the firm.

3. A, B and C are in partnership. The following is their balance sheet as on December-31, 2005 on which date they dissolve partnership. The profit sharing ratio 5:3:2 respectively :

	Rs.		Rs.
Creditors	80,000	Premises	80,000
Loan a/c - A	20,000	Plant &
Capital accounts:		Machinery	60,000
A 60,000		Stock	60,000
B 80,000		Debtors	1,20,000
C 80,000	2,20,000
	3,20,000		3,20,000

It was agreed to repay the amounts due to the partners as and when the assets are realised:

I    - instalments Rs. 60,000.

II    - instalments Rs. 1,46,000.

III    - instalments Rs. 94,000.

Prepare a statement showing how the distribution should be made.

6u6uas)lrt)0 |0uiJ1

HSpllllJlLLIJ -    800

@@iiuSi([5ui_| (31-3-2006) :

gjl_ITUL| 61<6Uli<n6ij Srral0lllL| -    6,000

ai_6BTrT6rfla6iT -    5,200

Qrrrraa 6i51rt)u_l6BT -    18,700

611 IT [JIT6 fiblSOT    500

sli it Lq_ a, a lli it ott it a err n 6b I0ul51llij -    700

fFLDuemb LDrppLb, anx6i51 -    1,200

S), 613,10 L| 6LI 60 a S) < 6ST 6J" ll U|_ 6b    l_|61Ta

a65STa0 SLLHTlflSjJ .>| 61X11516ST g)6l)rTULb    L|6b6DJ

rr~) lL i 6ot a a 6wyr a (T) a.

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QjrTLss @([5ui_| (1-4-2005) :

g)l_ITUL| 6l5 6D u516t) [J .B (TF, ill L|    - 8,000

ai_6BTrT6rfla6iT    5,200

I_6ST 6l51rt)U_|6BT    - 30,000

6uiti ail|ld 6urflLL|Lb    - 60 a6L6BTrT6rfla(6TT,a0 H6rflaauuili_

ff,6TT(6TT,ui4_    300

urt)u6t) Qs6D6i5l6BTrija6iT    - 300

l_l6rra0 g) i_ it ill i_| 6151, 6Du516t)

HSg)juuuuili_ srra06iT    - 40,000

4. Rama commenced business as a cloth merchant on January - 1, 2003 with a capital of Rs. 10,000. On the same day, he purchased furniture and fittings for cash Rs. 3,000. From the following particulars obtained from his books kept by single entry, you are required to prepare a trading and profit and loss account for the year ending December-31,

2003 and a balance sheet as on that date :

Rs.

Sales (inclusive of cash Rs. 7,000)

Purchases (inclusive of cash

Rs. 4,000) - 15,000

Ramas drawings

Salaries of staff

Business expenses

Rama took cloth worth Rs. 500 from the shop for private use and paid Rs. 200 to his son, but omitted to record these transactions in his books. On December- 31, 1983, his Sundry Debtors were Rs. 5,200 and Sundry Creditors. Rs. 3,600. Stock in hand on December- 31, 2003 was Rs. 6,500.

5. A company made an issue of 10,000 shares of Rs. 10 each payable Rs. 3 on application. Rs. 3 on allotment, Rs. 2 on first call and Rs. 2 on second and final call.

All these shares were subscribed. Directors made both the calls. All moneys were received except from one shareholder who holds 100 shares failed to pay the first and second calls. The directors forfeited shares and reissued them at Rs. 8 per shares as fully paid up. Journalise the above in the books of the company.

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12,000 urii(ff)<366rT		iT,rr)QuLLiit	10,000
(0. 10 6lfLD	1,20,000	LujTilrrLb	90,000
iiL@06una6lrr}(g (_Lpj5lLI 6l)nULb	2,000	LD , JT ff) gj , 6OTTT LJ Qun0La66rr	15,000
6U rii <S (3 ld 6\) 61 rr lj UfT)g)|	36,000	ffrrJi0UL| urr)u6i) L6ijrn6rfla66rT	40.000 22.000
UIT}U6U <36 L6sf J5 Qff) rTIT <36 6TT	30,000	j6l)rTU J5LL /(g	11,000
	1,88,000		1,88,000

6. The balance sheet of Ram Company Ltd. as on 31-12-2006 was as follows :

Liabilities	Rs.	Assets	Rs.
Share capital :		Goodwill	10,000
12,000 shares		Plant and
of Rs. 10 each		machinery	71,350
Rs. 1,20,000		Preliminary
Less :		expenses	1,500
Call in		Stock	25,275
arrears		Bank	1,500
(Rs.3 per
shares)Rs. 9,000	1,11,000	P & L a/c	20,800
Creditors	15,425
Provision for
taxes	4,000
	1,30,425		1,30,425

Machinery was found over valued by Rs. 10,000. It was decided to write down the value of this asset to its true value and to eliminate other fictitious assets by the adoption of the following course :

(a) Forfeit the share in which calls are in arrears.

(b)    Reduce the paid up capital by Rs. 3 per share.

(c)    Reissue the forfeited shares at Rs. 5 share.

(d)    Utilise the provision for taxation if necessary.

Journalise and prepare the balance sheet after carrying out the scheme.

7. The following is the balance sheet of A company Ltd. as on 31-3-2007 :

Liabilities	Rs.	Assets	Rs.
12,000 shares		Goodwill	10,000
of Rs. 10 each	1,20,000	Machinery	90,000
Profit prior to		Furniture	15,000
incorporation	2,000
		Stock	40,000
Bank overdraft	36,000	Sundry debtors	22,000
Sundry creditors	30,000	Profit and
		loss a/c	11,000
	1,88,000		1,88,000

B company Ltd. took over the assets of A company Ltd. for Rs. 1,20,000 payable as to half in fully paid shares and half in

6. rr mb i ipLDs>i6BT (0UL|rf6t)a (grfjluL) 31-12-2006

L|6BTgU lj]6BT SLI (TF, LD IT l]JJ 2_61T61TJ :

(olurTrpjuL|a6iT		QrTS)jaa6iT
urii(g (_Lp6\)		r5rr)QuiLiiT	10,000
12,000 urii(ga66rr (TTj. 10 6lfLD 0. 1,20,000		Quni5lLL|Lb LujTilrrfLpLb	71,350
=SH, Lp U L| r | 6U (Lrai(ff) sj6OT-rru(g (TTj. 3 6lfLD (TTj. 9,000	1,11,000	ljnLl Qff6U6L|a66rT ffrrJi0UL|	1.500 25,275 1.500
a6L6sf j5(SniTa66rT	15,425	6l)nU J5LL
6Lnfla6n6ijr sjgj(g	4,000	*/(	20,800
	1,30,425		1,30,425

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cash. The expenses of liquidation were Rs. 3,000. A creditor for Rs. 5,000 agreed to take shares in B company Ltd. The available cash was just sufficient to satisfy the claims of creditors.

Give journal entries in the books of A company Ltd. and to record the journal entries in the books of B company Ltd.

8. Kumar Ltd. invoices goods to Kanpur branch at cost plus 25 % both cash and credit sales are effected by the branch. The branch expenses are paid directly the head office. The transactions for the year ending

31-3-2006 are :

Rs.

Opening balance (1-4-2005):

Stock at invoice price

Debtors

Credit sales

Rent & taxes

Discount allowed to debtors

Rs.

Sundry expenses    - 300

Goods sent to branch at

invoice price - 40,000

Returns to head office at

invoice price - 800

Closing balance (31-3-2006) :

Stock at invoice price    -    6,000

Debtors    -    5,200

Cash sales    -    18,700

Bad debts    -    500

Returns by customers    -    700

Salaries & wages    -    1,200

Show branch account in the books of head office and calculate profit or loss of the branch.

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QarT6iT(LpS)6t) (Glrrrraa

QarT6iT(LpS)6ij 0. 4,000 Gsifsjsj) - 15,000 rrrTLD6?sfl6BT 6T(T) LIL|    - 1,200

U655flLLHT61Tlt SLDU61TLb    -    2,000

SLiessfla, Q 6U sl| a 6it    - 700

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ai_6ofr5(omTa6TT 0. 3,600. 2003 - ld 6OT5t(5 isLbuif 31 - ld jFjir6tt srral0iliL| 0. 6,500.

a i_ sof it, G Sj mt a 6it	80,000	6U6mTLb	80,000
<961_6CT <96 6OTT <96 (fF)		Quit r5lLL|LD
i 't	20,000	LLiiTilrr(LpLb	60,000
(J_p<5)6U <96 6OTT <96(ff)<966TT : V 60,000		srral0iliL| ai_6BTrT6rfl6iT	60,000 1,20,000
LSI 80,000
<8 80,000	2,20,000
	3,20,000		3,20,000

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j|j}rr6S5Ti_rT6sJsj s>6H65st (0. 1,46,000.

(n>6BT rgrrsijj s>6H65st 0. 94,000.

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9.    Suresh purchased a T.V. on hire purchase on the following terms :

Rs. 1,200 on signing of the agreement.

Rs. 1,700 at the end of the first year.

Rs. 1,600 at the end of the second year.

Rs. 5,500 at the end of the third year.

The hire vendor charged interest at 10 % per annum. Depreciation is to be provided at 10 % per annum on diminishing balance. Pass necessary journal entries and show the asset account and sellers account in the books of Suresh.

10.    A company has colliery from a landlord on 1-1-2002 on lease at a minimum rent of Rs. 15,000 merging into a royalty of Rs. 2 per ton with power to recoup short-workings over the first three years of the lease. The output of the colliery for the first five years was 4,000 tons, 10,000 tons, 12,000, 15,000 tons and 15,000 tons respectively.

Give journal entries for five years of the above transaction in the books of the company.

Attachment: annamalai-university-2008-b-com-15612-1.pdf

Earning:   Approval pending.