Bangalore University 2007-1st Sem B.B.M Iester , /e - exam paper

II Semester B.B.M. Examination, May/June 2007
(Semester Scheme)
MANAGEMENT (Paper-2.4)
Financial Accounting – II

Time: three Hours Max. Marks: 90

Instructions: Answers should be written in English only.

SECTION-A

ans any ten sub-questions from the subsequent. every ques. carries two marks
(10x2=20)

I. a) What is “Partnership”?

b) What do you mean by fixed and fluctuating capital system?

c) Bring out any 2 objectives of conversion of firm into a Joint Stock Company.

d) Mention methods of purchase consideration.

e) Bring out any 2 features of instalment sale.

f) What do you mean by hire purchase price?

g) Can a seller seize the goods sold under hire purchase system? Why?

h) describe Royalty.

i) What is under insurance?

j) What Journal entry do pass to close the debit balance in the Realisation Account?

k) obtain out sales when cost of goods sold is Rs. 1,60,000 and gross profit ratio is 20% on sales.

l) If the goods worth Rs. 9,00,000 is insured for Rs. 6,27,000 and the true goods destroyed is Rs. 5,40,000. compute the amount of claim if there is avg. clause.







SECTION-B

ans any five ques.. every ques. carries five marks (5x5=25)

2. Prepare an analytical table from the subsequent Royalty: Re.1 per ton of output:
Minimum Rent: Rs. 30,000 per annum: Right of recoupment of shortworkings upto three
years – output during 1st 4 years – 20,000, 28,000, 36,000, 40,000 tons
respectively.


3. compute the amount of interest included in every instalment.

Cash price – Rs. 2,00,000, Dowry payment Rs. 50,000, 3 instalment of Rs. 6,000
every payable at the end of every year.

4. Mr. Rama and Krishna commenced their business with Capital of Rs. 2,40,000 and Rs.
1,80,000 respectively on 1.4.2005. They decided to share profit in the ratio of 3:2, for
the year ended 31.3.2006, they earned profit of Rs. 72,000 before allowing.

i) Interest on capital at 6% P.A.
ii) Interest on drawings – Rama – Rs. 450, and Krishna – Rs. 300/-.
iii) Partners salary to Rama – Rs. 9,000 P.A.
iv) Drawings during the year amounted to Rs. 20,000 – Rama and Rs. 15,000 – Krishna. Prepare profit and loss appropriation account.

5. compute the cash price of an asset sold under Hire purchase System from the subsequent details.

Down payment Rs. 12,000, first half yearly instalment Rs. 28,800, 2nd half yearly instalment Rs. 26,600, 3rd half yearly isntalment of Rs. 24,400, 4th half yearly instalment Rs. 24,200. Rate if interest 20% P.A.

Earning:   Approval pending.