Bangalore University 2007 B.Com Financial Accounting - I - Question Paper

I Semester B.Com. Examination, Nov./Dec. 2007
(Semester Scheme)
COMMERCE
Financial Accounting - I

Time : three Hours Max. Marks : 90

part - A

ans any 10 of the subsequent. every ques. carries two marks : (10x2=20)

1. a) What is realization account ?
b) State any two objectives of sale of firm to limited company.
c) Mention the two methods of purchase consideration.
d) Why is the hire purchase price always higher than the cash price ?
e) What remedy does a vender have if any installment is not paid under installment system ?
f) What do you mean by royalty ?
g) How is irrecoverable short workings account id closed ?
h) What is entry for irrecoverable short workings in the books of the lessor ?
i) Why is re-valuation account opened in the books of the amalgamation of firms ?
j) elaborate the entries for recording unrecorded assets and liabilities at the time of amalgamation ?
k) Bring out 2 features of installment system of sale.
l) How do you distribute the shares and debentures received from purchasing company as purchase consideration amongst the partners ?

part - B

ans any five ques. from the subsequent. every ques. carries five marks :

2. Prepare an analytical table of royalty’s from the subsequent details :

a) Minimum rent = 30,000 p.a.
b) Royalty Rs. two per ton fore raised.
c) Short working are recoverable during 1st three years lease only.
d) The output for the first 4 years was
2001 - 4,000 tons, 2002 - 8,000 tons,
2003 - 16,000 tons, 2004 - 4,000 tons.

3. Pass in corporation entries in the books of the company from the subsequent particulars.

Purchase consideration = 11,25,000, value of sundry assets taken over = 13,50,000, current liabilities taken over Rs. 1,35,000, settlement of purchase consideration = 60% in equity shares of Rs.10 every at face value and the balance is 8% debentures of as 100 every at face value.

4. Mention the features of installment system.

5. compute the amount of interest included in cash installment.
Cash price = Rs. 1,50,000, down payment = Rs. 45,000, three annual installment of Rs. 60,000, Rs. 45,000, Rs. 30,000 respectively payable at the end of every year.

6. A washing machine set with the cash price of Rs. 16,200 is acquired on hire purchase system, payable in 3 installments of Rs. 6,000 every. How do you apportion every installment ranging from revenue and capital ?

7. compute the amount of purchase consideration from the subsequent >
Purchasing company agreed to problem 60,000 equity shares of Rs. 10 every valued at Rs. 12 every. 24,000 8% debentures of Rs. 10 every at a discount of 5% pay cash value equal to 10% of face value of shares and debentures issued.

Earning:   Approval pending.