Bangalore University 2005 B.Com Financial Accouting - I - Question Paper

I Semester B.Com. Examination, Nov/Dec. 2005
COMMERCE
Financial Accouting - I

Time : three Hours Max. Marks : 90

Instructions : Answers should be fully in Kannada or in English.

part - A

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

1. a) Why is the hire purchase price always higher than the cash price ?

b) State the 2 features of hire purchsae system.

c) Why is minimum rent clause included in the royalty agreement ?

d) What is irrecoverable shortworking ?

e) What remedies does a vendor have if any instalment is not paid under instalment system ?

f) State in which ration should be debentures received in purchase price be distributed among the partner.

g) Mention any 2 important reasons for amalgamation of firms.

h) provide journal entry to close the revaluation account showing credit balance.

i) Why is revaluation account opened in the books of the amalgamation firms ?

j) What is goodwill in the situation of sale of a firm to a company ?

k) A company issued 1000 equity shares of Rs. 50 every at a discount of 10% for its working capital. provide journal entry for problem of shares.

l) What is Interest Suspense Account ? Why is it opened ?

part - B

ans any 5 of the subsequent. every ques. carries five marks.
(5x5=25)
2. Mention the features of instalment system.

3. A radio set with the cash price of Rs. 1,620 is acquired on hire purchase system, payable in 3 instalments of Rs. 600 every. How do you apportion every instalment ranging from revenue and capital ?

4. Prepare a revaluation account from the subsequent in the books of X and Y.

a) Machinery worth rs. 1,00,000 to be depreciated by 10%.
b) Buildings worth rs. 2,50,000 to be appreciated by 10%.
c) Outstanding salary Rs. 10,000.
d) Stock of Rs. 10,000 was destroyed by fire and 25% was received from insurance company.

e) Write off bad debts Rs. 3,800.

5. compute the cash price of an asset from the subsequent details :
Down payment Rs. 4,500
I Instalment Rs. 4,200
II Instalment Rs. 3,900
III Instalment Rs. 3,600
IV Instalment Rs. 3,300

Rate of interest 10% p.a. Rate of depreciation 20% p.a.

6. Prepare interest suspense account in the books of the purchase under instalment system.

Earning:   Approval pending.