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

Cash price of the asset Rs. 40,000
Instalment price Rs. 47,000
Interest to be apportioned in the ratio of four : two : 1
Date of purchase 1-4-2001

The books are cloased on 31st March every year. The 1st payment is made at the end of the 1st year.

7. prepare the purchaser's account in the books of the vendor under instalment system from the subsequent particulars :
Cash price Rs. 60,000
Total interest payable Rs. 15,000
Instalment paid Rs. 15,000 down and balance in three equal
annual instalments.
Date of purchase 1-4-2001

The books are closed on 31st March every year.

8. compute the purchase consideration from the subsequent details.
The purchasing company has agreed to problem 8000 equity shares of Rs. 10 every at par, 500 8% preference shares of Rs. 100 every at 10% premium, 1000 debentures of Rs. 50 every at 10% discount and pay cash equal to 10% of total purchase consideration.

9. What is the accounting precedures involved in 'Sale to a Company' in the books of the firm ?

part - C

ans any 3 of the subsequent. every ques. carries 15 marks.
(3x15=45)

10. 2 firms A and B and C and D carrying on similar business agredd to amalgamate their business as from 1-1-89 on which date their Balance Sheet stood as follows :

Liabilities A&B C&D Assets A&B C&D
Rs. Rs. Rs. Rs.

Creditors 80,000 1,00,000 Bank 22,400 26,800
Mrs. A's loan 20,000 --- Stock 81,600 73,200
Capital Debtors 60,000 80,000
A 1,60,000 Furniture 16,000 20,000
B 80,000 Premises 1,60,000 --
C 96,000 Investments -- 60,000
D 64,000

3,40,000 2,60,000 3,40,000 60,000

It was matually agreed that Mrs.A's loan should be repaid by A&B firm. Investments of C and D not to be taken over by the new firm. Goodwill of M/s. A&B was fixed at Rs. 32,000 and that of M/s. C&D at rs. 40,000. Premises were revalued at Rs. 2,00,000. But stocks of M/s. A&B obtained overvalued by Rs. 16,000, stocks of M/s. C&D were undervalued by Rs. 8,000. A reserve of 5% on debtors of both the firms is necessary.

Earning:   Approval pending.