Bharathiar University 2007 B.Com Advanced Accounting - Question Paper

B.com DEGREE exam
Second Semester
Part III- Computer Applications


ADVANCED ACCOUNTING

part –A

select the accurate answer:
1. Depreciation arises because of
a) fall in the market value of an asset
b) physical wear and tear
c) fall in the value of money
2. On the admission of a partner if the goodwill is raised at full value it should be debited to
a) cash account
b) old partners capital account
c) goodwill account
3. The last installment paid under hire-purchase comprises
a) cash price only
b) interest only
c) Cash price and interest.
4. Cash paid to creditors can be computed from
a) debtors account
b) creditors account
c) balance sheet
5. Advance payment of tax is in the nature of
a) asset
b) revenue expenses
c) prepaid expenses

Fill in the blanks:
6. Debtor ledger is also called _________
7. Rent and rates are allocated to various departments on the basis of ________
8. The statement of affairs in the beginning reveals ________
9. Old profit sharing ratio minus new profit sharing ratio is equal to ________
10. Provision for taxation is to be shown in the balance sheet under the head _______

State actual or False:
11. The general ledger adjustment account is always opened in the general ledger.
12. Depreciation on asset is computed on the cash price of the asset.
13. The bill receivables received during the year are debited to the bills receivable account and credit to debtors account.
14. Interest on drawings is income for the partnership firm.
15. Profits available to shareholders for dividend are called divisible profits.

Match the following:

16. Preliminary expenses a) partnership
17. Amortization b) in general ledger
18. Goodwill c) hire purchase system
19. bought ledger d) depreciation
20. Cash price e) fictitious assets
Section-B
21. (a) what is goodwill? How is it treated on the admission of a partner?

(Or)

(b) Write short notes on:
(i) Partnership deed
(ii) Fixed and fluctuating capital.


22. (a) The Delhi gas co., Delhi have a sales branch in Faridabad and charge all goods sent to the branch at cost price plus 33.333%. It is organizes that all cash received by the branch is to be paid daily to the head office account with the popular bank Ltd. And the necessary advice sent to the H.O. From the subsequent particulars’ prepare branch account in the H.O. ledger showing the true profit of the branch for the year ending 31st December 2003.

Earning:   Approval pending.