Hemwati Nandan Bahuguna Garhwal University 2006 B.Com FINANCIAL ACCOUNTING - Question Paper

11. Sushil purchase a Tempo on hire purchase system for Rs.56000,payment to be made Rs.15000 down and 3 instalments of Rs.15000 every at the end of every year. Rate of interest is charged at 5% per annum. The hire purchaser depreciate the asset at 10% per annum on written down value method. Because of financil difficulties,sushil after having paid cash down and payment of 1st instalment at the end of 1st year could not pay 2nd instalment and hire seller took possession of the Tempo. Hire-seller after spending Rs 350 on repairs of the Tempo sold it away for Rs.30110. Open the ledger Account in the books of both the parties for the above transactions.
12. M/S Bhatt Brothers of Calcutta have a Branch at Lucknow. Good are sent to the branch at the cost price plus 1/2 of cost price. From the ahead particulars prepare necessary accounts on stock and debtors system and compute gross profit and net profit for the branch: (a) Stock at the beginning(at invoice price) Rs.4200 (b) Goods sent to branch Rs.30000 (c) Goods returned by branch Rs.3000 (d) Credit sales by branch Rs.15000 (e) Cash remitted by branch Rs 31000 (f) Debtors balance in the beginning Rs.5000 (g) Cash received from the branch from the debtors Rs.16000 (h) Cash received by the head office direct from the branch debtors Rs.3000 (i) Bad debts Rs.20 (j) Cash discount on cash payment Rs.100 (k) Shortage at branch Rs.150 (l) Recurring expences paid by the head office Rs.1600 (m) Non-recurring exp.paid by the head office Rs.1200
13. Interest on Loans Rs.300000 Interest on fixed deposits Rs.275000 Commission Rs.10000 Exchange and Brokerage Rs.20000 Salaries and Allowances Rs.150000 Discount on Bills Rs.152000(gross) Interest on temporary overdraft in Current Accounts Rs.30000 Interest on Saving bank deposits Rs.87000 Postage,Telegram and stamps Rs.10000 Printing and Stationary Rs.20000 Sundary Expences Rs.10000 Rent Rs.10000 Taxes and Licences Rs.10000 Audit Fees Rs.10000 Additional informations: (i) Rebat on bills discounted Rs.30000 (ii)Salary of Managing Director Rs.30000 (iii) Bad debt Rs.40000 (iv) Provision for Income Tax is to be made 55%(Round off closest thousand) (v) Interest of Rs.4000 on doubtful debts was wrongly credited to interest on Loan Account
14. The Revenue Account of a life Insurance business show the fund at the end of year 31 March 2006 at Rs.4878000 befor taking into account of the subsequent items: (a) Claims intimated but not admitted Rs.65000 (b) Bonus utilised in reduction of Life Insurance Premium Rs 6500 (c) Interest accrued on securities Rs.19500 (d) Outstanding premium Rs 18000 (e) Claims covered under reinsurance Rs.27000 Pass the necessary Journal entries giving effect to the above omission and show the fund at the 31-3-2006,after making the above adjustments.
15. What is Statement of Affairs? How does it differ from Balance sheet? discuss it.

Earning:   Approval pending.