Veer Narmad South Gujarat University 2011 M.Com Commerce S-2589 Financial & Management Accounting - 2 - 105 ( Sem1 ) . - Question Paper

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ENGLISH VERSION

As per the Instruction No. 1 of Page No. 1.

1 Trial Balance of the Madhav Company Ltd. as on    14

31st March 2010

Prepare final accounts of the company by vertical balance

sheet method after taking into account following information :

(i)    Debit balance of Keshav Ltd. shares shows share of Rs. 10 each and Rs. 8 paid up per share.

(ii)    Debentures are to be redeemed on dt. 31.3.2019.

(iii)    Purchase price of closing stocking is Rs. 20,00,000. Out of which market price of 20% goods reduced by 10% as compare to purchase price. Where as market price of 10% of goods has been increased by 20% as compared to purchase price.

(iv)    The authorized capital of company comprises of 10,00,000 equity shares of Rs. 10 each.

(v)    Interest outstanding Rs. 10,000 on debenture redemption Fund Investments.

(vi)    Rs. 5,00,000 debtors are for more than six months, out of which Rs. 2,50,000 is doubtful debts. Provide for full amount of doubtful debt reserve.

(vii)    Provide 10% depreciation on cost price of all fixed assets.

(viii)    The amount shown as current account indicates amount received on 40,000 equity shares reissued which was forfeited due to non-receipt of last instalment on it during the year. No journal entry was passed in this regard.

(ix)    The directors has proposed 15% dividend on equity shares after providing the transfer from profit Rs. 3,00,000 General Reserve and Rs. 1,00,000 to Debenture Redumption Fund.

(x)    Provide for current years income tax Rs. 6,00,000. Previous years assessment was completed without any dispute.

2 (a) Shri Arjun has taken consequential loss policy of    6

Rs. 15,000. The period of indemnity specified in the policy is four months. Sales for the year ended on Dt. 31.12.08 Rs. 1,20,000 and net profit was Rs. 11,500.

The fixed expenses debited to Profit and Loss account was Rs. 700 out of which Rs. 200 of fixed expenses was not covered under this Insurance Policy.

The premises of company were destroyed by fire which took place on dt. 01.04.09 and the business was disorganized. Sales for the period dt. 01.04.08 to 31.07.08 was Rs. 35,000 and sales for the same period of four months in the year ended on dt. 31.03.2009 was Rs. 1,15,000.

Due to new technology installed in the year 2009. Starting from dt. 01.01.09 the percentage of profit on sales will be increased by 4%. Prepare statement of claim.

(b) A fire broke out in the warehouse of Sadbhagi Co. Ltd. 4 on 13.3.2009. Out of stock costing Rs. 80,000; stock worth Rs. 60,000 fully destroyed. Determined the amount of claim and pass general entry in each of the following circumstances :

(i)    In case insurance of Rs. 1,00,000 taken

(ii)    If Rs. 80,000 of insurance policy taken

(iii)    If Rs. 70,000 policy taken which includes average clause cover under it.

(iv)    If Rs. 45,000 insurance policy taken which does not include average clause.

(c) Samrat Ashok has covered all risks due to fire by    4

taken full amount insurance fire broken out. Certain part of building damaged, insure company admitted claim as under.

Plant and machinery were old and full amount of it written down. He decided not to purchase new machine.

The repairing of furniture cost Rs. 1,50,000. After incurring expenses of Rs. 20,000 damaged stock was sold at full cost :

Prepare statement of fire claim :

Rs.

Plant and machinery.................................. 1,90,000

Furniture...................................................... 2,70,000

Stock damaged............................................. 1,30,000

Stock destroyed (half price) .......................... 70,000

Consequential Loss

Skill Employee Labour    30,000

Loss of profit    80,000 .... 1,10,000

Total claim (accepted)................................. 7,70,000

3 (a) Provide five examples of each of the following    6

Headings with reference to final accounts of company.

(i)    Contingent Liabilities

(ii)    Fictitious Assets.

(b) Some (partial) balances from Trial Balance of    8

Sangam Ltd. on Dt. 31.3.09

Assessment of year 2007-08 was completed this year and Tax liability determined Rs. 3,20,000. Current year profit was Rs. 8,00,000. Company pays income tax at 30%.

Pass general entry in the books of company and show its effect in vertical form of financial statements.

OR

(a)    Provide definitions of Human Resources accounting 6 given by any two authors and describe advantages of HRA.

(b)    Explain Levand Sehwartz Model to evaluate    4 the Human Resource.

(c)    Given arguments in favour of Human Resources    4 to be considered as Assets of the Business.

(a)    Explain the scope of Environmental Accounting.

(b)    Describe the development of Environmental Accounting giving example of any four countries.

(c)    Explain the procedure of Environmental Accounting.

OR

(a)    The building of the company heavily damaged due to fire broke out in the midnight on dt. 13.3.09. The salvage value of stock is Rs. 1,00,000. The gross profit rate on cost of goods sold during last five years was

33/%.

Stock on dt. 01.01.09 was Rs. 2,10,000 Sales on dt. 01.01.09 to 13.3.09 period Rs. 2,80,000 Purchase Rs. 1,70,000 and direct labour Rs. 60,000. Prepare the statement of claim to be present to insurance company for the loss of stock.

(b)    Explain abnormal goods stock in fire claim.

(c)    Explain return on efforts employed.

(a)    Distinguish between the matters : (any one)    6

(i)    Historical Cost and Replacement Cost

(ii)    Interim Dividend and Proposed Dividend

(b)    Write short note on : (any two)    8

(i)    Net Working Capital

(ii)    Bary Corporation Method

(iii)    Consequential Loss Policy

(iv)    Environmental Accounting.

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