Calicut University 2008 B.Com Computer Science Financial Accounting - Question Paper
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0 46323 (Pages : 6) Name.....................................
Reg. No..................................SECOND YEAR B.Com. DEGREE EXAMINATION, APRIL/MAY 2008
Part III-Commerce Paper IVFINANCIAL ACCOUNTING
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(2005 Admissions)
Time : Three Hours Maximum : 80 Marks
Part A
Answer any ten questions.
Each question carries 1 mark.
1. What is Hire purchase system ?
2. What is Interim dividend ?
3. What is Reinsurance ?
4. What is deed rent ?
5. Explain the term leasee.
6. What is Reversionary Bonus ? ,
, 7. What is meant by Government Company ?
8. What is Pure underwriting ?
9. Explain Dual aspect principle.
10. How will you allocate electric lighting in departmental accounts ?
11. Define absorption.
12. What do you mean by redeemable preference share ?
(10 x l = 10 marks)
Answer any ten questions.
Each question carries 4 marks.
13. Explain the methods of calculating purchase consideration.
14. What information should be disclosed in the financial statement as per AS-14 ?
15. Distinguish between External and Internal reconstruction.
16. Distinguish between commission on re-insurance ceded and commission on re-insurance accepted.
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17. What are the provisions for statutory reserve an'd cash reserve in banking companies ?
18. On 1st January 2001 Delhi Granite Exports. Ltd. took on lease a quarry from X. Bombay on a royalty of Rs. 20 per ton of Green granite extracted. The deed rent is Rs. 40,000 per annum with
right to recover shortworkings within the first four years of the lease. The working was as follows
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Year : 2001 2002 2003 2004 2005
Annual production (in tons) : 2800 3600 4100 5300 5600
Prepare Royalty account, Minimum rent account, shortworkings account in the books of the Delhi Granite Exports Ltd.
19. On 31st March 2005, a bank held the following bills discounted by it earlier :
Amount Date of Bill Term month Discount at % p.a.
7,50,000 January 13 4 12
6.00.000 February 17 ' 3 10
1 4,00,000 March 6 4 11
2.00.000 March 16 2 10 You are required to calculate Rebate on Bills discounted.
20. Give journal entries for the forfeiture and re-issue of shares :
(a) XLtd. forfeited 30 shares of Rs. 10 each full called up, held by Karim for non payment of allotment money of Rs. 3 per share and final call of Rs. 4 per share. He had paid the application money of Rs. 3 per share. These shares were re-issued to Salim for Rs. 8 per share.
(b) X Ltd. forfeited 10 shares of Rs. 10 each (Rs. 6 called up) issued at a discount of 10 % to Neeta on which she had paid Rs. 2 per share. Out of these, 8 shares were re-issued to Neeta as Rs. 8 called up for Rs. 6 per share.
21. P purchased a truck for Rs. 56,000, payment to be made, Rs. 15,000 down and 3 installments of Rs. 15,080 each at the end of each year. Rate of interest is charged at 5 % p.a. Buyer depreciates assets at 10 % p.a. on written down value method.
Because of financial difficulties P, after having paid down payment and first instalment at the end of firsf year, could not pay second instalment and seller took possession of the truck. Show Ledger accounts in the books of P.
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22. A Co. Ltd. has Authorized Capital of Rs.-50,00,000 divided into 1,00,000 Equity shares of Rs. 50 each. The company issued for subscription 50,000 shares at a premium of Rs. 10 each. The entire issue was underwritten as follows :
3
X 30,000 shares (Firm underwriting 5000 shares)
Y 15,000 shares (Firm underwriting 2000 shares)
Z 5,000 shares (Firm underwriting 1000 shares)
Out of the total issue 45,000 shares including firm underwriting were subscribed. The following were the marked forms.
X - 16,000, shares, Y - 10,000 shares, Z - 4,000 shares. Calculate the liability of each underwriter assuming shares underwritten are treated as marked application.
23. The Revenue account of a Life Insurance Company shows the life assurance fund on 31st March, 2004 at Rs. 62,21,310 before taking into account the following items :
(a) Claims covered under re-insurance Rs. 12,000.
(b) Bonus utilized in reduction of premium Rs. 4,500.
(c) Interest accured on securities Rs. 8,260.
(d) Outstanding premium Rs. 5,410.
(e) Claims intimated but not admitted Rs. 26,500. What is the life assurance fund after taking into account the above omission ?
24. Y the proprietor of a departmental store, decided to calculate separate profits for his first two departments X and Y for the month ending 31st January, 1999. Stock on 31st January could not be valued for certain unavoidable reasons but his rate of gross profit on sales for the two departments are 40 per cent and 30 per cent respectively :
The following figures are given :
Department- Departpient X Y
Stock on 1st January 1999 9,000 8,400
Sales 42,000 36,000
Purchases 27,000 21,600
Prepare statement showing closing stock of two departments.
(10 x 4 = 40 marks)
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Part C
Answer any two questions.
Each question carries 15 marks.
The following is the Trial Balance as on June 30,2000 of the Modern Manufacturing Company Ltd.:
|
Rs. | |
|
Stock, 30th June, 1999 |
7,500 |
|
Sales |
... 35,000 |
|
Purchases |
... 24,500 |
|
Productive wages |
5,000 |
|
Discount (Dr.) |
700 |
|
Discount (Cr.) |
500 |
|
Salaries |
750 |
|
Rent |
495 |
|
General expenses |
1,705 |
|
Profit and loss account, | |
|
30th June 1999 (Cr.) |
1,503 |
|
Dividend paid, August 1999 |
... - 500 |
|
Interim dividend paid on | |
|
February 2000 |
400 |
|
Capital 10,000 Re. 1 shares | |
|
fully paid |
... 10,000 |
|
Debtors |
3,750 |
|
Creditors |
1,750 |
|
Plant and Machinery |
2,900 |
|
Cash in hand and at Bank |
1,620 |
|
Reserve |
1,550 |
|
Loan to Managing director |
325 |
|
Bad debts |
158 |
Stock as on 30th June, 2000 Rs. 8,200. You are required to prepare trading and Profit and Loss account for the year ended 30 June, 2000 and the Balance Sheet as on that date. You are also to make provision in respect of the following :
(i) Depreciate Machinery at 10 % p.a.
(ii) Reserve 5 % discount on Debtors.
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(iii) Allow 21/? % discount on creditors.
(iv) Provide Managing Directors Commission 15 % on the net profits, before deducting his commission.
(v) One months rent Rs. 45 per mensum was due on 30th June and
(v) Six months insurance included in general expenses was unexpired at 75 per annum. From the following information prepare Profit and Loss Account of Thrifty Bank for the year
ended on 31st March, 2000 :
Rs.
("000)
Interest on Loans ... 2,590
/Interest on Fixed Deposits ... 3,170
Rebate on bills discounted ... 490
Commission ... 82
Payment to employees ... 540
/Interest on Cash Credits ... 2,230
'-'Rent, Tax and Lighting .X 180
* Interest on overdrafts ... 1,540
Directors fee, Allowances and Expenses ... 30
Auditors fee and Expenses ... 12
'/Interest on Savings Bank Deposits ... 680
Postage, telegrams and telephones ... 14
v Printing and Stationery ... 29
/Sundry Charges ... 17 Additional information :
(i) Provide for Contingencies Rs. 2,00,000.
(ii) Transfer Rs. 15,57,000 to Reserves.
(iii) Transfer Rs. 2,00,000 to Central Government.
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The following are the Balance sheets of X Ltd and Y Ltd as at 31 December, 2001:
|
Liabilities |
X Ltd |
Y Ltd |
Assets |
X Ltd |
Y Ltd |
|
Share Capital |
Rs. |
Rs. |
Rs, |
Rs. | |
|
Equity Shares |
Goodwill |
30,000 |
10,000 | ||
|
of Rs. 10 each |
4,00,000 |
3,00,000 |
Machinery |
1,50,000 |
1,00,000 |
|
Reserves and |
Stock |
40,000 |
72,000 | ||
|
Surplus |
60,000 |
80,000 |
Debtors |
2,10,000 |
1,20,000 |
|
Creditors |
40,000 |
30,000 |
Bank |
60,000 |
90,000 |
|
Preliminary | |||||
|
expenses |
10,000 |
18,000 | |||
|
5,00,000 |
4,10,000 |
5,00,000 |
4,10,000 |
Goodwill of the two Companies is to be valued at Rs. 50,000 and Rs. 40,000 respectively. Machinery of X is worth Rs. 2,00,000 and of Y Rs. 90,000. Stock of Y has been shown at 90 % of its cpst. The revised values of X Ltd are not to be recorded and are given only for ascertaining the intrinsic value. X Ltd, takes over Y Ltd. by taking over the entire business and the number of shares to be issued to the shareholders of Y Ltd, is to be determined on the basis of the intrinsic values of the shares of X Ltd. and Y Ltd. You are required to pass Journal entries in the books of X Ltd. and show the Balance sheet of X Ltd. after absorption.
(2 x 15 = 30 marks)
|
Attachment: |
| Earning: Approval pending. |
