University of Allahabad 2008 M.Com Commerce Advance Accounting - Question Paper

M.Com. DEGREE EXAMINATION, MAY 2008.

ADVANCED ACCOUNTING

Time : 3 hours Maximum : 100 marks
PART A — (5 × eight = 40 marks)
ans any 5 ques..
All ques. carry equal marks.
1. Explain the different kinds of accounting convention.

2. Raman keeps his books on Single Entry basis. Prepare a statement of Affairs as on 31.10.05 and a statement of Profit or Loss for the period ending 31.10.2005.
Assets and liabilities
1.11.2004
31.10.2005
Rs.
Rs.
Bank Balance
(Cr.) 560
(Dr.) 350
Cash on hand
10
50
Debtors
4,500
3,600
Stock
2,700
2,900
Plant
4,000
4,000
Furniture
1,000
1,000
Raman had withdrawn Rs. 2,000 during the year and had introduced additional capital of Rs. 4,200 on 1.7.2005. A provision of 5% on Debtors necessary. Write off Depreciation on plant at 10% and furniture at 15%. Interest on capital is to be allowed at 5% p.a.

1.11.2004
31.10.2005

1,000
1,000

3. The Revenue Account of a life insurance company indicates the life assurance fund on 31st March 2005 at Rs. 62,21,310 before taking into account the subsequent items :
(a) Claims covered under reinsurance Rs. 12,000
(b) Bonus utilized in reduction of life insurance premium Rs. 4,500
(c) Interest accrued on securities Rs. 8,260
(d) Outstanding premium Rs. 5,410
(e) Claims intimated but not admitted Rs. 26,500
£uøÚ Põs¤UP.
4.A purchasing company agrees to problem 3 shares of
Rs. 10 each, Rs. seven paid-up (quoted in the market at Rs. 15) for every 5 shares in the vendor company. obtain the number and amount of shares to be issued by the purchasing company if the vendor company has Rs. 5,00,000 paid-up shares capital of
Rs. 10 each, Rs. five pai-up (quoted in the market at Rs. 8).

5.From the balance sheet provided beneath prepare a consolidated balance sheet of X Co. Ltd. and its subsidiary
Y Co. Ltd. The interests of the minority shareholders of Y Co. Ltd. are to be shown in the consolidated balance sheet.
Balance sheet of X Co. Ltd. and Y Co. Ltd. as on 31.12.2005
Liabilities
Rs.
Rs.
Assets
R


Debtors
32,00,000
11,20,000



Cash at Bank
20,80,000
20,80,000

3,04,00,000
43,20,000

3,04,00,000
43,20,000
ion was as follows :
Liabilities
Rs.
Assets
Rs.
Sundry creditors
40,000
Cash in hand
20,000
A's Capital a/c
72,000
Other assets
80,000
B's Capital a/c
48,000
C's Capital a/c
8,000


D's Capital a/c
12,000


Profit and loss a/c
40,000

1,60,000

1,60,000
The other assets realized Rs. 70,000. C became insolvent and nothing could be collected from his estate. Close the books of the firm.
Ation on plant
1,500
(i)
Depreciation on office furniture
1,000
(j)
Bad debts

Earning:   Approval pending.