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

Fire fund – opening
2,50,000
(marine)
4,00,000
Marine fund – opening
8,20,000
Marine premium less

Bad debts recovered
1,200
reinsurance
10,80,000
Share transfer fee
800
Fire premium less

Directors fees
5,000
reinsurance
6,00,000
Auditors fees
1,200
Profit on sale of land
60,000
Bad debts (marine)
12,000
Misc. Receipts
5,000
Bad debts (fire)
5,000
Difference in



exchange (Cr.)
300


Int. Divident etc.



received
14,000


Depreciation
35,000
In addition to usual reserves, additional reserve in case of fire insurance is to be increased by 5% of net premium.


11.The subsequent Trial Balance of Arun as at 31st Dec. 2005 is provided to you. Prepare Final Accounts.
Debit Balances
Rs.
Credit Balances
Rs.
Opening Stock
15,000
Capital
90,000
Land and Buildings
35,000
Sundry Creditors
9,600
Machinery
50,000
Purchase returns
2,100
Furniture and Fixtures
5,000
Sundry incomes
1,200
Purchases
1,06,000
Reserve for bad debts
300
Salaries
11,000
Sales
2,07,000
General expenses
2,500


Rent
3,000


Postage and telegram
1,400


Stationery
1,300


Wages
26,000


Freight on purchases
2,800


Carriage on sales
4,000


Repairs
4,500


Sundry debtors
30,000


Bad debts
1,100


Cash in hand
100


Cash in bank
6,400


Sales returns
5,100



3,10,200

3,10,200
Adjustments :
(a) Wages outstanding Rs. 2,100
(b) Depreciate : Land and buildings 2%, Machinery 10% and Furniture and Fixtures 15%
(c) Closing Stock value Rs. 14,900.
2,100

5,000

1,200

1,06,000

300

11,000

2,07,000

2,500



3,000



1,400



1,300

T¼
26,000

2,800

4,000
4,500
30,000
1,100
100
6,400
5,100
,310,200
12.Banu, Priya and Anu were in partnership sharing Profit and losses in the ratio of three : two : 1. On first January 2005 Priya retired. On that date the Balance Sheet was as follows :
Liabilities

Rs.
Assets

Rs.
Bills payable

5,000
Machinery

30,000
Outstanding


Parents

3,000
liabilities
20000
Debtors
10,000
Trade creditors
7,000
Less :
Reserve

3,000
provision
500
9,500
Capitals :
Stock
11,000
Banu
15,000
Cash
500
Priya
12,000
Anu
10,000
37,000
54,000


54,000
The terms were :
(a) Goodwill was to be valued at Rs. 12,000
(b) Outstanding liabilities to be brought down to
Rs. 1,500; Machinery is to be valued at 10% less than the book value and patents at Rs. 4,000.
(c) The total capital of the newly constituted firm was fixed at Rs. 30,000 to be contributed by the partners in the profit sharing ratio. Pass the journal entries to show the effect of the retirement and provide the new Balance sheet of the firm after retirement.
5,000
30,000
3,000
2,000
10,000
500
9,500
7,000
11,000
3,000
500
15,000
12,000
10,000
37,000


54,000



13.The Balance sheet of Sharma Co. Ltd. as on 31st December 2005 was as follows :
Liabilities
Rs.
Assets
Rs.
Share capital :

Premises
6,60,000
40,000 pref. shares of

Plant
3,50,000
Rs. 10 every
4,00,000
Loose tools
1,00,000
1,20,000 equity shares

Stock
80,000
of Rs. five every
6,00,000
Debtors
1,20,000
Reserve
2,000
Bills receivable
40,000
9% Debentures
2,40,000
Cash
12,000
Creditors
4,00,000
Goodwill
2,40,000


Profit and Loss a/c
40,000

16,42,000

16,42,000
Additional info :
Upon revaluation, it was considered that the entire goodwill was worthless. Scheme of rearrangement and reduction of capital was agreed to by the court and the creditors on the subsequent lines :
(a) That the creditors should accept 9% debentures to the extent of half of their debts, the balance to be settled by payment of cash at 90%.
(b) That the preference shares be decreased to shares of Rs. five every fully paid.
(c) That the equity shares be decreased to Re. one every.
Pass necessary journal entries and prepare Balance sheet after rearrangement.


6,60,000
40,000


3,50,000

4,00,000

1,00,000
1,20,000


80,000

6,00,000

1,20,000

2,000

40,000

2,40,000

12,000

4,00,000

2,40,000



40,000

16,42,000

16,42,000

14.XY private Ltd. was incorporated on 1.7.2005 to take over the business carried on by PQ and Co as a going concern with effect from 1.4.2005, the subsequent is the P & L account for the year ended 31.3.2006 of XY Private Ltd. :
Rs.
Rs.
To Administrative
By G. Profit b/d
7,50,000
expenses
1,80,000
To Director's fees
30,000
To Selling expenses
3,60,000
To Audit fee
10,000
To Preliminary expenses
30,000

To Net Profit
1,40,000
7,50,000

7,50,000
Sales Rs. 30,00,000 (upto 30.6.2005, Rs. 10,00,000). You are needed to prepare a statement showing the profit earned prior to and after incorporation.

Earning:   Approval pending.