Tamil Nadu Open University (TNOU) 2009 M.Com Commerce Advanced financial accounting - Question Paper
WS 5
PG-229 MCO-13M.Com. DEGREE EXAMINATION -JUNE 2009.
First Year Commerce (AY - 2004-05 batch onwards)
ADVANCED FINANCIAL ACCOUNTING
Time : 3 hours Maximum marks : 75
PART A (3 x 5 = 15 marks)
Answer any THREE questions.
1. Define Single entry system. Explain the defects of single entry system.
2. R, S and P are partners with capital Rs. 50,000, Rs.
30,000 and Rs. 20,000. They share profits in the ratio of 5 : 3 : 2. As from 1st January, 1999, S retires and the following revaluations were made :
(a) Land and Building to be increased by Rs. 48,000.
(b) Stock, furniture and machinery values to be reduced by Rs. 4,000, Rs. 1,000 and Rs, 4,600 respectively.
(c) Create a reserve of Rs. 200 for doubtful debts.
(d) Goodwill of the firm is agreed at Rs. 30,000.
Prepare Ss account and find out the amount due.
R, S 0p P BQGwnir 0. 50,000, 0. 30,000 0p 0.
20,000 u QsnSkmrn TLLnJsrn. ai<sot Cnuzu 5 : 3 : 2 otOTp uiQL@U QanLr.
01.01.1999 AOTp S QupQpnii. Cu Qun0L@
l3OTI0 pVu@ffiOT QffWUULLffl.
(A) | 0p SLiL 0. 48,000 ewZuul Gis@.
(B) \@, Qun0Lsm 0p
<fiui_| pGw 0. 4,000, 0. 1,000 0p 0. 4,600 otOTp Qun<5<50 spUsuuL Gis@.
(C) IwUffiLUana 0. 200 <snu_ E0nUauuL Gis@.
(d) TLLnSrn |pZV {pQuwir 0. 30,000ns JZX QanrnrnuuLLx.
S-OT U unflzx A0sflw QunffiwU PnuQP.
3. New ways Limited issues 1,000 6% debentures of Rs. 100 each. Give journal entries in each of the following cases.
(a) The debentures are issued and redeemed at par.
(b) They are issued at a discount of 6% but redeemable at par.
(c) They are issued at a premium of 5% but redeemable at par.
(d) They are issued at a discount of 4% but redeemable at premium of 5%.
G<aiiL< Qll 1,000 6% <s_*
0. 100 QL_x- Rp Q<sk<s<suuLkOTOT
uiji<s>U<snw suGumk u.
(a) <sl uzVi AU* <s<fiu au VupG Vu QupQpx.
(b) 6% Ql@, sVu Vu QupQpx.
(C) 5% ZV Q_uuLk, sVu Vu
QupQpx.
(d) <sl uzVi 4% uui Q_uuLk 5%
ZV Vu QupQpx.
4. From the following information of XYZ Bank Ltd. Prepare the Profit and Loss account for the year ended 31.3.2005.
|
Rs. | |
|
Interest on loan |
2,59,000 |
|
Interest on fixed deposit |
2,75,000 |
|
Rebate on Bills discounted (31.3.2005) |
49,000 |
|
Commission |
8,200 |
|
Administrative expenses |
54,000 |
|
Discount on bills discounted |
1,95,000 |
|
Interest on overdraft |
1,54,000 |
|
Interest paid on current accounts |
42,000 |
|
Interest on cash credit |
2,23,000 |
|
Rent and taxes |
18,000 |
|
Directors fees |
3,000 |
|
Audit fees |
1,200 |
|
Interest on savings bank |
68,000 |
|
Postage |
6,000 |
|
Bad debts |
40,000 |
|
Profit from previous year |
1,20,000 |
Provide for income tax at 55%
Directors have recommended a dividend of Rs. 20,000 for the shareholders.
9ffiT@UffiuuLL XYZ otot [Qot
31.3.2005 iLu nu {Ll awUroa
plot x 9upuuLL aiLi 2,59,000
}Sl p iuiot x 9\pzV Li 2,75,000
ll 9\u ppLiOT uui 49,000 (31.3.2005)
U0 9uppx 8,200
|imira 9\ 54,000
ppJLiOT x 9upuuLh ll 1,95,000
Gu upOT Li 1,54,000
9ijppp plot Li 2,23,000
{Lp anUQps 9\pzV Li 42,000
aiLp, aifl 18,000
CU@{ f<Vw 3,000
UOUfflP PLLn 1,200
Gpiui_| aiuiOT Li 68,000
<uu PLLiprn 6,000
WTfTaPLOT 40,000
aifl jxR CuzV 55% QffiLwuui_ Gais. C0{ CU Bs uisus
0. 20,000 uiffiu aUuQot i| QffiLux
5. From the following information, calculate Goodwill on the following basis of
(a) Super profit method
(b) Capitalisation method
(i) Capital employed Rs. 6,00,000
(ii) Net profit for the last three years were Rs. 1,07,600, Rs. 90,700, Rs. 1,12,500.
(iii) Expected rate of return 12%
(iv) Proprietors salary per year Rs. 12,000
(v) Assets Rs. 7,54,762 and current liabilities Rs. 31,329.
ot0 {OTVuu
(a) <s Cu 0p
(B) uOTu@ZV U AiUu_ <snUQ@<s.
(i) uOTu@ZuUum_ u 0. 6,00,000
(ii) <s_u u 0. 1,07,600. 0. 90,700 0p 0. 1,12,500.
(iii) OTVuUffiuu@ lSot Qu 12%.
(iv) Elflwnwir BS<50 0. 12,000.
(v) Q\zXOT 0. 7,54,762. {i_pu QupuqsOT 0. 31,329.
PART B (4 x 15 = 60 marks)
Answer any FOUR of the following.
6. Define Goodwill. What are the different methods of calculation of Goodwill?
{pQuwii OTapm OTaa? {pQuwii <snUQ@ ui<swa P<SOT iOT<S<S|.
7. Prepare Trading, Profit and loss account and Balance sheet of Mr. Srikanth who keeps his accounts under single entry system. The abstract of
(a) Balance sheet
(b) Cash transactions
(c) Other transactions of Mr. Srikanth are given as under.
(a) Balance sheet Liabilities Rs. Assets Rs.
Sundry creditors 10,00 Bank 5,350
0
Bills payable 3,000 Stock in hand 19,70
0
Capital (1.1.2003) 43,65 Sundry 13,00
0 debtors 0
Bills 5,000
receivable
Furnitures 600
Buildings 13,00
0
56,65 56,65
00
(b) Cash Transactions
Rs. Rs.
To balance b/d 5,350 By Drawings 8,520
To sundry debtors 40,400 By Trade creditors 28,100 To Bills receivable 14,000 By Bills payable 10,000 To commission received 2,500 By wages 13,000
To cash sales 9,600 By salary 7,500
To Balance c/d By rent and tax 5,400
(Bank overdraft) 2,350 By insurance 900
By direct expenses 350 By advertisement 430 74,200 74,200
(c) Other transactions :
Rs. Rs.
Credit sales 64,400 Bills receivable received 14,000 Purchases 38,100 Bills payable received 9,500
The closing stock on 31.12.2003 is Rs. 24,000. Provision for doubtful debts Rs. 1,500. Provide depreciation on Buildings, furnitures by 5%. Outstanding expenses : Wages Rs. 3,500, Salary
Rs. 1,500, Insurance Rs. 300 paid in advance. Outstanding legal expenses Rs. 1,000.
(a) Cu_ 0ui_|
(B) Qp-
(C) CU
|
(a) cu_|u su_ | ||||||||||||||||||||||||||||||||||||||||
|
L4Lim
56,6
50
56,6
50
.
.
8,520
28,100
Cwl| Q/Q<sn 5,350 ysnV Gui_|<sOT
u0u sLnffiOT 40,400 nO<s <sLEGuniT
.e. sn\nUQx 14,000 Q\.e. un QffzVX 10,000
13,000
7,500
5,400
900
350
430
74,200
(iiiQ Asuupp) 2,350 irLkpV
G{ir<s Q\sOT otu
74,200
<s<gw niQx QijnU<s 0uot CuM Q/C
2,500 tjI 9,600 <\uot
nL0a 0p
(C) Cu {LiUffiffiOT
sL Guto 0uot 64,400 <i.e. Quppx 14,000
38,100 Q\.e. Quppx 9,500
31.12.2003 A*p CpV \uU@ <fiui_| 0. 24,000. IUffiLpsffi 0. 1,500 jgiUigffi. ffiLi_iffiOT, fflwZXu QuLffiOT x 5% GuLzV0@ Q\ Ls.
Q<s@u_ Gi 0. 3,500, \uot
0. 1,500, DmkpV 0. 300 * TLi QffZuuuLkOTOTx. \L_ff Q\ffiOT 0. 1,000 Q<s@U<s GiqOTx-
iWn'un'IJ' ffiffi0, Cu {LL ffiwUg 0p CUM |
Suu u QffLwi.
8. X Ltd agreed to acquire the business of Y Ltd. as on
|
31.3.2005. On which Y Ltd. |
date the |
balance |
sheet of |
|
Liabilities |
Rs. |
Assets |
Rs. |
|
Capital (fully paid shares of |
Goodwill |
1,00,00 0 | |
|
Rs. 10 each) |
6,00,00 0 |
Land and buildin gs |
3,00,00 0 |
|
General reserve |
1,70,00 0 |
Plant |
3,40,00 0 |
|
P & L a/c |
1,10,00 0 |
Stock |
1,68,00 0 |
20,000 Cash
Creditors
36,000
10,00,0
00
10,00,0
00
The consideration payable at X Ltd.
(a) A cash payment of Rs. 2.50 for every share in Y
Ltd.
(b) Issue of 90,000 Rs. 10 shares at agreed value of Rs. 12.50 per share.
(c) Issue of 7%% debentures of Rs. 1,00,000 at a premium of 20%. The directors of X Ltd. valued land and building at Rs. 4,00,000 and created provision of 5% debtors against doubtful debts. The expenses of liquidation of Rs. 6,000 were paid by X Ltd. Give ledger a/c in the books of Y Ltd. and opening entries in the books of X Ltd.
Y |pZu X |p 31.3.2005 AOTp QsnwQpx. 31.3.2005 AOTp Y |pZ<VOT C0u_ | OTi0np
Qunpui_OT 0. 0.
1,00,00
0
|
Qux*uq |
1,70,00 0 |
L4_ |
3,00,00 0 |
|
Cu {L_U p/s |
1,10,00 0 |
Qurn$ |
3,40,00 0 |
|
6% _ot uzVisOT |
1,00,00 0 |
CPv | |
|
pi_ |
20,000 |
\ijUQ0u q OT QijUa |
1,68,00 0 56.000 36.000 |
|
10,00,0 00 |
10,00,0 00 |
Xm <s Qskuux i3ai0p :
(a) J0 uiQps 0. 2.50 u Ym uissUs un Q\Zuuum_x.
(b) 0. 10 VuL|OTm 0. 12.50 u Juuu 90000 uisarn |Gwra Q\uuuum_x.
(C) 0. 1,00,000 VUmOTot 712% <s_a uzViOT 20% azV0@ |GwnQU<suum_s.
XL Cs{pot |, pLiLzu . 4.00,000Us Vu 9pupot. anijnU plot pn-Li plotpw x 5% JgluQ EOTOTnpOT.
pffluqj 9ppot XL9pzVX . 6,000.
YL hp GuGijLkU pwagpffirnq XL hp SuGuLQu uVp up.
9. From the following particulars of XY Bank Ltd. having its own premises prepare of Balance sheet in the prescribed form as on 31.12.2007 :
|
Authorised capital |
Rs. 40,00,000 |
|
Issued and paid up capital (4,00,000 shares of Rs. 10 each Rs. 5 paid up) |
20,00,000 |
|
Investments |
70,00,000 |
|
Bills discounted |
1,50,00,000 |
|
Profit & loss a/c Cr. |
8,50,000 |
|
Endorsement on bills for collection |
1,00,000 |
|
Liability for customers acceptance |
50,00,000 |
|
Money at call and short notice |
90,00,000 |
|
Cash in hand |
20,00,000 |
|
Cash with RBI |
40,00,000 |
|
Reserve |
30,00,000 |
|
Telegraphic transfer payable |
8,00,000 |
|
Bank drafts payable |
12,00,000 |
|
Short loans |
40,000 |
|
Rebate on bills discounted |
10,000 |
|
Acceptance for customers |
50,00,000 |
|
Loans and advances |
1,00,00,000 |
|
Cash credit |
1,00,00,000 |
|
Overdraft |
10,00,000 |
|
Current deposit account |
5,60,00,000 |
|
Investment Fluctuation Fund |
1,00,000 |
|
Bills for collection |
1,00,000 |
|
Letters of credit |
5,00,000 |
|
Cash with SBI |
40,00,000 |
|
Building |
10,00,000 |
OTai0 uiji<s<rfli0x C0u_ Qffis_
XY iQOT 31.12.2007 C0ul| |U suu UflUs.
0.
AiRffiflUsuuLh u 40,00,000
QJ_uul_ Q\ZuUuL_ u
(4,00,000 uigsm 0. 10 u 0. 5 20,00,000 Q\ZuUuL_x)
uOT 70,00,000
|
uv npp |
8,00,000 |
|
Qffzu Gix |
1,20,000 |
|
SpQw <sn |
40,000 |
|
fflLLg Qffu QSV |
10,000 |
|
fflLLg Qffu |
1,50,00,000 |
|
Cu {LL (iIIJ|) |
8,50,000 |
|
'U@ l_pffi0UL| |
1,00,000 |
|
iUffiwnOT hPLUsot QunpuLaOT |
50,00,000 |
|
ApU_ spQw <sn un |
90,00,000 |
|
ffi0u_ QijnUa |
20,00,000 |
|
RBI- QijnUa |
40,00,000 |
|
<5nu_ |
30,00,000 |
|
niUffinOT H0L |
50,00,000 |
|
sl un |
1,00,00,000 |
|
QijnUa sl |
1,00,00,000 |
|
Giijuupp |
10,00,000 |
|
{lu_U anU@ |
5,60,00,000 |
|
UL npu |V |
1,00,000 |
|
1,00,000 | |
|
<SL aiu |
5,00,000 |
|
SBI- QnUa |
40,00,000 |
|
aLiL |
10,00,000 |
10. The following figures relate to Life Insurance Corporation for the year ended 31.3.2006. Prepare the Revenue A/c.
|
Rs. | |
|
Claims |
39,000 |
|
Management expenses |
14,000 |
|
Directors fees |
4,000 |
|
Audit fees |
3,000 |
|
Medical expenses |
500 |
|
Agent commission |
5,000 |
|
Depreciation |
4,000 |
|
Bonus in reduction of premium |
1,500 |
|
Consideration for annuities granted |
16,500 |
|
Surrenders |
9,000 |
|
Premia |
1,51,000 |
|
Life fund (1.4.2005) |
11,50,000 |
|
Interest received |
40,000 |
|
Rent received |
10,000 |
|
Claims cancelled |
500 |
|
Annuities |
1,500 |
Note :
(a) Premium outstanding Rs. 9,000
(b) Claims outstanding Rs. 3,000.
RsSl 31.3.2006 bOT snuk <sj<sZUa
G\uX. niL <snU<sZ UnflUs.
|
. | |
|
Eifl GffinflUffiffiOT |
39,000 |
|
Q\sOT |
14,000 |
|
CU0{ sLhn |
4,000 |
|
uOIU<s sLhn |
3,000 |
|
Zx Q\sOT |
500 |
|
<si(l |
5,000 |
|
Gun |
4,000 |
|
GV> \Un QunsUffinU <si| |
1,500 |
|
B0Z Q<sn<s AZU0n |
16,500 |
|
pUUffl | |
|
ffijs Vul |
9,000 |
|
Qun |
11,50,000 |
|
BOT |V (1.4.2005) |
1,51,000 |
|
Li Quppx |
40,000 |
|
anLffls Quppx |
10,000 |
|
Eifl G<snflU<s<sOT }UQx |
500 |
|
B0Z Quns |
1,500 |
@UL :
(a) Q |0s \un . 9,000
(B) eA G<snflU<s<sOT . 3,000.
11.T.V. Ltd. went into voluntary liquidation on 30th April 1998. The position on that data was as under :
|
Share capital (5000 shares of Rs. 80 paid up Loans (secured by mortgage of machinery) Unsecured loans and liabilities (including preferential dues Rs. 10,000) |
Rs. Rs. Machinery 80,000 Other fixed 4.00.000 assets 2,60,000 Stock 1,05,000 1.00.000 Debtors 1,00,000 Loans 40,000 Cash 5,000 Profit and loss a/c 1,10,000 2,00,000 7,00,000 7,00,000 |
Machinery was realised by the secured creditors for Rs.
1,20,000. Other fixed assets fetched Rs. 40,000. Debtors Rs. 20,000 and stock Rs. 10,000. Loans were wholly bad. The liquidator is entitled to a fixed remuneration of Rs.
1,000 plus 2% of the amount paid to unsecured creditors. The liquidators out of pocket expenses amounted to Rs. 1,000. Show the liquidators statement of account.
i.. Q_L 30 huj"* 1998 Awp u 0uua ffifflfflUffiuum_x. auGutu Cuq |0P 0uq UuumkOTOTx.
|
plot (CV n plot zx Quppx) 0. ui@ uOT C$! (5000 uigsm 0. 100 ip 0. 80 Q\pzuuuL_ uigaOT 4,00,000 QpZxpot inwpp plot pp QupuqaOT (OT"[fl0U pi_ Cu {L_ p/@ 1,10,000 0. 10,000 elu_) |
0. 80,000 2,60,000 1,05,000 1,00,000 40,000 5,000 PI_iOTPOT" QijPp 2,00,000 7,00,000 7,00,000 |
CV1! 0. 1,20,000Ps i3mw PLanPOTm ppuuL_x. ip QffzXPOT 0. 40,000p0
PLr 0. 20,000 pp \!ps 0. 10,000Ps
ppuuLLX- PLPOT x !p PLrP P0XP. puuOTir 0. 1,000 FVwpq,
i3mwpp Qffi@Uffiuu@ Qu
2% Qup Eflwn-Qpn-ir. <sui_| Q\ 0. 1,000. Pfflffluurmflro sotUQotot uAUs.
12. The following is the balance sheet of X,Y and Z as at 30.12.2004.
|
Y Z Ys loan Creditors |
75.000 22.500 67.500 13.000 62.000 2,40,000 |
Assets Plant and Machiner Liabilities Rs Capitals : X y Land and Building Stock Debtors |
Rs. 50,000 1,00,00 0 2.40.00 0 |
Firm dissolved on the above date and assets are realised as follows :
Rs.
I Realisation 45,000
II Realisation 1,09,500
III Realisation 70,500
Prepare a statement showing how the distribution should be made.
30.12.2004 AOTp X, Y 0p Z-ot Cuq suq
OTa0np.
|
9unpuqpW |
. |
9\nzxUpW |
. |
|
: |
glw{<gij 0p | ||
|
X |
75,000 |
UrnanL |
50,000 |
|
Y |
22,500 |
pLi_ 0p | |
|
Z |
67,500 |
| |
00 ,0 0, ,0 1, |
|
Y-ot plot |
13,000 |
pUQ0uq |
20,000 |
|
p i_{Gu n |
62,000 |
plotfJpot |
70,000 |
|
2,40,000 |
00 ,0 o~ 2, |
G0ssl |pCT sfflfflUffiuuL, Q\nzx
OTi0np unUffiuuLLx.
0.
U un 45,000
CWLnx un 1,09,500 un 70,500
Qupp QunffiffiOT OTnp uQx AUuullot
GOTuU STLL.
23 PG-229
|
Attachment: |
| Earning: Approval pending. |
