Tamil Nadu Open University (TNOU) 2009-1st Year M.Com Commerce Tamilnadu open university Advanced financial accounting and accounting standards - Question Paper

M.Com. DEGREE exam –
JUNE 2009.
(AY 2004–05 batch onwards)
First Year
ADVANCED FINANCIAL ACCOUNTING AND
ACCOUNTING STANDARDS
Time : three hours Maximum marks : 75
PART A — (3 ´ five = 15 marks)
ans any 3 ques..
All ques. carry equal marks.
1. discuss Rebate on Bills Discounted and how is it
treated in Banking Company accounts.

2. How will you value the shares of a company?

3. The avg. capital employed by X Ltd. is
Rs. 30,00,000 whereas net trading profits before tax for
the last 3 years have been Rs. 14,60,000,
Rs. 14,45,000 and Rs. 15,20,000. In these 3 years
Managing Director was paid a salary of Rs. 5,000 p.m.
but now he would be paid a salary of Rs. 7,500 pm.
Nominal rate of return expected in the industry in
which X Ltd. engaged is 20%. Rate of tax is 50%.
compute the goodwill on the basis of 2 years
purchase of super profits.

4. The subsequent is the balance sheet of Weak Ltd. on
31.3.2007.
Liabilities Amount Assets Amount
1,00,000 Eq. shares of
Rs. 10 every fully paid 10,00,000
Land
Plant & Machinery
1,00,000
2,30,000
Sundry creditors 1,73,000 Furniture & Fittings 68,000
Stock 1,50,000
Liabilities Amount Assets Amount
Debtors 70,000
Cash at bank 5,000
Profit and Loss a/c 5,50,000
11,73,000 11,73,000
The approval of the court was found for the subsequent
scheme of reconstruction :
(a) The equity shares to be decreased to Rs. four per share.
(b) Plant and Machinery to be written down to Rs.
1,50,000.
(c) Stock to be revalued at Rs. 1,40,000.
(d) The provision for bad and doubtful debts to be
created Rs. 2,000.
(e) Land to be revalued at Rs. 1,42,000.
Pass the necessary journal entries to provide effect to
the above and prepare revised balance sheet after
reconstruction.

5. In a company, A hold 100 shares of Rs. 10 every on
which he has paid Re. one pre share as application money.
B hold 200 shares of Rs. 10 every on which he has paid
Re. one on application and Rs. two on allotment money.
C hold 300 shares of Rs. 10 every on he has paid Re. one on
application, Rs. two on allotment and Rs. two on 1st call.
They all failed to pay 2nd call money of Rs. two and
directors forefeit their shares. These shares of
Rs. 10 were reissued subsequently for Rs. 11 per share
as fully paid. Journalize the forfeiture and reissue
transactions.

PART B — (4 ´ 15 = 60 marks)
ans any 4 ques..
All ques. carry equal marks.

6. The subsequent is the balance sheet of D, E and F who
were equal partners as on 1.6.2006.
Liabilities Amount Assets Amount
Bills payable 5,000 Cash 600
Creditors 6,000 Debtors 12,500
Capital accounts : Stock 11,400

Earning:   Approval pending.