Acharya Nagarjuna University (ANU) 2006 B.Com II - FINANCIAL ACCOUNTING - II - Question Paper

Tonnes
1st year 8,000
2nd year 10,000
3rd year 18,000
4th year 28,000
5th year 14,000

Prepare Royalty Account, Land Lord’s Account, Short Workings Account and Minimum Rent Account in the books of Coal Co.

14. Mr. Mukund keeps his books on single entry. From the subsequent prepare trading and profit and loss account for the year ended 31-3-05, together Balance Sheet as on that date:

Cash book analysis indicates the following:
Interest charges Rs.100
Personal withdrawals Rs.2,000
Staff salaries Rs.8,500
Other business expenses Rs.7,900
Payment to creditors Rs.15,000
Balance at bank on 31.3.05 Rs.2,425
Cash in hand on 31.3.05 Rs.75
Received from debtors Rs.25,000
Cash sales Rs.15,000

Further details available are:
As on 1.4.04 As on 31.3.05
Rs. Rs.
Stock on hand 9,000 10,220
Creditors 8,000 5,500
Debtors 22,000 30,000
Furniture 1,000 1,000
Office premises 15,000 15,000
give 5% interest on Mukund.s capital balance as on 1.4.04. give Rs.1,500 for doubtful debts, 5% depreciation on all fixed assets. 5% group incentive commission to staff has to be given for on net profit after meeting all expenses and the commission.


15. The subsequent particulars relate to Kakinada Club:
Income and Expenditure Account for the year ended 31.12.05.

Expenditure Rs. Income Rs.
To Salaries 1,500 By Entrance Fees 10,500
To Printing and Stationery 2,200 By Subscriptions 15,600
To Advertising 1,600 By Rent 4,000
To Audit fees 500
To Fire Insurance 1,000
To Depreciation on Sports Equipment 9,000
To Excess of Income over Expenditure 14,300

30,100 30,100

Receipts and Payments Account for the year ended 31.12.05.

Receipts Rs. Payments Rs.
To Balance b/d 4,200 By Salaries 1,000
To Entrance Fees 10,500 By Printing and Stationery 2,600
To Subscriptions: By Advertising 1,600
2004 600 By Fire Insurance 1,200
2005 15,000 By Investments 20,000
2006 400 By Balance c/d 7,800
To Rent Received 3,500

34,200 34,200

The assets on 1.1.05 included Club Grounds and Pavilion Rs.44,000; Sports Equipments Rs.25,000 and Furniture and Fixtures Rs.4,000. Subscriptions in arrears on that date were Rs.800.

Prepare Balance Sheet as at 31.12.05.

16. Kiran, Kishore, Kittu were partners sharing profits and losses in three : two : 1. On 1.1.05 Kishore retired. On that date, their Balance Sheet was as follows:

Liabilities Rs. Assets Rs.
General Reserve 6,000 Plant 30,000
Expenses owing 2,000 Patents 3,000
Bills payable 5,000 Debtors 9,500
Trade creditors 10,000 Stock 11,000
Kiran capital 12,000 Cash 500
Kishore capital 10,000
Kittu capital 9,000

54,000 54,000

The terms were:
(a) Goodwill was to be valued at Rs.12,000 but no goodwill account was to be raised.
(b) New ratio ranging from Kiran and Kittu will be three : 2.
(c) Expenses owing are to be brought down to Rs.1,500; Plant is to be valued at 10% less and patents at Rs.4,000.
(d) The total capital of new firm will be fixed at Rs.25,000 to be contributed by partners in profit-sharing ratio.

Prepare ledger accounts to record the above and show Balance Sheet after Kishore’s retirement.

17. Balu Brothers of Vizag has a branch at Hyderabad and in order to maintain strict control on stock, invoice goods to the branch at selling price which is cost plus 33 1/3%. From the subsequent particulars, prepare Branch Stock Account, Branch Debtors Account, Goods sent to Branch Account, Branch Adjustment Account to show gross profit and net profit or loss made there:

Rs.
Stock on 1.1.05 (Invoice Price) 30,000
Debtors on 1.1.05 22,800
Goods invoiced to Branch during
year (Invoice Price) 1,34,000
Sales at Branch : Cash 62,000
Credit 74,800
Cash received from debtors 80,000
Bad debts written off 500
Discount allowed to customers 600
Expenses at the branch 13,400
Stock on 31-12-05 (Invoice Price) 26,800


18. subsequent balances were extracted from books of Sravya Ltd. for year ended 31.3.05 :
Rs. Rs.
Buildings 3,00,000 Share Capital:
Furniture 30,000 5,000 Equity shares of Rs.100 every 5,00,000
Motor vehicles 30,000 Sundry creditors 1,75,000
Equity shares of company 2,00,000 Profit and Loss a/c (Credit) 10,000
Stock in trade at cost 2,00,000 Gross profit 5,00,000
Sundry debtors, unsecured
considered good 1,40,000 Dividend received on investments 5,000
Cash at bank 86,000 Salaries and wages 1,10,000
Advance against construction of
building 65,000 Director’s fee 4,000
Rates, taxes, insurance 5,000 Electricity charges 12,500
Auditors fee 7,500

Prepare Profit and Loss account of Company for year ended 31.12.05 and Balance Sheet as on that date after subsequent adjustments:
(a) give 10% depreciation per annum.
(b) Stock has been revalued as Rs.1,80,000. This has not yet been considered.
(c) Debts more than six months are Rs.40,000
(d) Ignore taxation.

Earning:   Approval pending.