Acharya Nagarjuna University (ANU) 2005 B.Com II - FINANCIAL ACCOUNTING - II - Question Paper

B.Com. DEGREE EXAMINATION, DECEMBER 2005.
(Examination at the end of 2nd Year)
Part II - Commerce
Paper II - FINANCIAL ACCOUNTING - II

Time : 3 hours Maximum : 100 marks

part - A Answer any 4 ques.. (4 x five = 20 marks)

1. Distinguish ranging from Hire Purchase System and Installment Purchase System.

2. Bring out the importance of Minimum Rent in Royalty accounts.

3. elaborate the features of Single Entry System?

4. Distinguish ranging from non-profit concern and non-trading concern.

5. discuss the methods of calculating goodwill.

6. discuss direct and indirect charges in departmental accounts.

7. State the legal regulations relating to problem of debentures.

8. Distinguish ranging from revaluation account and realisation account.


part - B Answer any 2 ques.. (2 x 10 = 20 Marks)

9. Venkat keeps his books in single entry system. From the subsequent info prepare statement of profit for the year ending 31st December 2004:

1st January 2004 31st December 2004
Rs. Rs.
Furniture 4,000 4,000
Sundry Debtors 42,000 68,000
Stock 56,000 61,000
Cash 3,000 4,000
Sundry Creditors 35,000 38,000
Bills payable - 600
Investments - 2,000

During the year Rs. 5,000 Depreciation on furniture @ 10%


10. From the subsequent Receipts and Payments account prepare Income and Expenditure account of a Sports Club :

Receipts Rs. Payments Rs.
To Subscriptions 15,000 By Land and Building 50,000
To Donations 50,000 By Furniture 10,000
To Legacies 10,000 By Sports materials 5, 000
To Entrance Fee 5,000 By Sports Expenditure 6,000
To Life membership fee 3,000 By General expenses 1,000
To Sports Income 17,000 By Magazines 1,500
To Sundries 5,000 By Ground expenses 4,000
To Sale of Old papers 500 By Closing balance 28,000

1,05,500 1,05,500

11. An Asset is purchased on hire purchase system. The terms of payment are as follows :

Rs. 5,000 be paid on signing the agreement ; Rs. 6,000 at the end of 1st year
Rs. 5,000 at the end of 2nd year Rs. 5,000 at the end of 4th year
Rs. 4,000 at the end of 4th year.

Interest is charged at the rate of 10% p.a. compute the cash price of asset.

12. Murali and Bose are partners sharing profits in three : two ratio. They admitted Kumar into partnership for a share of 1/5. compute the new profit sharing ratio and the sacrificing ratio of the old partners.

part - C Answer any 3 ques.. (3 x 20 = 60 marks)

13. Kalyan Mining Company Ltd. takes a lease of coal mine for eight years from 1.1.2000 on a minimum rent of Rs. 12,000 p.a. The royalty is Rs. 0.75 per ton of coal raised and it is payable half yearly on 30th June and 31st December of every year. Short workings can be recovered during 1st 3 years of lease only. The company closes books on 31st December every year. Coal raised in as follows.

Earning:   Approval pending.