Acharya Nagarjuna University (ANU) 2006 M.Com Commerce III - ADVANCED FINANCIAL ACCOUNTING - Question Paper

M.Com. (Final) DEGREE EXAMINATION, DECEMBER 2006.
(A - ACCOUNTING)
Paper III - ADVANCED FINANCIAL ACCOUNTING

Time : 3 hours Maximum : 100 marks

part A - (5 X four = 20 marks)
ans any 5 of the subsequent.

1. (a) Objectives of Financial Accounting.

(b) Limitations of Funds Flow Statement.

(c) discuss the need for evaluation of shares.

(d) discuss different methods of valuing goodwill.

(e) Briefly discuss various kinds of reconstruction.

(f) elaborate the advantages of Current Cost Accounting?

(g) elaborate the different methods available for evaluation of Human Resource Accounting?

(h) discuss in brief Reporting System of a company.

(i) explain the latest patterns in published accounts.

(j) What is minority interest?

part B - (4 X 10 = 40 marks)
ans any 4 of the subsequent.

2. discuss the managerial uses of Funds Flow Statement.

3. elaborate the factors that influence the evaluation of shares for the purpose of amalgamation of
companies?

4. discuss the general principles of good reporting system.

5. From the subsequent info compute value of goodwill on the basis of 3 year’s purchase of super profits of the business.

(a) Sundry assets of the firm are Rs.22,50,800 and current liabilities are Rs.93,625.
(b) avg. capital employed in the business is Rs.18,00,000.
(c) Rate of interest expected from capital having regard to the risk involved is 10%.
(d) Net trading profits of the firm of the past 3 years were Rs.3,22,800, Rs.2,72,100 and Rs.3,37,500.
(e) Fair remuneration to the partners for their services is Rs.36,000 per annum.

6. The Balance Sheet of the Gayatri Ltd. as on 31.3.2005 is as follows:
Liabilities Rs. Assets Rs.
Share capital: 7,500 6% preference shares Patents 8,50,000
of Rs.100 every fully paid up 7,50,000 Leasehold premises 1,30,800
5,000 Equity shares of Rs.100 every fully Plant and Machinery 42,200
paid up 5,00,000
Sundry Creditors 30,000 Sundry debtors 76,500
Bank overdraft 20,000 Stock in trade 55,000
Share discount account 18,000
Preliminary Expenses 12,000
Profit and Loss A/c. 1,15,000
Cash balance 500

13,00,000 13,00,000

The company adopted a scheme of reconstruction because of heavy losses. The subsequent was capital reduction fund account created by reconstruction scheme:

Capital Reduction Fund Account
Rs. Rs.
To Profit and Loss a/c 1,15,000 By 6% preference share capital a/c 3,75,000
To Preliminary expenses a/c 12,000 By Equity share capital a/c 3,75,000

Earning:   Approval pending.