Alagappa University 2007 B.B.A ADVANCED ACCOUNTANCY - Question Paper

DISTANCE EDUCATION
B.B.A. (C.S.) DEGREE EXAMINATION, DECEMBER 2007.


ADVANCED ACCOUNTANCY


(2005 onwards)
Time : 3 hours Maximum : 100 marks

PART A — (5 ? eight = 40 marks)
ans any 5 ques..
(Out of 8 questions, 5 to be answered)


1. What is goodwill? How is it treated on the admission of a partner?
2. Write notes on revolution of assets and liabilities in case of retirement.
3. What is a share? elaborate the conditions which should be fulfilled for problems of shares at a discount?
4. What do you understand by a debenture? define briefly the various kinds of debentures.
5. XY & Co. Pvt. Ltd. was incorporated on first July 2005 to take over the business carried on by XY & Bros as a going concern with effect from first April., 2005. The subsequent is the profit and loss account for the year ended 31st March, 2006 of XY & Co. Pvt. Ltd.
Liabilities Rs. Assets Rs.
To Opening stock 1,20,000 By Sales (upto 30th
To Purchases 1,75,000 June 2005 Rs. 1,00,00 0) 3,00,000
To Gross profit c/d 75,000 By Closing stock 70,000
3,70,000 3,70,000
To Administration expenses 18,000 By Gross profit b/d 75,000
To Director's fees 3,000
To Selling expense 36,000
Audit fees 1,000
Preliminary expenses 3,000
Net profit 14,000
75,000 75,000
You are needed to prepare a statement showing the profit earned, profit prior to and after incorporation and state how the profit earned during the respective periods may be dealt with in accounts.
6. From the subsequent particulars relating to Delhi Branch for the year ending 31st March 2003, prepare Branch account in the head office books :
Rs.
Balances as on 1.4.2002
Stock at the branch 15,000
Debtors at the branch 30,000
Petty cash at the branch 300
Goods sent to the branch during the year 2,52,000
Remittance from the Branch
For cash sales 60,000
Received from debtors 2,10,000 2,70,000
Goods returned by the branch 2,000
Credit sales during 2002–03 2,28,000
Cheques sent to branch during the year
For salaries 9,000
For rent and taxes 1,500
For petty cash 1,100 11,600
Balances as on 31.3.03 :
Stock at the branch 25,000
Petty cash 200
Debtors 48,000
7. On 25th April 2003, a fire occurred in the premises of a company from the different books saved from fire, the subsequent were ascertained :
Rs.
Stock on 1.1.2003 93,750
Purchases from 1.1.2003 to the date of fire 3,75,000
Wages 75,000
Manufacturing expenses 37,500
Sales from 1.1.2003 to be date of fire 5,62,500
The gross profit ratio for the past 5 years had avg. at 15% on sales. The stock salvaged was estimated at Rs, 28,125. Ascertain the amount of claim to be lodged in case of the loss of stock insured.
8. Calcutta Coal Ltd. leased a colliery on first January, 2000 at a minimum rent of Rs. 16,000 merging into a royalty of Re. one per ton with a stipulation to recoup short workings over the 1st 3 years of the lease. The output for the 1st 4 years of the lease was 9,000; 14,000; 22,000 and 19,000 tonnes respectively. Draft the necessary journal entries in the books of the company.

Earning:   Approval pending.