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

PART B — (4 ? 15 = 60 marks)
ans any 4 from the subsequent.
(Out of 7 ques. 4 to be answered)


9. What are departmental accounts? elaborate the objects and advantages of preparing these accounts? discuss the basis of allocation of expenses over different departments.
10. Distinguish ranging from Hire Purchase system and Instalment Purchase system. explain briefly the accounting aspects of them.
11. What is admission of a partner? elaborate the adjustments to be made while admitting a new partner?
12. A and B every carrying on business as a sole trader decided to combine as on January 1, 2002 when their individual Balance Sheets were as follows :
Liabilities A B Assets A B
Rs. Rs. Rs. Rs.
Creditors 30,000 25,000 Cash 14,000 8,000
Bank overdraft 20,000 15,000 Debtors 50,000 40,000
Capital 62,000 31,000 Stock 18,000 11,000
Machinery 20,000 12,000
National war bonds 10,000 -
1,12,000 71,000 1,12,000 71,000
The subsequent revaluations were to be made before the firms were amalgamated :
(a) Stock was to be decreased by 10%
(b) Machinery was to be decreased by 20%
(c) Each partner is to be credited with goodwill of Rs. 20,000
(d) National war bonds of A were not taken over B should introduce cash to make his capital equal to that of A. Goodwill is not to be shown in the books of the new firm.
You are needed to pass the necessary journal entries to close the Books of A and B and the opeing entries in the books of the new firm.
13. X Ltd. invited applications for 1,00,000 shares of Rs. 10 every at a discount of 6% payable as follows :
On application Rs. 2.50; On allotment Rs. 3.40 and on 1st and final call Rs. 3.50.
The applications received were for 90,000 shares and all of these were accepted. All money due was received other than the 1st and final call on 1,000 shares.
Pass necessary entries in the Journal of company. Also show how these transactions would appear in Balance Sheet of the company.

14. The subsequent is the trail balance of X Co. Ltd. as at 30th June, 2002 :
Rs. Rs.
Stock, 30th June, 2001 75,000
Sales 3,50,000
Purchases 2,45,000
Wages 50,000
Discount 5,000
Furniture and fittings 17,000
Salaries 7,500
Rent 4,950
Sundry expenses 7,050
Profit and loss improper account 30th June, 2001
15,030
Dividends paid 9,000
Share capital 1,00,000
Debtors and creditors 37,500 17,500
Plant and machinery 29,000
Cash and bank 16,200
Reserve 15,500
Patents and Trade mark 4,830
5,03,030 5,03,030
Prepare Trading Account, Profit and Loss Account, Profit and Loss Appropriation account for the year ended 30th June, 2002 and Balance sheets at that date. Take into consideration the subsequent adjustments :
(a) Stock on 30th June, 2002 was valued at Rs. 82,000
(b) Depreciation on fixed assets @ 10%
(c) Make a provision for income-tax @ 50%.
15. The subsequent is the Balance Sheet of X Co. Ltd. as on 31st March 2003 :
Liabilities Rs. Assets Rs.
12,000 shares of Rs. 10 each Land and buildings 90,000
fully paid up 1,20,000 Machinery 50,000
Sundry creditors 30,000 Stock 17,000
Bank overdraft 28,000 Sundry debtors 20,000
Profit and loss account 1,000
1,78,000 1,78,000
The company went into voluntary liquidation and the assets were sold to Y Co. Ltd. for Rs. 1,50,000 payable as to Rs. 60,000 in cash (which sufficed to discharge creditors and Bank overdraft and pay the winding expenses of Rs. 2,000) and as to Rs. 90,000 by the allotment of Rs. 12,000 shares of Rs. 10 every of Y Co. Ltd., Rs. 7.50 per share paid up, so the share holders of X Co. Ltd.
Draw up the necessary ledger accounts to close the books of X Co. Ltd. and the journal entries for recording these transactions in the books of Y Co.

Earning:   Approval pending.