Babasaheb Bhimrao Ambedkar University 2007 M.Com Insurance Management .Advance Accounting M305 - Question Paper

M.Com.Advance Accounting M305 May 2007

Time : 3 hours Maximum : 100 marks
PART A — (5 ? eight = 40 marks)
ans any 5 ques..
1. Discuss the methods of evaluation of goodwill in partnership.
2. Define accounting. State the limitations of accounting.
3. Explain the different methods of calculating purchase consideration.
4. What are the journal entries in the books of new company in case of Amalgamation?
5. What is Memorandum Revaluation Account? Mention the purposes.
6. List out the various methods of valuating equity shares.
7. State the differences ranging from fixed capital and fluctuating capital.
8. What are the differences ranging from capital profit and revenue profit?
PART B — (4 ? 15 = 60 marks)
ans any 4 ques..
9. Gupta keeps his books under single entry system.
On 1.1.2005 his position was as follows :
Sundry creditors Rs. 20,000 ; Cash in hand Rs. 300 ; Cash at Bank Rs. 10,500 ; Sundry debtors Rs. 40,000 ; Stock
Rs. 10,000 ; Machinery Rs. 20,000.
On 31.12.2005 his position was as follows :
Sundry Creditors Rs. 35,000 ; Cash in hand Rs. 500 ; Cash at bank Rs. 22,000 ; Sundry debtors Rs. 49,000 ; Stock
Rs. 12,000 ; Machinery Rs. 45,000.
Gupta drew Rs. 500 at the end of every month. He introduced Rs. 25,000 by way of additional capital. Depreciate machinery at 10% and raise a reserve of two % against sundry debtors.
Prepare Annual Profit and Loss account.
10. Following is the Balance Sheet of X, Y and Z who share profits and losses in the ratio of two : two : 1.
Liabilities Rs. Assets Rs.
Sundry creditors 15,000 Cash in hand 2,000
X’s capital 15,000 Sundry debtors 22,000
Y’s capital 12,000 Stock 22,000
Z’s capital 4,000
46,000 46,000
The firm was dissolved and the assets were realised gradually ; Rs. 10,000 were received once ; Rs. 15,000 a different time and Rs. 9,000 finally. Show how every instalment is to be distributed under surplus capital method.
11. From the subsequent Balance Sheets of H Limited and
S Limited. Prepare a consolidated Balance Sheet of H Ltd and S Ltd.
Balance Sheets as on 31.12.2005
Liabilities H S Assets H S
Rs. Rs. Rs. Rs.
Share capital (Share Sundry assets 20,000 8,000
of Re. one each) 12,000 5,000 Investment in 5,000
Reserve 5,000 1,000 shares in S Ltd. 6,500 –
Profit and Loss a/c 2,000 1,000
Sundry creditors 7,500 1,000
Shares were acquired by H Ltd. in S Ltd. on 30.06.2005.
S Ltd. transferred Rs. 500 from profits to Reserve on 31.12.2005.
12. What do you mean by cost of control or goodwill? elaborate the items constitute while calculating cost of control or goodwill?
13. What are the differences ranging from capital reserve and revenue reserve?
14. Explain the various methods of calculating the goodwill in firm’s accounts.
15. Draft a format of the structure of Balance Sheet of a Joint Stock Company

Earning:   Approval pending.