Babasaheb Bhimrao Ambedkar University 2007 M.Com Insurance Management Cost Accounting MC- 304 - Question Paper

M.Com. Cost Accounting MC- 304 May 2007

Time : 3 hours Maximum : 100 marks
PART A — (5 × eight = 40 marks)
ans any 5 ques..
1. Explain the merits and demerits of single entry system.
2. What is the purpose of Amalgamation of firms?
3. What is fixed capital? How does it differ from fluctuating capital?
4. Write down the salient features of single entry.
5. What are the various ways in which purchase consideration may have to be computed for Amalgamation?
6. Define ‘‘Goodwill’’. discuss various methods of evaluation of goodwill.
7. What do you mean by Reduction of capital?
8. Explain the treatment of joint life policy in partnership accounts.
PART B — (4 × 15 = 60 marks)
ans any 4 ques..
9. Give the proforma of Balance Sheet in companies final account.
10. What are the difference ranging from Internal reconstruction and external reconstruction?
11. What is holding company? discuss advantages and disadvantages.
12. Draft all the entries for the dissolution of partnership firm and death of partner in partnership accounts.
13. The subsequent was the Balance Sheet of A and B who were sharing profits 2/3 and 1/3 on 31.12.96.
Rs. Rs.
Creditors 65,900 Cash at bank 1,200
Capital : Debtors 9,700
A 30,000 Stock 20,000
B 20,000 Plant 35,000
Building 50,000
1,15,900 1,15,900
They agreed to admit C into partnership on the subsequent terms :
(a) C was to be provided 1/3 share in profits, and was to bring Rs. 15,000 as capital.
(b) That the value of stock and plant were decreased by 10%.
(c) That a provision of 5% was to be created for Doubtful debts;
(d) That the value of building was to be appreciated by Rs. 9,500;
(e) Investment worth Rs. 400 (not mentioned in the Balance Sheet) were taken into a/c.
(f) That the value of liabilities and assets other than cash are not to be altered.
Prepare Memorandum Revaluation a/c, opening account and B/S of the newly constituted firm.
14. From the Balance Sheet and info provided below, prepare consolidated Balance Sheet :
Balance Sheet as at December 31st 1984
H Ltd. S Ltd. H Ltd. S Ltd.
Rs. Rs. Rs. Rs.
Share capital : Sundry Assets 8,00,000 1,20,000
Rs. 10 fully paid 10,00,000 2,00,000 Stock 6,10,000 2,40,000
Profit & Loss a/c 4,00,000 1,20,000 Debtors 1,30,000 1,70,000
Reserve 1,00,000 60,000 Bills receivable 10,000 –
Creditors 2,00,000 1,20,000 Shares in S, 15,000
Bills payable – 30,000 at cost 1,50,000 –
17,00,000 5,30,000 17,00,000 5,30,000
(a) All the profit of S has been earned since shares were acquired by H, but there was already reserve of Rs. 60,000 at the date.
(b) The bills accepted by S, Rs. 10,000 are favour of H.
(c) Sundry assets of S are undervalued by Rs. 20,000
(d) The stock of H includes Rs. 50,000 bought from S at a profit to the latter of 25 percent on cost.
15. Prepare Final accounts (Trading and P & L account), and Balance Sheet for the year ending 31.3.95.
Rs.
Capital 1,24,000
Machinery 40,000
Land and Buildings 84,000
Furniture 15,000
Purchases 81,350
Sales 1,97,500
Stock on 1.4.94 11,520
Sales returns 1,360
Purchase returns 1,000
Debtors 29,000
Creditors 30,600
Cash on hand 1,080
Bank Balance 5,260
Wages 16,960
Fuel 9,460
Carriage inwards 10,480
Salaries 30,000
General expenses 6,000
Insurance 1,200
Drawings 10,490
Adjustment :
(a) Outstanding salary Rs. 3,000
(b) Insurance prepaid Rs. 300
(c) Depreciate : Machinery 10%; Furniture at 20%
(d) Create 2% reserve for doubtful debts on Sundry debtors
(e) Stock on 31.3.95 was Rs. 13,600.

Earning:   Approval pending.