M.Com. (Semester (CBCS) Examination Nov/Dec-2018
ADVANCED ACCOUNTANCY I
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the correct alternatives: 14
Premium is paid by the policyholder in the first year of the Life
policy.
Renewal Premium First year premium
Annual premium All the above
General insurance act was passed in
1972 1949
1956 1936
According to fire insurance business provision unexpired risk
100% 75%
50% 25%
Every year the accounting year of insurance company is end on
31st December 31st March
30th July 30th August
In contract some portion of the contract may be gives to another contractor
such contract called as
Mini Contract Two contract
Small contact Sub-Contract
If the progress of work is unsatisfactory or the work has not reached the
stipulated stages such work does not qualify for certificate by the
contractee architect is termed as
Work uncertified Work certified
Work in progress None of these
is often provided in contract as safeguard against any likely
changes in price or utilization of material and labour.
Sub clause Main clause
Increase clause Escalation clause
Contract costing is also termed as
Big Costing Terminal Costing
Standard Costing Small Costing
When royalty is less than minimum rent then short-workings account
should be on royalty account.
Credited Two side
Debited None of the above
10) Minimum rent also called as
Dead rent Fixed Rent
Flat Rent All of the above
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11) is the amount which a policyholder can get immediately in cash
from the life insurance company, if he stops paying premium.
Bonus Premium
Bonus in reduction of premium Surrender Value
12) is the difference between value of work certified and cost of work
certified.
Net profit National profit
Trading profit Surplus
13) For valuation of human resources the approach follows the
traditional accounting concept of matching cost with revenue.

Replacement cost Opportunity cost
Standard cost Historical cost
14) In the department accounting discount received should be allocated on the
basis of
Asset Value Purchases
Turnover Area occupied
Q.2 Answer the following. 14
Write a note Advantages of HRA
Human resource accounting
Q.3 Answer the following. (Any one) 14
From the following particulars, Prepare the Fire Revenue Account 2011-12
Particulars
Rs. in
(lakhs)
Claims 235
Legal expense regarding claims 5
Premium received 600
Reinsurance premiums 60
Commission 100
Expenses of management 150
Provision for unexpired risk on April 2011 260
Claims unpaid on April 2011 20
Claims unpaid on March 31, 2012 35
Mining Corporation obtained a lease of coalfield for 99 years from Mr.
Landlord on following terms from 1st January 1981.
Mining corporation will develop the land will bear the cost of
development.
ii) Royalties will be 2 per tonne of coal raised during the period.
iii) Minimum Rent will be Rs. 10000 for the first year with an annual
income increase of Rs. 1000 till reaches Rs. 15000.
iv) Short-working, if any are recoverable within first three years only.
The coal raised by Mining Corporation is as under:
Year Production in tones
1981 1,000
1982 2,000
1983 10,000
1984 15,000
You are required to show:
Statement of Workings
ii) Royalty A/C
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Q.4 Answer any one of the following questions: 14
The following information relates, to a building contract for Rs. 1,00,00,000.
Prepare contract account and contractee's account
Particulars
2002
Rs.
2003
Rs.
Materials Issued 30,00,000 8,40,000
Direct Wages 23,00,000 10,50,000
Direct Expenses 2,20,000 1,00,000
Indirect Expenses 60,000 14,000
Work Certified 75,00,000 1,00,00,000
Work uncertified 80,000
Materials at Site 50,000 70,000
Plant Issued 1,40,000 20,000
Cash Received from contractee 60,00,000 10,00,0000
The value of plant at the end of 2002 and 2003 was Rs. 70,000 and Rs.
50,000 respectively.
The under mentioned balances form part of trial balance of the All People's
Assurance Co. Ltd as on 31st March 2009.
Particulars Rs.
Life Assurance Fund 14,70,562
Claims by death 76,980
Claims by maturity 56,420
Premiums 2,10,572
Exp. of management 19,890
Commission 26,541
Consideration for annuities granted 10,712
Interest, dividends, rents 52,461
Income tax paid on profit 3,060
Surrenders 21,860
Annuities 29,420
Bonus paid in cash 9,450
Bonus paid reduction of premiums 2,500
Preliminary Exp. 600
Claims admitted but not paid at the end of year 10,034
Annuities due but not paid 2,380
Capital 14,00,000
Government securities 24,90,890
Fixed assets 4,19,110
Prepare revenue account and the balance sheet after taking into account
the following:
Claims covered under reinsurance Rs. 10,000 by death
ii) Further claims intimated Rs. 8,000 by death.
iii) Further bonus utilized in reduction of premium Rs. 1,500
iv) Interest Accrued Rs. 15,400
Premiums Outstanding Rs. 7,400
Q.5 Answer any one of the following questions: 14
Magicky Ltd took certain land on lease from Manganese Ltd. for a period of
15 years for mining of manganese are with stipulated royalty of Rs. 1.50
per ton and a minimum rent of Rs. 21,000 with a clause to recoup
shortworking over three subsequent years.
The actual workings were: