M.Com. (Semester II) (CBCS) Examination Nov/Dec-2018
ADVANCED ACCOUNTANCY (Paper
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives from the alternatives given below. 14
Short term investments are carried at
Fair value
Cost price
Market value
Cost or market price whichever is less
Disclosure of the value of human resources in the financial statements is made as

Part of financial statements Supplementary information
Statutory obligation None of these
In Inflation Accounting methods are accepted for accounting of changing
prices.
2 3
4 5
The expenses incurred on purchase of investments are to be to the
cost price of investments.
Deducted Added
Ignored None of the above
If the rate of gross profit for department X is 25% on sales and its cost amount to
Rs. 75000, then the amount of gross profit will be equal to
Rs 25,000 Rs 20,000
Rs 40,000 Rs 33,333
When a contract is not completed at the end of the accounting year, profit on
incomplete contract is
transferred to Profit and Loss Account
transferred to reserve
transferred to partly to Profit and Loss Account and partly to reserve
transferred to Profit and Loss Appropriation Account
The replacement cost approach for valuing the human resources was developed
by
Pyle Rensis Linkert
David Watson Shultz
A typical Balance-sheet does not disclose assets.
Current Liquid
Fixed Human
Commission given to brokers for securing freight is termed as
Voyage Commission Special Commission
Address Commission Del Credere Commission
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10) costs are incurred to identify the possible sources of employees.
Selection Recruitment
Orientation Hiring and placement
11) The final accounts of a departmental store consists of the following
Departmental Trading Account
Departmental Profit and Loss Account
Balance Sheet
Departmental Trading Account, Profit and Loss Account, General Profit and
Loss Account and Balance Sheet.
12) On a contract, Rs. 50,000 was received as cash, which was 80% of the work
certified. Hence, the amount of work certified equals
Rs 40,000 Rs 50,000
Rs 62,500 Rs 1,00,000
13) A Guidance note on accounting for changing prices is issued by The Institute of
Chartered Accountants of India in
1862 1982
1947 2015
14) Depreciation on ship should be calculated for the period of the
Voyage Days
Month wise Financial year
Q.2 Answer the following. 14
Write short note on "Departmental Accounts".
The Bombay stores have two departments, Stationery and Hosiery. The balances
on 31st March 2016 were as follows:
Stationery Hosiery
Rs Rs
Opening Stock 5,000 3,000
Purchases 50,000 30,000
Sales 60,000 40,000
Closing Stock 7,000 1,000
The expenses which are to be charged to each department in proportion to the
cost of goods sold in the respective departments are as follows:-
Rs.
Salaries 4,000
Rent 2,500
Rates and Taxes 800
Sundry expenses 1,000
Prepare Departmental Trading and Profit and Loss Account for the year ended 31st
March, 2016.
Q.3 Write short note on "Voyage Account". 07
From the following particulars calculate: 07
Cost of sales and
Closing Inventory under CPP (Current Purchasing Power) method presuming
that the firm is following LIFO (Last In First Out) method for inventory
valuation.
Rs Price Index
Inventory as on 1st April 2010 12,000 100
Purchases during 2010 2011 72,000 125
Inventory as on 31st March 2011 18,000 140
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Q.4 Answer the following. (Any one) 14
A firm of builders, carrying out large contracts, kept in a contract ledger, separate
accounts for each contract. On the 31st March, 2015, the following was shown as
being the expenditure in connection with contract No. 786
Rs.
Materials Purchased 58,063
Materials from Stores 9,785
Plant which had been used on other contracts 12,523
Additional Plant Purchased 3,610
Wages 73,634
Direct Expenses 2,026
Proportion of establishment charges 8,720
The contract which had commenced on the 1st November, 2014 was for
Rs. 3,00,000 and the amount certified by the Architect, after deduction of 20%
retention money was Rs. 1,20,800, the work being certified to 31st March, 2015.
The materials on the site at that date were valued at Rs. 9,858. A contract plant
ledger was also kept in which depreciation was dealt with monthly, the amount
debited in respect of plant on contract No. 786 upto 31st March 2015 was Rs.
1130.
You are required to prepare an account showing the profit on the contract upto
31st March 2015.
OR
M. N. Ltd. bought and sold stock as follows, interest being payable on 31st
March and 30th September each year.
14
2011
March 1 Bought Rs. 24,000 Rs. 90.875 ex-interest.
June 15 Sold Rs. 10,000 Rs. 92.625 cum-interest.
August 1 Bought Rs. 6,000 Rs. 91.375 ex-interest.
September 1 Sold Rs. 4,000 Rs. 93.125 ex-interest.
December 1 Bought Rs. 12,000 Rs. 94.125 cum-interest.
Prepare Investment Account for the year ended 31st December 2011, assuming
brokerage at 0.125% of nominal value of Rs 100 each in each case.
[Detailed workings are to be given].
Q.5 Answer the following. (Any One) 14
The steamship, „S. S. was put on voyage on 1st March 2015, from Calcutta
to London to carry jute on its outward journey and machinery on its way back to
Calcutta. The voyage period ended on 30th April, 2015. The following information
is available:
Rs.
Coal purchased 10,000
Opening Stock of stores 2,000
Stores Purchased 6,000
Closing Stock of Coal 1,000
Wages 3,000
Port Charges 4,000
Lighter age 2,000
Sundry Expenses 1,000
Premium on Voyage Policy 1,500
Primage at on Freight 4,000
Passage Money 8,000
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Other Information:
The ratio of opening stock of coal and stores was 3:2 whereas the closing
ratio was 5:4.
Freight outward and freight inward was in the ratio of 5:3.
Address Commission to be allowed at on outward and on return
freight.
Depreciation to be charged at p.a. on cost price of the ship which was
Rs. 6,00,000.
Make provision for repairs and renewals at Rs. 4,310
Manager was entitled to a commission at on profit before charging such
commission.
Prepare the Voyage Account.
OR
A business is carried on the three separate departments. From the following
particulars, prepare in columnar form Trading and Profit and Loss Account of the
three departments.
14
Particulars Dept. A Dept. B Dept. C
Rs. Rs. Rs.
Stock on hand (1st January 2010) 17,820 5,600 1,250
Stock on hand (31st December 2010) 19,360 4,710 3,160
Sales 1,11,740 56130 48,510
Wages 27,400 13,280 9,150
Purchases 40,410 15,370 12,560
Salaries 9,450 5,720 4,160
Bad Debts 2,760 1,430 2,240
Management salaries Rs. 12,000, Rents Taxes Rs. 14600, Insurance Rs. 2,100,
Horsesvan vans expenses Rs. 8,700, Postage Telegrams Rs. 1,110, Sundry
expenses Rs. 5,300, Depreciation written off Rs. 7,400, Stationary and Printing
Rs. 2,600, and Advertising Rs. 4,500.
Expenses not directly chargeable to any department are to be apportioned:
One-half to Three-tenth to B and One-fifth to C.