M.Com. (Semester IV) (CBCS) Examination Nov/Dec-2018
ADVANCED ACCOUNTANCY (Paper III)
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
When containers are destroyed or lost which account is credited?
Containers Stock A/c Containers Trading A/c
Containers Provision A/c None of these
In packages account is prepared to find out profit and loss on
transaction relating containers.
Containers Stock A/c Containers Trading A/c
Memorandum Debtors A/c Containers Purchase A/c
costing is applied in those undertakings which are engaged in
providing services rather than manufacturing of tangible products.
Operating Process
Output Integral
Expected output less Actual output is called
Units of abnormal loss Units of normal loss
Cost of normal loss Units of inputs
In undertaking cost unit is used or ascertaining cost of per passenger
km.
Goods transport Passenger transport
Water and Electricity Hotel and Hospital
is an item included in cost accounts but not in financial accounts.
Actual rent Notional rent
Rent paid Outstanding rent
Which of the following items is not included in cost accounts?
Debenture interest Interest received on bank deposits
Dividend paid on share capital All of these
When costing profit is Rs.10,500 and the amount of works overhead under
recovered is Rs. 500 the financial profit is Rs.
11,000 9,500
8,500 10,000
When costing loss is Rs. 7,600; administration overheads under absorbed
being Rs.400, the loss as per financial accounts should be Rs.
8,000 5,600
7,000 6,500
10) is an unavoidable loss which occurs due to the inherent nature of the
materials and production process under normal conditions.
Capital loss Abnormal loss
Avoidable loss Normal loss
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11) In process industries the accountant classified multiple products according to
their relative importance. The products of nearly equal value are called
Joint product By product
Main product Process product
12) are product of minor importance and of small value produced
simultaneously with the main product.
Service product Work in progress
Joint product By-product
13) If two or more products emanating from a single source are more or less of
equal importance from the point of view of value and profitability, they are
termed as
Service product Work in progress
Joint product By-product
14) In costing investment in fixed assets is high and in working capital is
low.
Job Standard
Marginal Service
Q.2 Answer the following
Explain the concept and advantages of process costing. 07
Explain the concept of packages accounting. 07
Q.3 Answer the following
A Transport Service Company is running 4 buses between two towns which
are 50 kms, apart. Seating capacity of each bus is 40 passengers. The
following kms particulars were obtained from their books for April 2016.
07
Particulars Rs.
Wages of Drivers, conductors and cleaners 9,600
Salaries of office and Supervisory staff 4,000
D Diesel Oil and Other oils 16,000
Repairs and maintenance 3,200
Taxation and Insurance 6,400
Depreciation 10,400
Interest and other charges 8,000
57,600
Actual passengers carried were 75% of the seating capacity. Four buses ran
on all the days of the month. Each bus made one round trip per day. Find out
the cost per passenger mile.
The net profit of Bharat Engineering Co. appeared as Rs.1,28,755 as per
financial record for the year ended 31st March 2016. The cost books however
showed a net profit of Rs.1,72,400 for the same period. A security of the
figures from both sets of accounts revealed the following facts.
07
Rs.
Works overheads under recorded in cost 3,120
Administration overheads recorded in excess 1,700
Depreciation recovered recorded in cost 12,500
Depreciation charged in financial accounts 11,200
Loss due to obsolescence charged in financial accounts 5,700
Income Tax provided in financial accounts 40,300
Bank interest and transfer fees (in financial books) 750
Interest on Investment in financial books 8,000
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SLR-CS-43
Stores Adjustment (credit in financial books) 475
Loss due to depreciation in stock value (Financial Accounts) 6,750
You are required to prepare a reconciliation statement to reconcile both the
figures of net profits.
Q.4 Answer any one of the following. 14
A manufacturing company's product passes through two distinct processes X
Y and then to finished stock. It is known from past experience that wastage
occurring in the process is as under
In process X of the units entering the process
In process Y 10% of the units entering the process
The scrap value of the wastage in process X is Rs. 8 per 100 units and in
process Y is Rs. 10 per units.
The process figures are
Process X Process Y
Material consumed 3,000 1,500
Wages 3,500 2,000
Manufacturing Expenses 1,000 1,000
5,000 units brought into process X costing Rs. 2,500. The output were
Process X 4,700 units
Process Y 4,150 units
Prepare Process Cost Accounts showing the cost of the output.
What do you mean by joint products and by-products? Distinguish between
joint products and by-products.
Q.5 Answer any one of the following. 14
In a company joint costs of manufacturing three joint products B and C are
Rs. 12,800. Expenses of each product after split of point were
Particulars
A
Rs.
B
Rs.
C
Rs.
Materials 160 120 40
Direct Wages 320 200 80
Overheads 240 200 120
Total 720 520 240
Sales Price 9,600 6,400 4,000
30 25 15
Prepare a statement showing apportionment of joint costs.
What do you mean by Operating Costing? What are its special features?