M.Com. (Semester IV) (CBCS) Examination Mar/Apr-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.
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When actual losses are less than expected normal losses then are arises.
Normal loss
Abnormal loss
Abnormal gain
Process loss
In costing investment in fixed assets is high and in working capital is low.
Job
Standard
Marginal
Service
In undertaking cost unit is used or ascertaining cost of per passenger km.
Goods transport
Passenger transport
Water electricity
Hotel and hospital
Expected output less actual output is called
Units of abnormal loss
Units of normal loss
Cost of normal loss
Units of input
is an unavoidable loss which occurs due to the inherent nature of materials and production process under normal condition.
Capital loss
Abnormal loss
Avoidable loss
Normal loss
In process industries the accountant classifies multiple products according to their relative importance. The products of nearly equal value are called
Joint product
Work-in-progress
Main product
By-product
is an item included in cost accounts but not in financial accounts.
Actual rent
Notional rent
Rent paid
Outstanding rent
In packages account is prepared to find out profit or loss transaction related to containers.
Containers Trading A/c
Memorandum Debtors A/c
Containers Purchase A/c
Containers Stock A/c
When costing loss is Rs. 6,600, administration overheads under absorbed being Rs. 400, the loss as per financial accounts should be Rs.
6,200
6,600
7,000
7,500
10) Which of the following items is not included in cost accounts?
Debenture interest
Interest received on bank deposit
Dividend paid on share capital
All of these
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11) When costing profit is Rs. 9500 and the amount of works overhead under recovered is Rs. 500. The financial profit is Rs.
10,000
9,000
8,500
10,500
12) In packages accounts is opened to record the movement of containers to and from customers.
Memorandum Debtors A/c
Memorandum Creditors A/c

Customers A/c
Trading Profit and Loss A/c
13) Reconciliation of cost and financial accounting is done for the purpose of
Finding correct financial profit
Finding costing profit
Checking accuracy of both financial and costing books
Inflationary profit
14) The price which is charged by the firm to its customers at the time of dispatching the containers is
Credit given price
Actual price
Charged out price
Purchase price
Q.2
Answer the following.
Explain the concept of Equivalent production.
07
Explain normal loss, abnormal loss and abnormal gain.
07
Q.3
Answer the following.
Debashish Poddar sells his goods in special packages costing Rs. 10 each. Packages are charged out at Rs. 15 each to customers and credited at Rs. 10 each if returned in good condition within 3 months.
07
On 1.4.2016 there were 5000 packages in the factory and 3000 in the hands of customers (all returnable).
During the year ended 31.3.2017, 15000 packages were purchased by Debashish, 16000 packages were sent out to customers and 10000 were received back from them within the stipulated period. On 31.3.2017 there were 5000 pieces in the hands of customers (All returnable).
Draw up Packages Stock Account.
From the following figures prepare a reconciliation statement.
07
Rs.
Net profit as per financial records
1,28,755
Net profit as per costing records
1,72,400
Works overhead as under recovered in costing
3,120
Administrative overhead recovered in excess
1,700
Depreciation charged in financial records
11,200
Depreciation recorded in costing
12,500
Interest received but not included in costing
8,000
Obsolescence loss charged in financial recordes
5,700
Income tax provided in financial books
40,300
Bank interest credited in financial books
750
Stores adjustments (Credit in financial books)
475
Amortization and write off charged in financial books
6,750
Q.4
Answer any one:
14
A chemical product passes through two different processes to completion. During the month ending on 31st May 2017, 5000 units of material valued at Rs. 5 per unit were put into production. The other relevant information is as under.
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Particulars
Process A Rs.
Process B Rs.
Sundry materials
2,500
9,000
Labour
17,500
19,500
Direct expenses
500
500
Cost of containers

10,000
Normal wastage
10%
2.5%
Actual output
4000 units
4000 units
Sale value of wastage per unit
Rs. 1
Rs. 10
Prepare process cost accounts to show:
Total cost of production
Cost per unit at each stage
OR
Explain the concept and importance of operating costing.
Q.5
Mr. Ahuja runs a tempo service in the town and has two vehicles. He furnishes you the following data and wants you to compute the cost per running km.
14
Particulars
Vehicle A
Vehicle B
Cost of vehicle
50,000
40,000
Road license fees per year
750
750
Supervision and salary (yearly)
1800
1200
Drivers wages per hour
4
4
Cost of fuel per liter
4
4
Repairs maintenance per km
1.00
1.00
Tyre cost per km
1.00
0.80
Garage Rent per year
1600
550
Insurance premium yearly
850
500
Kms. Run per litre
12
10
Kms run during the year
24000
12600
Estimated life of vehicles
160000 kms
120000 kms
Charge interest at 10% p.a. on the cost of vehicle. The vehicles run 30 kms. per hour on an average.
OR
Explain the concept and importance of Packages Accounting.