M.Com. (Semester (CBCS) Examination Oct/Nov-2017
ADVANCED ACCOUNTANCY
Day Date: Thursday, 16-11-2017 Max. Marks: 70
Time: 02.30 PM to 05.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
Under Double Accounting system, the profit Loss A/c is termed as
Income and expenditure A/c Revenue A/c
Receipt and payment A/c None of the above
The is performing the function of the formulating the accounting
standards.
Institute of chartered Accounts of India
Indian Commerce Council
Indian Accounting Board
Accounting standard Board
Life Insurance has an element both of protection and
Premium Deposit
Investment Risk
In the Land Lord short working are shown in the account styled
Royalty A/c P L A/c
Minimum Rent A/c Short Working Allowable Account
Reduction of share capital is require the permission of
Central Government Court
SEBI Stat Government
The types of reconstruction
2 3
Only one None of the above
Cost of licence is shown in the
Capital A/c Revenue A/c
Income expend true A/c General B/s
Only share capital is to be reduced to the extent of share cancelled.
Paid-up capital Authorized Capital
Issued capital All of the above
Minimum Rent is also called
Dead Rent Rock Rent
Fixed Rent All of the above
10) Policy maturing only on death of insured is termed as
Endowment policy Whole life Policy
With Life policy None of the above
11) The valuation of Balance sheet is prepared by
Banking co. Life Insurance co.
Trading co P&L A/c
Page 2 of 4
SLR-CJ-2
12) Royalty A/c the nature of
Personal A/c Real A/c
Nominal A/c None of these
13) Electricity supply undertaking is governed by
Indian Electricity Act 1910 Electricity supply A/c 1948
Both Co's A/c 1956
14) There is neither Liquidation nor formation of any company in case of.
Amalgamation Absorption
Internal Reconstruction External Reconstruction
Q.2 Write short note. (Any two) 14
Advantage of International Financial Reporting Standards.
Write a short on Re-Insurance.
Reserve for unexpired risk or Insurance Fund.
Q.3 Calculate the amount of Claim charged to Revenue Account 07
Claim paid on Direct Business Rs. 125000.
Claim on re-insurance accepted Rs. 15000.
Claim in respect of re-insurance ceded Rs. 10,000.
Police Report Fess Rs 1000.
Outstanding Claims on direct business at the end 15000.
Outstanding Claims on direct business at the beginning of the year Rs.
10,000.
Legal expenses regarding Claims Rs. 1500.
Medical expenses regarding Claims Rs.1000.
Following was the Balance sheet of AB Ltd on 231st 2016
07
Balance sheet on 31-3-2016
Liabilities Assets
5000 12% pref. share 10 each 50,000 Good will 40,000
15 eq. shares of 10 each 1,50,000 Patents 15,000
12% Debentures 30,000 Other assets 1,94,500
Creditors 50,000 Cash 500
P&L A/c 28,000
Preliminary exp 000
2,80,000 2,80,000

A scheme of reconstruction was agreed as on follows.
Pref. shares to be reduced by Rs. 2.
Eq. Share to be reduced to Rs. 2.
P&L Goodwill, Patents and other assets Rs. 46,000 written off.
Give necessary Journal Entries
Q.4 Raj Ltd leased a colliery on 1st Jan, 2013 from M/s Sathe at a minimum
Rent of Rs. p.a. at a Royalty of 31 per ton with a right to Recover
short working over the first three years of the Lease.
14
The output for the first four year of the Lease was as following.
Years Output (tons)
2013 10,000
2014 12,000
2015 14,000
2016 20,000
Give necessary Journal Entries with minimum Rent, in the books of Raj Ltd
for the above four year.
Page 3 of 4
SLR-CJ-2
OR
From the following information prepare Revenue A/c of the five insurance
co. Ltd. for the year ended 31st Dec 2016.
Particulars
Fire fund 1-1-2016 3,00,000
Premium Received 2,25,000
Premium due but not received 15,000
Premium Paid for re-insurance 5,000
Interest, Dividend and Rent (Gross) 35,000
Income tax deducted there from 4,000
Profit on sale of investment 3,500
S. Income 1,000
Claim paid during the year 1,90,000
Claim outstanding on 1-1-2016 10,000
Claim outstanding 31-12-2016 12,000
Claim received under re-insurance 9,000
Commission to agent 21,000
Expenses of Management 42,000
Rent prepaid for office building 500
Loss on sale of office machine 1,000
Commission of Re-insurance accepted 1,500
Keep the Reserve for unexpired risk equal 50% of Premium and
additional Reserve 40,000
Q.5 Answer any one. 14
Following are the Particulars in respect New Bharat Electricity Co. Ltd for
the year ending 31st March 2016.
Authorised Capital 8,000 equity share of Rs. 100 each
Issued capital 4000 equity share of Rs. 100 each fully paid
(inclusive of 500 equity shares issued during the years)
Debenture Rs. 2,00,000
Trade Creditors Rs. 50,000
Reserve fund Rs.1,00,000
Total Debtors Rs. 90,000
Cash at Bank Rs. 50,000
Reserve fund Investment at cost Rs. 100,000 (market value Rs.1,10,000)
Stock Rs. 60,000
Fixed Assets expenditure up to Rs 1-4-2015.
Machinery Rs. 3,00,000 and Building Rs. 2,00,000.
Addition during the year Machinery Rs. 70,000 deprecation
Fund of Machinery 60,000 and Building Rs. 20,000. P&L A/c Rs. 40,000
You are required to draw up.
Capital A/c
General B/S as on 31-3-2016 under Double A/c system.
OR
Page 4 of 4
SLR-CJ-2
Following are the balance of Jai Hind Ltd, as at 31-3-2016.
Capital 10,000 cumulative pref. share of Rs. 10 each 1,00,000
16,000 equity shares of Rs.10 each 1,60,000
Creditors 26,000
Share premium A/c 30,000
Goodwill 10,000
Patent Trade Mark 21,000
Free hold property at cost 70,000
Dep. there on 14000
Plant Machinery at Cost 1,40,000
Dep. there on 30,000
Stock on 31st march 2016 24,000
Debtors 15,000
P&L A/c 55,000
Preliminary exp 25,000
A scheme of reduction of capital was passed by the court on the following
terms.
Pref. shares to be reduced to Rs. 9 per share.
Equity share to be reduced to 1.25 per share.
The share premium a/c and intangible assets to be written off.
Plant Machinery to be revalued at Rs. 50,000
One equity share of Rs. 1.25 to be issued for each Rs. 10 Gross pref.
Dividend Arrears, Which is in arrears since March 2012.
Draft Journal Entries and the revised Balance sheet.