M.Com (Semester II) (CBCS) Examination Oct/Nov-2017
ADVANCED ACCOUNTANCY
Day Date: Friday, 17-11-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
If the rate of gross profit for department X is 33
1
3 of the cost and its sales
amounted to Rs.1,00,000, then the amount of gross profit will be equal to
Rs. 25,000 Rs. 20,000
Rs. 33,333 Rs. 50,000
On a contract, Rs. 80,000 was received as cash which was 80% of the work
certified. Hence, the amount of work certified equals
Rs. 80,000 Rs. 1,00,000
Rs. 1,80,000 Rs. 2,00,000
The cost of right share is
Added to the cost of investments
Subtracted from the cost of investment
No treatment is required
None of the above
The first attempt to value human beings in monetary terms was made by
William Petty Shultz
William Pyle David Watson
In voyage account, insurance of the ship is of
2 3
4 None of these
In inflation accounting are accepted for accounts of changing
prices.
2 4
3 5
The historical cost method treats human resources like
Current assets Other fixed assets
Investment None of the above
Cost of Investment includes
Purchase Cost Brokerage paid
Stamp Duty Paid All of the above
There are of Keeping Departmental Accounts.
Three Four
Two Six
10) Finding out profit or loss on buying and selling out securities is the purpose of
Voyage Account Investment Account
Government Account Accounts of Professionals
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11) The should be directly debited to the general profit and loss
account.
Salary Power
Income tax All of these
12) Current Cost Accounting Method of accounting is applicable for
Investment Accounts Voyage Accounts
Changing Prices Costing
13) Commission payable by a shipping company on freight earned is termed as

Address Commission Delcredere Commission
Normal Commission Special Commission
14) Dividend/Interest on securities calculated on
Cost Market value
Face value Fair value
Q.2 Write short answer. 14
Merits Limitations of Human Resource Accounting
Profit on Incomplete Contracts
Q.3 On 1.01.2010, 200 Debentures of Rs.100 each of Y Ltd. purchased and were
held as investments by X Ltd; at a cost of Rs.18,200. Interest is payable on 31st
December.
On 1.04.2010 Rs. 4000 of such debentures were purchased by X Ltd at Rs.98.
On 1.01.2010 Rs. 6000 debentures were sold at Rs.96 ex-interest, on 1.12.2010
Rs.8000 debentures were sold at Rs.99 cum-interest.
On 31-12-2010 X Ltd. sold Rs.10000 debentures at Rs.95 ex-interest.
Prepare Investment Account for debentures of Y Ltd. in the books of X Ltd.
Ignore Income-tax.
07
Determine the price level loss from the account of Ashok, a debtor, assuming that
the accounts are closed on 31st March.
07
Ashok Account
Date Particulars Rs. Date Particulars Rs.
Jan 1 To Bal. b/d 30,000 Mar 15 By Cash 41,600
Feb 1 To Sales 51,000 Mar 31 By Bal. c/d 39,400
81,000 81,000
General Price Index during quarter:
January 1
March 15
February 1
March 31
100
104
102
105
Q.4 The following particulars are obtained from the books of Vinak Construction Ltd.
as on 31st March 2013:
14
Plant and Equipment at cost Rs.4,90,000
Vehicle at cost Rs.2,00,000
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Details of contracts which remain uncompleted as on 31.03.2013.
Contract Nos
V.20
(Rs.Lacs)
V.24
(Rs.Lacs)
V.25
(Rs.Lacs)
Estimated final sales values 8.00 5.60 16.00
Estimated final cost wages 6.40 7.00 12.00
Wages 2.40 2.00 1.20
Materials 1.00 1.10 0.44
Overheads (Excluding Depreciation) 1.44 1.46 0.58
Total cost to date 4.84 4.56 2.22
Value certified by Architects 7.20 4.20 2.40
Progress payments received 5.00 3.20 2.00
Depreciation of plant and equipment and vehicle should be charged at 20% to the
three contracts in proportion to work certified.
You are required to prepare statements to show contract wise and total profit/loss
to be taken to the Profit Loss A/c for the year ended 31st March 2013.
OR
Q.4 Tata Investment Trusts Ltd. has the following transactions in 18% Maharashtra
Development Bonds during the year ending 31st March 2010.
Purchases
1.04.2009 Rs.50,000 Rs.105 (Cum-Int)
1.06.2009 Rs.70,000 Rs.95
1.10.2009 Rs.80,000 Rs.110 (Cum-Int
Sales
1.08.2009 Rs.30,000 Rs.110 Ex-Int
1.02.2010 Rs.70,000 Rs.115 (Cum-Int)
Interest is payable half yearly on 1st January and on 1st July every year. Brokerage
was paid at on purchase and sales.
Show the Investment A/c in columnar form valuing the closing stock on FIFO basis
at cost or Market Price (i.e. Rs.102) whichever is less.
Q.5 From the following particulars by M/S Tins and Toys, Prepare Departmental
Trading and Profit Loss A/c for their two departments viz; Tins Department and
Toys Department for year ended 31.03.2016.
14
Rs.
Opening Stock:
Toys 5,000
Tins 15,000
Raw material consumed (Tins) 36,000
Stores consumed 9,000
Wages:
Toys 3,000
Tins 6,000
Advertisement 1,500
Packing expenses (Toys) 600
Office expenses 4,800
Depreciations:
Factory Equipment 3,200
Building 1,600
Sales:
Tins 90,000
Toys 18,000
Closing Stock:
Toys 6,000
Tins 12,000
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You are also given the following additional information:
Toys are made of end bits of sheets of raw materials used by Tins Department.
The value of such material used during the year by Toys Department was Rs.
2,000.
Toy making does not require any equipment.
Only 1/8th of the total area of Buildings occupied by Toys Department.
OR
Q.5 Jai Bharat commenced a voyage on 1st October 2013 from Bombay to London
and back. The voyage was completed on 30th November 2013. It carried a
consignment of coffee on its outward journey and machinery on its return journey.
The ship was insured and the annual premium was Rs. 2,40,000.
Rs.
Freight earned (Outward) 10,00,000
Freight earned (Inward) 7,00,000
Port dues 50,000
Bunker 3,00,000
Wages Salaries 5,00,000
Stores 1,68,000
Sundry expenses 50,000
Passage money received 1,00,000
Lighter age charges 66,000
10) Depreciation (Annual) 9,60,000
11) Address Commission on outward and on inward freight
12) Primage is on freight.
The manager is entitled to commission on the profit earned after charging
such commission. Stores and coal on hand were valued at Rs. 30,000 on 30th
November 2013.