M.Com. (Semester IV) (CBCS) Examination Oct/Nov-2017
ADVANCED ACCOUNTANCY
Day Date: Friday, 17-11-2017 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
Need of reconciliation of cost and a financial account arises due to
Under or over absorption of overheads
Adoption of different bases of stock valuation
Certain items are included in one set of accounts only
All of the above
Process costing is suitable method of costing for
Construction Toy Manufacturing
Road Transport Sugar Industry
In packages account prepared to find out profit or loss on
transaction relating to containers.
Containers stock A/c Containers Trading A/c
Memorandum Debtors A/c Containers Purchase A/c
While reconciling costing profits with financial profits capital expenses losses
in financial accounts are
Doubled Added
Not included Subtracted
Which of the following items is including in cost accounts?
Notional Profit Rent receivable
Transfer to general reserve None of these
The Tamil Nadu Transport Corporation must use
Job Costing Contract Costing
Process Costing Operating Costing
The cost unit in a electricity generating concerns is
Per Tube Light Kilo Watt
Per Meter Per Main
Which of the following methods of costing can be used in a large oil refinery?
Job Costing Unit Costing
Process Costing Operating Costing
Avoidable losses arising from the nature of productive process is termed as:
Normal loss Abnormal loss
Net loss Gross loss
10) Products that cannot be produced separately are known as
By Product Co Product
Joint Product Main Product
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11) In process costing, cost follows
Finished goods Product flow
Price rise Price decline
12) In cost accounts, the stock is valued at
Cost Market Price
No Value Cost Plus Profit
13) In case customer does not return the packages, the selling price is adjusted
that covers the cost of
Manufacturing Packages
Production Sales
14) The price which is charged by the firm to customers at the time of
dispatching the containers is
Credit given price Actual Price
Charged out price Purchase Price
Q.2 Write short answer. 14
Operating Costing
By product joint product costing
Q.3 Prepare a reconciliation statement. 07
Rs.
Net loss as per cost accounts
Net loss as per financial accounts
Works overheads under recovered in costing
Depreciation overcharged in costing
Interest on investments
Administrative overheads over recovered in costing
Good will written off
Stores adjustment in financial books (credit)
Depreciation of stock charged in financial books
3,64,800
4,58,290
8,240
4,600
19,500
2,600
96,000
1,050
17,000
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 2006.
07
Particulars Rs.
Wages of Drivers, Conductors and Cleaners
Salaries of office and supervisory staff
Diesel oil and other oils
Repairs Maintenance
Taxation, Insurance etc
Depreciation
Interest and other charges
9,600
4,000
16,000
3,200
6,400
10,400
8,000
57,600
Actual passengers carried were 75% of seating capacity. Four buses ran on
all the days of the month. Each has made one round trip per day. Find out the
cost per passenger mile.
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Q.4 Input 3,800 units, output 3000 units, closing work in progress 800 units its
degree of completion process cost is as follows:
14
Particulars Degree of Completion Process Cost
Material 80% 7,280
Labour 70% 10,680
Overhead 70% 7,120
Find out:
Equivalent Production
Cost Per Unit of Equivalent Production
Process A/c assuming that there is no opening work in progress and
process loss.
OR
What is Process Costing? Explain its main features.
Q.5 Bombay Chemicals Ltd supplies their products in returnable containers. A
container is invoiced to the customers at Rs.40 but if it is returned within two
months a credit of Rs.35 is given to the customers. A container costs Rs.35
to the company and its life is estimated at 6 years at the end of which the
scrap value is likely to be Rs.5. The following particulars are supplied to you:
14
Nos
Containers with customers (1.1.2016) 10,000
Containers in stock (1.1.2016) 14,000
Containers sent to customers during the year 2016 60,000
Containers returnable 6,000
Containers returned by customers 63,000
Containers purchased during the year 1,000
Containers condemned during the year useful life being over 1,500
Amount realized by sale of condemned containers Rs. 8,000.
Depreciation is to be provided on straight line basis.
Prepare the containers trading account for the year and ascertain the profits
or losses earned or incurred in the year.
OR
What is Service Costing? Explain the importance of Service Costing.