M.Com. (Semester IV) (CBCS) Examination, 2017
ADVANCED ACCOUNTANCY (PAPERF-III)
Day Date: Wednesday, 19-04-2017 Max. Marks: 70
Time: 02.30 AM to 05.00 PM
N.B. All questions are compulsory.
Use of calculator is allowed.
Q.1 Choose the alternatives given below. 14
In costing investment in fixed assets is high and in
working capital is low.
Job Standard Marginal Service
costing is applied in those undertakings which are
engaged in providing services rather than manufacturing of tangible
products.
Operating Process
Output Integral
In undertaking cost unit is used or ascertaining cost of
per passenger km.
Goods transport Passenger transport
Water and Electricity Hotel and Hospital
costing is that form of operating costing which applies
where standardized goods are produced.
Service Operating
Process Power house
is an unavailable loss which occurs due to the inherent
nature of the materials and production process under normal
condition.
Capital loss Abnormal loss
Avoidable loss Normal loss
Expected output less Actual output is called
Units of abnormal loss Units of normal loss
Cost of normal loss Units of input
When actual losses are less than the expected normal losses then
arises.
Normal loss Abnormal loss
Abnormal gain Process loss
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product of less sales value produced simultaneously
with the produce of greater value.
Service product Work in progress
Joint product By-product
In process industries the accountant classifies multiple products
according to their relative importance. The products of nearly equal
value are called
Joint product By product
Main product Process product
10) is an item included in cost accounts but not in financial
accounts.
Actual rent National rent
Rent paid Outstanding rent
11) When costing profit is Rs. 9,500 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) 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
13) When costing loss is Rs. 5,600, administration overheads under
absorbed being Rs. 400, the loss as per financial accounts should
be Rs.
5,200 5,600 6,000 6,500
14) In packages account is prepared to find out profit or loss
on transaction relating to containers.
Containers Trading A/c Memorandum Debtors A/c
Containers Purchase A/c Containers Stock A/c
Q.2 Write short notes on. 14
Importance of operating costing.
Treatment of normal and abnormal process loss.
Q.3 From the following information prepare process account. 07
Input of raw materials 840 units Rs. 40 per unit
Direct materials Rs. 5,924
Direct wages Rs. 8,000
Production overheads 100% of direct wages
Actual output of process I 750 units
Normal loss 15%
Value of scrap per unit Rs. 10 per unit
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From the following Trading and Profit and Loss Account of Vikas
Electronics for the year ended 31st December 2016. Prepare
Reconciliation statement.
07
Trading and Profit and Loss A/c
To Materials 12,000 By Sales (350 units) 70,000
To Wages 4,000 By finished stock (50 units) 3,500
To Works Expenses 12,000 By Interest received 1,500
To Administrative
expenses
12,000
To Goodwill written off 4,000
To Discount in
debentures written
off
3,000
To Net Profit 28,000
75,000 75,000
The company's cost record show that
1. Works overhead have been recovered at 100% on prime cost.
2. Administration overheads have been recovered at 25% of factory
cost.
Q.4 A products passes through three process i.e. B and C. The details of
expenses incurred on the three processes during the year 2016 were as
under.
14
Process A Process B Process C
Units introduced cost per
unit Rs. 100
10,000
Materials (Sundary) Rs.10,000 Rs.15,000 Rs.5,000
Labour Rs.30,000 Rs.80,000 Rs.65,000
Direct expenses Rs.6,000 Rs.18,150 Rs.27,200
Selling price per unit of
output
120 165 250
During the year selling expense were Rs. 50,000 these are not
allocable to process.
Actual output of the three processes was Process A 9,300 units,
Process B 5,400 units and Process C 2,100 units. Two third of
output of process A and one half of the output of process B was passed
on the next processes and balance was sold. The entired output of
process C was sold.
The normal loss of the three processes calculated on the input of
every process was process A process B 15% and process C
20%. The loss of process A was sold at Rs. 2 per unit, that of process B
at Rs. 5 per unit and process C at Rs. 10 per unit.
Prepare Process B and C Account.
OR
Explain the concept and importance of Accounting for Package and
Empties.
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Q.5 Transport company supplies the following details in respect of a truck of
five tone capacity.
14
Cost of truck Rs. 90,000
Estimated life 10 years
Diesel, oil, grease Rs. 15 per trip each way
Repairs and maintenance Rs. 500 per month
Drivers wages Rs. 500 per month
Cleaners wages Rs. 250 per month
Insurance Rs. 4,800 per year
Tax Rs. 2,400 per year
General supervision charges Rs. 4,800 per year
The truck carries goods to and from the city covering a distance of 50
kms each way. On outward trip freight is available to the extent of full
capacity and on return 20% of capacity. Assume that truck runs on an
average 25 days a month work out operating cost per tonne km. It is
assume that the truck makes only one trip per day.
OR
The following information is available from the financial books of a
company having a normal production capacity of 60,000 units for the
year ended 31st March 2016.
1. Sales Rs. 10,00,000 (50,000 units)
2. There was no opening and closing stock of finished units.
3. Direct materials and direct wages cost were Rs. 5,00,000 and Rs.
2,50,000 respectively.
4. Actual factory expenses were Rs. 1,50,000 of which 60% are
fixed.
5. Actual administrative expenses were Rs. 45,000 which are
compulsory fixed.
6. Actual selling and distribution expenses were Rs. 30,000 of which
40% are fixed.
7. Interest and dividend received Rs. 15,000.
You are required to find out
Profit as per financial books for the year ended 31st March 2016.
Prepare statement of cost and profit as per cost accounts for the
year ended 31st March 2016 assuming that indirect expenses are
absorbed on the basic of normal production capacity.
Prepare statement reconciling profits shown by financial and lost
books.