DISTANCE EDUCATION
B.Com. (CA)/B.Com (Lateral) DEGREE EXAMINATION,
DECEMBER 2017.
ADVANCED ACCOUNTANCY
(2005 onwards)
Time Three hours Maximum 100 marks
SECTION A — × 8 40 marks)
Answer any FIVE questions.
1. Enumerate the characteristics of partnership.
2. Write short note on
Net Asset Method.
Net Payment Method.
3. Write a short note on redemption of shares. Explain the
conditions to be fulfilled for redemption of shares.
4. From the following particulars of Ganga Ltd., calculate
the managerial remuneration assuming there are two
whole time directors a part time director and manager:
Net profit before provision for income
tax and managerial remuneration but
after depreciation Rs. 8,70,410
Depn. Provided in the books Rs. 3,10,000
Depn. allowable under schedule XIV Rs. 2,60,000
Sub. Code
31
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5. X and Y are partners in a firm. They both share profit
and losses equally. Their capital as on 1.1.2009 was
Rs. 2,00,000 and Rs. 1,00,000 respectively. Interest on
capital is to be given p.a. before sharing the profit.
Profit for the year ending 31.12.09 was Rs. 95,000 which
is before charging interest on capital. Prepare P and L
appropriation a/c as on 31.12.2009.
6. The B/S of ABC Ltd. as on 31.12.2007 was as under.
Liabilities Rs. Assets Rs.
1000 redeemable share
of Rs. 100 each
1,00,000
Sundry
assets
3,65,000
2000 equity of Rs. 100
each fully paid
2,00,000
Bank
balance
1,50,000
General reserve 80,000
Profit and loss a/c 50,000
Sundry creditors 85,000
5,15,000 5,15,000
On this data, the preference shares were redeemed at
par. Journalise and prepare balance sheet after
redemption.
7. You are required to calculate the time ratio for the pre
and post incorporations periods from the following
particulars.
Date of incorporation 1st June 2001
Period of financial accounts April 2001 to
March 2002
Total wages Rs. 4800
Numbers of workers Pre Incorporation period
5 Nos.
Post incorporation period 25 Nos.
Also divide the total wages between pre and post
incorporation systems.
8. Distinguish between Hire purchase and instalment
systems.
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SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. What is partnership and enumerate the types of
partnership?
10. Enumerate the basic principles of Garner Vs Murray
case.
11. The balance in P and L account as per Balance sheet is at
31.3.2006 is Rs. 16,300 whereas the balance on balance
sheet as at 31.3.2007 is Rs. 19,050.
The following information is available:
Rs. 4,250 depreciation has been charged.
Provision for dividend amounting to Rs. 7,500 has
been made.
Rs. 2,250 has been transferred to General Reserve.
Rs. 500 dividend (gross) has been credited.
Rs. 1,150 loss on sale of fixed assets has been
debited.
Indirect expenses debited, amount to Rs. 15,250.
Find out Gross Profit, Trading Profit and Net profit.
12. On 1st January 2007, a company issued Rs. 2,00,000
14% debentures discount repayable in 5 years at par.
The interest is payable half yearly on 30th June and
31st December and the same was duly paid.
On 31st December 2007 the company purchased
Rs. 20,000 debentures at a cost of Rs. 18,900. Pass
necessary journal entries in the books of the company
upto 31st December 2007 including closing entries on that
date if the above redemption was out of date.
13. Distinguish between revaluation account and
memorandum revaluation account.
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14. Renu Co. Ltd. trades in refridgerators on hire purchase
system and the account furnished the following
information for the year 2000:
Rs.
1.1.2000 stock in shop 30,000
Instalments due on unpaid 18,000
Stock out with customers at HP price 2,40,000
31.12.2000 stock in shop 42,000
Instalments due and unpaid 30,000
Stock out with customers at HP Price 2,76,000
Cash received during the year 4,80,000
He has further stated that the company makes a
gross profit of one third on cost. You are required to
prepare the relevant accounts to ascertain profit for
the year.
15. A owned certain patent rights. He granted a licence to B
to use such rights on royalty basis. The following are the
relevant particulars.
Year Minimum rent Royalty earned
1 1,750 1,500
2 2,000 1,800
3 2,250 1,900
4 2,500 2,750
5 2,500 2,600
The deficiency of any year is to be set off against excess
payable within the next two years. Give journal entries
and the short working account in the books of
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