M.Com. DEGREE EXAMINATION, NOVEMBER 2017.
Fourth Semester
Commerce
SPECIAL ACCOUNTING
(CBCS 2011 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 x 2 20)
Answer all questions.
1. What is "Statutory Reserve"?
2. Explain the meaning of "Non-performing Assets".
3. What do you understand by "Life Assurance Fund"?
4. Explain the meaning of "Surrender Value".
5. What is meant by Double Account system?
6. Write any two limitations of double account system.
7. What is Monetary Working Capital Adjustment
8. What is Back-log depreciation?
9. What is Human Resource Accounting?
10. Write any two objective on HRA system.
Sub. Code
1MCO4C1
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Part B x 5 25)
Answer all questions, choosing either or
11. On 31st March 2000 Balu Commercial Bank Ltd.,
find its advance classified as follow
Rs.
Standard assets 14,91,300
Sub-standard assets 92,800
Doubtful assets (secured)
For one year 25,660
For one year to 3 years 15,640
For more than 3 years 6,580
Loss assets 10,350
Calculate the amount of provision made.
Or
What are the legal restrictions imposed on banking
companies?
12. The Revenue account of a Life Insurance Company
shows the life assurance fund on 31.3.2014 at
Rs. 48,78,000 before taking into account the
following items
Claims intimated but not admitted Rs. 65,500.
Bonus utilized in reduction of premium
Rs. 6,500.
Interest accrued on securities Rs.19,500.
Outstanding premiums Rs. 18,000
Claim recovered under reinsurance Rs. 27,000.
Pass the entries giving effect to the above
adjustment and show the life fund at the end of the
year 2013-14 after making the above adjustments.
Or
What are the legal restrictions imposed on
Insurance Companies?
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13. Compute reasonable return from the following
information given below
Capital base Rs. 34,00,000
Loan from Electricity Board Rs. 30,00,000
Development reserve Rs. 10,00,000
10% debentures Rs. 8,00,000
Reserve fund investment Rs. 60,00,000
Assume the bank rate to be 8%.
Or
Explain the salient features of double account
system.
14. From the following data relating to 1994. You are
required to compute MWCA under CCA method.
Opening Closing
Rs. Rs.
Account receivable 10,00,000 13,00,000
Account payable 6,00,000 7,00,000
Index number applicable 100 150
Average index 125
Or
Describe different methods of inflation accounting.
15. Explain briefly the net benefits method of valuing
human resources.
Or
State the process of human resource accounting.
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Part C 10 30)
Answer any three questions.
16. From the following particulars, prepare the Profit and
Loss account of Kanchi Bank Ltd., for the year ending
31st March 2010.
(Rs. in 000) (Rs. in 000)
Interest on loans 3,490 Rent and taxes 180
Interest on Interest on O.D 1,280
fixed deposits 3,650 Director's fees 42
Rebate on bills Interest on S.B. a/c 690
discounted (1.4.09) 480 Postal charges 15
Commission 94 Printing and
Office expenses 1,550 Stationary 39
Discount on Other expenses 18
bills discounts 1,940
Interest on
cash credit 2,240
Interest on
current a/c 120
Adjustment to be made rebate on bills discounts
Rs. 5,20,000, Provide for taxation 50% of the
profits.
17. From the following particulars relating to SS Insurance
Co Ltd., Prepare Fire Revenue all for the year ending
31.3.05.
(Rs. 000) (Rs. 000)
Claim paid 4,80,000 Commission on
Claims outstanding reinsurance accepted 5,000
on 1.4.04 40,000 Expenses of
Claims intimates management 3,05,000
but not accepted Bonus in reduction
and paid on 31.3.05 10,000 of premium 12,000
Claim intimates and Premium receives 12,00,000
accepted but not paid Commission 2,00,000
on 31.3.05 60,000
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Reinsurance premium paid Rs. 1,20,000
Commission on reinsurance ceded Rs.10,000
Provision for unexpired risk on 1.4.04 Rs. 4,00,000
Additional provision for unexpired risk on 1.4.04
Rs.20,000.
You are required to provide for additional reserve for
unexpired risk at of the net premium in addition to
the opening balance.
18. The following balances relate to an Electricity Company
and pertain to its accounts for the year ended 31.12.03.
Rs.
Share capital 1,00,00,000
Reserve fund (investes in Govt. securities) 60,00,000
Contingencies reserve
(invertes in State Govt. loan) 20,00,000
Loan from State Electricity Board 30,00,000
11% debentures 8,00,000
Development reserve 10,00,000
Fixed assets 2,00,00,000
Consumer's deposit 7,50,000
Intangible assets 5,00,000
Tariff and dividends control reserve 6,00,000
Current assets (months average) 20,00,000
Amount contributes by consumers
towards cost of fixed assets 2,00,000
The company earned a profit of Rs. 9,00,000, show how
the profit of the company will be dealt with under the
provisions of the Electricity Act, Assuming that the bank
rate during the year was 8%.
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19. What are the merits and limitations of accounting for
price level changes?
20. Explain the significance and objectives to Human
Resources.
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