B.Com. I (Semester (CBCS) Examination, 2018
FINANCIAL acounting
Day and Date Wednesday, 5-12-2018 Max. Marks 70
Time 2.30 p.m. to 5.00 p.m.
N.B. All questions are compulsory.
Figures to the right indicate full marks.
Out of question No. and question No. 4 solve
any one.
Out of question No. 5 and question No. solve
any one.
1. Choose the correct alternative and complete the given sentence 14
Receipts and Expenditure Account is maintained by
Professionals Trading organisations
Sole traders Non-profit organisations
According to convention the policy once adopted should not
generally be changed.
Conservatism Consistency
Full disclosure Materiality
Purchase consideration minus net assets
Goodwill Capital profit
Fixed assets Capital reserve
Price payable to a partnership firm for purchase of its business is called

Purchase consideration Purchase list
Purchase invoice Purchase order
P.T.O.
Set P Seat
No.
Set P
SLR-CO 3 *SLRCO3*
Debit balance of Realisation Account shows on
Realisation.
Cost Capital Profit Loss
According to Rule every Co-operative Society is required to maintain
the required books of accounts and registers.
68 67 66 65
accounting is recording of the financial transactions to
find out the financial position of the business on the last day of the Financial
Year.
Cost Management
Social Financial
Accumulated profits are transferred to Capital Accounts of partners in their
ratio.
Capital Sacrifice
Gain Profit sharing
Accounting is commonly referred to as the of business.
part transaction language activity
10) Co-operative Movement was started in India to free the farmers from the
clutches of
Private Money lenders Governments
Bankers Creditors
11) Stock of drugs of a professional Doctor's are shown on
Receipt side Expenditure side
Liabilities side Assets side
12) shows the financial position on a particular day.
Trading Account Profit and Loss Account
Balance Sheet Receipt and Payment Account
13) Accounting determines the cost of product.
Financial Cost Management Social
14) Combination of two or more firms is termed as
Liquidation Conversion Amalgamation Partnership
Set P
*SLRCO3* SLR-CO 3
2. Write short notes marks each)
Accounting conventions 7
Users of Accounting Information. 7
3. Anand and Milind sharing profits and losses equally decided to convert
their business into New Limited Company on 31st March 2017 when their
Balance Sheet was 7
Balance Sheet as on 31-3-2017
Liabilities Amount Assets Amount
Rs. Rs.
Capitals Building 40,000
Anand 51,000 Plant 30,000
Milind 39,000 90,000 Furniture 5,000
Bills payables 5,000 Debtors 28,000
Creditors 25,000 Stock 10,000
Bank 7,000
1,20,000 1,20,000
New Limited Co. agreed to take over all the assets and liabilities at the
values given below
Building Rs. 42,000 Plant Rs. 25,000
Furniture Rs. 4,800 Stock Rs. 8,000;
Debtors subject to provision for doubtful debts at and creditors at a
discount of 2%.
The company issued 6,300 equity shares of Rs. 10 each at par and
balance of purchase price is paid in cash.
Calculate purchase consideration and discharge of purchase consideration.
Set P
Dr. Vinod commenced his practice on 1st April 2016 with Rs. 1,50,000. His
Receipts and Payments Account for the year ending 31st March 2017 was
as under 7
Receipts and Payments A/c for the year ending 31-3-2017
Receipts Rs. Payments Rs.
To Cash introduced 1,50,000 By Furniture 40,000
To Visits fees 2,00,000 By Equipments 50,000
To Receipts from By Purchase of drugs 30,000
dispensing 1,20,000 By Salary to staff 24,000
To Sundry Receipts 5,000 By Rent 18,000
By Travelling expenses 12,000
By Printing and
Stationery 6,000
By Journals 10,000
By Drawings 90,000
By Balance 1,95,000
4,75,000 4,75,000
Adjustments
Amounts outstanding for visits and dispensing were Rs. 12,000 and
Rs. 9,000 respectively.
Salary payable to staff amounted to Rs. 6,000.
40% of travelling expenses were for domestic purpose.
Stock of drugs on 31-3-2017 was Rs. 8,000.
Furniture and equipments to be depreciated at 10%
Prepare Receipts and Expenditure A/c for the year ending 31-3-2017.
SLR-CO 3 *SLRCO3*
Set P
4. Ltd. was formed to acquire the business of X,Y and Z who's sharing
profits and losses in the ratio of 2 1 1 respectively. The Balance Sheet of
the firm as on 31st March 2017 was as follows 14
Balance Sheet as on 31-3-2017
Liabilities Amount Assets Amount
Rs. Rs.
Capital Plant and machinery 74,000
X 50,000 Motor Car 20,000
Y 24,000 Investments 20,000
Z 24,000 98,000 Debtors 38,000
Investment fluctuation fund 10,000 Stock 34,000
Bills payable 32,000 Cash 2,000
Creditors 48,000
1,88,000 1,88,000
Ltd. took plant and machinery, stock and debtors at 10% less than the
book value and agreed to pay Rs. 20,000 for goodwill.
It is also agreed to pay creditors at book value. The purchase consideration
is discharged by issuing 800 shares of Rs. 100 each and balance in cash.
Mr. took over motor car at Rs. 16,000. Investments were sold in the
market for Rs. 18,000.
The partnership firm paid bills payable at 10% discount. Realisation
expenses amounted to Rs. 4,600.
The partnership firm sold the shares of Ltd. at Rs. 72,000.
In the books of firm, prepare
Realisation Account
Capital Accounts of partners
Cash Account.
OR
*SLRCO3* SLR-CO 3
Set P
The following were the Balance Sheet of two firms M/s Kulkarni and Kale
and M/s Patil and Deshmukh 14
Balance Sheet of M/s Kulkarni and Kale as on 31-3-2017
Liabilities Rs. Assets Rs.
Capitals Building 40,000
Kulkarni 60,000 Plant 30,000
Kale 30,000 90,000 Dead stock 5,000
Bills payable 5,000 Debtors 28,000
Creditors 25,000 Stock in trade 10,000
Bank 7,000
1,20,000 1,20,000
Balance Sheet of M/s Patil and Deshmukh as on 31-3-2017
Liabilities Rs. Assets Rs.
Capitals Machinery 25,000
Patil 50,000 Stock 35,000
Deshmukh 25,000 75,000 Furniture 8,000
Bank loan 10,000 Debtors 25,000
Creditors 15,000 Bills receivables 6,000
Cash 1,000
1,00,000 1,00,000
The above two firms were amalgamated and the following changes were
made in the values of assets and liabilities of the two firms.
Buildings were appreciated by 20% and dead stock was subject to
depreciation.
Plant as well as machinery was taken at 10% less.
Provision for discount on creditors of both the firms was to be made at
2%.
Provision for Reserve for doubtful debts was to be created at on debtors
of both the firms.
Prepare Revaluation Account and Partner's Capital Accounts in the books
of two firms and Balance Sheet of the New firm as on 31-3-2017.
SLR-CO 3 *SLRCO3*
Set P
5. From the following Receipts and Payments Account of the Poona Sports
and Gymkhana for the year ending 31st
March 2017 14
Receipts and Payments Account
Receipts Rs. Payments Rs.
To Balance 18,200 By Wages 65,000
To Donations 1,00,000 By Printing and Stationery 21,000
To Subscriptions 1,12,000 By Postage 5,000
To Entrance fees 3,450 By Insurance 2,500
To Interest 3,500 By Sports material 57,500
To Sundry receipts 3,850 By General expenses 30,000
By Balance 60,000
2,41,000 2,41,000
Adjustments
As on 31st March, 2017 Sports material valued at Rs. 1,00,000.
As on 31st March, 2016 the book values of the fixed assets were
Premises Rs. 2,00,000; Investments Rs. 1,00,000; Sports materials
Rs. 50,000 and Furniture Rs. 75,000.
Capitalise donations.
Subscriptions of Rs. 20,000 is outstanding on 31st March, 2017.
Insurance is prepaid up to 30th September 2017 of Rs. 1,250.
Provide depreciation at 10% on furniture.
Prepare Income and Expenditure Account for the year ending on 31st March
2017 and Balance Sheet as on that date.
OR
Bhagwant Co-operative Society rendering loans and rationing facilities to
its members. Following is the Trial Balance of the society as on 31st March
2017 is as follows. 14
Trial Balance
Debit Balances Rs. Credit Balances Rs.
Dead stock 70,000 Members share capital 1,41,000
Stationery and printing 7,500 Members deposits 3,00,000
*SLRCO3* SLR-CO 3
Set P
Bank share purchased 50,000 Bank loan (simple) 3,10,000
Sahakari Sangh share Interest on members
purchased 20,000 loan 5,31,500
Members loan 8,32,500 Sale of rationing
Purchase of rationing grains 12,00,000 grains 12,75,000
Office rent 90,000 Reserves and other
Salaries 1,05,500 funds 4,51,000
Travelling expenses 12,500
Freights 13,000
Coolie charges 9,000
Bank Current A/c 3,35,000
Bank interests 2,62,500
Cash balance 1,000
30,08,500 30,08,500
Adjustments
Closing stock of rationing grains on 31st March 2017 was Rs. 3,50,000.
Outstanding rent of office is Rs. 10,000
Provide for audit fees due Rs. 6,000
Provide bad debts reserve Rs. 15,000
Provide depreciation on dead stock at 5%.
Prepare Trading, Profit and Loss Account for the year ending 31st March 2017
and Balance Sheet as on that date.