B.Com. III (Semester Examination, 2018
ADVANCED ACCOUNTANCY (New CBCS) (Paper
Day and Date Friday, 7-12-2018 Max. Marks 70
Time 10.30 a.m. to 1.00 p.m.
N. B. All questions are compulsory.
Figures to the right indicate full marks.
1. Choose the correct alternative 14
The accounting is useful to take the management decisions.
Financial management
Cost None of the above
Under Section of Banking Regulation Act, at least 20% of the
profit prior to declaration of dividend must be transfer to statutory reserve.
17 20 15 29
Schedule No. 9 of Bank Final Accounts stand for
Capital Deposits Investments Advances
The period for which the insurance policy is taken out is known as
period.
Accounting Financial
Indemnity None of the above
Profit/Loss on sale of investment is shown under the Schedule No.
in Bank Final Accounts.
13 14 15 16
Profit earned by a subsidiary company prior to acquisition of shares by
holding company is termed as in case of holding company.
Goodwill Revenue profit
Capital profit Notional profit
Investment in silver is shown under the Schedule No. in Bank
Final Accounts.
8 9 10 11
P.T.O.
Set P Seat
No.
Set P
SLR-CO 53 *SLRCO53*
Loss of stock due to fire is Rs. 60,000. The policy of company is to insured
the stock at then the value of insurance claim is Rs.
60,000 54,000 66,000 57,000
Gross Profit Ratio
Gross Profit ×100
Purchase Net profit Capital profit Sales
10) A holding company is one which hold at least more than of
subsidiary company.
50% of equity shares 50% of debentures
50% of pref. shares None of the above
11) Excess value paid by holding company for cost of control is transfer to

Capital Reserve Goodwill
Capital Profit Profit and Loss A/c
12) Profit earned by the subsidiary company after the date of purchase of
shares by holding company is for holding company.
Capital profit Capital Reserve
Revenue profit None of the above
13) A consolidated financial statements of holding company is prepared as per

Accounting standard 2 Accounting standard 11
Accounting standard 21 Accounting standard 10
14) Reduction in sales during the indemnity period is termed as
Short sales Salvaged
Sum insured Loss of profit
2. Write short notes 14
Distinguish between Financial Accounting and Management Accounting.
Capital Profits and Revenue Profits.
3. Attempt the following 14
On 31st December, 2017, a fire damaged the building of Solapur Ltd.
resulting in a disruption of the business until 31st March, 2018. The company
is insured under a loss of profit policy for Rs. 3,15,000 with a six months
period of indemnity.
The company's accounts for its financial year ended on 31st March, 2017
showed
Sales Rs. 10,00,000
Net profit Rs. 1,00,000
Insured standing charges Rs. 3,00,000
Sales for the twelve months ended on 31st December, 2017 was
Rs. 9,00,000. During the period of disruption of three months it was
Rs. 90,000, where as during the corresponding three months in the previous
year it was Rs. 1,80,000.
Find out the claim to be lodged with the insurance company for loss of profit.
H Ltd. acquired 4,000 shares of S Ltd. on 1st October, 2017. Their Balance
Sheets as on 31St March, 2018 stood as follows
Balance Sheet
Liabilities H Ltd. S Ltd. Assets H Ltd. S Ltd.
Share capital Fixed Assets 60,000 50,000
Equity shares Investments
of Rs. 10 each 1,00,000 50,000 Shares in S Ltd. 48,000
General Reserve 25,000 15,000 Sundry Debtors 25,000 15,000
Profit and Loss A/c 10,000 5,000 Stock 17,000 10,000
Creditors 15,000 5,000
1,50,000 75,000 1,50,000 75,000
On 1st April, 2017 the Profit and Loss A/c and the general Reserve of S Ltd.
showed the credit balance of Rs. 3,000 and Rs. 10,000 respectively.
Find out the amount of
Minority Interest
ii) Goodwill/Capital Reserve (cost of control).
Set P
4. Attempt any one of the following 14
From the following balances of M Bank Ltd. for the year ended 31st March, 2018.
Prepare Profit and Loss Account and Balance Sheet with necessary
schedules.
Particulars Rs.
Paid up capital 5,00,000
Building 1,00,000
Profit and Loss Account balance on 1-4-2017 70,000
Advertising 1,000
Current Accounts 17,06,000
Cash with other Banks 8,02,500
Interest and discount 1,56,000
Investment 1,39,000
Statutory Reserve 1,50,000
Loans, cash credit and overdrafts 42,00,000
Postage and telegrams 375
Directors fees 3,450
Furniture and fixtures 21,000
Cash in hand 58,000
Cash with RBI 1,50,000
Salaries and allowances 11,000
Unexpired insurance 250
Printing and stationary 1,500
Stamps in hand 100
Rent 4,000
Branch Adjustment Account 25,175
Interim Dividend paid 17,500
Final Dividend of last year 50,000
Fixed deposits 25,00,000
Savings deposits 4,45,000
Interest on deposits 15,000
Liability for expenses 22,500
The authorised capital is Rs. 10,00,000 divided into 10,000 shares of Rs. 100
each, however, Rs. 50 per share called and paid up. Provide depreciation
on Building Rs. 5,000 and Furniture Rs. 1,500. Also provide Rs. 12,500
for bad and doubtful debts, Rs. 2,500 for rebate on bills discounted and
Rs. 13,175 for Taxation.
OR
The following is the Trial Balance of Mangesh Bank Ltd., Solapur as on
31st March, 2018.
Trial Balance
Particulars Debit Credit
Rs. Rs.
Subscribed capital
3,00,000 Equity shares of Rs. 10 each
fully paid 30,00,000
Statutory Reserve 10,00,000
Loans, cash credit and overdraft 11,40,000
Premises 12,00,000
Government securities 6,00,000
Gold 2,00,000
Other approved securities 8,00,000
Current deposits 4,00,000
Fixed deposits 5,00,000
Payments to employees 1,12,000
Rent, Rates and Taxes 1,09,600
*SLRCO53* SLR-CO 53
Set P
General Expenses 9,200
Savings Bank Deposits 2,00,000
Directors fees 7,200
Profit and Loss Account 64,000
Interest and discount 7,12,000
Stock of stationary 34,000
Bills purchased and discounted 3,84,000
Interim dividend paid 68,000
Recurring deposits 80,000
Shares 2,00,000
Cash in hand 2,72,000
Balance with RBI 5,00,000
Balance with other Bank 1,00,000
Money at call and short notice 2,20,000
59,56,000 59,56,000
Adjustments
The authorised share capital of the Bank is 6,00,000 equity shares of
Rs. 10 each.
Provision for bad and doubtful debts is required to Rs. 20,000.
Rebate on bills discounted amounted to Rs. 2,000.
Interim dividend declared was actual.
Endorsement made on behalf of customers total Rs. 1,80,000.
Rs. 2,40,000 were added to the premises during the year and depreciation is
allowed at p.a. on the opening balance.
Provision for taxation amounted to Rs. 2,00,000.
You are required to prepare the profit and Loss A/c for the year ended
31st March, 2018 and Balance Sheet as on that date in a prescribed form
with necessary schedules.
5. Attempt any one of the following 14
From the following particulars ascertain the value of claim for loss of stock.
Particulars 2015 2016 2017 Up to the
date of fire
Opening Stock 30,000
Purchase less return 1,00,000 1,50,000 1,80,000 1,20,000
Sales less return 1,20,000 1,60,000 2,60,000 1,68,000
Wages 6,000 10,000 12,000 8,000
Closing stock 40,000 80,000 1,00,000
During the year 2017 closing stock included goods purchased but not recorded
Rs. 10,000. The salvage is Rs. 22,000. It is the practice of the firm to insure the
goods at 80% of cost.
OR
H Ltd. acquired shares in S Ltd. on 1-4-2017. Their Balance Sheets as on
31-3-2018 were
Balance Sheet
Liabilities H Ltd. S Ltd. Assets H Ltd. S Ltd.
Share Capital Land and
Shares of Rs. 100 Building 2,00,000 40,000
each fully paid 5,00,000 1,00,000 Plant and
General Reserve Machinery 3,00,000 60,000
1,00,000 40,000 Investments
Profit and Loss A/c 1,40,000 50,000 800 shares in
Creditors 60,000 10,000 S Ltd. 1,00,000
Stock 80,000 50,000
Debtors 60,000 30,000
Cash 60,000 20,000
8,00,000 2,00,000 8,00,000 2,00,000
Additional Information
Sundry Debtors of H Ltd. include Rs. 10,000 due from S Ltd.
Stock of S Ltd. includes goods purchased from H Ltd. for Rs. 40,000 on which
H Ltd. made a profit of 25% on sale.
On 1-4-2017 profit and Loss A/c of S Ltd. showed a credit balance of
Rs. 10,000.
Prepare a consolidated Balance Sheet of H Ltd. and its subsidiary S Ltd. in
vertical format, working notes are the part of answer.