B.Com. III (Semester (CGPA) Examination, 2018
ADVANCED ACCOUNTANCY (Paper No.
Day and Date Friday, 7-12-2018 Max. Marks 70
Time 10.30 a.m. to 1.00 p.m.
Notes All questions are compulsory.
Figures to the right indicate full marks.
1. Choose the correct alternative 14
An Asset which does not generate income to the bank is
Fixed asset Performing asset
Non-performing asset None
Loan repayable within 24 hours are termed as
Money at call Branch adjustment
Short notice None
Accounting standard related to consolidated financial
statement.
19 20
21 22
The profit included in stock which is not actually realized, hence it is termed
as
Gross profit Net profit
Unrealized profit Notional profit
Out of 10,000 shares, holding Co. acquired 8,000 shares what will be the
minority ratio
1/2 1/5
1/4 3/4
Profit earned by the subsidiary company before to the date of purchase of
shares by holding company is
Capital profit Revenue profit
Unrealized profit None of the above
Seat P
No.
Set
SLR-CO 69 *SLRCO69*
Set P
Loss of Stock is Rs. 40,000. It is the policy of company to take the insurance
of stock at 90% of cost. The amount of claim will be Rs.
34,000 36,000
44,000 40,000
Abnormal goods must be from the respective items of stock
to get the value of goods of regular line.
Added Deducted
Ignore None of the above
Standard sales minus actual sales
Short sales Adjusted sales
Net sales None of the above
10) Schedule No. 11 is meant for
Deposit Fixed assets
Other assets Other liabilities
11) Banking Companies are governed by the Banking Regulation Act,

1960 1956
1904 1949
12) Super profit is the difference between
Current year profit and Last year profit
Net profit and Gross profit
Average profit and Normal profit
None of the above
13) No banking companies are allowed to pay dividend till
expenses are completely written off.
Bad debts Revenue
Notional Capitalized
14) Cost accounting is mainly related to
Sales Profit
Loss Cost
2. Write short notes marks each) 14
Explain the advantages and limitations of Cost Accounting.
Explain the term capital profit and revenue profit.
3. Solve short answer problems. Marks each) 14
The following particulars are available in respect of the business carried on
by Mohan.
Sr. No. Particulars Rs.
1 Capital Invested 2,75,000
2 Trading Results Year 2014 67,100
2015 82,500
2016 11,000 (Loss)
2017 1,15,500
3 Market rate of Interest on investment
4 Rate of risk return on capital invested
in business
5 Remuneration of the proprietor from
alternative employment (If not engaged in
business) per annum 19,800
You are required to compute the value of goodwill on the basis of three years'
purchase of the super profits of the business calculated on the average profit
of the last four years.
Set P
A Ltd. acquired shares in B Ltd. on 1st April, 2017. Their Balance Sheets as
on 31st, March 2018 were
Balance Sheets As on 31st March, 2018
Liabilities A Ltd. B Ltd Assets A Ltd. B Ltd.
Share capital Land and Building 80,000 30,000
Shares of Rs. 100 Plant and Machinery 1,70,000 10,000
each fully paid 2,50,000 50,000 Investment
General reserve 60,000 20,000 400 shares in B Ltd. 50,000
(as on 1-4-2017) Stock 30,000 30,000
Profit and Loss A/c 80,000 25,000 Debtors 50,000 20,000
Creditors 10,000 5,000 Cash 20,000 10,000
4,00,000 1,00,000 4,00,000 1,00,000
Additional information
Sundry debtors of A Ltd. includes Rs. 5,000 due from B Ltd.
Stock of B Ltd. includes goods purchased from A Ltd. for Rs. 10,000 on
which A Ltd. made profit of 25% on sales.
On 1-4-2017 Profit and Loss A/c of B Ltd. showed a credit balance of
Rs. 5,000. Calculate the minority interest, capital profit, revenue profit and
cost of control.
4. Following is the Trial balance of Solapur Bank Ltd. as on 31st March, 2018
Trial Balance
Debit balances Rs. Credit balances Rs.
Printing and stationary 40,000 Share capital 6,00,000
Establishment expenses 3,90,000 Statutory reserve fund 3,60,000
Interest paid 25,50,000 Current deposits 40,00,000
Salaries and allowances 13,00,000 Savings deposits 51,00,000
Dividend (Last year) 60,000 Fixed deposits 26,50,000
Premises 12,00,000 Discount 15,00,000
Cash in hand 1,00,000 P and L A/c (Last year) 8,00,000
SLR-CO 69 *SLRCO69*
Investment in shares 2,50,000 Interest received 36,00,000
Investment in Govt. securities 3,60,000 Commission and 8,00,000
Cash with other banks 7,50,000 Exchange
Term loans 30,00,000 Dividend received 25,000
Cash credit 60,00,000 Bills payable 11,85,000
Bills purchased and Dis. 46,20,000
Total 2,06,20,000 Total 2,06,20,000
Additional Information
Authorized share capital of the bank is Rs. 8,00,000, divided into share of
Rs. 10 each.
Rebate on bills discounted as at 31-3-2018 amounted Rs. 60,000.
Provision for doubtful loans to be made at Rs. 20,000.
Make necessary appropriation for statutory reserve.
Prepare Profit and Loss A/c and Balance Sheet in the prescribed form with
necessary schedules. 14
OR
Following are the Balance Sheets of H Ltd. and S Ltd. as on 31st March, 2018.
Liabilities H Ltd. S Ltd. Assets H Ltd. S Ltd.
Share capital Land and building 2,00,000 1,00,000
Shares of 5,00,000 3,00,000 Plant and Mach. 1,50,000 2,00,000
Rs. 100 each
General reserve 40,000 10,000 Investment
Profit and Loss A/c 70,000 5,000 2,700 shares in 2,97,000
S Ltd.
Bills payable 50,000 25,000 Stock 40,000 30,000
Creditors 1,40,000 60,000 Debtors 50,000 60,000
Bills receivable 63,000 10,000
Total 8,00,000 4,00,000 Total 8,00,000 4,00,000
Additional Information
On the date of purchase of shares there was a credit balance of Rs. 6,000
in General reserve and Profit and Loss A/c showed a debit balance of
Rs. 10,000 in the books of S. Ltd.
Sundry debtors of S Ltd. includes Rs. 40,000 due from H Ltd.
Bills payable of S Ltd. includes Rs. 18,000 in favour of H Ltd. which has
discounted Rs. 3,000 of them.
Stock of S Ltd. includes Rs. 4,000 being purchased from H Ltd. on which
the latter company made a profit of 331/3% on cost.
Prepare consolidated Balance Sheet of H Ltd. and its subsidiary S. Ltd with
necessary working notes. 14
5. M/s Amar Traders is insured under a loss of profit policy for Rs. 1,24,000. Their
books of accounts are closed on 31st December every year. The fire occurred
on 1-7-2017.
The records saved disclosed the following information
Rs.
Turnover during the year ended 30-6-2017 14,40,000
Turnover during the year ended 31-12-2016 12,00,000
Turnover from 1-7-2017 to 30-9-2017 60,000
Turnover in the corresponding period of 2016 3,60,000
Standing charges for the year ending 31-12-2016 72,000
Net profit during the year ending 31-12-2016 48,000
It has been ascertained that the business has consistently shown an increase of
25% in turnover in the months preceding the fire over corresponding period
of the previous year. Calculate the amount of claim for loss of profit. 14
OR
The following balances extracted from the books of XYZ Bank Ltd. Solapur,
prepare the profit and loss account for the year ended 31st March, 2018 and
Balance Sheet as on that date with necessary schedules.
Particulars Rs.
Share capital (Authorized and issued)
10,000 shares of Rs. 50 each Rs. 30 paid 3,00,000
Statutory reserve fund 1,00,000
Money at call and short notice 1,25,000
Investment at cost 10,00,000
Interest paid on deposits and borrowings 70,000
Law charges 3,000
Postage and Telegrams 2,000
Salaries 45,000
Rent, Taxes and Insurance 4,000
General expenses 7,000
Auditor's fees 3,000
Deposits fixed 5,00,000
Savings 2,00,000
Current 23,00,000
Premises (after depreciation upto 31-3-2017 Rs. 25,000) 1,75,000
Furniture (after depreciation upto 31-3-2017 Rs. 5,000) 15,000
Cash in hand 35,000
Cash with RBI 2,00,000
Cash with other banks 3,00,000
Borrowings from other banks 3,50,000
Interest and discount 2,23,250
Profit and Loss A/c (Credit balance on 1-4-2017) 50,000
Dividend for the year 2016-17 30,000
Loans, Cash Credit and Overdrafts 16,14,250
Bills payable 25,000
Bills discounted and purchased 3,50,000
Unclaimed dividend 5,000
Branch adjustment (Credit) 12,500
Commission and Exchange 22,500
Library books 6,000
Repairs to bank property 4,000
Non-Banking assets 25,000
Gold Bullion 75,000
Adjustments
Provide depreciation at on premises and at 10% furniture (on original
cost)
Provide Rs. 20,000 for Bad and doubtful debts.
Provide Rs. 25,000 for taxation.
Rebate on bills discounted for unexpired period amounted to Rs. 750.
The bank has accepted on behalf of customer's bills worth Rs. 2,00,000 and
his bills for collection being bills receivable, worth Rs. 1,00,000. 14