B.Com. III (Semester VI) (CGPA) Examination, 2018
Advanced Accountancy (Paper
Day and Date Friday, 7-12-2018 Max. Marks :70
Time 2.30 p.m. to 5.00 p.m.
N. B. All questions are compulsory.
1. Choose the correct alternative 14
Methods is purchase-consideration method.
Lump-Sum Net-asset method
Net Payment method All of above
Under Amalgamation absorption and re-construction purchasing company
or taking over business is termed as company.
Vendor Vendee
Private None of above
takes place when a new company is formed to take
over the business of an existing company.
External reconstruction Amalgamation
Absorption All of above
Liquid-Assets include all current assets except and a
prepaid expenses.
Bank-overdraft Preliminary expenses
Inventory None of above
To show financial position better than it actually exists is called
Windo dressing Expo dressing
Liabo-dressing All of above
A low inventory ratio indicates investment in inventory.
over under
equal all of above
Brokerage paid on sale of investment is from sales price.
Added Deducted
Multiplied None of above
Closing balance of "capital" column is transferred to
Account.
Profit and Loss A/c
Interest on investment Account
Cum-interest A/c
All of above
If the price of investment is cum-interest, it interest.
Deducted Includes
Adjusted None of above
10) In case of sale ownership in goods passes over to
purchaser, immediately.
Credit Cash
Credit and Cash All of above
11) In Hire Purchase cost of article is paid in
Installment One time
At the time of forfeit None of above
12) costing is not a system of costing.
Operating Departmental
Standard Marginal
13) Costing should not be confused with accounting.
Cost
Book-keeping
Financial
None of above
14) Formation of New Company to take over atleast existing
companies in Amalgamation of Companies.
One Three Four Two
2. Write short notes (any two) 14
Advantages or uses of Cost-Accounting
Limitations of Cost-Accounting
Cum-Interest and Ex-Interest.
3. Ltd. purchased a machinery on hire-purchase system on 1-1-2001 from
The cash price of the machinery was Rs. 80,000. paid Rs. 20,000
on signing of an agreement and the balance in three annual instalment of
Rs. 20,000 plus extra interest 12% p. annum on balance outstanding of
cash price. Every year the books of accounts were closed on 31st December.
Depreciation was to be written-off 15% P. annum on written down value
method.
Calculate interest table and depreciation table for each year. 7
On 30th Sept. 2012, the balance Sheet of Dull-Past was as follows 7
Liabilities Amount Assets Amount
Authorised and Issued Free-hold and building 1,00,000
Capital Plant and Machinery
6000, Equity shares at cost 80,000
of Rs. 100 each fully paid 60,000 Less Dep. 30,000 50,000
600, Cumulative Tools and Patents 10,000
Preference shares of Stock 70,000
Rs 100 each fully paid 60,000 Trade Debtors 30,000
Debentures 30,000 Cash-in-hand 1,000
Trade Creditors 1,30,000 Profit and Loss A/c 80,000
Bank overdraft 61,000
3,41,000 3,41,000
It was decided to re-construct the company; Named Bright-Future Ltd. as
follows
The debenture holders, of Dull-Past Ltd; agreed to accept 7%. Pref.
Shares in the new company in exchange for their debentures. (Each
Pref. Shares Rs. 100 each)
The Preference shareholders were to receive one Preference share in
the new company for every three Preference shares help by them in
the old company.
(Each Pref. Share Rs. 100 each)
Equity shareholders were to be receive/alloted one equity share of
Rs. 10, each Rs. 8 called up per share in the new company for every
four shares held by them in the old company.
The cost of Realisation expenses of Dull-Past Ltd. Rs. 250 was paid
by the new company.
Calculate Purchase-consideration and show-Mode-of Payment.
4. M/S Datta Investment Trust Ltd. Submit the following details regarding one
of their investments for the year 2002 14
1-1-2002, opening balance face value Rs. 1,00,000 at cost Rs. 95,000.
1-3-2002, purchased worth Rs. 40,000 cum-interest at discount.
1-7-2002, sold worth Rs. 50,000 cum-interest at premium.
1-10-2002, sold worth Rs. 40,000 ex-interest at par;
1-12-2002, purchased worth Rs. 20,000 Ex-interest at discount.
Investment carries interest at p.a. Payable on every 31st March and
30th September.
The market price of the investment on 31-12-2002 was at discount.
You, are required to prepare investment account.
OR
On 1st January, 1984 Shri. Thorat purchased one motor. Truck from Premier
Trading Co, for a cash price of Rs. 1,68,000. The purchase is to be made
on higher-purchase basis Rs. 45,000 being paid on signing of an agreement
and the balance amount is paid as under 14
31-12-84 Rs. 60,000
II) 31-12-85 Rs. 30,000
III) 31-12-86 Rs. 45,000.
Depreciation is to be written off at the rate of 20% p. annum, on reducing
balance method.
Prepare; Motor-Truck Account; Premier Trading Co; Account and
Interest Account.
5. Following are the balance sheets of Arun Ltd. and Shashi Ltd. as on
31st March 2002, together with supplementary information for the year
ended on that date 14
Particulars Arun Ltd. Shashi Ltd.
Sales for the year 8,40,000 10,50,000
Average stock-in-hand 63,000 1,00,000
Gross profit 2,10,000 2,50,000
Net-profit 1,20,000 1,35,000
Balance sheets as follows as on 31-3-2002.
Liabilities Arun Ltd. Sheela Ltd. Assets Arun Ltd. Sheela Ltd.
Rs. Rs. Rs. Rs. .
Shares holders Fixed Assets
Equity Goodwill 30,000 50,000
Issued and Buildings 1,20,000 2,40,000
paid up capital 2,00,000 3,50,000 Plant and
Reserves 50,000 60,000 Mch. 29,000 42,000
Profit and Loss A/c 12,750 1,02,200
2,62,750 5,12,200 1,79,000 3,32,000
Current Liabilities Current Assets
Bank overdraft 11,250 14,800 Stock 66,000 93,000
Sundry creditors 36,000 58,000 Debtors 85,000 1,75,000
Provision for
taxation 20,000 15,000
67,250 87,800 1,51,000 2,68,000
3,30,000 6,00,000 3,30,000 6,00,000
Set P
SLR-CO 85 *SLRCO85*
Compute the following Accounting ratio's of two companies as follows
Current ratio
Liquid ratio
Proprietary ratio
Stock-Turn-over ratio
Debtors Turn-over-ratio
Gross-Profit Ratio
Net-Profit Ratio.
OR
Following is the balance sheet of Govind Ltd. as on 31-3-2002. 14
Liabilities Rs. Assets Rs. .
Share Capital Good will 4,00,000
20,000; Equity shares of Land and Building 15,60,000
Rs. 100 each fully paid 20,00,000 Plant and Machinery 14,00,000
Reserve Fund 5,00,000 Patents Rights 3,50,000
Sinking Fund 1,00,000 Stock 2,00,000
Workmen's Accident Sundry Debtors 4,00,000
Compensation Fund 50,000 Investments against
(Estimated Liability Rs. 9,000) Sinking fund 1,00,000
Employees Profit Cash at Bank 30,000
Sharing fund 1,00,000
Staff Provident Fund 1,50,000
Sundry Creditors 1,40,000
Debentures 4,00,000
Debentures 10,00,000
T otal 44,40,000 Total 44,40,000
Ramkrishna Ltd. absorbed Govind Ltd. on the date of its above
Balance-Sheet. The consideration being
The taking over of the liabilities.
The payment of cost of absorption/liquidation expenses/realisation
expenses amounted Rs. 10,000 paid by Ramkrishna Ltd. (as Part
of P.C.).
The repayment of the "B" debentures at a Premium of in cash.
The discharge of "A" Debentures at a premium of 10% by the issue of
Debentures in Ramkrishna Ltd. at Par.
Payment of Rs. 15 per Equity share in cash in Govind Ltd.
Allotment of one; Preference Share of Rs. 100 each fully paid and
5 Equity shares of Rs. 100 each fully paid in New Company for every
Equity share in Govind Ltd.
You are required to prepare following Ledger Accounts in the books of
Govind Ltd.
Realisation Account
Ramkrishna Ltd. Account
Equity Shareholders Account and Calculation of Purchase Consideration
and Mode of Payment.