Note Question No. 1 is compulsory.
Attempt any three questions from Q. No. 2 to Q. No. 5.
Q. 1 Mr. Sasha runs a tempo service and has two vehicles. He provides the following
particular and wants you to compute the cost per running Km.
Vehicle A Vehicle B
Cost of Vehicle 25,000 15,000
Road Licence Fees per year 750 750
Supervision Salary (yearly) 1,800 1,800
Driver's wages per hour 4 4
Cost of fuel per litre 1.50 1.50
Repairs and maintenance per Km. 1.50 2.00
Tyre cost per year 1.00 0.80
Garage Rent per year 1,600 550
Insurance Premium (yearly) 850 500
Kms run per litre 6 5
Kilometrage run during the year 15,000 6,000
Estimated life of vehicle Kms 1,00,000 Kms 75,000
Change Interest at 10% p.a. on cost of vehicle.
The vehicles run 20 kms. per hour on an average.
Q. 2 In 2016, Mr. Prakash undertook three contracts on 1st January, 1st July and
1st October respectively.
On 31st December, the position was as under:
House I House 2 House 3
Contract Price 9,00,000 6,07,500 6,75,000
Expenditure:
Material 1,62,000 1,30,500 45,000
Wages 2,47,500 2,52,900 31,500
General expenses 9,000 6,300 2,250
Plant installed 45,000 36,000 27,000
Material on hand 9,000 9,000 4,500
Wages accrued 7,650 8,100 3,600
General expenses accrued 1,350 900 450
Work certified 4,50,000 3,60,000 81,000
Cash received in respect there of 3,37,500 2,70,000 60,750
Work finished but uncertified 13,500 18,000 4,725
The Plant was installed on the dates of the contracts and depreciation is taken at
10% p.a.
Transfer from House 1 to House 2 of material costing 45,000 took place on 1st
September, 2016.
Prepare respective contract accounts in the books of contractor.
(P.T.O)
Code 310604 Advance Cost Accounting Auditing Paper-II M.Com. Sem-III Marks 100
(Rep. Fresh) Centre for Distance Education Exam 27/04/2017
Code 310604 Advance Cost Accounting Auditing Paper-II
Q. 3 From the following details of SM Ltd engaged in contract A prepare contract A/c and
Contractee A/c. for the year ended 31.03.2017.
Contract Price Rs. 18,00,000
Materials Rs. 4,80,000
Wages Rs. 4,20,000
Materials returned Rs. 12,000
Direct Expenses Rs. 1,80,000
Establishment Charges Rs. 81,000
Plant installed Rs. 2,40,000
Outstanding wages (31.03.2017) Rs. 48,000
Materials on site (31.03.2017) Rs. 66,000
Work Certified Rs. 12,60,000
Work Rs. 69,000
Cash received Rs. 11,34,000
Plant Value (31.03.2017) Rs. 1,95,000
Write note on Human Resource Accounting.
Explain qualified and unqualified audit report.
Q. 4 What are the power and duties of an auditor of a company.
Explain the Environmental Accounting with its Importance.
Q. 5 Explain qualification and disqualification of an auditor of a company.
Explain various methods of Inflation Accounting.