Code 310603-Advanced Accountancy Paper II (MCom-Sem-III-April 2017-Fresh/ Repeater)-25-04-2017 Marks 100
Q.1 The Following is the Receipts Payments Account of Zenith Education Society.
Receipt and Payment Account for the year 31-3--2017
Receipts Rs. Payments Rs.
To balance b/d 96,000 By Salaries 3,84,000
To Donations 3,64,000 By Stationery 1,10,400
To Admission Fees 1,68,000 By Sports Equipment 3,52,000
To Term Fees 2,04,800 By Office Expenses 1,36,000
To Tuition Fees 2,08,000 By Computer 1,04,000
To Exam Fees 1,52,000 By Fixed Deposit on 1.10.16) 1,20,000
To Government Grants 3,28,000
By balance c/d 3,14,400
15,20,800 15,20,800
Additional Information:-
1. Opening Balance on 1.04.2016
Building Rs. 6,40,000
Computer Rs. 3,04,000
Books Rs. 5,60,000
2. Tuition Fees received at the end of the year was Rs. 24,000/-.
3. 50% of the Donations and Government Grants is to be capitalized.
4. Depreciate all Fixed Assets at 10% p.a.
Computer and Sports equipments were purchased on 30.09.2016.
You are required to prepare Income Expenditure Account for the year ending
31.03.2017 and Balance Sheet as on that date.
Note Question No. 1 is compulsory.
ii) Attempt any THREE questions from Q no. 2 to Q no. 5.
Code 310603-Advanced Accountancy Paper II (MCom-Sem-III-April 2017-Fresh/ Repeater)-25-04-2017 Marks 100
Q.2 The following Trail Balance was extracted from M/s Shah Pvt Ltd. which took over business
of Mr. Patel on 1st April 2016.
The company was incorporated on 1st July 2016.
Trial Balance as on 31.3.2017
Rs. Rs.
Plant 11,00,000 Sales 1,23,75,000
Current Assets 44,32,000 Capital of Patel 55,00,000
(except Closing Stock)
Stock 1.4.2016) 11,00,000 Current Liabilities 22,37,500
Purchases 77,00,000
Carriage Outwards 8,25,000
Office Salaries 22,00,000
Rent 3,63,000
Directors Remuneration 3,30,000
Advertisement Expenses 16,50,000
Travelling Expenses 4,12,500
2,01,12,500 2,01,12,500
Additional Information:-
1. Stock on 31.3.2017 was valued at Rs. 46,75,000/-.
2. Purchase consideration of Rs. 68,75,000 to be paid by Equity shares of Rs. 10 each..
3. Turnover is doubled in April, November and December as compared to other months.
4. Provide depreciation 10% p.a. on Fixed Assets.
5. Rent of building was Rs. 27,500 p.m. upto September 2016 and thereafter it was increased by
Rs. 5,500 p.m.
Prepare Final Accounts for the year ended 31st March 2017. Show Profit Loss Account in
the pre and post incorporation period.
Code 310603-Advanced Accountancy Paper II (MCom-Sem-III-April 2017-Fresh/ Repeater)-25-04-2017 Marks 100
Q.3 The Balance Sheet of Sayali Ltd as on 31.3.2016 is as follows:-
Liabilities Rs. Assets Rs.
Equity share Capital (Rs. 10 each) 30,00,000 Land 20,00,000
10% Preference Share Capital 10,00,000 Buildings 10,00,000
12% Debentures 5,00,000 Plant 5-,00,000
General Reserves 8,00,000 Furniture 5,00,000
Creditors 3,00,000 Investments 10,00,000
P L A/c 1,00,000 Bank 5,00,000
Securities Premium 4,00,000 Other Current Assets 6,00,000
61,00,000 61,00,000
Other Information:-
1. All the investments are sold at Rs. 12,00,000.
2. The company decided to buyback 60,000 equity shares at Rs. 15 per share.
3. Pass necessary Journal Entries and Prepare Balance Sheet to give effects to buyback.
Q.4 Anuja Ltd. was incorporated on 1st May 2016, to purchase running business from
1st January 2016.
P L A/c 31.12.2016
Rs. Rs.
To Salaries 40,000 By Gross Profit 1,70,000
To Directors Fees 5,000
To Rent 12,000
To Commission 3,000
To Advertising 4,000
To Office Expenses 10,000
To Depreciation 15,000
To Carriage Outward 20,000
To Net Profit 71,000
1,70,000 1,70,000
The sales in January, June and December was doubled as compared to other months. Find
out profit prior and post incorporation.
Code 310603-Advanced Accountancy Paper II (MCom-Sem-III-April 2017-Fresh/ Repeater)-25-04-2017 Marks 100
From the following details find out maximum amount of buyback:-
Equity Share Capital (of Rs. 100 each) Rs. 5,00,000
Preference Share Capital 4,00,000
Securities Premium 3,00,000
10% Debentures 5,00,000
General Reserves 4,00,000
Offer price is Rs. 120 per equity share.
Q.5 Discuss the need of convergence of Indian Accounting Standards with IAS.
Write note on IAS 8 v/s AS 5.