GUG/W/18/10678 1 P.T.O
Master of Business Administration (CBCS and Old Pattern) First Semester Old CBCS
C15 PCB1F05 Financial Accounting
P. Pages 5 GUG/W/18/10678
Time Three Hours Max. Marks 70

Notes 1. Attempt any five questions.
2. All questions carry equal marks.
1.

Journalise the following transaction in the books of Shri Shiv Kumar Gupta.
Jan 2012
1. Commenced business with cash 50,000
2. Goods Purchased for cash 30,000
3. Paid Freight 2,000
7. Goods sold to Rajanikant on credit 13,000
8. Paid for stationary 1,000
9. Paid for Rent 5,000
10. Cash Received for Mohan Das 15,400
Allowed him discount 600
17. Paid Premium 4,000
19. Paid Postage 100
20. Rakesh was declared insolvent fifty paisa
in the rupees was received from his.
estate, total debt being Rs. 10, 000
29. Paid Salaries 8,000
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From the following information prepare a suitable cash book.
April 2012
1. Cash at hand 2,200
2. Cash at bank 8,700
3. Bought Goods From Rahim 7,300
4. Cash sales banked 5,500
8. Sold goods to Das 8,200
9. Received Cheque in full settlement
of Das's A/c 8,000
10. Paid to settle Rahim's A/c 7,000
12. Purchased office furniture by cheque 3,500
13. Bought goods from P.K. Ghosh 10,400
14. Paid carriage 200
18. Bank collected dividend 500
20. Withdrawn from bank 2,000
25. Paid wages 1,500
27. Paid to P.K. Ghosh by cheques 1,000
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2.
On 31st January 2008. the cash book of Shri Gokhale showed a bank overdraft balance of Rs. 13,000. The pass book showed a different balance. On Investigation the following discrepancies were found.
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1. Cheques of Rs. 2,500 were issued on 25th January to the creditor's, out of which one cheque of Rs. 1,500 was presented for payment on 1st Feb. and other cheque of Rs. 1,000 was presented on 6th Feb 2008.
2. Cheque amounting to Rs. 1,800 were deposited into the bank out of which one cheque
of Rs. 400 was collected on 27th January 2008.
3. Dividend collected by the bank and credited in the pass book Rs. 90, was not recorded in the cash book.
4. Mr faithfull directly deposited in our Bank a/c Rs. 350 the intimation of the same was
received on 3rd Feb 2008.
5. Interest on overdraft debited in the pass book Rs. 150, but it was not recorded in the cash book.
6. Pass Book showed a debit of Rs. 200 for dishonor of Bill of exchange formerly discounted.
Prepare Reconciliation statement as on 31st January 2008.
3.
The Receipts and payment A/c of Delhi football club for the year ending 31st March 2011 was as under.
Receipts and payment.
31st March 2011
Receipts
Amt
Payment
Amt
To Balance
48,000
By purchase of Balls
80,000
To subscription Received
2,46,000
By Tournament fees
10,000
To Interest
2,000
By Affiliation fees
2,000
To sale of furniture
10,000
By Rent of playground
5,000
To Donations for club Building
60,000
By Refreshment Exp.
4,000
By Investment
1,00,000
By Salaries
12,000
By Miscellaneous Exp.
8,000
By Balance
1,15,000
3,66,000
3,36,000
Prepare club Income Expenditure A/c for the year ended 31st March 2011 and Balance sheet as on that date after taking the following information into A/c.
1. Subscription received Include Rs. 10,000 for the year 2009-2010 and Rs. 8,000 for the
year 2011-2012. Rs 16,000 are still outstanding as subscription for the year 2010- 2011.
2. The book-value of furniture sold was Rs. 14,000
3. Interest earned but-not received amounted to Rs. 500.
4. Rent of playground due but not paid for the current year amounted to Rs. 6,000 Rs. 1,000 was paid for the year 2009-2010
5. Stock of balls on 31st March 2011 was Rs. 4,000
6. Salary outstanding for the year 2010-2011 was Rs. 5,000.
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GUG/W/18/10678 3 P.T.O
4.
Following are the balances as on 31st March 2014 in the books of Laxmi Trading Co. Ltd.
Particular
Dr Amt
Cr Amt
Opening stock
95,200

Purchases
4,70,000

Land Buildings
1,86,000

Machinery
3,31,200

Loose Tools
18,800

Furniture
7,200

Preliminary Expenses
9,800

Sales

6,01,600
Share capital

4,00,000
Debentures

2,00,000
Cash
1,000

Govt Bonds
19,760
Bills receivable
7,200
Motor
26,000
Goodwill
32,000
Debtors
41,600
Advertisement
5,080
Audit fees
2,000
Creditor's

61,200
Reserve fund

30,000
Profit Loss A/c

17,600
Bank overdraft (Borrowed on 1-1-2014)

14,000
R.D.D

2,360
Wages Salaries
53,800

Insurance
9,800

General Expenses
8,600

Repairs
1,720

Interim Dividend (30th Sept)
6,000

Sundry Receipts

6,000
Total
13,32,760
13,32,760
Adjustment
Closing stock was of Rs. 1,08,400.
R.D.D. shall be on Debtor's
Depreciate machinery furniture 7.5% loose tools 10% motor 20%
Debenture Interest is to be provided for.
Interest p.a. is payable on Bank overdraft.
Write off preliminary Expenses in full.
General Expenses outstanding are Rs. 2,400
Directors propose final dividend
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5.

From the following Balance sheet of Sunny Co. Ltd as on 31st March 2016, estimate the value of goodwill by super profit capitalization method.
Balance Sheet
Liabilities
Amt
Asset
Amt
50,000 equity share of Rs. 10 each
5,00,000
Building
2,60,000
Debentures of Rs. 500 each
50,000
Machinery
2,00,000
Creditor's
75,000
Accounts receivable
60,000
Provision for tax
35,000
Stock in trade
90,000
Dividend declared
50,000
Furniture
25,000
Profit Loss A/c
1,00,000
Cash
75,000
Bank
1,00,000
8,10,000
8,10,000
Following appreciated value of Asset is estimated Building Rs. 3,00,000, stock Rs. 80,000 furniture Rs. 30,000 the devaluation of machinery Rs. 30,000.
Reasonable Rate of Returns on capital invested in Business is 12%
Profit for the last five years are as followes.
2014 1,08,000 2011 93,000
2013 1,15,000 2010 67,000
2012 1,17,000
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The following figures are extracted from the books of Ravi Ltd.
Share capital.
preference share of Rs. 100 each 3,00,000
1000 equity share of Rs. 100 each 50 called up 50,000
1000 equity share of Rs. 100 each 25 called up 25,000
1000 equity share of Rs. 100 each fully called up 1,00,000
4,75,000
Reserve surplus
General Reserve 2,00,000
Profit Loss A/c 50,000 2,50,000
7,25,000
On fair valuation of all the asset of the company, it is found that they have an appreciation of Rs. 75,000. The article of Association provided that in case of liquidation, the preference share will have further. Claim to the extent of 10% of surplus
Asset:
Ascertain the value of each preference equity share assuming a liquidation. Ignore expenses of winding up.
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6.
The Laxmi Trading Co. Ltd, Issued 5,000 share of Rs. 20 each at a premium of Rs. 4 per share. The amount was payable as under.
On application Rs. 4 per share
On Allotment Rs. 10 per share (Including premium)
On first call Rs. 6 per share
On final call Rs 4 per share
Company received application for 8,000 share and the director's rejected application for 2,000 share and refunded the application money received there on. The share were allotted Pro-rata among the remaining application and the excess amount received from them on application was transferred to the allotment account.
50 share were allotted to Laxman who failed to pay the allotment money and his share were forfeited on non payment of the first call. Bharat who had applied for 120 share failed to pay both the call's hence his share were also forfeited.
All share forfeited were subsequently reissued to Ram at the rate of Rs. 18 per share as fully paid.
Pass necessary Journal entries in the books, of the company.
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7.
From the following Balance sheet of Kumar Ltd. Co as on 31st March 2015. Prepare liquidator's final statement.
Balance Sheet
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Liability
Amt
Asset
Amt
Authorized share capital
3,00,000
Building
1,00,000
pref. share capital (2,000 share of Rs. 100 each)
2,00,000
Plant Machinery
2,50,000
Equity share capital (1,000 share of Rs. 100 each Rs. 75 paid)
75,000
Patents
40,000
3,000 equity share of Rs. 100 each Rs. 60 paid
1,80,000
Stock
55,000
Debentures (Floating charges)
1,00,000
Debtors
1,10,000
Interest outstanding
5,000
Cash
30,000
Creditor's
1,45,000
Profit loss A/c
1,20,000
10,05,000
7,05,000
When the payment of unsecured creditor's can made clear that company is solvent company. Company went into liquidation on above date the preference share dividend is in arrear's of
2 year. The arrear's are payable on liquidation. Creditor's Including loan of Rs. 50,000 the mortgage Land Building 1,20,000.
Asset were realize as follows:-
Building Rs. 1,20,000, Patents Rs. 30,000.
Debtors Rs. 80,000, Plant Machinery Rs. 2,00,000
Stock Rs. 60,000.
The expenses of liquidation is Rs. 10,900 the liquidation is entitle for commission on all Asset except cash on amount distributed to unsecured creditor's preference creditor's amounted to Rs. 15,000. Assume that all payment ware made on 30th June 2016. Prepare liquidation final statement.
8.
Why is the Going concern Postulate central to accounting practice?
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9.
Write an explanatory note on accounting standard setting in India.
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10.
Write short note any two.
Convention of conservatism
Current and long term liabilities
Procedure of Rectifying the errors
Merits of Goodwill valuation
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