(Pages 1494
P.T.O.
MAR IVANIOS COLLEGE (AUTONOMOUS)
THIRUVANANTHAPURAM
Reg. No. :.………………… Name :.………………….
Fifth Semester B.Com. Degree Examination, November 2016
First Degree Programme under CBCSS
Core Course: Commerce XIII
AUCO543: Accounting for Specialised Institutions
Time: 3 Hours Max. Marks: 80
SECTION A
Answer ALL questions in one or two sentences.
1. What do you mean by clear profit
2. Explain Tariffs and dividend control reserve.
3. What is reversionary bonus
4. What are the financial statements prepared by general insurance as per the regulations issued by IRDA
5. State the main role of Public Accounts Committee.
6. What is contango charge
7. Define Local Self Governments.
8. What is non banking asset
9. Expand NPA in Banking Companies.
10. Explain Double insurance.
(10 × 1 10 Marks)
SECTION B
Answer any EIGHT questions, each in a short paragraph not exceeding 50 words.
11. How do we calculate reasonable return
12. What are the purposes of maintaining contingency reserve by electricity companies
1494
2
13. How will you treat the discount and premium on issue of shares under double account system
14. What do you mean by valuation balance sheet
15. Explain reserve for unexpired risk.
16. What are the restrictions on declaring dividend by an electricity company
17. What are the three main divisions of Government accounts
18. Explain forward delivery contract.
19. What are the features of accounts prepared by local bodies
20. Explain statutory reserve.
21. List out the advantages of slip system of posting followed by commercial banks.
22. What do you mean by contingent liabilities
× 2 16 Marks)
SECTION C
Answer any SIX questions, each in a paragraph not exceeding 120 words.
23. What are the features of double account system.
24. From the following particulars of the Life Insurance Company for the year ended 31st March 2016, prepare valuation balance sheet as on 31st March, 2016 and distribution statement.
Life assurance fund as on 31st March 2016 Rs. 3800,000,
Net Liability as per valuation Rs. 3000,000
Interim bonus paid Rs. 500,000.
25. The valuation balance sheet of an insurance company carrying life insurance business showed a surplus of Rs. 5,50,000 as on 31st March 2016. The following additional information has been given
a). The company paid an interim bonus of Rs. 50,000 to policy holders during the year.
b). A loss of Rs. 25,000 on investment is to be written off.
c). A provision of taxation for Rs. 2,00,000 has to be made
d). Policy holders are entitle3d to get 95% of the surplus remaining after taxation.
You are required to determine the amount due to the policy holders and pass necessary journal entries in the books of the company.
1494
3 P.T.O.
26. Urban electric company laid down a Main at a cost of Rs. 10,00,000. After a few years it laid down an Auxiliary Main for 1/5th length of the old Main at a cost of Rs. 3,00,000 and also replaced the rest of the length of the old main at a cost of Rs. 12,00,000. The cost of materials and labour having gone up by 30%. Sale of old materials realized Rs. 16,000. Old material worth Rs. 20,000 was further used in renewal and those valued at Rs. 10,000 were further used in the construction of Auxiliary Main. Give journal entries recording the above transaction. Also indicate the apportionment of the above expenses between capital and revenue.
27. Sadanaraj has the following transactions with Capma stock securities Ltd. for the month of October 2016
Oct. 5 Buys 600 Kitex shares Rs. 500 each
Oct. 12 Buys 6000 AVT shares Rs. 20 each
Oct. 19 Sells 500 Kitex shares Rs. 550 each
Oct. 26 Sells 5000 AVT shares Rs. 22 each
Oct. 28 Sells 300 Kitex shares Rs. 520 each
Commission is of the purchase and selling price. Contango chares is 2.5% of nominal value of shares carried and backwardation 1.5% of shares not delivered. Nominal value is 10 per share. The market value of Kitex shares is Rs. 520 and AVT is Rs. 23 as on the date of settlement. Accounts are settled at the end of every month
28. From the following information find out the amount of provisions to be shown in the Profit and Loss Account of Me Bank.
Assets Standard Rs. 5,00,000, Sub standard Rs. 4,00,000 Loss assets Rs. 1,00,000
Doubtful: for one year Rs. 80,000, for three years Rs. 60,000 for more than three years Rs. 20,000
29. Explain the circumstances of treating an asset as NPA by banks.
30. Explain the major sources of income of Local Self Governments in Kerala
31. What are the books of accounts required to be maintained by the stock brokers as per SEBI rules 1992
× 4 24 Marks)
1494
4
SECTION D
Answer any TWO questions, not exceeding four pages.
32. Explain the duties and powers of C&AG and system of financial administration in India.
33. From the following figures relating to Meza Life Insurance Co Ltd. Prepare its revenue a/c for the year ended 31st march, 2016 and a balance sheet as on that date
(Rs in
Share capital (2Crores shares of Rs. 25 each, Rs. 20 Paid up)
4,00,000
Life assurance fund (1.4.2015)
Investment
4,80,00,000
5,10,00,000
Freehold Property
25,00,000
Outstanding premium
6,03,200
Investment fund (1.4.2015)
50,20,000
Claims paid less reinsurance
45,00,000
Unpaid dividends
51,790
Expense of Management
15,00,426
Outstanding interest
5,90,000
Commission paid
1,00,000
Loan on company's policies
51,00,000
Claims admitted but not paid
30,00,00
Annuities
30,000
Surrenders
2,58,950
Interest, dividend Rent received
32,00,336
Consideration for annuities granted
50,500
Income tax on interest and dividends
1,20,000
Bonus in reduction of premium
4000
Interest accrued
3,17,000
Income tax
280,148
Premium received in advance
1,00,00
Agents balance outstanding
1,45,904
Furniture and fittings
90,500
Sundry creditors
44,874
Cash at bank
3,46,480
Stamps in hand
7,322
Premium less reinsurance
75,00,000
Transfer and other fee
6.430
34. From the following particulars prepare the balance sheet of Apke Bank ltd as on 31st march 2016
Debit balances
Credit balances
Money at call
Bills discounted
Investments at cost
Central govt. securities
Debentures
2,00,000
9,00,000
1,00,00,000
4,00,000
Share capital
Reserve fund
Fixed deposits
Savings deposits
Current a/c
10,00,000
16,00,000
40,00,000
60,00,000
2,20,00,000
1494
5 P.T.O.
Bullion
Premises at cost
Addition to premises
Cash with RBI
Cash with SBI
Overdraft
Branch adjustment
Silver
Advance payment of tax
Interest accrued on investment
Non banking asset acquired
24,00,000
1,00,00,000
20,00,000
34,00,000
12,00,000
1,00,00,000
57,94,000
2,00,000
1,10,000
2,60,000
70,000
Reserve for building
Depreciation fund
Unclaimed dividend
Unexpired discount
Borrowings from banks
Bills payable
P L a/c (2,10,000 for the year)
Dividend fluctuation fund
10,00,000
80,00,000
24,000
50,000
2,50,000
20,00,000
4,10,000
6,00,000
Total
4,69,34,000
Total
4,69,34,000
The bank had bills for collection for its constituents Rs. 3,00,000 and acceptance Rs. 4,00,000, there was a claims Rs. 2,00,000 against bank but not acknowledged as debt. The liability for bills rediscounted was Rs. 32,000. Liability for forward exchange contract was Rs. 20,00,000. The Director decided to reserve Rs. 2,000 for unexpired discount and transfer reserve for building to depreciation fund.
35. From the following particulars available in respect of PPP electric supply company Ltd, as at 31st March 2016, work out the capital base, reasonable return, surplus and give the calculation of disposal of surplus if any;
Rs. In lakhs
Fixed assets
6,000
Accumulated depreciation
2,000
Cost of license
100
Depreciation reserve fund investment
2,000
Loans advanced by the State Electricity Board
500
Debentures
1,000
Tariff and dividends control reserve
300
Security deposits received from consumers
300
Monthly average of the month end balances of stores, materials, supplies, cash and bank
300
Clear profit for the year
600
Other information: All statutory investment stand at the current figures since April 2015 and earn a return of 10% p.a.
The applicable RBI rate is
× 15 30 Marks)