DISTANCE EDUCATION
B.B.A. (Corporate Secretaryship)/B.B.A. (Lateral)
DEGREE EXAMINATION, MAY 2016.
ADVANCED ACCOUNTANCY
(2005 onwards)
Time Three hours Maximum 100 marks
SECTION A — × 8 40 marks)
Answer any FIVE questions.
1. Discuss adjustment for goodwill on admission of partners.
2. What are all the items debited or credited to a dead
partner's capital
3. What is piecemeal distribution?
4. Distinguish between dissolution of partnership and
dissolution of partnership firm.
5. A company forfeits 100 shares of Rs. 10 each, originally
issued at a premium of Rs. 2 per share. The shareholder
paid Rs. 4 per share on application but did not pay the
allotment money of Rs. 4 per share (including premium)
and call of Rs. 4 per share. The share are subsequently
reissued at Rs. 11 per share as fully paid up. Pass journal
entries for forfeiture and reissue of forfeited share.
6. How do you apportion different expenses between pre ad
post incorporation periods? Explain with examples.
7. Explain the two types of amalgamation.
8. Distinguish between departments and branches.
Sub. Code
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SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. A and B are partners in a business. The balance sheet of
the partners was as follows
Liabilities Rs. Assets Rs.
Creditors 1,40,000 Goodwill 40,000
Bills payable 60,000 Motor car 1,60,000
P L A/c 1,00,000 Stock 4,00,000
Capital Debtors 3,60,000
A 4,00,000 Cash and Bank 40,000
B 3,00,000
10,00,000 10,00,000
C is admitted 1/5th share on the following terms.
Goodwill is valued at Rs. 80,000 and can bring
only Rs. 6,000 cash for his share of goodwill.
C is to bring Rs. 1,50,000 as his capital.
Motor car is valued at Rs. 2,00,000. Stock
Rs. 3,80,000 and debtors at Rs. 3,50,000.
Pass journal entries and balance sheet after
admission.
10. Explain in detail the rule laid down in 'Garner
Vs Murray' case and its effects on closing of accounts of a
dissolved firm.
11. X Ltd. has the following balances as on 31.3.2003.
Rs. Rs.
Share capital Fixed assets 22,00,000
Issue, subscribed and Current assets 8,00,000
fully paid up
10,000 equity share
of Rs. 100 each 10,00,000
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Rs. Rs.
5000 preference
shares of Rs. 100 each 5,00,000
Capital reserve 1,00,000
Securities premium 1,00,000
General reserve 2,00,000
P L a/c 1,00,000
Current liabilities 10,00,000
30,00,000 30,00,000
The preference shares are to be redeemed at 10%
premium. Fresh issue of equity shares is to be made of
the extent it is required under The Companies Act for the
purpose of this redemption. The short fall in funds for the
purpose of the redemption after utilizing the proceeds of
the fresh issue is to be met by taking a bank loan. Show
Journal entries.
12. Every Balance sheet of a company shall give a true and
fair view of the state of affairs of the company as at the
end of the financial year and shall, subject to the
provisions of section 211 of the Companies Act, be in the
form set out in part I of schedule VI.... Amplify and give
the form of balance sheet.
13. The following is the balance sheet of Weak Co. Ltd. as on
31st March 2002.
Liabilities Rs. Assets Rs.
100000 equity shares Land 1,00,000
of Rs. 10 each 10,00,000 Plant and
Sundry creditors 1,73,000 Machinery 2,30,000
Furniture and
Fittings 68,000
Stock 1,50,000
Debtors 70,000
Cash at bank 5,000
P L a/c 5,50,000
11,73,000 11,73,000
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The approval of the cost was obtained for the following
scheme of reduction of capital.
The equity shares to be reduced to Rs. 4 per share
Plant and machinery to be written down to
Rs. 1,50,000
Stock to be revalued at Rs. 1,40,000.
Pass journal entries to give effect to the above
arrangements and also prepare reconstruction
account.
14. Mineral Ltd. leased a property from Sarkar at a royalty of
Rs. 1.50 per ton with a minimum rent of Rs. 10,000 p.a.
Each year's excess of minimum rent over royalties is
recoverable out of royalties of next five years. In the
event of a strike and the minimum rental not being
reached, the lease provided that the actual royalties
earned for the year discharged all rental obligation for
the year.
The results of working of the property are given below
Actual
royalty
in Rs.
2007 Nil
2008 3,300
2009 9,000
2010 11,100
2011 14,000
2012 15,000
2013 (strike) 8,000
2014 15,200
Write up the minimum rent a/c and royalties account
showing the account charged to profit and loss account
each year.
15. What do you understand by Hire-Purchase system? In
what respects does it differ from Installment system.