DISTANCE EDUCATION
B.Com. (CA)/B.Com. (CA)(Lateral) DEGREE EXAMINATION,
MAY 2017.
ADVANCED ACCOUNTANCY
(2005 onwards)
Time Three hours Maximum 100 marks
PART A — 8 40 marks)
Answer any FIVE questions.
1. Explain the Role of Accountant in the Present day
Economy.
2. Define accounting. State its functions. How does it differ
from book keeping?
3. A,B and C are in Partnership sharing profits and losses
in the ratio of respectively. Their balance sheet as
on 31.12.2000 stood as follows.
Liabilities Rs. Assets Rs.
Creditors 7,000 Cash 3,000
Capital Accounts Debtors 2,000
A 8,000 Stock 4,000
B 4,000 Buildings 11,000
C 1,000 13,000
20,000 20,000
Sub. Code
31
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The firm was dissolved on the date. "A" agreed to take
over the stock at an agreed value of Rs. 3,000 and debtors
at Rs. 1,400. The building was sold at auction for
Rs. 5,400.
Pass necessary journal entries and prepare necessary
ledger accounts to close the books of the firm.
4. Explain Sale to Company.
5. Write notes on;
Statutory Books
Statistical Books
6. On the above of absorption of A. ltd by B. ltd, following
summarized details are given;
A Ltd. B Ltd.
Net Assets 33,30,000 41,25,000
Number of equity shares
Rs. 2,100 each 9,000 15,000
Reserves 15,30,000 11,25,000
Terms of absorption proposed as follows:
The holders of every three shares in A Ltd were to receive
four shares B Ltd plus as much cash as is necessary to
adjust the rights of share holders of both companies in
necessary to adjust the write of share holders of both
companies in accordance with intrinsic value of their
respective shares.
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You are required to a compute the purchase
consideration, and present the projected balance sheet of
B Ltd as if the proposed absorption is put through.
7. Redemption of 5000 preference shares of Rs.200 each was
carried out of reserves and out the issues of 6000 shares of
Rs.100 each Rs.185. what is the amount of capital
redemption reserve account that is required.
8. Distinction between External Reconstruction and
Amalgamation.
PART B — × 15 60 marks)
Answer any FOUR questions.
9. How can a partner retire from a partnership firm and it's
a retiring partner liable for liabilities incurred by the
partnership firm after his retirement?
10. Explain Sec 32 of the partnership Act provisions relating
to retirement of a partner from partnership firm.
11. The following is the balance sheet of X,Y and Z. Their
profit sharing was 3:2:1. You are required to show the
distribution of cash in proportionate capital method. Also
prepare realisation account.
Liabilities Rs. Assets Rs.
Creditors 15,000 Cash 10,000
Bills payable 5,000 Sundry assets 50,000
capital 20,000 Profit and loss a/c 6,000
capital 10,000
capital 16,000
66,000 66,000
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The assets were realized as follows
1st instalment Rs. 16,000, 2nd instalment Rs. 16,000 and
lost instalment Rs. 3,000.
12. A and who were in Partnership sharing profits and
losses in the proportion of 4:3 respectively, decided to
dissolve the Partnership firm as on 31st December, 2013
At the date of dissolution, capital was Rs.1,25,030 and
Rs. 2,070; the creditors amounted to Rs.23,150 and
cash at bank Rs 4,520.The remaining assets realized
Rs. 1,24,910 and the expenses of dissolution were
Rs l,860. both A and B were Solvent
Prepare the balance sheet of the firm as on the date of
dissolution and also the accounts necessary to close the
books of firm, showing the final adjustment of cash
between the partners.
13. The balance sheet of Zee ltd as at 31.12.2013 is given
below
Liabilities amount Assets amount
Issued paid up share capital: Freehold property 2,00,000
20,000 equity shares of Rs.10 each 2,00,000 Stock in trade 1,20,000
profit and loss account 1,80,000 Sundry debtors 1,00,000
debentures 1,20,000 Cash bank balance 1,80,000
Current liabilities and provisions:
Sundry creditors 1,00,000
6,00,000 6,00,000
It was resolved at the annual general meeting:
To pay a dividend of Rs.
To issue one bonus share for are every four shares
held.
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To give existing shares holders the Option to buy
one Rs. 10 share of Rs. 14 for every four shares held
prior to bonus distribution
To repay the debentures at a premium of 4%.
All the shares holders took up the option in
Above.
Prepare appropriate journal entries and draw up
the balance sheet after the above Transaction have
been given.
14. X Co.Ltd agreed to acquire the assets excluding cash as
on 31st Dec. 2003 of Y Co. Ltd. The B/S of Y Ltd. as on
that date was
Liabilities Rs. Assets Rs.
Equity Capital (Shares of 3,00,000 Good will 60,000
Rs. 10 each) Land and Building 1,20,000
General Reserve 80,000 Plant and Machinery 2,00,000
Debentures 50,000 Stock 80,000
Creditors 10,000 Debtors 30,000
P L a/c 60,000 Cash 10,000
5,00,000 5,00,000
The consideration was as follows
A cash payment of Rs. 4 for every shares of Y Ltd.
The issue of one share of Rs. 10 each (market value
Rs. 12.50) in the X company Ltd for every share in Y
Co.Ltd.
The issue of 1,100 debentures of Rs. 50 each in
X Co.Ltd. to enable Y Ltd. to discharge its
debenture at a premium of 10%
The expenses of liquidation of Y Ltd. Rs. 4,000 was
to be met by themselves.
Give necessary ledger account in the Books of Y Ltd.
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15. Write short notes on:
Dead rent.
Short workings.
Royally suspense account.