BCom In Accounting & Finance (BCAF) SEM III 2019 2020 Oct 2020 FINANCIAL ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 (A) State whether the following statements are true or false. (Any 8) 8 marks
   • 2. Closing stock is always valued at cost price
   • 3. Piecemeal distribution means division of physical assets in pieces among the partners
   • 4. of firm, profit & loss adjustment account is opened
   • 5. Onamalgamation of firms, discharge of liability is credited to realisation A/c
   • 6. Amount payable to retiring partner is transferred to Balance sheet asset side
   • 7. Balance in FEF A/c is transferred to Capital Reserve A/c
   • 8. Agreed value refers to the value specify in the adjustments
   • 9. Realisation A/c is prepared in case of dissolution of partners
2. Q1 (B) Match the following. (An 7) 7 marks
   • 3. P&L Appropriation A/c C. debit all partners capital A/c
   • 5. income tax payable by firm on date of dissolution | E. credit all partners capital A/c
   • 6. loss on realisation on amalgamation F. Goodwill
   • 7. general reserve on the date of amalgamation G. Adjustment related to partner
   • 8. partners are promoters H. should be translated at exchange rate
   • 9. closing balance of monetary items sale of firm to company
   • 10. partners may not be directors J. conversion of firm into company
3. Q2 Following is the Trial Balance of M/s. PQR Ltd. having partners P, Q& R (profit & losses in 2:1:2) as on 31 marks
   • 1. Interest on capital @ 10% p.a
   • 2. Partner Q & R should get salary of Rs. 200 p.m
   • 3. on 30" September 2014, and his share was taken by other partners in old profit sharing ratio
   • 4. The goodwill on the date of retirement was Rs. 6000 and it was agreed by the new partners that it should not appear in the books of accounts
   • 5. R will not get salary after his retirement but he is entitled for interest @ 12% p.a. on the outstanding balance after
   • 6. Depreciation on plant & machinery for the year was Rs. 4000 You are required to prepare Profit & Loss account and Balance Sheet after considering above information for ine year ended 31“ December 2014. (15 marks)
4. Q2 Following is the trial balance of a firm as on December, 2013
   • 1. A were partners sharing profits & losses equally
   • 2. Mr. C was admitted to the partnership on July 2013
   • 3. December 2013 stock was valued at Rs. 70500
   • 4. Rent paid in advanced Rs. 700
   • 5. Sundry Expenses were outstanding Rs. 400
   • 6. Depreciate Sundry Assets by 20% p.a
   • 7. Goodwill of the firm was valued at Rs. 6000 on 1" July 2013 and not to appear in the Balance Sheet
   • 8. Interest on Capital is charged @ 10% p.a You are required to prepare Trading, Profit & Loss Account for the year ended December 2013 & Balance Sheet as on that date. (15 marks)
5. Q3 Anil, Sunil and Neel carrying on business in partnership decided to dissolve it on and from 30" September 2013 Following is their Balance Sheet as on that date As per the arrangements with the bank, the partners were entitled to withdraw Rs. 4000 immediately and Rs. 9000 after December 2013. It was decided that after keeping aside an amount of Rs. 1000 for estimated realisation expenses. The following were realisation: Actual realisation expenses amounted to Rs. 700 Calculate excess capital and prepare statement of distribution. (i5 marks)
6. Q3 Anaya Itd. imported goods from Bhakti Ltd of USA worth US $ 150000 on 1 December 2013, when the exchange rate was Rs. 60 per US $. The amount to be paid in instalment is as follows: Anaya Itd. close the books on 3 1* March every year. On March 2014 the exchange rate was Rs. 63 per US $ You are required to pass journal entry in the books of Anaya Itd And also prepare foreign exchange fluctuation account. (15 marks) Ollowing were the Balance Sheet of M/s. Plains & co. And M/s. Checks & co. as on December 2013 The two firms decided to amalgamate their business as from 1“ January, 2014 and form a new firm Plains & Checks co. for this purpose it was agreed that Mrs. A’s Loan should be repaid by the firm. Goodwill of plains & co. was fixed at Rs. 8000 and that of Checks & co. at Rs. 10000. Premises were revalue at Rs. 50000. The stock of Plains & co. was found over valued at Rs. 4000; whereas the stock of checks & co. wes undervalued by Rs. 2000. A provision of 5% was created for doubtful debts of both the firms. The total capital of the new firm (Plains & Checks co.) was to be Rs 80000 and capital of each partner was to be in his profit sharing ratio which was to be 3:2:3:2. Adjustments to be made through their current accounts. Prior to that goodwill account in the new firm was to be written off. Following the realisation method, prepare ledger accounts in the books of Plains & co. and Checks & co. to close these partnership
7. Q4 Orange, Apple and Banana were partners carrying on partnership business and sharing profit and losses in the of 1:2:3. On March 2013 their Balance sheet was as under: On the above date a Private Ltd. company was incorporated to take over the above business on the following terms All assets (except cash and investments) and all liabilities (except Apple’s Loan) to be taken over by the company for which all assets are valued at par except building which is considered worth Rs. 27000 and stock as worth Rs 14000. Further Goodwill is valued at Rs. 30000
   • 2. Apple’s Loan to be partly liquidated by his taking over the firm’s cash & investments at par. For the balance he is given 8% debenture received from the company in part discharge of purchase consideration
   • 3. The balance of the purchase consideration is received in the form of equity share of the company which are to be appropriately distributed amongst the partners Pass journal entry and prepare ledger accounts to close the books of the firm. (1S marks) QS. (a) Elaborate the process of accounting of a partnership firm with reference to date of a partner. (8 marks)
8. Q5 (b) What is amalgation of partnership firm? 7 marks
9. Q5 Write Short Notes. (Any 3). 15 marks
   • 2. Piecemeal Distribution
   • 3. Purchase consideration
   • 4. Stock Group

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