BCom In Accounting & Finance (BCAF) SEM III ATKT FINANCIAL ACCOUNTING III 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
   • 1. Income received in advance is shown on asset side of Balance Sheet
   • 2. account total of debit and credit side should always be equal
   • 3. In piecemeal distribution Govt. taxes are secured creditors
   • 4. Preferential Creditors are secured creditors
   • 5. In piecemeal distribution partners loan is paid before unsecured
   • 6. Gains and losses on Realisation in an amalgamation are divided in capital ratio among partners
   • 7. of firms, General Reserve is transferred to realization Account
   • 8. of firms, discharge of liability is debited to Partners capital A/c
   • 9. The closing balance of realization account indicates Goodwill of the firm
   • 10. Net asset method is not a method of computing Purchase Consideration
2. Q1 [B] THE BLANKS WITH APPROPRIATE OPTIONS [ANY 7] 7 marks
   • 1. In the absence of partnership deed the partners not entitled to
   • A] Interest on Capital Commission
   • C] Salary All of the above
   • 2. At the time of retirement or death of a partner, if not specified, then is raised for all
   • C] Provision for bad debts D] Reserve fund
   • 3. A,B profits in the ratio of 5:4:3 A retires the new profit sharing ratio will be
   • 4. Old profit sharing ratio being 2:1 and the incoming partner is entitled for % share in future profits the new profit sharing ratio would be
   • D] None of the above
   • 5. Discharge of purchase consideration in excess of net asset is debited to ___ inthe books of the
   • 6. Profit and loss adjustment account is also known as
   • A] Revaluation B] Realisation
   • 7. isnot of calculation of purchase consideration
   • A] method B] Discharge or payment method
   • 8. If the incoming partner is guaranteed a minimum share of profit then he is paid profit
   • C] Least amount of D] None of the above
   • 9. Exporter will in the exchange rate of the foreign currency in relation to
   • A] Increase B] Decrease
   • C] No change D] All of the above
   • 10. Difference of foreign exchange fluctuation account is transferred to
   • A] Balance sheet B] Profit and Loss account
3. Q2 [A] Sanil and Rahul were in partnership business sharing profits and losses in the ratio of 3:2. As from 1.7.2017 they admitted Akash into partnership giving him one-fifth of the profits. Akash brought in Rs.320000 in cash of which Rs.60000 were considered as being in payment of his share of Goodwill and remainder as his capital. The following trial balance was extracted from the books as on 31.3.2018 TRIAL BALANCE AS ON 31.3.2018 15 marks
   • 1. Stock as on 31.3.2018 was valued at Rs.200000
   • 2. Rs.1000 due from customer on account of sales, who has become insolvent
   • 3. Reserve for doubtful debts is to be maintained at 10% on the sundry debtors
   • 4. Depreciation on Furniture is to be charged at 10% p.a
   • 5. Goods to the value of Rs.5000 have been distributed as free samples
   • 6. Interest on Capital @6% p.a Prepare Final Accounts of the Firm
4. Q2 [B] From the available information prepare profit & loss account for the year ended March 2018, and the Balance Sheet as on that date. Trial Balance of a partnership firm as on March 2018 is as follows TRIAL BALANCE AS ON 31st MARCH 2018 Furniture 135000 Loan from Anjali 450000 Cash and Bank 77250 On July 2017 Shivani retired. Before her retirement the partners shared profits and losses in the ratio of 3:2:1. The following adjustments were to be incorporated upon retirement of Shivani. All the amounts due to Shivani to be transferred to her Loan account 15 marks
   • 1. Provide 5% Interest on capital
   • 2. Sales up to July 2018 was Rs. 10,00,000 and thereafter there was a further sales of Rs. 90,00,000
   • 3. Create 10% Reserve for Bad Debts
   • 4. Depreciate Land and Building by 20% and Machinery by 10%
   • 5. Goodwill Rs. 120000 is to be raised for all the partners Discount received to be allocated on the basis of Period
5. Q3 [A] Following are the Balance Sheet of M/s R & A who share Profits and Losses equally and M/s J & U sharing Profits and Losses in the Ratio of 2:1 BALANCE SHEETS AS ON 315' MARCH 2018 Creditors 70000 64000 | Cash at Bank 84000 70000 Both the firm decided to amalgamate and forma new Firm by the name RAJU Following additional information is provided to implement the process of amalgamation 15 marks
   • 1] Investment were taken over at 5% less than the Book Value for both the firms
   • 2] Furniture and Fixtures of R & A were taken at Book Value and that of J & U were valued at Rs. 54000
   • 3] Machinery of R & A was to be appreciated by 20% & that of J & U be appreciated by 15%
   • 4] R.D.D. should be created at 5% on Debtors for both the firms. Bad Debts for J & U was Rs. 6000
   • 5] The value of Goodwill was fixed at Rs. 60000 for each firm and cash at bank was not taken over
   • 6] Unrecorded Equipment of R & A are valued at Rs.24000 were taken over by the new firm
   • 7] The new firm took only Creditors and Bills Payable of both the firms and the liabilities not taken over by the new firm were paid in full by the old firm You are required to prepare ledger account to close books of both the old firm and Prepare a Balance sheet of New firm
6. Q3 [B] Vishruti, Sharvaree and Isha are partners sharing profits and losses in the ratio of 3:2:1. Their Balance Sheet on Dec.2017 was as under BALANCE SHEET AS ON 31.12.2017 Loan from Isha 153000 | Cash at bank 45000 15 marks
   • 1) They decided to dissolve the firm on that date. All the Fixed assets were sold to Maria for Rs.450000 who paid the amount due on 28* February 2018
   • 2). The other assets realised the amounts mentioned against each head in the chart below: Prepare a Statement showing piecemeal distribution of cash as per Excess capital method
7. Q4 [A] Sherin, Janesa and Alba are partners sharing profits in the ratio of 2:2:1 respectively. They decided to decided to convert their partnership firm into a joint stock company by the name SJA Ltd. Following is the Balance Sheet on the date of conversion BALANCE SHEET AS ON 31.03.2018 SJA Ltd took over the following assets & liabilities Land & Building at Rs. 560000 Machinery at Rs.240000 Furniture & Fixture at Rs.20000 Stock at Rs. 120000 Goodwill at Rs. 128800 Create 10% Reserve for Doubtful Debt. The company has also agreed to take over Sundry Creditors Rs 360000. The purchase consideration was discharged by the Issue of sufficient number of equity shares of Rs. 100each fully paid up at par The firm sold Securities for Rs. 160000 and paid Bills Payable fully. Motor Van was taken over by Sherin at Book value. The firm paid realisation Expenses Rs.20000. Purchase consideration was distributed amongst the partners as per their proportionate capital as at the end. You are required to 15 marks
   • 1. Calculate the Purchase Consideration
   • 2. Close the books of old partnership firm
   • 3. Prepare Balance Sheet of the New company as per the revised Schedule VI
8. Q4 [B] From the following transactions of Sandy Ltd. Pass necessary journal entries Samarth Ltd. closes its books on March every year. The exchange rate on March 2017 was 15 marks
9. Q5 [A] [a] How is surplus capital calculated under piecemeal distribution? [7] [b] What do you mean by monetary and non-monetary item in relation to foreign exchange 15 marks
10. Q5 [B] WRITE SHORT NOTES [Any 3] 15 marks
    • 1. Rules in absence of partnership deed
    • 2. Statements of piecemeal distribution
    • 3. Need for conversion of a partnership firm into company
    • 4. Steps for amalgamation of partnership firms
    • 5. Accounting entries in foreign exchange transactions

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