BCom In Accounting & Finance (BCAF) SEM V 2018 19 May 2018-19 Financial Accounting VI Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 [A] STATE WHETHER THE FOLLOWING STATEMENTS ARE TRUE/FALSE [ANY 8] 8 marks
   • 1. Demand draft is a mode of transfer of money from one place to another
   • 2. Reinsurance is done when the risk involved in the subject matter is very burdensome
   • 3. Aclaim on reinsurance accepted is added to claims paid
   • 4. Claims outstanding at the end of the year is added to claims paid
   • 5. Future maintainable profit is calculated on the basis of past adjusted average profit
   • 6. Yield value of shares depends on net assets of the business
   • 7. Term deposits are repayable after a certain period
   • 8. Current account in a bank can only be opened by businessman
   • 9. Only the partners of the partnership can be the partners of a converted LLP
   • 10. Insolvency of a partner of LLP automatically results in its dissolution
2. Q1 [B] THE BLANKS WITH APPROPRIATE OPTIONS [ANY 7] 7 marks
   • 1. Money at call and short notice is presented in the final accounts of a banking company in
   • A] Schedule 7 B] Schedule 6
   • C] Schedule 5 D] Schedule 4
   • 2. Balance with RBI is recorded in final accounts of a banking company in
   • A]Schedule 3 B] Schedule 4
   • C] Schedule 5 D] Schedule 6
   • 3. First item on assets of the Balance sheet of a bank is ;
   • A] Cash and balance with RBI B] Investments
   • C] Balance with bank & Money. at call & short notice D] Advances
   • 4. Items of Schedule 3 of Balance sheet of bank is shown in the following order of Deposits
   • 5. A banking Company must hold a licence issued by
   • C] Central government D] State government
   • 6. NPA stands for
   • C] Non-performing assets D] None of the these
   • 7. Value appearing in the Balance sheet refers to value
   • A] Book B] Trade
   • C] Market C] Agreed
   • 8. Intrinsic value method for valuation of shares is suitable in case of
   • A] Liquidation B] Amalgamation
   • C] BothA&B D] None of the Above
   • 9. In LLP there is no concept however every partner must contribute in some manner
   • A] Profit and Loss B] Share capital
   • 10. At least designated partner must be resident Indian
   • B] Two
   • C] Three D] Four
3. Q2 [A] Following is the Trial Balance of Apna Sapna Money Money Bank limited. You are required to prepare final accounts as the prescribed format of Banking Regulation Act TRIAL BALANCE AS ON 315t MARCH 2018 15 marks
   • 1. Create 25% statutory reserve on current year profits
   • 2. Bill for collection amounted to Rs. 30000
   • 3. Claim against bank not acknowledged as debt is Rs. 80000
   • 4. Partly paid investments were worth Rs. 50000
   • 5. Acceptances & Endorsement of bill were Rs. 20000
4. Q2 [B] From the following information prepare Profit & Loss account of Unnati Bank Limited for the year ended Rent, Taxes and Lighting DirectorsFees Commission, Exchange & Brokerage | Profit on Sales of Investment Repairs and Maintenance 15 marks
   • 1. Transfer 25% of current year net profit to statutory reserve
   • 2. Transfer 10% of current year net profit to proposed dividend
5. Q3 [A] Ravi and Kishore are partners in Ravi and Kishore (LLP) sharing profits and losses as 2:3. Their Trial Balance as on March 2016 is as given below. You are required to prepare Profit and Loss Account for the year ended March 2016 and Balance sheet as on that date after taking into Account the given 15 marks
   • 1) Closing stock on March 2016 is valued at cost of Rs. 15,000 while the market value
   • 2) Reserve for Doubtful Debts @ 5% on Sundry Debtors
   • 3) Depreciation on Building is charged at @ 5%
   • 4) Goods worth Rs. 10,000 destroyed by fire. The Insurance Company admitted a claim for Rs. 8,000
6. Q3 [B] SOLVE [I] and [II] From the following information ascertain the value of goodwill on the basis of Capitalization of 1 Profit for the past 5 years is as follows Good will is considered at 3 years purchase of super profit 3 Rate of Return expected is 10% Remuneration payable to partners is Rs. 20000 15 marks
   • 6. All Tangible assets were valued at Rs. 2400000 & All outside liabilities at Rs. 1600000 From the following information calculate the Intrinsic Value of Share
   • 1. Tangible assets were revalued Rs.2600000
   • 2. External Liabilities were valued at Rs 900000
   • 3. 6% Preference shares worth Rs.500000 were to be redeemed
   • 4. Preference shares were to be redeemed at premium of 10%
   • 5. Preference Dividend were in arrears for 2 years
   • 6. Total number of Equity Shares were 10000
7. Q4 [A] From the following Balances of Sun General Insurance Company. Prepare the Revenue account and Profit and Loss Account for the year ended 31st December 2017. In addition to usual reserve the fire Insurance Dept. increases the additional Reserve by 10% of net premium 15 marks
   • 1) Outstanding Premium on 31st December 2017: For Fire Dept. 45000 For Marine Dept. 58000
   • 2) Tax @ 20% to be provided
8. Q4 [B] From the following Balance of United Fire Insurance Company. Prepare the Revenue account for the year 15 marks
   • 1. Create Reserve for Unexpired Risk @50% of Net Premium
   • 2. Outstanding Claims on 1st April 2017 Rs.180000
   • 3. Outstanding Claims on 31st March 2018 Rs. 160000
   • 4. Transfer Rs. 5000 to Catastrophe Reserve [i] What are the advantages of Limited Liability Partnership? [08] [ii] Explain the basis for the classification of Nonbanking Financial Companies? [07]
9. Q5 [B] WRITE SHORT NOTES [Any 3] 15 marks
   • 2. Reinsurance
   • 3. Money at call and short notice
   • 4. Computation of net owned funds of Nonbanking Financial Companies
   • 5. Fair value of shares

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