BCom In Accounting & Finance (BCAF) SEM V 2019 20 Nov 2019-20 FINANCIAL ACCOUNTING VI Question Paper - Mumbai University | munotes

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1. Q1 Fill in the blanks with the correct alternative (Any 8) Interest payable on deposits which is accrued but not due is shown under 3 marks
   • 2. A assets would be one, which has remained NPA for a period less than ot equal to 3, The total number of schedules to an insurance company’s financial statements in India
   • 4. Insurance business is controlled by
   • d. All of the above
   • 5. agency regulates and supervises NBFCs
   • a. Finance Ministry 4+. SEBI c. RBI d.Respective State Government
   • 6. NBFCs are required to accept public deposit fora maximum period
   • 7. The most important element in valuation of goodwill is
   • a. Type of business b. Efficiency of owner Future maintainable profit
   • d. Place and location of business
   • 9. Following can become the partner in LLP
   • a. Company incorporated in India b. LLP incorporated outside India
   • c. Individual resident outside India d. All of the above
   • 10. Following are the factors affecting goodwill except ‘
   • a. Nature of business b. Efficiency of management c.Technical know how
   • d. Location of the customers
2. Q1 B) State whether the following statements are true or false. (Any 7) Sub Broking companies must be registered with RBI
   • 2. Mortgage Guarantee Companies have not been notified as Non Banking Financial Companies
   • 3. Premium shall be recognised when the income is received
   • 4. Company incorporated outside India can become a Partner in a LLP
   • 5. Current account balances are shown by the banks as demand deposit
   • 6. Discount received by the bank is shown under the schedule of interest earned
   • 7. All nationalized Banks are governed by the Banking Regulation Act
   • 8. Fair market value of shares is an average of yield value and intrinsic value
   • 9. Goodwill is excess of sales value of business over net assets of firm
   • 10. LLP should have minimum two partners where as maximum is unlimited
3. Q2 The following figures have been obtained from the books of the Bank Ltd. for the year ending Commission and Exchange 390 Salaries and Wages 420 Rent and taxes 140 Postage and Telegrams 122 Printing and Stationary 300 Profit on sale of Investments 180 Loss on Sale of Assets 76 The Profit and Loss account had a balance of Rs. 10,00,000 on 1* April, 2017 2, of Rs. 5,68,000 has become doubtful and it is expected that only 50% of the amount due can be recovered from the security
   • 3. The provision for tax be made at 35%
   • 4. A dividend of Rs 2,00,000 is proposed by the board of directors Prepare Profit & Loss Account of the Bank Ltd. for the year ending March, 2019
4. Q2 From the following balances, prepare Balance Sheet of Prateeth Bank Ltd. as on March, Bills discounted and purchased 9.00 Advance payment of Tax Interest Accrued on Investment 2.50 and Loss Account (Profit for the | 4.00 The bank had bills for collection for its constituents Rs.8,00,000 and Acceptances Ks. There was a claim of Rs. 2,00,000 against the Bank but not acknowledged as a debt. The liabilities for bills discounted was Rs. 32,000. Liabilities for forward exchange contract was Rs. 10,00,000. The Directors decided to transfer 20% to statutory reserves & reserves Rs. 2,000 for unexpired discounts
5. Q3 A General Insurance Company submits the following information for the year ended: The following additional information are also available:
   • 1. Expenses of Management include Rs. 45,000 Surveyors fees and Rs. 55,000 legal expenses for settlement of claims
   • 2. Reserve for unexpired risk is to be rnaintained @40%. The balance of reserve for unexpired tisk as on 1-4-2018 was Rs. 28,40,000 You are required to make the Revenue Account for the year ended 31 March,
6. Q3 From the following figures taken from the books of Insurance Co. Ltd., doing fire underwriting business, Prepare the Revenue and Profit and Loss Accounts of the year 201 {1S} Claim recovered from Re-insurers Commission on direct business Claims intimated but not paid (1-4-2018) Expenses on Management The following further information may also be noted:
   • (a) Expenses of Management include survey fees and legal expenses of Rs.3,600 and Rs, 2.000 related to claims;
   • (b) Claim intimated but not paid on March, 2019 Rs. 10,400
   • (c) Income-tax to be provided Rs. 31,400
   • (d) Transfer of Rs. 20,000 to be made from current profits to General Reserve 50% is to be transfer to reserve for unexpired risk along with an additional! reserve
7. Q4 Alex and Rex are in partnership sharing Profit and Losses equally. The Trial of the on 31 March, 2019 was as follows: Trial Balance as on March, 2019
   • 1. Closing stock was valued at Rs. 30,000
   • 2. Credit Purchases amounting to Rs. 5,000 were not recorded in the books of account
   • 3. Outstanding expenses were wages Rs. 1,000 and Salary Rs. 2,000
   • 4. Write off Rs. 2,000 for Bad debts and maintain R.D.D. at 5% on debtors.
   • 5. Depreciate Land and Building at 5% and Machinery at 10% From the above Trial balance and adjustments you are required to prepare Final accounts of LLP
8. Q4 A) The Balance Sheet of XYZ Ltd. as on March, 2019 was as under: Balance Sheet as on March, 2019 25,000 Equity Shares of Rs.10 2,50,000 | Plant 3,00,000 The Company earned profits (after tax) for the past five years as follows: profit of 31-3-2018 included hired of 3 years purchase of super is on the basis of their activities {08] The profit of 31-3-2015 includes loss due to fire Rs.30,000 and profit of 3i-3-2018 included abnormal profit of Rs.40,000
   • (a) As on 31-3-2019 Fixed Assets were worth 10% above book value
   • (b) Normal Rate of Return in this type of industry is 16%,
   • (c) Closing Capital employed should be assumed as average capital employed You are required to calculate value of Goodwill on the basis of 3 years purchase of super
9. Q4 B) The following is the summarized Balance Sheet of Virendra Ltd. as on 2019: 50,000 Equity shares of Rs. 20 10,00,000 | Machinery Cash in Hand The company transfers 20% of its profits (after tax) to General Reserve. Net profits before taxation for the last three years have been as follows: For the year ended March 2017 Rs. 5,44,000 For the year ended 31“ March 2018 Rs. 7,32,000 For the year ended March 2019 Rs. 7,88,000 Machinery is valued at Rs. 6,37,200 Average yield in the type of business is 20%. The rate of tax is 50%. Use simple average, Calculate the value of Equity Share on the basis of (a) Intrinsic value method (b) Yield value method
10. Q5 A) What is NBFCs? Explain the different types of NBFC’s on the basis of their activities {08}
    • B) Write distinguish between Banks & NBFCs Write Short notes on: (Any 3)
    • 1. Capitalization method
    • 2. Designated partner
    • 4. Re-insurance
    • 5. Non-Performing assets of Bank

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