B.Com. (Financial Management) SEM II 2018 19 April 2018-19 FINANCIAL ACCOUNTING II Question Paper - Mumbai University | munotes

Questions asked in this paper

• 3) Figures to the right indicate full marks

1. Q1 A) Match the Fllowing and rewrite: (Any 8) 8 marks
   • 1) Bad debts in Branch Account A. No. of points in each department
   • 2) Opening stock B. Units sold by each department
   • 4) Rent, taxes and repairs of building D. Debit side of Branch Account
   • 5) Staff salaries. E. Floor area of each department
   • 6) selling expense F. No. of workers in each department
   • 7) Cash price of the article and the interest G. Credit purchase method
   • 9) Income tax payable by a firm as on the date of |. Hire purchase price
   • 10) Balance of partly secured creditors not met out | creditors of the secured assets
2. Q1 B) State whether statements are True or False and rewrite the sentence. (Any 7): 7 marks
   • 1) Piecemeal distribution means division of physical assets in pieces among the partners
   • 2) In excess capital method, the minimum capital is equal to the lowest unit capital
   • 3) Down payment means the total amount payable by the hirer
   • 4) Hire purchase agreements normally lasts more than one year
   • 5) Branch account under debtors system is a real account
   • 6) Cash remittance from branch includes cash sales and collection from debtors
   • 7) Depreciation on branch fixed debited to branch account under debtors system
   • 8) Management expenses are taken to the general profit and loss account
   • 9) Sales salaries is an example of indirect expense
   • 10) Depreciation is apportioned equally in all the departments
3. Q2 A,B,C are partners sharing profits and losses in the ratio of 4:2:1. They decided to dissolve the partnership as on March 31 2018 when their Balance sheet was as follows: (15) Creditors 11,400 | Cash In Hand 140 All creditors have to be paid off.Rs2,400 have to be provided for realisation expenses. Thereafter all cash Received should be distributed among the partners The amounts were realised as follows: The actual realisation expenses were Rs 1,200. Prepare a statement showing distribution of cash as per
4. Q2 Prepare Departmental Trading and Profit and Loss Account and General Profit and Loss Account from the following particulars: (15)
   • 1) There was no Opening Stock
   • 2) The floor space occupied by the three departments A,B and Cis the ratio of 3:2:2
   • 3) The Motor Van Expenses are to be divided equally between Departments B and C
   • 4) The Insurance premium is on a comprehensive policy and cannot be allocated
5. Q3 Mandar Chemicals (P) Ltd. Has a branch in Patna. Goods are invoices to the Branch at cost plus 30%. From the following details. Prepare Branch Account. (15) Stock on 1-1-2018 26,000 | Goods returned to H.O 6,500 Debtors on 1-1-2018 50,000 | Goods returned by branch Cash in hand on 1-1-2018 250 | Debtors to branch 3,000 Goods sent to Patna branch 1,30,000 | Total sales of the branch 2,23,000 Cheque’s sent to Patna branch Cash sales 1,70,000
   • a) Salary 3,000 paid by branch 23,000
   • b) Rent 2,000.) Collection from Debtors 64,000 Furniture purchased by H.O for the Branch 10,000 | Closing stock on 31-12-2018 | 1,04,000 Cash balance on 31-12-2018 130 Depreciation on Furniture at 10%
6. Q3 Amit and Sumit were partners sharing profits and losses in the proportion 2/3 and 1/3". their balance sheet is as follows: (15) PROFIT AND LOSS A/C 6,000 | LESS:RDD 3000 60,000 April, 2017 Rohit is admitted in the partnership on the following terms:
   • 1) Rohit should bring in cash Rs.48,000 as capital for share in total profits
   • 2) Goodwill was raised in the books of the firm for Rs.18000
   • 3) Building is revalued at Rs.1,12,000 and the value of stock to be reduced by Rs.6,000
   • 4) Reserve for doubtful debts to be maintained at Rs.1800
   • 5) Amit’s loan is to be repaid Prepare Revaluation A/C, Capital A/C’’s of partners and balance sheet of the new firm
7. Q4 Mr.Tata purchased a car on hire purchase basis from Sandro Ltd. On 1-1-2017 for Rs2,60,000. He paid Rs20,000 on signing the contract and four half-yearly instalments of Rs60,000 each on 30" June and December every year thereafter. The cash value of the car was Rs2,10,000 Santorum Ltd. Charged interest at 20% p.a. with half yearly charge. Depreciation @ 20% p.a on W.D.W is charged on Car. (15) Prepare Ledger Accounts for Mr.Tata and Interest in the books of Sandro Ltd. For the years 2017 and 2018
8. Q4 The Loksewa Transport Ltd. purchased trucks from the Hindustan Motors Ltd on Hire Purchase Basis The cash price of the trucks was Rs 3,20,000. The amounts were payable as under: Rs 1,00,000 on the date of purchase i.e January 2016 Rs 80,000 on 315t December 2016 Rs 80,000 on December 2017 Rs 82,478 on December 2018 The Hindustan Motors Ltd charged interest at 5% p.a on the unpaid amount. The purchasing decided to write off as depreciation 20% on the diminishing balance each year. required to give Trucks Account, the Hindustan Motors Ltd. account and Interest account in books of the Loksewa Transport Ltd according to Credit Purchase Method
9. Q5 A) Distinguish between Department and Branch. 8 marks
   • B) Explain in brief — Hire Purchase Method. 7
10. Q5 WRITE SHORT NOTES ON (ANY 3) 15 marks
    • 1) Piecemeal distribution of cash
    • 2) Stock Reserve
    • 3) Stock and debtors method under branch account
    • 5) Different methods of allocating expenses amongst the department

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