BCom SY BCom Sem 3 2023 2024 2024 ACCOUNTANCY & FINANCIAL MANAGEMEN III Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A] State True or False: (any 10). 10 marks
2. Q1 Indian Partnership Act is in force since 1932
3. Q2 Drawing appears on debit side of capital Account
4. Q3 In excess capital method, Unit Capital = Adjusted Capital + Share of Profit
5. Q4 In excess capital method, Proportionate capital = Base Capital x Profit share of partner
6. Q5 On conversion into a limited company, firm receives purchase consideration from the company for sale of business
7. Q6 On Amalgamation, the realisation account is opened After amalgamation, assets and liabilities of old firm get recorded at their realisable values
8. Q8 Ina piecemeal distribution, the amounts from assets are used to pay first the outside loans and then the realisation expenses a 9. Conversion of firm into company does not involve dissolution of firm
9. Q10 Closing stock is valued at cost price or market price whichever is more
10. Q11 Prepaid expense is a liability
11. Q12 In case of Amalgamation, the goodwill of both the firms is ignored
12. Q1 B] Fill in the blanks (Any 10) 10 marks
    • a. Payment made in advance is shown on Side of balance sheet
    • b. Interest on drawing of a partner is credited to Account
    • c. Ifthe realised amount is not sufficient to pay all outside debts, then (The dues are paid proportionately The largest dues are paid first)
    • d. Income received in advance is shown on side of Balance Sheet
    • e. The interest on capital of partner is credited to
    • f. The Purchase Consideration is calculated by ‘
    • g. Type of partner whose association with the firm is not disclosed to the public (Admission of partner Secret Partner) =
    • h. Fictitious assets are distributed among the partners
    • i. Wages are debited to
    • j. Employee’s dues are liabilities,
    • k. In conversion, if purchase consideration is more than the net asset taken over, in the books of the purchasing company, the difference is (Credited to Capital Reserves Debited to Goodwill A/C) In excess capital method, Excess Capital = SYBCOM-SEM-IIl ACCOUNTANCY & FINANCIAL HRS 100 MARKS U and M were in partnership, sharing profits and losses in the ratio of 1/2, 1/3, 1/6 respectively. Their firm was dissolved as on 31st December 2022 on which date the Balance Sheet of the firm was as under: It was agreed that the realisation should be distributed in their due order at the end of each fortnight. The realisation and expenses were as under: Stocks were completely disposed off and the remaining debtors were to be taken over by Mr. M at an agreed amount of Rs. 600 Show the Statement of distribution of cash as per Relative Capitals Method
13. Q2 business of M/s’ Lad and Wad’, who were sharing profits in the ratio of 3: 2 has been taken over by ABC Co. Ltd. Their Balance Sheet as on 31-03-2023 was as follows: 16,580 Land and Building 40,000 Overdraft 8,950 Plant and Machinery 24,000 The company took over all the assets and assumed all the liabilities and the consideration was fixed at Rs. 110,000. In computing this figure, Land and Building were valued at Rs 60,000, Plant and Machinery at Rs. 20,000; Stock at Rs. 15,000 and Debtors at book value subject to allowance of 5% to cover the doubtful debts The Purchase price was settled by the issue of 3,300 Equity shares at Rs. 10 each, to firm, 2,500 Preference Shares of Rs. 10 each, and the balance paid in cash Shares in Limited Company A/c and (e) Cash A/c ACCOUNTANCY & FINANCIAL 100 MARKS
14. Q3 following is the Trial Balance of a firm as on 31st December, Marks] On Ist July 2022, 'Sita’ retired and the following adjustments were agreed upon:
    • a. Goodwill of Rs 90,000 was brought into the books of accounts
    • b. Furniture worth Rs 20,000 was purchased on 31-3-2022 but the invoice was not recorded in the books
    • c. Balance in Sita's account after making all adjustments was to be transferred to her loan
    • d. Closing stock was valued at Rs 42,000
    • e. Depreciate machinery by 10%, Premises by 5% and furniture by 5% p.a
    • f. Provide interest on capital at 10% Prepare Trading and Profit & Loss Account for the year ended 31- 12-2022 and a Balance Sheet as on that date following is the Trial Balance of firm as on 31st December, 2022. [20 Marks] Rent and Rates 17,700 Capital : VCD/ SYBCOM-SEM-III_ ACCOUNTANCY & FINANCIAL 3HRS 100 MARKS
    • a. DandE were partners sharing profits and losses equally
    • b. Mr. F was admitted to the partnership on Ist July, 2022
    • c. On31st December, 2022 stock was valued at Rs. 70,500
    • d. Rent and Rates paid in advance Rs 700
    • e. Sundry Expenses were outstanding Rs 400
    • f. Depreciate Sundry Assets by 20% p.a
    • g. Goodwill of the firm was valued at Rs 6,000 on Ist July, 2022 and not to appear in the
    • h. Interest on capital to be charged at the rate of 10% p.a You are required to prepare Trading, Profit and Loss Account for the year ended on 31" December, 2022 and Balance sheet as on that date
15. Q4 Mr. Bill and Mr. Will are partners in BW & Co. In a similar type of business Mr. Mill & Mr. Gill are partners in MG & Co. It was agreed that on Ist April, 2023 the old firms be amalgamated into one new firm BMW Group. The respective Balance Sheets of the Old firms as on March, 2023 were as follows: Terms and Conditions of amalgamation:
    • a. Provision for doubtful debts @ 5% to be made on Debtors
    • b. Rebate on the liabilities of creditors to be provided @ 2%
    • c. New Firm to take over the assets of old firms as under :
    • d. Furniture and Land & Building not taken over by New Firm were sold for Rs. 54,000 on Ist April, 2023 by MG & Co
    • e. Mr. Bill to take over investments for Rs. 3,040
    • f. The Capitals of the Partners in the New Firm were to be Rs. 216,000 to be contributed in profit sharing ratio; any adjustment to be made in cash You are required to close the books of the Old Firms and prepare the Opening Balance Sheet of the New Firm ACCOUNTANCY & FINANCIAL MANAGEMENT- 100 MARKS
16. Q4 is the Balance Sheet of two firms as at March, 2023 Marks] It was mutually agreed to amalgamate the business from 1* April, 2023. Terms of amalgamation were as follows:
    • a. A premise was valued at Rs. 10,000 and computers at Rs.12,000
    • b. Furniture was not taken over by new firm
    • c. Areserve of 5% is to be created on debtors
    • d. Goodwill was valued as: M/s. Prem & Co. at Rs. 10,000 and that of M/s. Raj & Co. at Rs
    • e. The new firm also assumed other and Liabilities of old firm at book value Show necessary accounts in the books of old firms and the Balance Sheet of new firm M/s. Prem
17. Q5 A] What is-Amalgamation? Explain various objectives of Amalgamation. 10 marks
    • B] Explain the benefits of Conversion of firm into Company. {10 Marks]
18. Q5 Write a Short notes on (Any 4) 20 marks
    • a. Partnership Deed and it's content
    • b. Piecemeal Distribution of Cash
    • c. External Liabilities
    • d. Purchase consideration
    • e. Conversion of firm into Company + f. Fixed capital and Fluctuating Capital Method

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