BCom SY BCom Sem 3 BCom Sem 3 (2018 2019) Mar 2019 ATKT ACCOUNTANCY FINANCIAL MGT III Question Paper - Mumbai University | munotes

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1. Q2 Q.1 & Q.6 carry 20 marks each and Q.2 to Q.5 carry 15 marks each
2. Q3 Workings should form part of the answers
3. Q4 Use of simple calculator is allowed State whether the following statements are True or False (Any 10) (10)
4. Q1 Interest on drawings is an income of the firm
5. Q2 In Conversion of partnership into Limited Company, the partnership business is purchased by
6. Q3 Dues payable to employees is a preferential liability of the firm
7. Q4 In case of current accounts of partners, no interest is payable on the balances of current
8. Q5 In Amalgamation of firms, the old firms are called as Amalgamating Firms
9. Q6 As per the Partnership Act, interest @ 6% p.a. is allowed on partners loans
10. Q7 Excess Capital method is also known as Quotient Method
11. Q8 The payment of purchase consideration in the form of shares/debentures and cash is known as
12. Q9 Purchase consideration is the amount payable by the vendor firm to the purchasing firm
13. Q10 Goodwill brought in by the incoming partner is shared by all the partners
14. Q11 Loan taken from partners spouse is an internal liability of the firm
15. Q12 In case of Amalgamation of firms, a Realization account is prepared to close the books of the
16. Q1 B. Match the following Columns (Any 10) Paper Subject Code: 79305 Accountancy and Financial Management III 10 marks
17. Q2 Sony, Mony and Tony were in partnership sharing profits and losses in the ratio of 2:2:1. They decided to dissolve the partnership on the basis of the following balance sheet as on Mony 80,000 | Stock in trade 1,30,000 Loan on Mortgage of Machinery 60,000 The assets were realised in piecemeal as follows: June 2018 Rs. 10,000 received after meeting in full the mortgage loan The remaining stock was taken over by Tony at an agreed value of Rs.6,000. The sundry creditors were settled for Rs.8,000 The partners decided to distribute cash as and when realized You are required to show the distribution of cash applying “Highest Relative Capitals” method
18. Q2 Following is the Balance Sheet as on 31-3-2018 of Arjun, Bansal and Chetan who shared profits and losses in the ratio of 4:3:2 respectively The firm was dissolved on the above date. It was decided to keep aside Rs.6,000 for estimated realization expenses and to distribute the cash as and when the assets realized was received in instalments as follows: The actual realization expenses were Rs.6,900 Paper Subject Code: 79305 Accountancy and Financial Management III
    • a. Statement showing Surplus Capital and
    • b. Statement showing Piecemeal Distribution of Cash
19. Q3 Fido and Dido were the partners in a firm sharing profits and losses in the ratio of 2: 3 respectively The Balance sheet of their firm as on 31/3/2018 was as under: Profit and Loss Account 10,000 | Investment 15,000 On 1/4/2018 the firm was converted into “Fido & Dido Co. Ltd.”. Conditions of conversion and other information are as under:
20. Q1 The company has to take all the assets (except Cash-Bank Balance) and liabilities of the firm
21. Q2 The Goodwill of the to be valued at Rs. 40,000
22. Q3 The Building and Machinery are to be valued at Rs. 1,50,000 and Rs. 25,000 respectively. The Investments are to be valued at Rs. 20,000
23. Q4 Debtors are to be taken subjects to bad debts reserve
24. Q5 The remaining assets are to be taken as per book value
25. Q6 For settlement of purchase consideration the company has to give 20,000 equity shares of Rs 10 each equally to each partner, and the remaining amount in cash From the above information prepare in the books of the firm
26. Q3 Sadhana, Sunidhi and Shreya are partners and sharing profit and loss in the ratio of 5: 3: 2. The Balance Sheet of firms on 31/3/2018 is as follows: The business of the firm was taken over by a new company Rhythm Pvt. Ltd. on following conditions:
27. Q1 Revalued assets are: Machinery Rs. 80,000, Stock Rs.12,000 and Paper Subject Code: 79305 Accountancy and Financial Management III
28. Q2 Cash-Bank and investment not to be taken over and other assets and liabilities to be considered at book value
29. Q3 The company agreed to pay Rs. 40,000 as goodwill
30. Q4 The company issued 20,000 Equity Shares of Rs. 10 to be distributed among the partners in their profit sharing ratio and remaining amount was paid in cash
31. Q5 Partners sold investment at Rs. 10,000 Prepare in the books of the firm:
32. Q4 Following is the Trial Balance of Leo, Tiger & Panther as on Dec. 2018 Rent (paid for 11 months) 22,000 | Sales 3,68 000 Discount 4,000 | Reserve for Doubtful Debts 12,000 Carriage on Sales 9,000 | Creditors 1,02,000 Bills Receivable 3,000 | Loan from Singh 6,500 On July 2018 Leo Retired. Following adjustments are to be considered
33. Q1 Goodwill Rs. 1,20,000
34. Q2 Amount due to Leo be treated as Leo’s loan A/c on which no interest is payable
35. Q3 Stock in trade as at December, 2018 was valued at Rs. 56,000
36. Q4 Rent is outstanding for one month
37. Q5 Write off further bad debts Rs. 1,200 & R D D should be kept at Rs.6,000
38. Q6 Depreciate Machinery by 10% p.a. and Building by 15% p.a
39. Q7 10% p.a. interest is to be allowed on partners opening capitals balances
40. Q8 Each partner should be allowed salary Rs. 4,000 p.a Prepare Final Accounts for the year ended Dec. 2018 Paper Subject Code: 79305 Accountancy and Financial Management III
41. Q4 The following is the Trial Balance of Red, Blue and Orange as on December, 2018: Cash and Bank 25,000 | Creditors 12,300 Debtors 53,000 | Sales (up to 30" Sep. Rs. 3,60,000) 5,40,000 Rent and Rates 17,700 | Capitals :
42. Q1 Red and Blue were partners sharing profits and losses equally
43. Q2 Mr. Orange was admitted to the partnership on 2018 for share
44. Q3 On December, 2018 Stock was valued at Rs.72, 000
45. Q4 Rent and Rates paid in advance Rs.700
46. Q5 Selling Expenses were outstanding Rs. 400
47. Q6 Depreciate Fixed Assets by 20% p.a You are required to prepare Trading. Profit and loss account for the year ended on December, 2018 and Balance sheet as on that date
48. Q5 Meena and Naina were partners sharing profits and losses in the ratio of 1:2 and Leena and Reena were sharing profits and losses equally. Following were their Balance sheets as on March The firms are amalgamated on the following terms:
49. Q1 Outstanding Rent was paid in full by the respective firms
50. Q2 Creditors of both the firms were taken by the new firm at a discount of 5% and Bills Payable at book value
51. Q3 Machinery is subject to 5% depreciation in case of both the firms Paper Subject Code: 79305 Accountancy and Financial Management III
52. Q4 Stock of Meena and Naina was valued at Rs. 2,21,000 and that of Leena and Reena was valued
53. Q5 assets (including Cash & Bank) of both the firms to be taken over at book values
54. Q6 Goodwill of Meena and Naina was valued at Rs. 60,000 and that of Leena & Reena at Rs 80,000. Goodwill account is not being retained in the books of the New Firm Calculate Purchase Considerations and prepare amalgamated Balance Sheet of the New Firm
55. Q5 Arya Bros. and Surya Bros decided to amalgamate and form a new firm called Arsu & Co. on the following terms and conditions on March 2018 when their Balance Sheets were as follows: 20,000 46,000 | Cash at bank 10,000 10,400 Terms of amalgamation:
    • A) Incase of Arya Bros
    • a) Goodwill is valued at
    • b) Building was taken to be worth Rs. 60,000
    • c) Stock.to be valued at Rs. 30,000
    • d) Provision for doubtful debts to be created at 5% on debtors
    • e) All liabilities and remaining assets are taken over at book values
    • B) In case of Surya Bros
    • a) Goodwill is valued at Rs. 10,000
    • b) Building was taken to be worth Rs. 80,000
    • c) Provision for doubtful debts to be created at 5% on debtors
    • d) All liabilities and remaining assets are taken over at book values You are required to show necessary ledger accounts in the books of Arya Bros. and Surya Bros Paper Subject Code: 79305 Accountancy and Financial Management III
56. Q6 A. What is Profit and Loss Appropriation Account? Discuss the items to be considered in Profit and Loss Appropriation Account. (10)
57. Q6 B. Explain the methods of calculating Purchase Consideration. 10 marks
58. Q6 short notes (any four) 20 marks
    • A. Partnership Deed
    • C. Realisation Method for Amalgamation of the firms
    • D. External Liabilities
    • E. Conversion of Partnership Firm into Limited Company
    • F. Fixed Capital Method and Fluctuating Capital Method Paper Subject Code: 79305 Accountancy and Financial Management III Please check whether you have got the right question paper
59. Q3 APT
60. Q3 cot
61. Q88 SATS Paper Subject Code: 79305 Accountancy and Financial Management III
    • A) TAL AT Pest Set 2:3 AT HOT Paper Subject Code: 79305 Accountancy and Financial Management III
62. Q2 UG, aH
63. Q2 2) te a Paper Subject Code: 79305 Accountancy and Financial Management III
64. Q2 AH
65. Q3 38 HWA

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