BCom SY BCom Sem 3 BCom Sem 3 (2018 2019) Oct 2019 ACCOUNTANCY AND FIN. MGT. III Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A. State whether the following statement is true or false (Any 10) 10 marks
   • 1. The partners must conduct lawful business
   • 2. Drawing appears on debit side of capital account
   • 3. General reserve is credited to partners’ capital account
   • 4. Unpaid salaries of employees are preferential liabilities
   • 5. Goodwill requires special treatment on amalgamation
   • 6. fictitious assets are transferred to capital account
   • 7. Partners’ capital accounts are closed on settlement of purchase consideration among the
   • 8. Profit or loss on realization is transferred to partners’ capital account in capital ratio
   • 9. Provision for discount on debtors shows debit balance
   • 10. Outstanding wages is a nominal account
   • 11. Closing stock is valued at market price only
   • 12. Assets taken over by partner is credited to his capital account
   • B. Fill in the blanks (Any 10) 10
   • 1. Fictitious assets are distributed among the partners in their ratio
   • 2. Assets and liabilities are transferred to realization account at
   • 3. Unproductive wages are debited to (Trading Account/ Profit and Loss Account)
   • 4. Expenses payable are shown on side in the balance sheet
   • 5. Current account showing debit balance is shown in the balance sheet on side
   • 6. Excess capital method is known as method
   • 7. Profit on realization is to partners’ capital account
   • 9. Government dues are liabilities Paper Subject Code: 79305 Accountancy and Financial Management III
   • 10. Amount agreed to be paid by the new firm to old firm is called
   • 11. Bad debts is a
   • 12. Employee’s dues are liabilities
2. Q2 Rajaram, Tukaram and Sakharam were in partnership, sharing profits and losses in the ratio of 3:2:1 respectively. On March 2018, their balance sheet was as under: 15
   • 1. Rs. 10,000 has to be provided for realization expenses
   • 2. The following net realization were made: The actual realization expenses were Rs.12,500 Prepare a statement showing distribution of cash by applying Excess Capital Method
3. Q2 Hum, Tum and Sub were in partnership sharing profits and losses in the ratio of 3:2:1. They dissolve the firm on 31* March 2018. 15 The following are the realization and expenses: Paper Subject Code: 79305 Accountancy and Financial Management III Prepare a statement showing Piecemeal distribution of cash by using Proportionate Capital
4. Q3 M/s PM and M/s AV decided to amalgamate on the following terms and conditions on 1“ April 2018 when their Balance sheets were as under: 15 Capital Land and Following are the terms and conditions of amalgamation:
   • 1. Incase of M/s PM
   • a) taken at
   • b) Prashant took over the Bank Loan
   • c). Investments were taken over by the new firm at an agreed value of Rs.90,000
   • d) Land and building was taken over at Rs.2,70,000
   • e) Inventories to be valued at Rs.97,800
   • f) provision to be created on Debtors
   • 2. Incase of M/s AV
   • a) taken at Rs. 1,50,000
   • b). Inventories to be valued at
   • c) 4% provision to be created on Debtors Other assets and liabilities of both the firms were taken at book values
   • 3. It was further decided that the total capital of the new firm shall be Rs. 13,77,000, in the You are required to :
   • 1. Calculate the Purchase Consideration
   • 2. Prepare Balance Sheet after Amalgamation of the Firms Paper Subject Code: 79305 Accountancy and Financial Management III
5. Q3 Julie and Lilly are partners who share profits and losses in the ratio of 2:3 in the business. In the similar type of business Sona and Mona are partners who share profits and losses in the ratio of 3:2. It was agreed on 1* April 2018, the firms are to be amalgamated into M/s JLSM & on March 2018, the Balance Sheets of their firms were as under: 15 The new firm take over the old firm’s assets as under: Julie to take over Investments for Rs. 36,000. Other Assets and liabilities at book values You are required to :
   • a) Calculate the Purchase Consideration
   • b) Prepare necessary ledger Accounts in the books of M/s JL Me and Too were in the partnership sharing profits and losses in the ratio of 2/3 and 1/3. Their Balance Sheet as on March 2018 was as under: 15 The partners decided to convert their business into Private Limited Company. The company took over all the assets and liabilities except property. The purchase consideration was Rs.3,60,000, payable as under: Paper Subject Code: 79305 Accountancy and Financial Management III Rs. 72,000 In cash Rs. 1,44,000 in Debentures and Rs. in Equity shares of Rs. 10 each Secured loan has been paid and partners agreed to share the debentures and shares in the proportion to their final capital You are required to prepare Realisation A/c, Private Limited Company A/c, Equity Shares In Pvt Ltd A/c, Debentures in Pvt. Ltd. A/c, Cash A/c and Partners Capital A/c in the books of firm Mohini and Aditya were in partnership sharing profits and losses in the ratio of 3:2. The following is the Balance Sheet of the firm as on March 2018. 15 On 1* April 2018, a new company Chai Ltd., was formed to take over the business of the firm on the following conditions:
   • 1. The company will take over loan from Aditya to the extent of Rs.96,000
   • 2. Assets are taken over at: Goodwill Rs. 1,50,000; Land and Building Rs.5,04 Plant and machinery Rs.7,80,000; Furniture at 10% depreciated value; Rs.15,000 of the debtors to be treated as bad and on the balance 5% provision is to be created as doubtful. cash balance to be taken over in full, after settlement of balance Aditya’s loan The purchase consideration is to be satisfied by issuing 60,000 equity shares of Rs.10 each at a premium of Rs.2 per share. Rs.4,50,000 by issuing 9% Preference shares of Rs.100 each at par and the balance in the form of 7% Debentures of Rs. 100 each at par You are require to:
   • b) Prepare the Balance Sheet after conversion in the books of Chai Itd Q:5. From the following trial balance of Dharmendra and Hema, you are require to prepare Trading and Profit and Loss Account for the year ended 31*t March 2018 and Balance Sheet as on that date Paper Subject Code: 79305 Accountancy and Financial Management III Trial Balance as on 31“ March 2018
   • 1. The closing stock Rs.1,20,000
   • 2. Depreciate Building at 10% p.a. and Furniture at 10% p.a
   • 3. Unpaid salaries and wages and printing bill Rs.3,600
   • 4. Uninsured goods worth Rs. 30,000 were loss by fire
   • 5. Partners share profits and losses in their capital ratio
6. Q5 Central and western were in partnership sharing profits and losses in the ratio of 3:2. From 1“ April 2017, they admitted Harbour into partnership giving him 1/5 share in profits. He brought Rs.1,20,000 of which Rs.15,000 was considered as share of goodwill and the balance as his share of capital. You are given: 15 Trail balance as on March 2018 Paper Subject Code: 79305 Accountancy and Financial Management III
   • 1. Closing stock was valued at Rs.1,95,000
   • 2. Goods costing Rs. 12,000 have been stolen but not entered in the books
   • 3. Write off 20% of Patents
   • 4. Create provision for doubtful debts @5% of the debtors
   • 5. Depreciate building @10% p.a Prepare Trading and Profit and Loss Account and Balance Sheet as on 31‘ March 2018
7. Q6 the meaning of Purchase Consideration and its different types. 10 marks
   • B) Explain the benefits of conversion of firm into company. 10
8. Q6 Write Short note (Any 4) 20 marks
   • b) Admission of Partner
   • c) Conversion of firm into company
   • d) Net Assets method of Purchase Consideration
   • e) Amalgamation of firms
   • f) . Preferential creditors Paper Subject Code: 79305 Accountancy and Financial Management III
   • 8) ad sea
   • 2) 6 TOT
   • 3) SAT Paper Subject Code: 79305 Accountancy and Financial Management III

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