B.Com. (Financial Management) SEM II 2017 18 April 2017-18 ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A Select the appropriate option and rewrite the answer. (8 out of 10) 8 marks
   • 1. Under Hire purchase interest paid on the contract is equal to
   • 2. At the time of admission of partners are revalued. Profit arising out of revaluation is shared between the
   • a. equally
   • b. in ratio of capital
   • c. in profit sharing ratio
   • d.None
   • 3.Which expenses is not allocated in the sales ratio
   • a)Advertisement
   • b)Bad debts
   • c)Commission on sales
   • d)carriage inward
   • 4. Depreciation under Hire purchase system is charged on
   • a)Cash price of asset
   • b. Hire purchase of the asset
   • c.Hire purchase or cash price whichever is higher
   • d.None of the above
   • 5. Under Stock & Debtors method, Branch Stock Account helps to
   • a.ascertain net profit/loss of branch
   • b. Ascertain gross profit/loss of branch
   • c. Ascertain closing stock at the branch
   • d.Ascertain cost of goods sent to the branch
   • 6. Hire purchase price.is always greater than the cash price because
   • a. It includes interest
   • b. It includes.cash payment
   • c. It includes a charge for risk cover
   • d. All of the above
   • 7.Which is not debited to Departmental Profit & Loss account
   • a)Carriage outward
   • c)Rent & Rates
   • Q.P. Code: 34059
   • d)commission received
   • 8. A and B are sharing profits in the ratio of 3:2. C is admitted as a new Partner with 1/5 share. Then the ratio of sacrifice will be
   • d) None of the above 9 Branch account under debtors system is a
   • a.Personal Account
   • b. Real Account
   • c. Nominal Account
   • 10. When all partners are insolvent, unpaid amount is transferred to
   • b. Realisation Account
   • c. Deficiency Account
   • d. None
2. Q1 b Match the following columns (7 out of 10) &Rates Buyer of goods purchase Credited to profit & loss adjustment account Discount Initial payment made by hire 7 marks
   • 8. Branch Stock Adjustment Allocated on the basis of sales of each department
3. Q2 Tara Ltd with its Head Office at Mumbai invoiced goods to its Branch at Chennai at cost plus 100% profit. Following are the particulars relating to the branch for the year ended December 2017: 15 Marks
   • Q.P. Code: 34059 Cash sent by the Head office for Insurance (for 12months upto 31-3 Ascertain the profit or loss made by the branch by preparing the Branch Account in the books of Head Office
4. Q2 ABC Trading Company Chennai, sent goods to its Mumbai Branch at-cost which credit as well as for cash. From the following particulars prepare Branch Stock Account, Branch Debtors Account, and Branch Expenses Account. Cash is immediately remitted by Branch to Head Office. Expenses are paid direct by head office. 15 Marks
5. Q3 Following is the Balance sheet of Gopal, Krishna and Ram on 31-12-2017. They share P/L in the ratio of The balance sheet stood on the same day as below: 15 Marks Balance sheet as on 31-12-2017
   • Q.P. Code: 34059 On the same date Gopal retires from the business and the following adjustments are to be made :
   • 1. The firms goodwill is to be revalued at Rs 24,000
   • 2. The assets and liabilities are to be revalued as under :
   • 3. Krishna is to bring in Rs 20,000 and Ram is to bring in Rs 5,000 as additional capital
   • 4. Gopal is to be paid Rs 16,200 in cash and balance on his capital account is to be transferred to his loan Prepare Profit & Loss Adjustment Account, Capital accounts of the partners and the Balance sheet of the new
6. Q3 Rajan and Anil sharing profits & losses in the ratio of 1:1 had the following balance sheet as on Balance sheet as on 31* March, 2017 15 Marks Anil 30,000 75,000 Cash at Bank 60,000 They decided to admit Sunil on the following terms:
   • 1. The Machinery, Building and Furniture be depreciated by 5%
   • 2. The Reserve at 5% be created for doubtful debts on debtors
   • 3. The Goodwill account for Rs 30,000 be opened in the firm’s book
   • 4. Sunil should bring Rs 40,000 as capital for future profits
   • 5. The Capital accounts of all partners be adjusted in proportion to the new profit-sharing ratio Prepare Profit & Loss Adjustment Account, Partners Capital Account and new Balance sheet of the firm 1* January 2017 Rajesh purchased Machinery on Hire purchase system The terms of contract were as under: 15 Marks
   • a. The cash price of the Machinery was Rs 130,000 Rs 40,000 were to be paid on signing of the contract
   • c. The balance was to be paid in annual installments of Rs 30,000 each plus interest Interest chargeable on the outstanding balance was 6% p.a
   • e. Depreciation @10% p.a is to be written off on W.D.V basis You are required to prepare for 3 years
   • 1. showing calculation of interest
   • 3. Depreciation A/c
   • 4. Vendor A/c
   • Q.P. Code: 34059
7. Q4 From the following information prepare Departmental Trading and Profit & Loss Account and General Profit & Loss Account for the year ending December 2017: 15 Marks Interest on Bank Loan 5,000 Insurance of goods 2,000
   • 1. Area occupied by the two departments is in the ratio 2:1
   • 2. General Salaries are to be allocated equally
   • 3. Insurance premium is for policy, allocation being inconvenient A Distinguish between Debtors Method and Stock & Debtors Method 8 Marks
8. Q5 B. How will you allocate expenses on different basis in departmental account? 7 marks
9. Q5 Write short notes on (any 3) 5 marks
   • 3. Hire purchase price and cash price
   • 4. Explain Sacrifice Ratio
   • 5. Piecemeal distribution

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