B.Com. (Financial Management) SEM II ATKT FIN.ACCOUNTING II Question Paper - Mumbai University | munotes

Questions asked in this paper

• (2)Figures to the right indicate full marks

1. Q1 b:State Whether the following statement are true or false (Any 07) 7 marks
   • a. Goodwill is an intangible assets
   • c. Goodwill appears on liability side of the Balance Sheet
   • d. General Reserve appear in the liability side of the Balance Sheet
   • e. The balancing figure in the branch account (Credit side) under Debtor system represent
   • f. At the end of the year generally the balance in the goods returned by branch Account is transferred to the debit side of Goods sent to Branch A/c
   • g. The principles of preparing the final accounts have to be followed while. finalizing
   • h. In piecemeal distribution, Provisions of Sec 48(b) of the Indian Partnership Act 1932 need not be observed
   • i. Itis compulsory for the departmental stores to maintain separate set of books of accounts for
   • j. Departmental performance and efficiency gets reflected in its loss
2. Q2 A Stores Ltd. with its head office at Mumbai invoiced goods to its Branch at Ahmedabad at cost plus 100% (profit). Following are the particulars relating to the branch for the year ended QP Code : 51783 Page 2 of 6 Cash sent by the head office : salaries- 28000 Prepare Branch Account and Branch Debtors Account in the books of Head Office
   • (15.Marks)
3. Q2 B Ltd having head office at Mumbai.and.a branch at Calcutta invoices goods to its branch at cost plus 25 percent at which prices sales are tobe made by the branch. The following information QP Code : 51783 Page 3 of 6 Branch expenses paid by head office 18000 Cash remitted to head office 264000 You are required to prepare the following ledger accounts in the books of Head Office :
   • 1. Branch Stock A/c
   • 3. Branch Debtors A/c
   • 4. Branch Cash A/c
   • 5. Branch Profit and Loss A/c
4. Q3 A and B are partners in partnership firm sharing profit and losses in the proportion of 3:1 respectively .Their Balance Sheet as on December 2017 was as under: (15 Marks) On 2018 they decided to admit C into business on following terms:
   • 1. He should be given share in future profits and for that purpose he should bring Rs.30000 as capital
   • 2. Goodwill raised at Rs.20000
   • 3. Depreciate Machinery and furniture by 10% and create 5% RDD on debtors
   • 4. Land & building should be valued at Rs.60000 and stock to be taken at a value of Rs.50000
   • 5. Capital of all partners to be adjusted in new profit sharing ratio and any excess of capital in B capital account should be transferred to their respective loan account Prepare Profit and loss adjustment account, Partners Capital Account and Opening Balance Sheet of the new firm QP Code : 51783 Page 4 of 6
5. Q3 A, B and C are partners in a firm sharing profit and losses in the ration of 5:3:2 respectively They agreed to dissolve the firm on 31“ March 2017 on which date their Balance Sheet was as Reserve Fund 10000 Joint Life Policy(at | 20000 Outstanding Rent 2000 Cash at Bank 30000
   • a. Furniture and stock were taken over by Mr.A at an agreed valuation of Rs.12000 and
   • b. Joint life policy was surrendered and sundry debtors were realized in full after allowing a discount of 20 percent
   • c. Creditors were taken over by B who agreed to settle account with them at Rs.17000 and realisation expenses amounted to Rs.1000 are required to prepare Realisation A/c, Partners Capital A/c and Bank A/c
6. Q4 A Ltd had purchased a machinery on hire purchase system from B Ltd. The cash price of the Machinery was Rs.130000.The terms are that A Ltd would pay Rs.40000 as down payment on signing of the agreement and annual instalments of Rs.30000 each plus interest. A Ltd charges depreciation at the percent per annum on cost under diminishing balance system. B Ltd charged interest at the rate of 6 percent per annum on the outstanding balance Prepare Machinery A/c , Depreciation A/c, Vendor Company’s A/c and A statement showing calculation of interest for 3 years QP Code : 51783 Page 5 of 6 A firm has two departments X and Y .From the following figures prepare the departmental Trading and Profit & Loss Account and General Profit & Loss Account for the ended 31“ December 2017 Interest on Bank Loan 5000 Area occupied by the two departments ration 2:1.General salaries are to be allocated equally. Insurance premium is for a comprehensive policy, allocating being inconvenient Closing stocks were X-Rs.36000 and Y -Rs.40000 Explain in brief different adjustments of goodwill at the time of admitting a new partner in partnership firm. (08 Marks)
7. Q5 b: Distinguish between hire purchase and normal purchase system. 7 marks
8. Q5 Write note on :(Any 3) 15 marks
   • a. Stock Reserve
   • b. Independent Branch
   • c. Down Payment
   • d. Piecemeal Distribution of cash
   • e. Retirement of Partners QP Code : 51783 Page 6 of 6

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