BCom SY BCom Sem 3 BCom Sem 3 (2017 2018) Nov 2018 ACCOUNTING III Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 questions are compulsory with internal options
2. Q2 Each question carry 15 marks
3. Q3 Working notes form part of your answer
4. Q4 Use of only simple calculator is allowed
5. Q1 A) Fill in the blanks with an appropriate option.(Any 8) 8 marks
6. Q1 account is maintained if capitals of all partners are fixed
   • A] Current B] Realisation
7. Q2 In the absence of general expenses, all trade expenses are recorded in , when preparing final
8. Q3 In case of piecemeal distribution, proportionate capital method is also known as
   • C] Minimum loss method D] All of the Above
9. Q4 After the payment of all outside liability, order of payment as per statement of excess capital is adopted so that ratio is equated
10. Q5 X,Y & Z were partners sharing profits & losses in the ratio 6:8:5. Z retired, the gain ratio for calculating his share of goodwill will be
    • C] 2:1 D] None of the above
11. Q6 Profit or loss on realisation is distributed among all partners in ratio
12. Q7 Discharge of purchase consideration by the new company, in form of shares and debentures
    • A] Only at Par B] Only at a Premium
    • C] Only at a Discount C] At par, premium or discount
13. Q8 Only are entitled for discharge of purchase consideration in form shares & debentures in the new company at the time of conversion
    • A] B] All the stakeholders
    • C] Partners D] Outsiders
14. Q9 Foreign exchange fluctuation account is not affected, if the payment or receipt is at rate
    • B] Spot
    • C] Base D] Forward
15. Q10 currency is the currency considered for presenting the financial statement
    • A] Foreign B] Reporting
    • C] Domestic D] Vehicle
    • Q.P. Code: 22807
16. Q1 B) State whether the following statements are True or False: (Any7) 7 marks
17. Q1 In Fixed capital method drawings is debited to Partners current A/c
18. Q2 Partner’s current account must always show a credit balance
19. Q3 In Excess capital method, Proportionate capital of a partner is equal to lowest unit value divided by his share of profit
20. Q4 Piecemeal distribution means distribution of assets in pieces as. and when available
21. Q5 Gains and losses on Realisation in an amalgamation are divided equally among partners
22. Q6 In Amalgamation of firm agreed value of assets taken over less agreed value of liabilities taken over is known as Purchase consideration
23. Q7 In Amalgamation of Partnership old firm is continued
24. Q8 An old firm continues its business on conversion into a Ltd. company
25. Q9 Exchange rate is the proportion between two currencies
26. Q10 AS 14 is applicable for translation of foreign currency
27. Q2 Priya ,Nitisha and Jyoti were partners sharing profit and losses in the ratio of 3:1:1. Jyoti retired from firm on April 2015. The following is their trial balance as on Dec.2015. (15) Sales(Rs.12,00,000 from 1.4.2015 to 31.12.2015)
    • Q.P. Code: 22807
    • A) The value of closing stock is Rs.2,00,000
    • B) Interest on capital is to be provided @ 8% p.a
    • C) Depreciation to be provided on Building @ 10% p.a., Machinery @ 10%p.a. and
    • E) Amount payable to retiring partner is to be transferred to Loan A/c Prepare Final Accounts of the Firm
28. Q2 Raja and Gulam were in partnership business sharing profits as 4:1. On 30" June, 2016 Rani has been admitted who has brought Rs. 1,80,000 for capital for which the entry has been passed in the book and Rs 72,000 as share of goodwill for which the entry yet to be passed. After admission of New profit sharing ratio Following is the Trial Balance of Raja, Rani and Gulam as on Dec. 2016
    • a) Depreciation at 10% on Machinery and 15% on fixtures
    • b) 10% interest on capital and Drawing is charged
    • c) Closing stock is Rs.1,20,000
    • d) Goods worth Rs. 10,000 are lost by fire but insurance co. has admitted the claim for Rs. 8000 only Prepare Final Accounts of the firm
    • Q.P. Code: 22807
29. Q3 The Balance Sheet of M/s. OM and M/s. Shanti as on 31.12.2016 were as follows: TERMS OF AMALGAMATION: 15 marks
    • A) In case of M/s.OM:
30. Q1 Goodwill was valued at Rs.20,000
31. Q2 Land & Building was taken over at Rs.60,000
32. Q3 Stock to be valued at Rs.30,000
33. Q4 Provision for doubtful debts to be created at 5% on debtors
34. Q5 Mohan to take over Furniture for Rs.8,000
    • B) In case of M/s.Shanti:
35. Q1 Goodwill was valued at Rs.10,000
36. Q2 Land & Building was taken over at Rs.80,000
37. Q3 Stock to be valued at Rs.42,600
38. Q4 Provision for doubtful debts to be created at 5%
39. Q5 Geeta to take over Investment for Rs.15,000 You are required to:
40. Q1 Prepare necessary ledger A/c to Close the books of old firms
41. Q2 Balance Sheet of the new firm
42. Q3 Pass Journal entries for the following Foreign Exchange transactions in the books of King Ltd. for the King Ltd of Patna exported goods worth £ 2,00,000 on January 2016 to Queen traders of USA. The payment for the same was received as follows The company closes its books of account every year ended at March.the Exchange rate for £ 1 was as
    • Q.P. Code: 22807
43. Q4 Amu, Banu and Sonu, dissolved their firm who were sharing profit and losses in the ratio of 5:3:2, Balance sheet of the firm is as under. (15) It was decided to distribute cash each month to partners after meeting the creditors and after retaining Rs 7,500 out of cash in hand for meeting expenses. Realisation of assets took place as under: Prepare a statement showing distribution of cash under Excess capital Method
44. Q4 The Balance sheet of partnership firm carried on by Sudha, Mitra and Rekha who shared profits & losses in the ratio of 2:2:1 respectively is as follows : (15) BALANCE SHEET AS ON 315’ DECEMBER 2016 Loan from Bank 20000
    • Q.P. Code: 22807 All the partners decided to close down their partnership firm and form a joint stock company by the name SUMIRE limited. For the this purpose it was decided to revalue the assets as follows All the other assets and external liabilities were taken over at book value. The purchase consideration was to be satisfied as under:
45. Q1 6000, 12% Preference shares of SUMIRE Itd of Rs. 10 each at par
46. Q2 1000, Equity shares of SUMIRE Itd of Rs. 100 each at par
47. Q3 Balance to be paid in cash 12% Preference shares and Equity shares in SUMIRE Itd, to be distributed among the partners in their profit sharing ratio and cash to be distributed as per the balance in their respective capital accounts upon The authourized capital of SUMIRE as per the Registrar of company was to be as follows : 2000, Equity shares of Rs. 100 each 10000, 12% Preference share of Rs. 10 each You are required to
    • a) Calculate the purchase consideration
    • b) Close the books of the old partnership firm
    • c) Pass opening entries in the books of SUMIRE Itd. (Narrations not required.)
48. Q5 A. Explain order of payment of liabilities in case of dissolution of partnership firm 8 marks
    • B. State any 7 expenses to be apportioned on the basis of sales ratio. 7
49. Q5 Write short notes: (Any 3) 15 marks
50. Q2 Statement of Surplus Capital
51. Q4 Payment Order under piecemeal distribution
52. Q5 Equitable Approach to Distribution of Purchase consideration

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