BCom SY BCom Sem 3 BCom Sem 3 (2022 2023) Oct 2023 FINANCIAL ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 a) State whether the following statements are True or False (any ten) : 10 marks
   • 1. The partners must conduct lawful business
   • 2. Every adjustment is to be recorded at two places
   • 3. RDD is provided on Debtors
   • 4. Profit or loss on realization is transferred to partners’ capital account in capital
   • 5. Purchase consideration is the amount payable by the vendor firm to the purchasing
   • 6. are entitled to salary
   • 7. Partners must share profit and loss equally
   • 8. In piecemeal distribution, liabilities due to outsiders are internal liabilities
   • 9. Partner can be admitted only on the first day of the accounting year
   • 10. Each Partner has a right to take part in the business
   • 11. Piecemeal distribution means piecemeal settlement of accounts
   • 12. In Amalgamation of firms, the old firms are dissolved
   • b) Match the following column (any ten): 10
   • 2. Admission of Partner b) Debited to Trading Account
   • 4. Carriage Inwards d) 1932
   • 5. A partner who is below 18 years. e) New Firm
   • 6. Liabilities not taken over f) Incoming Partner
   • 8. Intangible Asset h) Will be settled by old firm
   • 10. Loss on Realisation j) Closing Stock
   • 11. Unsold stock at the end of the year k) Consideration payable on
   • 1) Minor Partner
2. Q2 Amar, Akbar and Anthony carried on business in partnership sharing profits and losses in the ratio of 2:1:2. (15) The trial balance of the firm as on March 2019 was as follows : ba VCD SYBCOM FINANCIAL ACCOUNTING 3 hrs Marks: 100 Rent and Insurance 38,750 Cash at Bank 1,09,250 Printing and Stationery 17,250
   • 1. Stock on March, 2019 was valued at Rs
   • 2. Depreciation: Land and Building at 5% Plant and Machinery at 20% Motor Vehicles at 20%
   • 3. Provide for the following outstanding expenses as on March, 2019, Printing and Stationery Rs. 6,000
   • 4. Insurance Prepaid as on March, Rs. 6,250 You are required to prepare:
   • 1. The Trading and Profit and Loss Account for the year ended 31* March, 2019
   • 2. The Balance Sheet as on that date
3. Q2 Julie & Lilly were in partnership sharing profits and losses in the ratio of 3:2. From April 2019, they admitted Fini into partnership giving her 1/5 share in profits. She brought Rs. 1,20,000 of which Rs, 15,000 was considered as share of goodwill and the balance as her share of capital. You are given: (15) VCD SYBCOM SEM III FINANCIAL ACCOUNTING 3 hrs Marks: 100 Trial Balance as on March 2020 Purchases 19,95,000 | Reserve for Doubtful Debts 14,400 Patents 84,000 Cash Paid by Fini 1,20,000 Postage & Telegram 38,700 (as on 1-4-2019) Rent, Rates and Taxes 42,000 Cash and Bank 70,800
   • 1. Closing stock was valued at Rs. 1,95,000
   • 2. Goods costing Rs. 12,000 have been stolen but not entered in 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 st March, 2020
4. Q3 Sony, Mony and Tony carrying on business in partnership decided to dissolve it on and from September, 2020. The following was their Balance Sheet on the date: (15) It was decided that after keeping aside an amount of Rs. 2,000 for estimated realisation Expenses, the available funds should be distributed among the partners as and when realized ? VCD SYBCOM SEM III FINANCIAL ACCOUNTING hrs Marks: The following were the realisations: Actual realisation expenses amounted to Rs. 1,400. You are requested to submit a statement showing distribution of cash amongst the partners by Proportionate Capital Method
5. Q3 From the following Balance Sheet of M/S Indian Store with Hum, Tum and Sub as partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet on the date of dissolution was as follows: (15) Tum 40,800 | Cash in Hand 19,200 I. Realisation Expenses were estimated at Rs. 8,000,
   • 2. The Assets were realized as under:
   • 3. Actual realisation expenses were Rs. 6,000
   • 4. Prepare a statement showing Piecemeal distribution of cash by adopting Excess Capital
6. Q4 M/s P & Q as partners decided to amalgamate with M/s R and Co. having R & S as partners on the following terms and conditions: - (15) I. The new firm M/s PR and Co. to consider Goodwill of both the firm at Rs. 24,000 Il. The new firm to take over investments at 10% depreciation; Debtors and furniture at book value, Premises at Rs. 1,06,000, Land at Rs. 1,33,600, Machinery at Rs 18,000 and such cash which remained after discharge of partners’ loans by the The new firm also assumed other liabilities of old firms The following were the Balance Sheets of both the firms on the date of amalgamation: vcD SYBCOM SEM III FINANCIAL ACCOUNTING 3 hrs Marks: 100
7. Q44 ,000 ---- | Machinery 30,000 Prepare following Ledger Accounts in each case:
   • 3. New Firm Account and also Prepare the Balance Sheet of the New Firm
8. Q4 Following is the Balance Sheet of two firms as at 315' March, 2019. It was mutually agreed to amalgamate the business from April 2019 Terms of Amalgamation were as follows: 15 marks
   • a) Premises was valued at Rs. 20,000 & Computers at Rs. 24,000
   • b) Furniture was not taken over by new firm
   • c) of 5% is to be created on debtors
   • d) Goodwill was valued as: M/S Sameer & Co. at Rs. 20,000 and that of M/S Anand & Co
   • e) The new firm also assumed other Assets & Liabilities of old firm at book value. Show necessary accounts in the books of old firm and the Balance Sheet of new firm M/S
9. Q5 XYZ Co. Ltd was formed with an authorized of Rs. 75,000 consisting of 5,000 Equity shares @ Rs 10. each and 2,500 6% Preference Shares of Rs. 10 each to acquire on 01-07-2020 the business of M/S Ram and Sam, who were sharing profits in the ratio of 3 : 2 Then Balance Sheet as on 30-06-2020 was as follows: (15) Trade Creditors 8,290 | Land and Building 20,000 Overdraft 4,475 | Plant and Machinery 12,000 The company took over all the assets and assumed all the liabilities and the consideration was fixed as Rs. 55,000. In computing this figure, Land & Building were valued at Rs. 30,000, VCD SYBCOM SEM III FINANCIAL ACCOUNTING 3 hrs Marks: 100 Plant & Machinery at Rs. 10,000; Stock at Rs. 7,500; and Debtors at book value subject to allowance of 5% to cover the doubtful debts The Purchase Price was settled by the issue of 1,650 Equity Shares at Rs. 10 each, to the firm, 1,250 Preference shares of Rs. 10 each and the balance paid in cash
   • b) Partners’ Capital A/c
   • c) Ltd A/c and
   • d) Cash A/c
10. Q5 Mona and Lisa were the partners in a firm sharing profits and losses in the ratio of 2:3 respectively. The Balance sheet of the firm as on 31-3-2021 was as Under: (15) On 1-04-2021 the firm was converted into “Mona & Lisa Co. Ltd.”. Conditions of conversion and other information are as under:
    • 1. The company has to take all the assets (except cash balance) and liabilities of the firm
    • 2. The goodwill of the firm is to be valued at Rs. 40,000
    • 3. 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
    • 4. Debtors are to be taken subject to 10% bad debts reserve
    • 5. The remaining assets are to be taken as per book value
    • 6. 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:
    • c) Cash Account S
11. Q6 Answer the following: 20 marks
    • A. What is Amalgamation? Explain Various Objectives of Amalgamation
    • B. What is Purchase Consideration? Explain ways of Division and Distribution of
12. Q6 Write Short Notes (any 4): 20 marks
    • a) Piecemeal Distribution of Cash
    • b) Methods of Calculating Purchase Consideration
    • c) Advantages or Benefits of Conversion of Firm

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