Master of Commerce (M.Com.) Part I SEM II 2017 2018 Nov 2018 ACC.COURSE I PAPER I ADVANCE FIN. ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q3 All working notes should form part of your answer
2. Q1 From the following Trial Balance and the adjustments. given in respect of Consumers Co-operative Society, Mumbai, prepare the Final Accounts for the year ended Trial Balance as on 31-3-2017 Deposits from Members - 90,000 Printing and Stationery 3,000 Investment in Shares of District Co-operative Bank 60.000 Investment in Shares of Co-operative Purchases and Sales Society 36,000 Loan to Members 1,35,000 Interest earned on Loan given to Members - 45,000 Opening Stock of Fertilisers and Machinery 10,000 Purchases of Fertilisers and Machinery Sales of Fertilisers and Machinery 4,50,000 Cash in hand 51,000 Cash at Bank 15 marks
   • a) Closing Stock of Fertilisers and Machinery as on 31.3.2017 was 70,000
   • c) Office Equipments are to be depreciated @ 5%p.a
   • d) Audit Fees are to be paid of 6,500
   • e) Contribute to Education Fund = 100
   • f) Directors Recommend a Dividend to Members @ 10%
   • Q.P. Code : 05762 From the following Trial Balance of Sangam Consumer’s Co-operative Society as 15 31“ March 2017, prepare the Final Accounts in the prescribed format : Deposit from Members 50.000 Due to Suppliers 11,000 Interest on Investments 11,000 Cash in Hand 50,200 Cash at Bank 4,76,200 Due from Customers 56,000 Rent (for 10 months) 10,000 Printing and Stationery 10,000 Stock in Trade 30,000
   • a) Value of Closing Stock on March, 2017 was = 75,000
   • b) Depreciation on Furniture @ 10% p.a. for full year
   • c) Interest accrued on Deposits 5,000 and interest accrued on investment 1,200
   • d) Salary includes advance of 6,000 paid against salary of April, 2017
   • e) Outstanding Sales Tax of 2,000
3. Q2 From the information given below and the Balance Sheet of Rakesh Ltd. on 31.12.2016; find the value of its equity shares by ‘intrinsic value method’, “yield method’ and ‘fair Company’s prospects for 2017 are good; 15 marks
   • b) Buildings are now worth = 2,50,000 and goodwill is valued at = 1,00,000
   • c) The other assets and liabilities have been correctly valued 870961BE3051F1446071C8BA1E304CDE
   • Q.P. Code : 05762
   • d) for the last three years given shows an annual increase of 50,000, the annual transfer to reserve is 25% of net profit;
   • e) Preferential shares are preferential as to capital and dividend ; and
   • f) rate of return expected is 15%
   • g) taxation 1,000 8% Preference Share of Building 70,000 each fully paid 1,00,000 Furniture 3,000 4,000 Equity Shares of = 100 Stock each fully paid 4,00,000 Investment Add: Profit for 2016 Expenses
4. Q2 The balance sheet of a company as at 31-3-2017 was as follows : Share capital: Land and Building 1,10,000 2,000. Shares of each 2,00,000 | Plant and Machinery 1,30,000 General Reserve Patents and Trade Marks 20,000 Profit and Loss A/c 32,000 | Stock 48,000 The expert valued the Land and Buildings at = 2,40,000; Goodwill at and Plant and Machinery at 1,20,000. Depreciation is charged @ 15% on Plant and 10% on Building. Out of the total Debtors, it is found that Debtors of 8,000 are bad The profits of the company have been as follows : 15 marks
   • Q.P. Code : 05762 The company follows the practice of transferring 25% of profits to general reserve Similar type of companies earn at 10% of the value of their shares Ascertain the value of the company’s shares under:
5. Q3 Insurance Company’s Fire Insurance division provide the following information, show the amount of claim as it would appear in the Revenue Account for the year ended Claims paid during the year 68,60 16,00,000 Expenses of Management 6,90,000 (includes Surveyor’s fee and =1,84,000 Legal Expenses for settlement of claims) 15 marks
6. Q3 General Insurance Company submits the following information for the year ended Claims paid during the year 5,00,000 Expenses of Management On Insurance Accepted 1,50,000 11,000 On Insurance Ceded - 14,000 15 marks
   • Q.P. Code : 05762 The following additional information is also available :
   • a) Expenses of Management include Surveyor’s fees and legal expenses for settlement of claims
   • b) Reserve for unexpired risk is to be maintained @ 40%. The balance of reserve for unexpired risk as on 01-04-16 was You are required to prepare the Revenue Account for the year ended March, 2017 4, (A) State whether the following statements are True or False : 8
   • a) Liabilities under the existing policies are determined by Actuarial valuation in case of life insurance
   • b) In fire insurance business 50% of premium income is carried forward as provision for and the balance is transferred to profit and loss account
   • c) In marine insurance business 100% of premium income is carried forward as provision for and the balance is transferred to profit and loss account
   • d) IFRS stands for International Financial Reporting Standards
   • e) Every society deriving profits shall transfer 25% of the profit to the Reserve
   • f) Dead stocks is shown in the balance sheet of a co-operative society under
   • g) Associate Member is a member who holds jointly a share of society with others, but whose name does not stand first in-share certificate
   • h) Excess of Average Profit earned by the firm over its Normal Profit is known as Super Profit
   • (B) Match the Following : 7
7. Q1 AS-16 a. Education Fund
8. Q2 AS-17 b. US GAAP
9. Q3 AS-20 c. Insurance Company
10. Q4 AS-22 d. Borrowing Costs
11. Q5 Co-operative Society e. Accounting for Taxes on income
    • Q.P. Code : 05762
12. Q4 Write Short notes on (Any 3) : 15 marks
    • a) Net Assets Method of valuation of shares
    • b) Methods of Valuation of Goodwill
    • c) Bye-Laws of a Co-operative Society
    • e) Accounting for Taxes on Income

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