Solapur University Question Paper ,B.Com. I (Semester – I), FINANCIAL ACCOUNTING (New), 2014 Question Paper.

Solapur University Question Paper B.Com. I (Semester – I) Examination, 2014 FINANCIAL ACCOUNTING (New) Day and Date : Saturday, 29-3-2014 Max. Marks : 50 Time : 3.00 p.m. to 5.00 p.m. N.B. : 1) All questions are compulsory. 2) Attempt any one question from Q. No. 4(a) and 4(b). 3) Attempt any one question from Q. No. 5(a) and 5(b). 4) Figures to the right indicate full marks. 1. Choose the correct alternative : 10 1) Accounting is the art of measuring communicating and interpreting ________ activity. a) Economical b) Social c) Financial d) Environmental 2) The proprietor is treated as a creditor to the extent of his capital according to a) Cost concept b) Business entity concept c) Going concern concept d) Realisation concept 3) In convertion of partnership, Liability settled in cash is a) Debited to Realisation A/c b) Credited to Realisation A/c c) Debited Partners Capital A/c d) Credited to Partners Capital A/c P.T.O. Seat No. SLR-BN – 71 -2- 4) If goodwill is valued at 3 years purchase of average profits of last two years. When last two years profits were Rs. 2,500 and Rs. 3,800, the value of goodwill will be a) Rs. 4,200 b) Rs. 9,450 c) Rs. 6,300 d) Rs. 3,900 5) That part of unsecured creditors which has a priority over other creditors is called a) Sundry Creditor b) Loan Creditor c) Preferential Creditor d) Other Creditor 6) The balance of fully secured creditor is ___________ the realizable value of security given to them. a) More than b) Less than c) Equal to d) More or less than 7) No __________ entries are passed in case of a co-op. society. a) Cash b) Credit c) Journal d) Ledger 8) Co-op. movement was started in India to free the formers from the clutches of a) Bankers b) Private Money Lenders c) Creditors d) Govt. 9) In Receipts and Expenditure A/c _________ system is followed in respect of expenses. a) Mercantile b) Cash c) Hybrid d) None of these 10) 100% provision is made in respect of outstanding income in a) Receipts and Payments A/c b) Receipts and Expenditure A/c c) Income and Expenditure A/c d) Profit and Loss A/c -3- SLR-BN – 71 2. Write short notes on : 10 a) Distribution of share among the partners and their final settlement. b) Receipts and Expenditure A/c. 3. a) From the following information prepare list D only in case of Mr. Ram, Mumbai. 5 i) Salary outstanding for 5 months of 10 employees Rs. 5,000 ii) Wages outstanding for 5 months of 20 workers Rs. 4,000 iii) 3 months Rent payable to landlord Rs. 15,000. b) From the following information prepare purchase consideration and settlement of purchase consideration. 5 Balance Sheet Liabilities Rs. Assets Rs. Capital Accounts Building 40,000 – A 51,000 Plant 30,000 – B 39,000 Furniture 5,000 Bills payable 5,000 Debtors 28,000 Creditors 25,000 Stock 10,000 Bank 7,000 1,20,000 1,20,000 Ltd. company agreed to take over all the assets and liabilities as under : Building Rs. 42,000, Plant Rs. 25,000 Furniture Rs. 4,340, Stock Rs. 8,000 Debtors subject to provision for doubtful debts @ 3%, creditors at a discount of 2%. Company issued 6300 equity shares of Rs. 10 each at Rs. 12 per share and balance paid in cash. 4. a) X Ltd. formed to take over the business of M/s PQR who share profits in the ratio of 2 : 1 : 1 respectively. 10 Balance Sheet as on 31st March 2013 Liabilities Rs. Assets Rs. Capitals Plant and Machinery 37,000 – P 25,000 Stock 17,000 – Q 12,000 Debtors 19,000 – R 12,000 Motor car 10,000 Investment Investments 10,000 Fluctuation Fund 5,000 Cash 1,000 Creditors 24,000 Bills Payable 16,000 94,000 94,000 X Ltd. to take over Plant and Machinery, Stock & Debtors at 10% less than the Book value and agreed to pay Rs. 10,000 for Goodwill. It is also agreed to pay creditors at Book value. The purchase price was satisfied by issue of 4000 shares of Rs. 10 each and balance in cash. Mr. P took the Motor car at Rs. 8,000. Investments were sold in the market for Rs. 9,000. The Partnership firm paid Bills Payable at 10% discount. The realisation expenses amounted to Rs. 2,300. The partnership firm sold the shares of X Ltd. for Rs. 36,000. Show various Ledger Accounts in the Books of the firm. SLR-BN – 71 -4- b) Shri Ramakrishna filed his Petition in Bankruptcy on 31st March 2013, when his position was as under 10 Particulars Debit Credit Rs. Rs. Cash in hand 8,200 – Fixtures and fittings (Estimated to realise Rs. 2,000) 6,000 – Stock (Estimated to realise Rs. 25,000) 35,000 – Building (Estimated to realise Rs. 30,000) 20,000 – Motor car (Estimated to realise Rs. 15,000) 17,500 – Trade creditors (including preferential creditors of Rs. 1,000) – 50,000 Bills Payable – 35,000 Mortgage loan on Building – 25,000 Loan on Motor car – 20,000 Sundry Debtors – Good 25,000 – Doubtful (50% realisable) 30,000 – Bad 20,000 75,000 – Bank overdraft – 20,000 Capital – 11,700 Total 1,61,700 1,61,700 Liability for Bills discounted was Rs. 15,000 of which Rs. 7,000 were expected to Bank. Prepare : 1) Statement of Affairs 2) Deficiency Account -5- SLR-BN – 71 5. a) From the following Trial Balance of Saishree Co-op. Credit Society as on 31-03-2013 and other information, prepare Profit & Loss A/c for the year ended 31-3-2013 and Balance Sheet as on that date. 10 Dr. Balances Rs. Cr. Balances Rs. Cash in hand 1,200 Share Capital 5,00,000 Cash with Banks 11,000 Reserve Fund 75,000 Fixed Deposits with Banks 1,50,000 Members Deposits 14,50,000 Office furniture 10,000 Unpaid Dividend 5,000 Interest on Deposits 1,05,000 Dividend Equilisation Interest due on loans 10,000 Reserve 20,000 Salary and Allowances 45,000 Staff Provident Fund 20,000 Establishment exps. 5,000 Profit & Loss Appropriation Printing and Stationery 1,000 A/c (balance) 25,000 Travelling exps. 2,000 Interest 1,90,000 Insurance Premium 1,500 Renewal fees 5,000 Contribution to P.F. 2,500 Sundry Income 1,200 Loans due from Member 19,50,000 Co-op. Development Fund 2,500 Education Fund 500 22,94,200 22,94,200 Adjustments : 1) Interest due on members deposits Rs. 7,000 2) Interest accrued but not received on investments Rs. 5,000 3) Addition to furniture during the year Rs. 5,000, charge depreciation at 10% on closing balance. 4) Salary due but not paid Rs. 500, and salary paid in advance Rs. 1,000. 5) Audit fees unpaid for the year Rs. 5,000 6) Authorised capital was 10,000 shares of Rs.10 each. SLR-BN – 71 -6- b) Prepare Income & Expenditure Account, Receipt & Expenditure A/c and Balance Sheet from the following. 10 Receipts & Payments A/c for the year ended 31st March, 2013 Receipts Rs. Payments Rs. To Balance b/d 32,500 By Expenses 55,000 To Fees 1,20,000 By Balance c/d 97,500 1,52,500 1,52,500 Balance Sheet as on 1-4-2012 Liabilities Rs. Assets Rs. Capital 1,47,500 Furniture 17,500 Liab. for expenses 5,000 Motor car 62,500 Provision for outstanding fees 10,000 Equipments 40,000 Fees receivable 10,000 Cash in Hand 32,500 1,62,500 1,62,500 Other Information : 1) Outstanding fees on 31-3-2013 Rs. 17,500. 2) Provide depreciation at 20% on car, 15% on Equipments and 10% on furniture. _______________

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