Solapur University Question Paper
M.Com. – I (Sem. – I) Examination, 2014
ADVANCED ACCOUNTANCY (Paper – I) (Gr – A)
(Old Syllabus)
Day and Date : Saturday, 19-4-2014 Total Marks : 50
Time : 3.00 p.m. to 5.00 p.m.
Instruction : Figures to the right indicate full marks.
1. Choose the correct alternative : 10
1) Accounting standard – 8 deals with
a) Accounting for Co-operatives
b) Accounting for shares
c) Accounting for research and development
d) None of the above
2) Under Double Accounting System the Balance Sheet is presented in
__________ parts.
a) two b) three
c) one d) not prepared
3) The Indian Accounting Standard Board (ASB) is constituted on 21st April
______________
a) 1976 b) 1977
c) 1975 d) None of the above
4) Accounting to ____________ concept every business transactions has two
fold effect.
a) Going concern concept b) Business entity concept
c) Dual aspect concept d) None of the above
5) International Accounting Standard Committee has approved ___________
standard
a) 29 b) 28
c) 27 d) None of the above
SLR-N – 2 -2-
6) As per the Section 33 of the Co-operative Societies Act, 1912 the first
__________ or more of the Net Profit earned during the year should be
transferred to a reserve fund.
a) 12% b) 25%
c) 20% d) None of the above
7) For every insurance company carrying on exclusively the business as a
reinsurance the minimum paid up equity capital is ______________
a) Rs. 100 crore b) Rs. 200 crore
c) Rs. 300 crore d) None of the above
8) The types of reconstruction are _______________
a) 2 b) 3
c) only one d) None of the above
9) A Revenue A/c and Net Revenue A/c are opened under the _____________
a) Singal Accounting System b) Double Accounting System
c) Internal Reconstruction d) Insurance Company Account
10) While preparing the Final Account of insurance company carrying on general
insurance business, the minimum reserve for unexpired risk that has to be
kept in respect of marine business is _____________
a) 50% b) 75%
c) 100% d) None
2. A) Write a short note on Accounting Standard Board (ASB-OF ICA – I). 5
B) The Unsuccessful Co. Ltd. prepare a scheme for reconstruction, which was
duly approved by the court the terms of reconstruction was as under : 5
1) The Shareholders to receive in lieu of their present holding (viz. 50,000
share of Rs. 10 each) the following :
a) Fully paid equity share equal to 2/5 of their holding.
b) 5% pref. share, fully paid, to the extent of 1/5 of the above new equity.
c) Rs. 60,000 in 6% second debenture.
2) As issue of Rs. 50,000, 5% debentures was made and allotted, payment
for the same having been received in cash.
3) The Goodwill which stood at Rs. 3,00,000 was written down to Rs. 1,50,000,
the plant and machinery standing at Rs. 1,00,000 was written down to
Rs. 75,000, freehold and leasehold premises standing at Rs. 1,50,000
were written down to Rs. 1,25,000.
Pass Journal entries.
-3- SLR-N – 2
3. A) Write a short note on reserve of unexpired risk or Insurance Fund. 5
B) From the following Trail Balance of Sadhand Consumer Co-op-Society as on
31-3-2013. 5
Particulars Rs. Rs.
1 Member share capital – 5,640
2 Members deposit – 12,000
3 Dead stock 2,800 –
Stationery and printing 300 –
Bank share purchase 2,000 –
Share purchased 800 –
Bank loan (simple) – 12,400
Members loan 33,300 –
Interest on members loan – 21,300
Purchases of rationing grain 48,000 –
Sale of rationing grain – 51,000
Office Rent 3,600 –
Salaries 4,220 –
Travelling exp. 500 –
Frieght 520 –
Coal charges 360 –
Bank current A/c Dr. Bal. 13,400 –
Bank interest 10,500 –
Reserve and other fund – 18,000
Cash Bal. 40
1,20,340 1,20,340
Adjustment :
1) Closing stock of rationing grains 31-3-2013 Rs. 1,400/-
2) O/s office rent Rs. 400
3) Provide for audit fee due to Rs. 240/-
4) Provide depreciation on dead stock at 5/- p.a.
5) Transfer Rs. 880 to reserve fund
You are required to prepare Trading and P and L A/c and Balance Sheet
as on that date.
SLR-N – 2 -4-
4. 1) Answer any one : 10
From the following figures of Eastern Life Assurance Co. Ltd. given below
you are to prepare the Revenue Account for the year ended 31-3-2013 and
valuation Balance Sheet as at that date. Presuming that a net liability was of
Rs. 45,25,000 on all the Policies in force on that date :
Particulars Rs.
Life Assurance Fund 1-4-2012 60,00,000
Premiums 24,00,000
Re-assurance on Premium 30,000
Claims 3,50,000
Reassurance of claims (irrecoverable Balance) 1,500
Consideration for annuities granted 75,000
Surrenders 1,50,000
Commission 1,12,000
Annuities 1,23,000
Interest Dividend and Rent 13,20,000
Income tax there on 1,85,000
Bonus in cash 1,85,000
Bonus in reduction of premium 6,700
Expenses of Management 1,75,500
Fines for revival of lapsed policies 1,350
Surplus on revaluation of reversions purchased 10,000
2) From the following Trial Balance of Pragati consumers co-operative society
on 31st March 2013.
Trial Balance
Particulars Dr. Rs. Cr. Rs.
Share Capital – 80,000
Deposits from members – 50,000
Sales – 12,50,000
Purchase return – 5,000
Suppliers – 10,000
Interest on investment – 12,000
Rebate received – 3,000
Common good fund – 4,000
Price education fund – 8,000
Reserve fund – 20,000
Cash in hand 400 –
Cash at Bank 86,000 –
Furniture 6,000 –
Purchases 10,05,000 –
Customers 30,000 –
Carriage inward 5,000 –
Sales return 2,000 –
Rent 10,000 –
Audit fees 2,000 –
Sale tax 3,000 –
Staff salary 50,000 –
Printing and stationery 10,000 –
Investment 2,00,000 –
Stock in trade 30,000 –
Interest paid 2,600 –
14,42,000 14,42,000
Adjustment :
1) Value of closing stock Rs. 60,000
2) Preparation on furniture @ 10% p.a.
3) Interest accrued on Deposits Rs. 1,500 and Int. accrued on Investment Rs. 6,000
4) Outstand salary of Rs. 3,000
5) Outstanding sale tax of Rs. 1,000
You are required to prepare Trading and P and L A/c and Balance Sheet on
31st March 2013.
-5- SLR-N – 2
5. Answer any one : 10
1) From the following Balance sheet of Bombay Water Supply Co. Ltd. prepare
according to ordinary commercial method. Construct Balance Sheet and Capital
Account according to the requirements of Double A/c System.
Balance as on 31-3-2014
Liabilities Rs. Assets Rs.
Ordinary share capital 8,000, Land and Building
share of Rs. 10 each Bal.as per last Balance
fully paid 80,000 Sheet 85,330
Pref. share capital Additional during
2000 6% cumulative Pref. the year 20,000 1,05,330
Share of Rs. 10 each fully Mains and services
paid 20,000 pipes balance as per last
Premium on share 20,000 Balance Sheet 10,000
S. creditors 841 Additional during
Reserve fund 500 the year 1920 11,920
Unclaimed dividend 20 Meters 1,050
Revenue A/c balance as per Preliminary exp. 1,000
last Balance Sheet 1,000 Reserve Fund Investment 500
Add Bal. brought Stores on hand 340
from revenue A/c 7,674 Sundry debtors 1290
8,674 Cash and Bank Bal.
Less : Cash in hand 1060
Interim dividend 3,000 Cash at bank 3103 4163
Transfer to 242
Dividend on pref. 1,200 4,442 4,232
1,25,593 1,25,593
SLR-N – 2 -6-
2)
Vishal Co. Ltd.
Balance Sheet as on 31-3-2014
Liabilities Rs. Assets Rs.
2000. 11.5% pref. share
of Rs. 100 each 2,00,000 Goodwill 15,000
4000 eq. share Rs.100 each 4,00,000 Freehold property 2,00,000
16% mortgage 1,00,000 Plant and Machinery 3,00,000
Bank over draft 75,000 Stock 50,000
Creditors 75,000 Debtors 40,000
P and L. A/c 2,45,000
8,50,000 8,50,000
Information :
The Co. go at the following scheme of capital reduction approved by the court.
1) The pref. share to be reduced to Rs. 75% (25) Pref. and eq. shares to
Rs. 37.50.
2) The debenture holders took over stock and debtors (Book debts) in full
satisfaction of the amt. due to them.
3) Goodwill A/c to be eliminated.
4) Freehold properties to be depreciated by 50%.
5) The value of Plant and Machinery to be increased by Rs. 50,000.
Prepare revised B/S and Journal entries.
_____________________
M.Com. – I (Sem. – I) Examination, 2014
ADVANCED ACCOUNTANCY (Paper – I) (Gr – A)
(Old Syllabus)
Day and Date : Saturday, 19-4-2014 Total Marks : 50
Time : 3.00 p.m. to 5.00 p.m.
Instruction : Figures to the right indicate full marks.
1. Choose the correct alternative : 10
1) Accounting standard – 8 deals with
a) Accounting for Co-operatives
b) Accounting for shares
c) Accounting for research and development
d) None of the above
2) Under Double Accounting System the Balance Sheet is presented in
__________ parts.
a) two b) three
c) one d) not prepared
3) The Indian Accounting Standard Board (ASB) is constituted on 21st April
______________
a) 1976 b) 1977
c) 1975 d) None of the above
4) Accounting to ____________ concept every business transactions has two
fold effect.
a) Going concern concept b) Business entity concept
c) Dual aspect concept d) None of the above
5) International Accounting Standard Committee has approved ___________
standard
a) 29 b) 28
c) 27 d) None of the above
SLR-N – 2 -2-
6) As per the Section 33 of the Co-operative Societies Act, 1912 the first
__________ or more of the Net Profit earned during the year should be
transferred to a reserve fund.
a) 12% b) 25%
c) 20% d) None of the above
7) For every insurance company carrying on exclusively the business as a
reinsurance the minimum paid up equity capital is ______________
a) Rs. 100 crore b) Rs. 200 crore
c) Rs. 300 crore d) None of the above
8) The types of reconstruction are _______________
a) 2 b) 3
c) only one d) None of the above
9) A Revenue A/c and Net Revenue A/c are opened under the _____________
a) Singal Accounting System b) Double Accounting System
c) Internal Reconstruction d) Insurance Company Account
10) While preparing the Final Account of insurance company carrying on general
insurance business, the minimum reserve for unexpired risk that has to be
kept in respect of marine business is _____________
a) 50% b) 75%
c) 100% d) None
2. A) Write a short note on Accounting Standard Board (ASB-OF ICA – I). 5
B) The Unsuccessful Co. Ltd. prepare a scheme for reconstruction, which was
duly approved by the court the terms of reconstruction was as under : 5
1) The Shareholders to receive in lieu of their present holding (viz. 50,000
share of Rs. 10 each) the following :
a) Fully paid equity share equal to 2/5 of their holding.
b) 5% pref. share, fully paid, to the extent of 1/5 of the above new equity.
c) Rs. 60,000 in 6% second debenture.
2) As issue of Rs. 50,000, 5% debentures was made and allotted, payment
for the same having been received in cash.
3) The Goodwill which stood at Rs. 3,00,000 was written down to Rs. 1,50,000,
the plant and machinery standing at Rs. 1,00,000 was written down to
Rs. 75,000, freehold and leasehold premises standing at Rs. 1,50,000
were written down to Rs. 1,25,000.
Pass Journal entries.
-3- SLR-N – 2
3. A) Write a short note on reserve of unexpired risk or Insurance Fund. 5
B) From the following Trail Balance of Sadhand Consumer Co-op-Society as on
31-3-2013. 5
Particulars Rs. Rs.
1 Member share capital – 5,640
2 Members deposit – 12,000
3 Dead stock 2,800 –
Stationery and printing 300 –
Bank share purchase 2,000 –
Share purchased 800 –
Bank loan (simple) – 12,400
Members loan 33,300 –
Interest on members loan – 21,300
Purchases of rationing grain 48,000 –
Sale of rationing grain – 51,000
Office Rent 3,600 –
Salaries 4,220 –
Travelling exp. 500 –
Frieght 520 –
Coal charges 360 –
Bank current A/c Dr. Bal. 13,400 –
Bank interest 10,500 –
Reserve and other fund – 18,000
Cash Bal. 40
1,20,340 1,20,340
Adjustment :
1) Closing stock of rationing grains 31-3-2013 Rs. 1,400/-
2) O/s office rent Rs. 400
3) Provide for audit fee due to Rs. 240/-
4) Provide depreciation on dead stock at 5/- p.a.
5) Transfer Rs. 880 to reserve fund
You are required to prepare Trading and P and L A/c and Balance Sheet
as on that date.
SLR-N – 2 -4-
4. 1) Answer any one : 10
From the following figures of Eastern Life Assurance Co. Ltd. given below
you are to prepare the Revenue Account for the year ended 31-3-2013 and
valuation Balance Sheet as at that date. Presuming that a net liability was of
Rs. 45,25,000 on all the Policies in force on that date :
Particulars Rs.
Life Assurance Fund 1-4-2012 60,00,000
Premiums 24,00,000
Re-assurance on Premium 30,000
Claims 3,50,000
Reassurance of claims (irrecoverable Balance) 1,500
Consideration for annuities granted 75,000
Surrenders 1,50,000
Commission 1,12,000
Annuities 1,23,000
Interest Dividend and Rent 13,20,000
Income tax there on 1,85,000
Bonus in cash 1,85,000
Bonus in reduction of premium 6,700
Expenses of Management 1,75,500
Fines for revival of lapsed policies 1,350
Surplus on revaluation of reversions purchased 10,000
2) From the following Trial Balance of Pragati consumers co-operative society
on 31st March 2013.
Trial Balance
Particulars Dr. Rs. Cr. Rs.
Share Capital – 80,000
Deposits from members – 50,000
Sales – 12,50,000
Purchase return – 5,000
Suppliers – 10,000
Interest on investment – 12,000
Rebate received – 3,000
Common good fund – 4,000
Price education fund – 8,000
Reserve fund – 20,000
Cash in hand 400 –
Cash at Bank 86,000 –
Furniture 6,000 –
Purchases 10,05,000 –
Customers 30,000 –
Carriage inward 5,000 –
Sales return 2,000 –
Rent 10,000 –
Audit fees 2,000 –
Sale tax 3,000 –
Staff salary 50,000 –
Printing and stationery 10,000 –
Investment 2,00,000 –
Stock in trade 30,000 –
Interest paid 2,600 –
14,42,000 14,42,000
Adjustment :
1) Value of closing stock Rs. 60,000
2) Preparation on furniture @ 10% p.a.
3) Interest accrued on Deposits Rs. 1,500 and Int. accrued on Investment Rs. 6,000
4) Outstand salary of Rs. 3,000
5) Outstanding sale tax of Rs. 1,000
You are required to prepare Trading and P and L A/c and Balance Sheet on
31st March 2013.
-5- SLR-N – 2
5. Answer any one : 10
1) From the following Balance sheet of Bombay Water Supply Co. Ltd. prepare
according to ordinary commercial method. Construct Balance Sheet and Capital
Account according to the requirements of Double A/c System.
Balance as on 31-3-2014
Liabilities Rs. Assets Rs.
Ordinary share capital 8,000, Land and Building
share of Rs. 10 each Bal.as per last Balance
fully paid 80,000 Sheet 85,330
Pref. share capital Additional during
2000 6% cumulative Pref. the year 20,000 1,05,330
Share of Rs. 10 each fully Mains and services
paid 20,000 pipes balance as per last
Premium on share 20,000 Balance Sheet 10,000
S. creditors 841 Additional during
Reserve fund 500 the year 1920 11,920
Unclaimed dividend 20 Meters 1,050
Revenue A/c balance as per Preliminary exp. 1,000
last Balance Sheet 1,000 Reserve Fund Investment 500
Add Bal. brought Stores on hand 340
from revenue A/c 7,674 Sundry debtors 1290
8,674 Cash and Bank Bal.
Less : Cash in hand 1060
Interim dividend 3,000 Cash at bank 3103 4163
Transfer to 242
Dividend on pref. 1,200 4,442 4,232
1,25,593 1,25,593
SLR-N – 2 -6-
2)
Vishal Co. Ltd.
Balance Sheet as on 31-3-2014
Liabilities Rs. Assets Rs.
2000. 11.5% pref. share
of Rs. 100 each 2,00,000 Goodwill 15,000
4000 eq. share Rs.100 each 4,00,000 Freehold property 2,00,000
16% mortgage 1,00,000 Plant and Machinery 3,00,000
Bank over draft 75,000 Stock 50,000
Creditors 75,000 Debtors 40,000
P and L. A/c 2,45,000
8,50,000 8,50,000
Information :
The Co. go at the following scheme of capital reduction approved by the court.
1) The pref. share to be reduced to Rs. 75% (25) Pref. and eq. shares to
Rs. 37.50.
2) The debenture holders took over stock and debtors (Book debts) in full
satisfaction of the amt. due to them.
3) Goodwill A/c to be eliminated.
4) Freehold properties to be depreciated by 50%.
5) The value of Plant and Machinery to be increased by Rs. 50,000.
Prepare revised B/S and Journal entries.
_____________________
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