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

Solapur University Question Paper B.Com. I (Semester – I) (Old) Examination, 2014 FINANCIAL ACCOUNTING Day and Date : Saturday, 29-3-2014 Max. Marks : 50 Time : 3.00 p.m. to 5.00 p.m. N.B. : 1) Attempt all questions. 2) Out of Question No. 4 (a) and Question No. 4 (b) solve any one. 3) Out of Question No. 5 (a) and Question No. 5 (b) solve any one. 4) Figures to the right indicate full marks. 1. Choose the correct alternatives and complete the given sentence : 10 1) Indian Co-operative Movement was started in India to free the farmers from the clutches of a) Bankers b) Private money lenders c) Creditors d) Government 2) No part of the profits of a co-operative society is to be appropriated without the approval of the a) Management b) Board of Directors c) Annual General Meeting d) Central Govt. 3) That part of unsecured creditors which has a priority over other creditors is called a) Sundry creditors b) Loan creditor c) Preferential creditor d) Other creditor 4) Purchase consideration receivable from Ltd. company is credited to ___________ A/c by the firm. a) Ltd. Company’s b) Realisation c) Bank d) Shares 5) ___________ help management in discharging its functions of planning, control, decision making etc. a) Financial Accounting b) Cost Accounting c) Social Accounting d) Management Accounting Seat No. P.T.O. SLR-B – 3 -2- 6) Under the Presidency Towns Insolvency Act, rent due to landlord is preferential for a period of a) Two months b) One month c) Three months d) Four months 7) Income Tax dues are a) Secured creditors b) Unsecured creditors c) Preferential creditors d) Fully secured creditors 8) Assets and liabilities of the firm are transferred to _________ on conversion of partnership firm. a) Ltd. Companies A/c b) Cash A/c c) Realisation A/c d) Shares in Ltd. Co. A/c 9) Deposit received by credit Co. op. Society are shown on ___________ side. a) Asset b) Liability c) Profit and Loss A/c Debit d) Profit and Loss A/c Credit 10) An _________ person is one who is not in a position to pay his debts in full. a) Solvent b) Insolvent c) Indian d) American 2. Answer the following : A) Write a note on, Branches of Accounting. 5 B) If the purchasing company agrees to take over from the partnership firm only assets, the purchasing company agrees to take over machinery at Rs. 1,05,000, Furniture at Rs. 30,000, Stock at Rs. 60,000, Debtors at Rs. 60,000 subject to provision for bad debts at 5% and Goodwill at Rs. 30,000. 5 What will be amount of purchase consideration ? 3. Answer the following : A) Write a note on, Accounting Conventions. 5 B) Mr. Raja filed his petition in bankruptcy. The amount due are as follows. 5 i) Two months wages of the two workers Rs. 250. ii) A clerks salary for 5 months Rs.300. iii) Rent for one month Rs. 300. Prepare only list ‘D’ in statement of Affairs, Business place of Mr. Raja is in Mumbai city. -3- SLR-B – 3 4. Answer any one : 10 a) Jay and Padam were equal partners. Their Balance Sheet as on 31st March, 2013 was as follows : Balance Sheet as on 31st March, 2013 Liabilities Rs. Assets Rs. Sundry Creditors 50,000 Cash at Bank 20,000 Capital – Stock in hand 60,000 Jay 80,000 Debtors 50,000 Padam 60,000 1,40,000 Furniture 10,000 Investments 20,000 Machinery 30,000 1,90,000 1,90,000 The partners decided to sell the firms business to Sunshine Company Ltd. except Investments (Which were distributed between partners) the other Assets and Liabilities were taken over by the company. The other Assets were valued at Rs. 1,94,000. The Bank Account was not taken over. The company issued Rs. 1,00,000 in shares and the balance in cash as purchase consideration Rs. 1,000 were paid as realisation expenses. Show the Realisation A/c, the Bank A/c, and Capital A/c’s of partners. 4. b) You are required to prepare Profit and Loss Account for the year ended 31st March, 2013 from the following Trial Balance of Vikas Co-operative Credit Society and other information given. Particulars Dr. Particulars Cr. Rs. Rs. Cash in hand 350 Share Capital 3,75,000 Cash at Bank 7,000 Reserve Fund 25,000 Fixed Deposit with Members Deposits 11,23,875 M.S.C. Bank 77,500 Unpaid Dividend 1,050 Furniture 3,500 Dividend Equalisation Interest on Deposit 40,000 Reserve 9,000 Interest due on Loans 4,000 Staff Provident Fund 10,000 Salaries 15,000 Profit and Loss Office Rent 2,500 Appropriation A/c Balance 15,500 Printing and Stationery 200 Interest 89,000 Travelling Expenses 300 Renewal Fees 2,000 Insurance Premium 500 Miscellaneous Income 150 Contribution to Provident Co-operative Development Fund 1,000 Fund 1,025 Loan due from Members 15,00,000 Education Fund 250 16,51,850 16,51,850 Additional Information : a) Interest accrued on members deposit Rs. 2,500. b) Interest accrued due but not received Rs. 1,000. c) Addition to Furniture during the year Rs. 500. d) Provide depreciation at 10% on closing balance of furniture. e) Outstanding salary Rs. 150. f) Advance salary Rs. 250. g) Audit fees due Rs. 1,500. h) Authorised capital : 50,000 Shares of Rs. 10 each. SLR-B – 3 -4- i) Directors have recommend the following appropriations for the current year. i) Dividend to shareholders at 5%. ii) Required amount to Reserve Fund. iii) Transfer to Co-operative Development Fund at 5% of net profit after contributing to reserve fund. iv) Transfer to dividend equalisation reserve Rs. 1,000. v) Addition to building fund Rs. 5,000. 5. Answer any one. 10 a) From the following information, prepare a statement of Affairs in respect of Mr. A who filed his petition on 31-3-2013. Particulars Rs. Sundry creditors 60,000 Creditors partly secured by lien on shares 35,000 Liability on bills discounted (estimated to be dishonoured Rs. 3,000) 6,000 Mortgage on Building 10,000 Creditors for rent, taxes and salaries 3,000 Book-debts : Good 20,000 Doubtful (estimated to produce Rs. 2,000) 5,000 Bad 4,000 Stock (estimated to realise Rs. 30,000) 40,000 Shares (estimated to produce Rs. 12,000) 15,000 Cash at Bank 1,000 Bills receivable 1,500 Building (valued at Rs. 16,000) 18,000 -5- SLR-B – 3 Machinery (estimated to produce Rs. 4,000) 8,000 Fixtures (estimated at Rs. 1,500) 2,000 Debentures in Textile Mills Ltd.; (estimated at Rs. 3,000) 3,500 Loss on speculation 9,000 Loss through betting 6,000 On 1-4-2008 he had a capital of Rs. 35,000. The business resulted in a profit of Rs. 30,000 in first three years and a loss of Rs. 2,500 in the last two years after allowing Rs. 1,500 for interest on capital each year. The total withdrawals amounted to Rs. 45,000 during the period. b) From the following Trial Balance of Sanmitra Credit Co-operative Society Ltd., Pune, prepare Balance Sheet as on 31st March, 2013 in the prescribed form. Trial Balance as on 31st March 2013 Debit Balances Rs. Credit Balances Rs. Loan to members 3,50,000 Share capital 1,00,000 Contribution to staff Reserve Fund 9,000 Provident Fund 240 Members deposit 2,70,000 Insurance premium 520 Unpaid dividend 200 Travelling and conveyance 1,710 Staff Provident Fund 2,400 Printing and stationery 480 P & L A/c (1-4-2012) 3,500 Salary to Managing Director 6,000 Interest 43,000 Salary to staff 13,600 Renewal fees 400 Interest Loan 960 Sundry Income 320 SLR-B – 3 -6- Interest on Deposit 9,600 Co-op. Development Fund 2,000 Office furniture 840 Education Fund 600 Fixed deposit with Co-operative Bank 30,000 Cash in hand 2,180 Cash at Bank 15,290 4,31,420 4,31,420 Adjustments : 1) Interest due on members deposit Rs. 1,000/-. 2) Interest due but not received Rs. 2,400. 3) Salary outstanding on 31st March, 2013 Rs. 600. 4) Audit fees unpaid Rs. 400. 5) Authorised capital 10,000 shares of Rs. 20 each. 6) Directors propose to pay dividend 2%. 7) Depreciate furniture by 5%. 8) Net Profit for year ended 31st March, 2013 is Rs. 10,968. _________________

Share This