Solapur University Question Paper
M.Com. – II (Semester – III) Examination, 2014
ADVANCED ACCOUNTANCY (Paper – III) (Gr. – a)
Day and Date : Thursday, 24-4-2014 Max. Marks : 50
Time : 11.00 a.m. to 1.00 p.m.
2) Marks on the right indicates full marks.
1. Choose the correct alternative from the given alternatives : 10
1) The minority share holders of a subsidiary hold 20% shares of the company
on the date of consolidation of balance sheets ; the books of account of the
subsidiary reveal the following :
Fully paid equity share capital Rs. 75 lakh
Capital reserve Rs. 15 lakh
Revenue reserve Rs. 30 lakh
The minority interest will be shown at :
a) Rs. 15 lakh b) Rs. 18 lakh c) Rs. 21 lakh d) Rs. 24 lakh
2) In farm accounting, standing crops are treated as _____________
a) Crop product b) Work in progress
c) Final product d) None of these
3) A _____________ is an enterprise that is controlled by another enterprise.
a) Parent b) Private Ltd. c) Subsidiary d) None of these
4) At the time of purchase of containers _____________ is debited.
a) Containers A/c b) Purchase A/c
c) Containers trading A/c d) Containers stock A/c
5) When containers are destroyed or lost which A/c is credited ?
a) Containers stock A/c b) Containers trade A/c
c) Containers provision A/c d) None of these
6) Minority of the subsidiary is entitled to
a) Capital profit b) Both capital and revenue profit
c) Revenue profit d) None of the above
7) The concept of rental charges is related with
a) Farm accounting b) Holding Co. A/c
c) Package accounting d) Absorption of Co.
SLR-N – 50 -2-
8) Amount payable by purchasing company to vendor company is called ________
a) Purchase consideration b) Interest
c) Dividend d) Net asset
9) Grain consumed by live stock is changed to
a) Live stock b) Crop A/c c) Both of these d) None of these
10) Inter company owings on account of dividend will be shown in the consolidated
balance sheet on
a) The asset side b) The liability side c) No where
2. A) Compare between Amalgamation and Absorption of companies. 5
B) Y Ltd. decides to amalgamate with X Ltd. X Ltd., takes the assets of Y Ltd., at
Rs. 7,00,000 and amount payable to debenture holders of Y Ltd., is Rs. 3,00,000
and creditors is Rs. 2,00,000 which are taken over by X Ltd. Ascertain the
amount of purchase consideration for Amalgamation. 5
3. A) Explain meaning of holding and subsidiary company. 5
B) The following is the Balance Sheet of S Ltd. as on 31stMarch 2013 :
Liabilities Rs. Assets Rs.
Share Capital Fixed Assets 2,90,000
Equity shares of Rs. 10 each 2,70,000 Investment 2,75,000
Gen. reserve Current assets 1,30,000
Profit and Loss A/c 3,60,000 Preliminary expenses 20,000
Current liabilities 85,000
7,15,000 7,15,000
H Ltd. acquired 25,000 shares in S Ltd., on 31-3-2013 at a cost of Rs. 2,75,000.
Fixed assets were revealed at Rs. 3,28,000. Find minority interest. 5
4. Answer any one of the following :
A) The following Balance Sheets are presented to you :
Balance Sheet as at 31st Dec. 2013
Liabilities X Ltd. Y Ltd. Assets X Ltd. Y Ltd.
Share capital 10,00,000 4,00,000 Fixed Assets 7,00,000 3,00,000
Gen. Reserve 2,00,000 – Stock 1,80,000 80,000
P/L A/c 1,90,000 – Debtors 1,20,000 60,000
6% Debentures – 2,00,000 Investment :
Creditors 1,20,000 90,000 Debentures
in Y Ltd. 1,20,000 –
-3- SLR-N – 50
3,000 shares
in Y Ltd. at
cost 2,40,000 –
Cash 1,50,000 50,000
P/L A/c – 2,00,000
15,10,000 6,90,000 15,10,000 6,90,000
X Ltd. acquired the shares in Y Ltd. on 1-4-13. The Profit and Loss A/c of
Y Ltd. showed a debit balance of Rs. 3,00,000 on 1st Jan. 2013. Creditors of
Y Ltd. includes Rs. 40,000 for goods supplied by X. Ltd. on which X Ltd. made
a profit of Rs. 4,000. Half of the goods were still in stock on 31st Dec. 2013.
Prepare a consolidated Balance Sheet as on 31st Dec. 2013. 10
B) Super Express Ltd. and Fast Express Ltd. were in competing business. They
decided to form a new company named Super Fast Express Ltd. The Balance
Sheets of both the companies were as under :
Super Express Ltd.
Balance Sheet as at 31st Dec. 2013
Rs. Rs.
20,000 equity shares Buildings 10,00,000
of Rs. 100 each 20,00,000 Machinery 4,00,000
Provident fund 1,00,000 Stock 3,00,000
Sundry creditors 60,000 Sundry debtors 2,40,000
Insurance reserve 1,00,000 Cash at bank 2,20,000
Cash in hand 1,00,000
22,60,000 22,60,000
Fast Express Ltd.
Balance Sheet as at 31st Dec. 2013
Rs. Rs.
10,000 Equity shares Goodwill 1,00,000
of Rs. 100 each 10,00,000 Buildings 6,00,000
Employees profit Machinery 5,00,000
sharing Account 60,000 Stock 40,000
Sundry Creditors 40,000 S. Debtors 40,000
Reserve Account 1,00,000 Cash at bank 10,000
Surplus 1,00,000 Cash in hand 10,000
13,00,000 13,00,000
The assets and liabilities of both the companies were taken over by the new
company at their book values. The companies were allotted equity shares of
Rs. 100 each in lieu of purchase consideration.
Prepare opening Balance Sheet of Super Fast Express Ltd. 10
5. Answer any one of the following :
A) Prem Mohan Ltd. has the stock of 2,000 packages valued at Rs. 0.50 each.
During the year the company purchased 4,000 packages. It issued 40,000
packages to customers and received from customers 37,000 packages.
40 packages were destroyed of which 20 were repaired at cost of Rs. 0.10
per package. The purchase price of packages is Rs. 1 but stocks are valued
at Rs. 0.50 to allow for depreciation. You are required to prepare packages
stock A/c. 10
B) From the following particulars prepare cattle account :
Op. Stock Cl. Stock
No. Value No. Value
Rs. Rs.
Cattle 80 32,000 130 1,55,000
Cattle food – 5000 – 8000
No. Value
Rs.
Purchase of cattle food – 10,000
Purchase of cattle during the year 150 60,000
Sales of (total) slaughted cattle 30 20,000
Sale of cattle during the year 75 50,000
Sale of carcases 5 500
Out of the calves born during the year 3 died and the carcases of the calves
didnot realise anything. Crop worth Rs. 5,000 grown in the farm was used for
feeding Rs. 3,000 is estimated to be. Wages rearing etc. Slaughterhouse
expenses amounted to Rs. 2,000. Charge depreciation Rs. 1,500 and Insurance
Rs. 400. 10
_____________
M.Com. – II (Semester – III) Examination, 2014
ADVANCED ACCOUNTANCY (Paper – III) (Gr. – a)
Day and Date : Thursday, 24-4-2014 Max. Marks : 50
Time : 11.00 a.m. to 1.00 p.m.
- Instructions :1) All questions are compulsory.
2) Marks on the right indicates full marks.
1. Choose the correct alternative from the given alternatives : 10
1) The minority share holders of a subsidiary hold 20% shares of the company
on the date of consolidation of balance sheets ; the books of account of the
subsidiary reveal the following :
Fully paid equity share capital Rs. 75 lakh
Capital reserve Rs. 15 lakh
Revenue reserve Rs. 30 lakh
The minority interest will be shown at :
a) Rs. 15 lakh b) Rs. 18 lakh c) Rs. 21 lakh d) Rs. 24 lakh
2) In farm accounting, standing crops are treated as _____________
a) Crop product b) Work in progress
c) Final product d) None of these
3) A _____________ is an enterprise that is controlled by another enterprise.
a) Parent b) Private Ltd. c) Subsidiary d) None of these
4) At the time of purchase of containers _____________ is debited.
a) Containers A/c b) Purchase A/c
c) Containers trading A/c d) Containers stock A/c
5) When containers are destroyed or lost which A/c is credited ?
a) Containers stock A/c b) Containers trade A/c
c) Containers provision A/c d) None of these
6) Minority of the subsidiary is entitled to
a) Capital profit b) Both capital and revenue profit
c) Revenue profit d) None of the above
7) The concept of rental charges is related with
a) Farm accounting b) Holding Co. A/c
c) Package accounting d) Absorption of Co.
SLR-N – 50 -2-
8) Amount payable by purchasing company to vendor company is called ________
a) Purchase consideration b) Interest
c) Dividend d) Net asset
9) Grain consumed by live stock is changed to
a) Live stock b) Crop A/c c) Both of these d) None of these
10) Inter company owings on account of dividend will be shown in the consolidated
balance sheet on
a) The asset side b) The liability side c) No where
2. A) Compare between Amalgamation and Absorption of companies. 5
B) Y Ltd. decides to amalgamate with X Ltd. X Ltd., takes the assets of Y Ltd., at
Rs. 7,00,000 and amount payable to debenture holders of Y Ltd., is Rs. 3,00,000
and creditors is Rs. 2,00,000 which are taken over by X Ltd. Ascertain the
amount of purchase consideration for Amalgamation. 5
3. A) Explain meaning of holding and subsidiary company. 5
B) The following is the Balance Sheet of S Ltd. as on 31stMarch 2013 :
Liabilities Rs. Assets Rs.
Share Capital Fixed Assets 2,90,000
Equity shares of Rs. 10 each 2,70,000 Investment 2,75,000
Gen. reserve Current assets 1,30,000
Profit and Loss A/c 3,60,000 Preliminary expenses 20,000
Current liabilities 85,000
7,15,000 7,15,000
H Ltd. acquired 25,000 shares in S Ltd., on 31-3-2013 at a cost of Rs. 2,75,000.
Fixed assets were revealed at Rs. 3,28,000. Find minority interest. 5
4. Answer any one of the following :
A) The following Balance Sheets are presented to you :
Balance Sheet as at 31st Dec. 2013
Liabilities X Ltd. Y Ltd. Assets X Ltd. Y Ltd.
Share capital 10,00,000 4,00,000 Fixed Assets 7,00,000 3,00,000
Gen. Reserve 2,00,000 – Stock 1,80,000 80,000
P/L A/c 1,90,000 – Debtors 1,20,000 60,000
6% Debentures – 2,00,000 Investment :
Creditors 1,20,000 90,000 Debentures
in Y Ltd. 1,20,000 –
-3- SLR-N – 50
3,000 shares
in Y Ltd. at
cost 2,40,000 –
Cash 1,50,000 50,000
P/L A/c – 2,00,000
15,10,000 6,90,000 15,10,000 6,90,000
X Ltd. acquired the shares in Y Ltd. on 1-4-13. The Profit and Loss A/c of
Y Ltd. showed a debit balance of Rs. 3,00,000 on 1st Jan. 2013. Creditors of
Y Ltd. includes Rs. 40,000 for goods supplied by X. Ltd. on which X Ltd. made
a profit of Rs. 4,000. Half of the goods were still in stock on 31st Dec. 2013.
Prepare a consolidated Balance Sheet as on 31st Dec. 2013. 10
B) Super Express Ltd. and Fast Express Ltd. were in competing business. They
decided to form a new company named Super Fast Express Ltd. The Balance
Sheets of both the companies were as under :
Super Express Ltd.
Balance Sheet as at 31st Dec. 2013
Rs. Rs.
20,000 equity shares Buildings 10,00,000
of Rs. 100 each 20,00,000 Machinery 4,00,000
Provident fund 1,00,000 Stock 3,00,000
Sundry creditors 60,000 Sundry debtors 2,40,000
Insurance reserve 1,00,000 Cash at bank 2,20,000
Cash in hand 1,00,000
22,60,000 22,60,000
Fast Express Ltd.
Balance Sheet as at 31st Dec. 2013
Rs. Rs.
10,000 Equity shares Goodwill 1,00,000
of Rs. 100 each 10,00,000 Buildings 6,00,000
Employees profit Machinery 5,00,000
sharing Account 60,000 Stock 40,000
Sundry Creditors 40,000 S. Debtors 40,000
Reserve Account 1,00,000 Cash at bank 10,000
Surplus 1,00,000 Cash in hand 10,000
13,00,000 13,00,000
The assets and liabilities of both the companies were taken over by the new
company at their book values. The companies were allotted equity shares of
Rs. 100 each in lieu of purchase consideration.
Prepare opening Balance Sheet of Super Fast Express Ltd. 10
5. Answer any one of the following :
A) Prem Mohan Ltd. has the stock of 2,000 packages valued at Rs. 0.50 each.
During the year the company purchased 4,000 packages. It issued 40,000
packages to customers and received from customers 37,000 packages.
40 packages were destroyed of which 20 were repaired at cost of Rs. 0.10
per package. The purchase price of packages is Rs. 1 but stocks are valued
at Rs. 0.50 to allow for depreciation. You are required to prepare packages
stock A/c. 10
B) From the following particulars prepare cattle account :
Op. Stock Cl. Stock
No. Value No. Value
Rs. Rs.
Cattle 80 32,000 130 1,55,000
Cattle food – 5000 – 8000
No. Value
Rs.
Purchase of cattle food – 10,000
Purchase of cattle during the year 150 60,000
Sales of (total) slaughted cattle 30 20,000
Sale of cattle during the year 75 50,000
Sale of carcases 5 500
Out of the calves born during the year 3 died and the carcases of the calves
didnot realise anything. Crop worth Rs. 5,000 grown in the farm was used for
feeding Rs. 3,000 is estimated to be. Wages rearing etc. Slaughterhouse
expenses amounted to Rs. 2,000. Charge depreciation Rs. 1,500 and Insurance
Rs. 400. 10
_____________
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