Download OU B.Com 2019 Dec 2nd Year 10052 Advanced Accounting Question Paper

Download OU (Osmania University) B.Com 2019 Dec 2nd Year 10052 Advanced Accounting Previous Question Paper

Code No. 10052
FACULTY OF COMMERCE
B.Com. III ? Semester (CBCS) Examination, November / December 2019
(Common Paper for General / Computers /Computer Applications /
Advertising / Foreign Trade and Tax Procedure Courses) Subject: Advanced
Accounting Paper Code ? BC ? 304
Time: 3 Hours Max.Marks: 80 PART ? A (5x4 = 20 Marks)
[Short Answer Type]
Note: Answer any five of the following questions.
1 Fluctuating Capital
2 P and Q are sharing profits in the ratio of 5:3 admit R on 3/7
th
share in the new firm
which he takes 2/7
th
from P and 1/7
th
from Q. Calculate the New Profit Sharing Ratio.
3 Shyam, Ram and Bhim share profit and losses in the ratio of 1:2:2. Ram has retired
in the month of December 2018 and is demanding his share of Goodwill. If the profits
of the previous five years were 2014 ? Rs.40,000; 2015 ? Rs.50,000; 2016 ?
Rs.60,000; 2017 ? Rs.35,000; 2018 ? Rs.25,000.
As per the deed it was agreed that Goodwill will be calculated on the basis of 2 years
purchase of the average net profits of the preceding four years.
4 Issued Capital
5 Underwriting
6 Sacrificing Ratio
7 Reissue of Forfeited Shares
8 Capitalization Method of Valuation of Goodwill.
PART ? B (5x12 = 60 Marks)
[Essay Answer Type]
Note: Answer all the questions.
9 a) What are the factors which necessitate the admission of a new partner? Explain
the provisions of the Partnership Act, 1932 in relation to admission of the partner.
OR
b) Following is the Balance Sheet of R and D as at 30
th
June, 2019 on which date R
retired and his son P joined that firm from 1
st
July, 2019 with one-fourth share in
the profits of the business.
Liabilities Rs. Assets Rs.
Creditors 10,000 Goodwill 12,000
Capitals: Rs. Plant 40,000
R 50,000 Investment 14,000
D 31,000
81,000
Debtors 15,000
Cash at Bank 10,000
91,000 91,000
..2
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Code No. 10052
FACULTY OF COMMERCE
B.Com. III ? Semester (CBCS) Examination, November / December 2019
(Common Paper for General / Computers /Computer Applications /
Advertising / Foreign Trade and Tax Procedure Courses) Subject: Advanced
Accounting Paper Code ? BC ? 304
Time: 3 Hours Max.Marks: 80 PART ? A (5x4 = 20 Marks)
[Short Answer Type]
Note: Answer any five of the following questions.
1 Fluctuating Capital
2 P and Q are sharing profits in the ratio of 5:3 admit R on 3/7
th
share in the new firm
which he takes 2/7
th
from P and 1/7
th
from Q. Calculate the New Profit Sharing Ratio.
3 Shyam, Ram and Bhim share profit and losses in the ratio of 1:2:2. Ram has retired
in the month of December 2018 and is demanding his share of Goodwill. If the profits
of the previous five years were 2014 ? Rs.40,000; 2015 ? Rs.50,000; 2016 ?
Rs.60,000; 2017 ? Rs.35,000; 2018 ? Rs.25,000.
As per the deed it was agreed that Goodwill will be calculated on the basis of 2 years
purchase of the average net profits of the preceding four years.
4 Issued Capital
5 Underwriting
6 Sacrificing Ratio
7 Reissue of Forfeited Shares
8 Capitalization Method of Valuation of Goodwill.
PART ? B (5x12 = 60 Marks)
[Essay Answer Type]
Note: Answer all the questions.
9 a) What are the factors which necessitate the admission of a new partner? Explain
the provisions of the Partnership Act, 1932 in relation to admission of the partner.
OR
b) Following is the Balance Sheet of R and D as at 30
th
June, 2019 on which date R
retired and his son P joined that firm from 1
st
July, 2019 with one-fourth share in
the profits of the business.
Liabilities Rs. Assets Rs.
Creditors 10,000 Goodwill 12,000
Capitals: Rs. Plant 40,000
R 50,000 Investment 14,000
D 31,000
81,000
Debtors 15,000
Cash at Bank 10,000
91,000 91,000
..2
Code No. 10052
-2-
Following adjustments and arrangements have been agreed upon for the
purposes of retirement and admission of partners:
i) The value of Goodwill is Rs.30,000 and Plant increased to Rs.50,000
ii) Sufficient money to be introduced so as to leave Rs.11,000 each after
payment of amount due to R.
iii) D and P to provide such fund as would make their Capitals proportionate to
their share of profit.
Show the Journal Entries to record the above transactions assuming that D and P
have paid in the cash due on 2
nd
July, 2019 and the amount due to R was paid
on the same day.
10 a) Kamal, Bhushan and Raj were sharing profits in the ratio of 3:1:1 respectively.
They decided to dissolve their firm on 31
st
March, 2019 when their position was
as follows:
Liabilities Rs. Assets Rs.
Capitals: Rs. Machinery 51.000
Kamal 82,500 Furniture 3.000
Bhushan 30,000 Stock 23,400
Raj 21,000
1,33,500
Debtors 72,600
Less: Provision for
Loan 4,500 Bad Debts 3,600
69,000 Sundry Creditors 18,000
Cash in Hand 9,600
1,56,000 1,56,000
i) Kamal agreed to take over Furniture at Rs.2,400; Debtors amounting to
Rs.60,000 at Rs.51,600 and also the Creditors at their book value.
ii) Bhushan agreed to take over Stock at Rs.21,000 and a part of the Machinery
at Rs.21,600 *(being Book Value less 10%).
iii) Raj agreed to take over the remaining Machinery at 90% of the Book Value
less Rs.300 as allowance. He also assumed the responsibility for the payment
of loan together with accrued interest Rs.90 (not recorded in the books).
iv) Dissolution expenses amounted to Rs.810.
v) The remaining Debtors were sold to a debt-collecting agency at 50% of Book
Value.
Prepare important Ledger Accounts to close the Books of Account.
OR
b) A, B and C are in Partnership sharing Profits and Losses three-sixths, two-sixths,
and one-sixth respectively. Balance Sheet on the date of dissolution was as
follows:
Liabilities Rs. Assets Rs.
Sundry Creditors 38,500 Cash in Hand 9,860
A? Loan A/c 2,750 Sundry Debtors 30,560
A? Capital 15,200 Stock 18,440
B?s Capital 11,200 Furniture 7,200
C?s Capital 1,590
67,650 67,650
..3
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Code No. 10052
FACULTY OF COMMERCE
B.Com. III ? Semester (CBCS) Examination, November / December 2019
(Common Paper for General / Computers /Computer Applications /
Advertising / Foreign Trade and Tax Procedure Courses) Subject: Advanced
Accounting Paper Code ? BC ? 304
Time: 3 Hours Max.Marks: 80 PART ? A (5x4 = 20 Marks)
[Short Answer Type]
Note: Answer any five of the following questions.
1 Fluctuating Capital
2 P and Q are sharing profits in the ratio of 5:3 admit R on 3/7
th
share in the new firm
which he takes 2/7
th
from P and 1/7
th
from Q. Calculate the New Profit Sharing Ratio.
3 Shyam, Ram and Bhim share profit and losses in the ratio of 1:2:2. Ram has retired
in the month of December 2018 and is demanding his share of Goodwill. If the profits
of the previous five years were 2014 ? Rs.40,000; 2015 ? Rs.50,000; 2016 ?
Rs.60,000; 2017 ? Rs.35,000; 2018 ? Rs.25,000.
As per the deed it was agreed that Goodwill will be calculated on the basis of 2 years
purchase of the average net profits of the preceding four years.
4 Issued Capital
5 Underwriting
6 Sacrificing Ratio
7 Reissue of Forfeited Shares
8 Capitalization Method of Valuation of Goodwill.
PART ? B (5x12 = 60 Marks)
[Essay Answer Type]
Note: Answer all the questions.
9 a) What are the factors which necessitate the admission of a new partner? Explain
the provisions of the Partnership Act, 1932 in relation to admission of the partner.
OR
b) Following is the Balance Sheet of R and D as at 30
th
June, 2019 on which date R
retired and his son P joined that firm from 1
st
July, 2019 with one-fourth share in
the profits of the business.
Liabilities Rs. Assets Rs.
Creditors 10,000 Goodwill 12,000
Capitals: Rs. Plant 40,000
R 50,000 Investment 14,000
D 31,000
81,000
Debtors 15,000
Cash at Bank 10,000
91,000 91,000
..2
Code No. 10052
-2-
Following adjustments and arrangements have been agreed upon for the
purposes of retirement and admission of partners:
i) The value of Goodwill is Rs.30,000 and Plant increased to Rs.50,000
ii) Sufficient money to be introduced so as to leave Rs.11,000 each after
payment of amount due to R.
iii) D and P to provide such fund as would make their Capitals proportionate to
their share of profit.
Show the Journal Entries to record the above transactions assuming that D and P
have paid in the cash due on 2
nd
July, 2019 and the amount due to R was paid
on the same day.
10 a) Kamal, Bhushan and Raj were sharing profits in the ratio of 3:1:1 respectively.
They decided to dissolve their firm on 31
st
March, 2019 when their position was
as follows:
Liabilities Rs. Assets Rs.
Capitals: Rs. Machinery 51.000
Kamal 82,500 Furniture 3.000
Bhushan 30,000 Stock 23,400
Raj 21,000
1,33,500
Debtors 72,600
Less: Provision for
Loan 4,500 Bad Debts 3,600
69,000 Sundry Creditors 18,000
Cash in Hand 9,600
1,56,000 1,56,000
i) Kamal agreed to take over Furniture at Rs.2,400; Debtors amounting to
Rs.60,000 at Rs.51,600 and also the Creditors at their book value.
ii) Bhushan agreed to take over Stock at Rs.21,000 and a part of the Machinery
at Rs.21,600 *(being Book Value less 10%).
iii) Raj agreed to take over the remaining Machinery at 90% of the Book Value
less Rs.300 as allowance. He also assumed the responsibility for the payment
of loan together with accrued interest Rs.90 (not recorded in the books).
iv) Dissolution expenses amounted to Rs.810.
v) The remaining Debtors were sold to a debt-collecting agency at 50% of Book
Value.
Prepare important Ledger Accounts to close the Books of Account.
OR
b) A, B and C are in Partnership sharing Profits and Losses three-sixths, two-sixths,
and one-sixth respectively. Balance Sheet on the date of dissolution was as
follows:
Liabilities Rs. Assets Rs.
Sundry Creditors 38,500 Cash in Hand 9,860
A? Loan A/c 2,750 Sundry Debtors 30,560
A? Capital 15,200 Stock 18,440
B?s Capital 11,200 Furniture 7,200
C?s Capital 1,590
67,650 67,650
..3
Code No. 10052
-3-
The assets realized:
Stock Rs.13,840; Furniture Rs.5,150, and Debtors Rs.29,200. The Creditors were
paid less discount Rs.250. C is insolvent and is unable to bring in anything. The
expenses of winding up were Rs.520. Show the Ledger Accounts as per Garner
Vs. Murray decision.
11 a) Jolly Brothers Ltd. offered for subscription 3,000 12% Preference Shares of
Rs.100 each at a premium of 20% on 1
st
January, 2019. The amount was
payable as follows:
On Application Rs.20; On Allotment Rs.40 (including Premium ? due on 1
st
Feb).
On First Call Rs.30 due on 1
st
March; On Second Call Rs.30 due on 1
st
May.
All the Shares were subscribed by the public and subscription list was closed on
25
th
January, 2019, Money due on allotment and calls payable 15 days after the
due dates. All the amounts were duly received in time except the second call on
200 shares.
Prepare Journal and Cash Book in the books of the Company and show them in
the Balance Sheet.
OR
b) Sharma Ltd. issued Rs.1,00,000 10 percent Debentures on 1
st
April, 2019 at a
discount of 5 percent repayable in annual drawings of Rs.25,000 commencing
from 31
st
December following. The company?s year ends on 31
st
March.
Journalize the above transactions for four years 31
st
March, 2019, assuming that
the company decided to write off Debenture Discount Account during the life of
the Debentures.
12 a) Following balances are extracted on 31
st
March, 2019 from the books of Vihaan
Company Limited.
Particulars Rs. Particulars Rs.
Lorries at cost 56,250 Share Capital
Buildings at cost 3,37,500 22,500, 7% Pref. Shares of Rs.10 each 2,25,000
Sundry Debtors 90,750 45,000 Equity Shares of Rs.10 each 4,50,000
Furniture at cost 2,58,750 Surplus 12,150
Bad Debts written off 2,138 Gross Profit for the year 1,84,708
General Expenses 14,625 Provision for doubtful debts 6,750
Cash in Hand and at Bank 51,375 Sundry Creditors 96,780
Rent, Rates and Taxes 21,300 Transfer Fees 187
Directors? Fees 2,700 Accrued Wages 9,638
Audit Fees 7,500 General Reserve 13,350
Stock on 31
st
March 2019 85,500
Salaries and Wages 24,000
Dividend paid on Pref. Shares 15,750
Dividend paid on Equity Shares 11,250
Discount on issue of Shares 11,250
Rent and Taxes paid in advance 5,925
9,96,563 9,96,563
..4
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Code No. 10052
FACULTY OF COMMERCE
B.Com. III ? Semester (CBCS) Examination, November / December 2019
(Common Paper for General / Computers /Computer Applications /
Advertising / Foreign Trade and Tax Procedure Courses) Subject: Advanced
Accounting Paper Code ? BC ? 304
Time: 3 Hours Max.Marks: 80 PART ? A (5x4 = 20 Marks)
[Short Answer Type]
Note: Answer any five of the following questions.
1 Fluctuating Capital
2 P and Q are sharing profits in the ratio of 5:3 admit R on 3/7
th
share in the new firm
which he takes 2/7
th
from P and 1/7
th
from Q. Calculate the New Profit Sharing Ratio.
3 Shyam, Ram and Bhim share profit and losses in the ratio of 1:2:2. Ram has retired
in the month of December 2018 and is demanding his share of Goodwill. If the profits
of the previous five years were 2014 ? Rs.40,000; 2015 ? Rs.50,000; 2016 ?
Rs.60,000; 2017 ? Rs.35,000; 2018 ? Rs.25,000.
As per the deed it was agreed that Goodwill will be calculated on the basis of 2 years
purchase of the average net profits of the preceding four years.
4 Issued Capital
5 Underwriting
6 Sacrificing Ratio
7 Reissue of Forfeited Shares
8 Capitalization Method of Valuation of Goodwill.
PART ? B (5x12 = 60 Marks)
[Essay Answer Type]
Note: Answer all the questions.
9 a) What are the factors which necessitate the admission of a new partner? Explain
the provisions of the Partnership Act, 1932 in relation to admission of the partner.
OR
b) Following is the Balance Sheet of R and D as at 30
th
June, 2019 on which date R
retired and his son P joined that firm from 1
st
July, 2019 with one-fourth share in
the profits of the business.
Liabilities Rs. Assets Rs.
Creditors 10,000 Goodwill 12,000
Capitals: Rs. Plant 40,000
R 50,000 Investment 14,000
D 31,000
81,000
Debtors 15,000
Cash at Bank 10,000
91,000 91,000
..2
Code No. 10052
-2-
Following adjustments and arrangements have been agreed upon for the
purposes of retirement and admission of partners:
i) The value of Goodwill is Rs.30,000 and Plant increased to Rs.50,000
ii) Sufficient money to be introduced so as to leave Rs.11,000 each after
payment of amount due to R.
iii) D and P to provide such fund as would make their Capitals proportionate to
their share of profit.
Show the Journal Entries to record the above transactions assuming that D and P
have paid in the cash due on 2
nd
July, 2019 and the amount due to R was paid
on the same day.
10 a) Kamal, Bhushan and Raj were sharing profits in the ratio of 3:1:1 respectively.
They decided to dissolve their firm on 31
st
March, 2019 when their position was
as follows:
Liabilities Rs. Assets Rs.
Capitals: Rs. Machinery 51.000
Kamal 82,500 Furniture 3.000
Bhushan 30,000 Stock 23,400
Raj 21,000
1,33,500
Debtors 72,600
Less: Provision for
Loan 4,500 Bad Debts 3,600
69,000 Sundry Creditors 18,000
Cash in Hand 9,600
1,56,000 1,56,000
i) Kamal agreed to take over Furniture at Rs.2,400; Debtors amounting to
Rs.60,000 at Rs.51,600 and also the Creditors at their book value.
ii) Bhushan agreed to take over Stock at Rs.21,000 and a part of the Machinery
at Rs.21,600 *(being Book Value less 10%).
iii) Raj agreed to take over the remaining Machinery at 90% of the Book Value
less Rs.300 as allowance. He also assumed the responsibility for the payment
of loan together with accrued interest Rs.90 (not recorded in the books).
iv) Dissolution expenses amounted to Rs.810.
v) The remaining Debtors were sold to a debt-collecting agency at 50% of Book
Value.
Prepare important Ledger Accounts to close the Books of Account.
OR
b) A, B and C are in Partnership sharing Profits and Losses three-sixths, two-sixths,
and one-sixth respectively. Balance Sheet on the date of dissolution was as
follows:
Liabilities Rs. Assets Rs.
Sundry Creditors 38,500 Cash in Hand 9,860
A? Loan A/c 2,750 Sundry Debtors 30,560
A? Capital 15,200 Stock 18,440
B?s Capital 11,200 Furniture 7,200
C?s Capital 1,590
67,650 67,650
..3
Code No. 10052
-3-
The assets realized:
Stock Rs.13,840; Furniture Rs.5,150, and Debtors Rs.29,200. The Creditors were
paid less discount Rs.250. C is insolvent and is unable to bring in anything. The
expenses of winding up were Rs.520. Show the Ledger Accounts as per Garner
Vs. Murray decision.
11 a) Jolly Brothers Ltd. offered for subscription 3,000 12% Preference Shares of
Rs.100 each at a premium of 20% on 1
st
January, 2019. The amount was
payable as follows:
On Application Rs.20; On Allotment Rs.40 (including Premium ? due on 1
st
Feb).
On First Call Rs.30 due on 1
st
March; On Second Call Rs.30 due on 1
st
May.
All the Shares were subscribed by the public and subscription list was closed on
25
th
January, 2019, Money due on allotment and calls payable 15 days after the
due dates. All the amounts were duly received in time except the second call on
200 shares.
Prepare Journal and Cash Book in the books of the Company and show them in
the Balance Sheet.
OR
b) Sharma Ltd. issued Rs.1,00,000 10 percent Debentures on 1
st
April, 2019 at a
discount of 5 percent repayable in annual drawings of Rs.25,000 commencing
from 31
st
December following. The company?s year ends on 31
st
March.
Journalize the above transactions for four years 31
st
March, 2019, assuming that
the company decided to write off Debenture Discount Account during the life of
the Debentures.
12 a) Following balances are extracted on 31
st
March, 2019 from the books of Vihaan
Company Limited.
Particulars Rs. Particulars Rs.
Lorries at cost 56,250 Share Capital
Buildings at cost 3,37,500 22,500, 7% Pref. Shares of Rs.10 each 2,25,000
Sundry Debtors 90,750 45,000 Equity Shares of Rs.10 each 4,50,000
Furniture at cost 2,58,750 Surplus 12,150
Bad Debts written off 2,138 Gross Profit for the year 1,84,708
General Expenses 14,625 Provision for doubtful debts 6,750
Cash in Hand and at Bank 51,375 Sundry Creditors 96,780
Rent, Rates and Taxes 21,300 Transfer Fees 187
Directors? Fees 2,700 Accrued Wages 9,638
Audit Fees 7,500 General Reserve 13,350
Stock on 31
st
March 2019 85,500
Salaries and Wages 24,000
Dividend paid on Pref. Shares 15,750
Dividend paid on Equity Shares 11,250
Discount on issue of Shares 11,250
Rent and Taxes paid in advance 5,925
9,96,563 9,96,563
..4
Code No. 10052
-4-
The provision for doubtful debts is to be made up to Rs.7,650. The Buildings,
Furniture and Lorries are to be depreciated at 3.83%, 15% and 20% respectively.
The Authorized Capital of the Company is Rs.7,50,000 divided into 75,000
Shares of Rs. 10 each You are required to prepare:
a) A Profit and Loss Account for the year ended 31
st
March, 2019.
b) A Balance Sheet as at 31
st
March, 2019 in the form prescribed under the
Companies Act, 2013, Previous year?s figures are not required and also
ignore taxation and transfer to reserves as required by law; you need not
provide Corporate Dividend Tax.
OR
b) How are Profits prior to Incorporation treated while preparing the Final Accounts
of the Company?
13 a) Find out from the statement below, whether the expected Rate of Return is correct
or not. Financial Position of Mr. Ashish is as follows:
Rs.
Sundry Assets 4,63,671
Current Liabilities 26,246
Average Net Profit of the last four years 60,250
Average Capital Employed 4,50,000
Partners? Average Annual Remuneration 9,000
The Goodwill valued at 4 year?s purchase of Super Profit 25,000
The Expected Rate of Return 15%
OR
b) What is Goodwill? How is Super Profits Method different from the other methods
of valuing Goodwill?
****
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Code No. 10052
FACULTY OF COMMERCE
B.Com. III ? Semester (CBCS) Examination, November / December 2019
(Common Paper for General / Computers /Computer Applications /
Advertising / Foreign Trade and Tax Procedure Courses) Subject: Advanced
Accounting Paper Code ? BC ? 304
Time: 3 Hours Max.Marks: 80 PART ? A (5x4 = 20 Marks)
[Short Answer Type]
Note: Answer any five of the following questions.
1 Fluctuating Capital
2 P and Q are sharing profits in the ratio of 5:3 admit R on 3/7
th
share in the new firm
which he takes 2/7
th
from P and 1/7
th
from Q. Calculate the New Profit Sharing Ratio.
3 Shyam, Ram and Bhim share profit and losses in the ratio of 1:2:2. Ram has retired
in the month of December 2018 and is demanding his share of Goodwill. If the profits
of the previous five years were 2014 ? Rs.40,000; 2015 ? Rs.50,000; 2016 ?
Rs.60,000; 2017 ? Rs.35,000; 2018 ? Rs.25,000.
As per the deed it was agreed that Goodwill will be calculated on the basis of 2 years
purchase of the average net profits of the preceding four years.
4 Issued Capital
5 Underwriting
6 Sacrificing Ratio
7 Reissue of Forfeited Shares
8 Capitalization Method of Valuation of Goodwill.
PART ? B (5x12 = 60 Marks)
[Essay Answer Type]
Note: Answer all the questions.
9 a) What are the factors which necessitate the admission of a new partner? Explain
the provisions of the Partnership Act, 1932 in relation to admission of the partner.
OR
b) Following is the Balance Sheet of R and D as at 30
th
June, 2019 on which date R
retired and his son P joined that firm from 1
st
July, 2019 with one-fourth share in
the profits of the business.
Liabilities Rs. Assets Rs.
Creditors 10,000 Goodwill 12,000
Capitals: Rs. Plant 40,000
R 50,000 Investment 14,000
D 31,000
81,000
Debtors 15,000
Cash at Bank 10,000
91,000 91,000
..2
Code No. 10052
-2-
Following adjustments and arrangements have been agreed upon for the
purposes of retirement and admission of partners:
i) The value of Goodwill is Rs.30,000 and Plant increased to Rs.50,000
ii) Sufficient money to be introduced so as to leave Rs.11,000 each after
payment of amount due to R.
iii) D and P to provide such fund as would make their Capitals proportionate to
their share of profit.
Show the Journal Entries to record the above transactions assuming that D and P
have paid in the cash due on 2
nd
July, 2019 and the amount due to R was paid
on the same day.
10 a) Kamal, Bhushan and Raj were sharing profits in the ratio of 3:1:1 respectively.
They decided to dissolve their firm on 31
st
March, 2019 when their position was
as follows:
Liabilities Rs. Assets Rs.
Capitals: Rs. Machinery 51.000
Kamal 82,500 Furniture 3.000
Bhushan 30,000 Stock 23,400
Raj 21,000
1,33,500
Debtors 72,600
Less: Provision for
Loan 4,500 Bad Debts 3,600
69,000 Sundry Creditors 18,000
Cash in Hand 9,600
1,56,000 1,56,000
i) Kamal agreed to take over Furniture at Rs.2,400; Debtors amounting to
Rs.60,000 at Rs.51,600 and also the Creditors at their book value.
ii) Bhushan agreed to take over Stock at Rs.21,000 and a part of the Machinery
at Rs.21,600 *(being Book Value less 10%).
iii) Raj agreed to take over the remaining Machinery at 90% of the Book Value
less Rs.300 as allowance. He also assumed the responsibility for the payment
of loan together with accrued interest Rs.90 (not recorded in the books).
iv) Dissolution expenses amounted to Rs.810.
v) The remaining Debtors were sold to a debt-collecting agency at 50% of Book
Value.
Prepare important Ledger Accounts to close the Books of Account.
OR
b) A, B and C are in Partnership sharing Profits and Losses three-sixths, two-sixths,
and one-sixth respectively. Balance Sheet on the date of dissolution was as
follows:
Liabilities Rs. Assets Rs.
Sundry Creditors 38,500 Cash in Hand 9,860
A? Loan A/c 2,750 Sundry Debtors 30,560
A? Capital 15,200 Stock 18,440
B?s Capital 11,200 Furniture 7,200
C?s Capital 1,590
67,650 67,650
..3
Code No. 10052
-3-
The assets realized:
Stock Rs.13,840; Furniture Rs.5,150, and Debtors Rs.29,200. The Creditors were
paid less discount Rs.250. C is insolvent and is unable to bring in anything. The
expenses of winding up were Rs.520. Show the Ledger Accounts as per Garner
Vs. Murray decision.
11 a) Jolly Brothers Ltd. offered for subscription 3,000 12% Preference Shares of
Rs.100 each at a premium of 20% on 1
st
January, 2019. The amount was
payable as follows:
On Application Rs.20; On Allotment Rs.40 (including Premium ? due on 1
st
Feb).
On First Call Rs.30 due on 1
st
March; On Second Call Rs.30 due on 1
st
May.
All the Shares were subscribed by the public and subscription list was closed on
25
th
January, 2019, Money due on allotment and calls payable 15 days after the
due dates. All the amounts were duly received in time except the second call on
200 shares.
Prepare Journal and Cash Book in the books of the Company and show them in
the Balance Sheet.
OR
b) Sharma Ltd. issued Rs.1,00,000 10 percent Debentures on 1
st
April, 2019 at a
discount of 5 percent repayable in annual drawings of Rs.25,000 commencing
from 31
st
December following. The company?s year ends on 31
st
March.
Journalize the above transactions for four years 31
st
March, 2019, assuming that
the company decided to write off Debenture Discount Account during the life of
the Debentures.
12 a) Following balances are extracted on 31
st
March, 2019 from the books of Vihaan
Company Limited.
Particulars Rs. Particulars Rs.
Lorries at cost 56,250 Share Capital
Buildings at cost 3,37,500 22,500, 7% Pref. Shares of Rs.10 each 2,25,000
Sundry Debtors 90,750 45,000 Equity Shares of Rs.10 each 4,50,000
Furniture at cost 2,58,750 Surplus 12,150
Bad Debts written off 2,138 Gross Profit for the year 1,84,708
General Expenses 14,625 Provision for doubtful debts 6,750
Cash in Hand and at Bank 51,375 Sundry Creditors 96,780
Rent, Rates and Taxes 21,300 Transfer Fees 187
Directors? Fees 2,700 Accrued Wages 9,638
Audit Fees 7,500 General Reserve 13,350
Stock on 31
st
March 2019 85,500
Salaries and Wages 24,000
Dividend paid on Pref. Shares 15,750
Dividend paid on Equity Shares 11,250
Discount on issue of Shares 11,250
Rent and Taxes paid in advance 5,925
9,96,563 9,96,563
..4
Code No. 10052
-4-
The provision for doubtful debts is to be made up to Rs.7,650. The Buildings,
Furniture and Lorries are to be depreciated at 3.83%, 15% and 20% respectively.
The Authorized Capital of the Company is Rs.7,50,000 divided into 75,000
Shares of Rs. 10 each You are required to prepare:
a) A Profit and Loss Account for the year ended 31
st
March, 2019.
b) A Balance Sheet as at 31
st
March, 2019 in the form prescribed under the
Companies Act, 2013, Previous year?s figures are not required and also
ignore taxation and transfer to reserves as required by law; you need not
provide Corporate Dividend Tax.
OR
b) How are Profits prior to Incorporation treated while preparing the Final Accounts
of the Company?
13 a) Find out from the statement below, whether the expected Rate of Return is correct
or not. Financial Position of Mr. Ashish is as follows:
Rs.
Sundry Assets 4,63,671
Current Liabilities 26,246
Average Net Profit of the last four years 60,250
Average Capital Employed 4,50,000
Partners? Average Annual Remuneration 9,000
The Goodwill valued at 4 year?s purchase of Super Profit 25,000
The Expected Rate of Return 15%
OR
b) What is Goodwill? How is Super Profits Method different from the other methods
of valuing Goodwill?
****
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