UNIVERSITY OF KOTA, EXAMINATION PAPER - 2011 B.

Com (Part - I) Examination Accountancy & Business Statistics Paper - I (Financial Accounting)
Time Allowed: Three Hours Maximum Marks: 100 Section A Maximum Marks: 10 This section contains one question which is compulsory sub divided into 10 parts. The answer should not exceed 20 words. Each question carries equal marks. Section B Maximum Marks: 50 This section contains 10 questions. Select one question from each unit answer 5 questions only. The answer should not exceed 250 words each. All questions carry equal marks. Section C Maximum Marks: 40 This section contains four questions. Answer any two questions. The answer should not exceed 500 words each. All questions carry equal marks.

Section-A 1. (i) State the use of capital redemption reserve account. (ii) What do you mean by Sweat Equity Shares? (iii) What is meant by net assets? (iv) What is meant by divisible profits? (v) What do you mean by copyright royalty? (vi) What is Average Clause? (vii) Give two problems of department accounts. (viii) When branch stock reserve account is prepared? (ix) What is meant by contra balance? (x) Give any two characteristics of Instalment payment system. Section-B Unit-I 2. Give salient features of Accounting Standard-6 on Depreciation Accounting. 3. The following balance appeared in the books of P Ltd. On 1st April, 2008 10% Debenture Debentures Redemption Fund A/c Debenture Redemption Fund Investment A/c (Represented by Rs.2,95,000, 3% Rs.3,00,000 Rs.2,50,000 Rs.2,50,000

Government Securities). The annual instalment added to the fund is Rs.41,150. On 31-3-2009 the balance at bank after interest of instalments was Rs.78,200. On that date all investments were sold at 83% and debentures were redeemed. Show necessary ledger accounts regarding redemption. Unit-II 4. Sulabh Ltd. Has an issued capital of 2,00,000 equity shares of Rs.10 each fully paid. The accounts are prepared on 31st March each year. On 31st March, 2009 the following balance appeared in the books: Profit and loss A/c Rs.3,60,000, unclaimed dividend A/c Rs.2,100, unpaid dividend bank A/c Rs.2,100. In the annual meeting held on 20th July, 2009 the recommendations made on 31st March, 2009 by the directors for payments of 12% dividend was approved by the share holders, a saparated bank account was opened for the payment of dividend on 1st August, 2009 and dividend warrants were issued. Dividend warrents amounting to Rs.2,38,600 were presented to the companys bankers upto 31st March, 2010. Out of this Rs.1,200 were in respect of old claims for dividend. The balance outstanding in dividend account was trasfered to unclaimed dividend account at the end of the year and unclaimed dividend of Rs.500 was deposited to consumers benefit fund. Pass necessary journal entries. Assume tax rate on dividend@16.995%. 5. What is meant by profit prior to land post-incorporation? Explain the method of ascertaining them. How such profits and losses are dealt within company accounts? Unit-III 6. Ramesh acquired a mine on lease from Mahesh for a period of 10 years at a royalty of Rs.3 per ton of coal produced subject to a minimum rent of Rs.4,500 for the first year increasing by Rs.1,500 every year till Rs.15,000 per annum is reached. Short workings may be recouped out of excess working in the first four year only. The output during the first five years was as follows: Year 2005 2006 2007 2008 2009 Output in tons 500 1,000 2,250 3,500 5,000 While preparing the accounts of first four year Ramesh decided not to carry forward as an asset any shortworkings. In the second year Rs.4,500 were carried forward and in the third year Rs.3,000. Prepare necessary accounts in the books of Ramesh. 7. What points are taken into consideration while calculating claim for loss of stock in case of fire insurance, explain. Unit-IV 8. Atul Traders, Bikaner, who have a retail branch at Kota supplies goods at cost plus 25%. From the information given below, prepare branch account in the H.O. Books: Opening StockRs.70,000 Goods supplied to branchRs.2,80,000 Cash remitted by H.O. for branch expensesRs.42,000 Loss of goods lost in transit (at invoice price)Rs.35,000

Theft of goods (at invoice price).Rs.14,000 Cash sales..Rs.3,50,000 Credit sales.Rs.77,000 Cash remitted to branch by H.O. to purchase plant & furniture .Rs.70,000 Closing stock.Rs.84,000 Compensation received from the Insurance Co. for the loss Of goods in transitRs.21,000 9. What do you understand by interdepartmental transactions? Discuss the accounting procedure for such transactions. Unit-V 10. Prepare the total debtors account and total creditors account from the following particulars in the general ledger: Balance of Creditors (Dr.) on 1-1-2009.Rs.870 Balance of Creditors (Cr.) on 1-1-2009Rs.11,940 Balance of Debtors (Dr.) on 1-1-2009.Rs.14,620 Balance of Debtors (Cr.) on 1-1-2009Rs.240 Transactions during the month of January are as follows: Purchases..Rs.66,180 Purchase Returns.Rs.2,560 Sales.Rs.87,490 Sales Returns.Rs.1,170 Cash received from customers..Rs.76,210 Discount allowed thereon.Rs.2,820 Cash paid to suppliers.Rs.58,430 Discount received thereonRs.1,660 Cash paid to customers..Rs.130 B/R received..Rs.4,120 B/P AcceptedRs.2,250 B/R dishonoured..Rs.250 B/R endorsed to suppliers..Rs.1,000 Creditors balances (Dr.) on 31-1-2009.Rs.770 Debtors balances (Cr.) on 31-1-2009Rs.420 11. What do you mean by Hire Purchase System? What are its main characteristics? Section-C 12. Ganesh Auto Ltd. Was registered on 1 March, 2008 with an authorised capital of Rs.2 crore in equity shares Rs.100 each. It invited applications for 1,00,000 equity shares of Rs.100 each at a premium of Rs.10 per share payable as follows: On application on 5th April Rs.30 per share, on allotment on 20th April Rs.40 per share , on first call on 30th September Rs.20 per share and on second and final call on 31st December Rs.20 per share. Applications for 1,40,000 shares with a payment of Rs.30 per share as application money were received. The directors alloted as follows: (i) To allot in full to the applicants for 90,000 shares (ii) To refuse allotment to the applicants for 30,000 shares
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(iii)

To allot the remaining shares pro-rata to the applicants for 20,000 shares.

Mr. Ram to whom 400 equity shares were alloted on pro-rata basis failed to pay the amount due on allotment and on calls. His shares were forfeited. All the shares of Mr. Ram were reissued to Mr. Shyam at Rs.110 per share, show the journal and cash book entries in the books at the company. 13. What is managerial remuneration? Discuss the provisions of Companies Act, 1956 regarding managerial remuneration. 14.How are the accounts of an independent branch situated in the same country incorporated in Head Office books? Give necessary journal entries fot same. 15.Rajesh purchased a machine on 1st April, 2006 from Kamal on hire purchase system Rs.16,000 were paid cash down and they agreed to pay three equal annual instalments of Rs.20,000 each. Each instalment is payable on 31st March at the end of each year. Cash price of the machine was Rs.61,700 while Kamal purchased it for Rs.49,700. Rate of interest is 15% per annum. Prepare the necessary accounts in the books of the Vendor. Provision for unrealised profit is also to be made.