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ililllilililililllillllililffill os - 302
I SemesterB.Com. Examination,October/November2012
(SemesterScheme)
(2011-12 Batch & Onwards)
COMMERCE
FinancialAccounting- I
Time: 3 Hours Max.Marks: 100

Instruction: Answersshouldbefully eitherin Kannadaorin English.

_A
SECTION

AnsweranySsubquestions Eachsubquestion
fromthefollowing. carries2marks;
(8x!a!6)

1: a) Stateanytwofeaturesof hirepurchasesystem.

b) Whyis minimumrentclauseincluded
inthe royaltyagreement
?

receivedin purchasepriceto be
c) Statein whichratioshouldthedebentures
amongthepartners.
distributed

d) Howdo you treatan assetof a firrnnottakenoverby the newtirm?

e) Whatdo youmeanby downpayrnent


?

f) Whatdo youmeanby DeadRent?

g) Cana sellerseizetheassetsunderinstalment
system? Why?

h) WhyRevaluation
accountopenedinthebooksof theamalgamating
firms?

i) Stateanytwo objectives
of saleof a firmto a company.

j) Mention
anytworightsof hirevendor.

P.T.O.
os - 302 -2-
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_B
SECTION

Answeranythreequestions
fromthefollowing.
Eachquestioncarriesgmarks.
(3x8=24)
2' A companytakesoverthe following
assetsand liabilities
froma partnership
firm.

Rs.
LandandBuilding 45,000
PlantandMachinery 20,000
Stock 20,000
Debtors 23,000
BillsReceivable 16,000
CurrentLiabilities 2g,g00
Thevalueof goodwillis fixedat Rs.2g,g00.

calculatepurchaseconsideration
whichis payablein 10,000Equityshares
of
Rs.10eachandthebalancein cash.

3. calculatethecashpriceof an assetfrom
thefoilowingdetairs:
Downpayment , Rs.4,500
llnstalment Rs.4,200
fl Instalment Rs.3,900
fflInstalment Rs.3,600
lV Instalment Rs.3,300
Rateof interesl1Oo/o
p.a.
r|luflt|l|ililtilil1ililtililffit -3- os - 302

4. PrepareRoyalties
Analytical
Tableandshortworkings
accountfromthefollowing
details:
a) Minimum
RentRs.20,000p.a.
b) RoyaltypayableRs.5 perton.
c) Shortworkingscan be recovered
duringfirst4 yearsof the leaseonly.
d) Theproduction
for the first4 yearswereas follows:
2000-2,000tons

2OO1-3,000tons

2AA2*4,000tons
2003- 4,500tons.

5. Fo}lowingis the BalanceSheetof M/s M and N who shareprofitsand losses


equally.

B/s of M/s M and N as on 31/12t2t011

Liabilities Rs. Assets ' Rs.


SundryCreditors 3,000 Cash 1,000
CapitalA/c's Stockin trade 2,000
M 3,000,, Su,ndry,Debtoqs:
: 2,000
N 2,000 5,000 Furniture 1,000
Plantand,Mach.inery 2,000

9,000 g,000
MandN decidedto amalgamate
withM/sO andP on thefollowingterms.
Plantandmachinery
to be takenoverat Rs.1,600;
Stockat Rs. 1,800;Sundrydebtorsat Rs. 1,6B0;Furniture,
Creditors
at book
values.
PassJournalentriesto closethe booksof M/sM andN.
I os - 302
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6. Vijay purchaseda Motor
carfromMysoreMotors
Instafment on 1stJanuary2006 on
system

Thepaymentis to be made
as foflows:
Rs'40,0000n defiveryRs.
76,000at the endof the first
end of secondyearand year,Rs.60,000at the
Rs' 55,000at the end of
10o/op'd' is includedin these the thirdyear.Interestat
installments.
vijay chargeddepreciation
motorcarat 20% p.a.on the on the
diminishingBalance method
Youarerequiredto prepare
InterestSuspenseAccount.

SECTION
- C
Answeranyfour questions.
Eachquestion carries15 marks.
@x15_60)
7' Ashokacompanypurchased
a Truckon 1.1.2a12under
cashpriceof Rs.46,500, instarf
mentsystemfora
Rs.1,500is to be paidon
bafance signingtheagreement,the
is payabfein threeannuaf
instarments of Rs.15,oo0
5% interest. eachtogether
with

Depreciation
is to be chargedat 1oo/op.a
onthereducingbarance
method.
Preparethenecessary redgeraccountsin thebooksof Ashoka
company.
8' Mr' Guptapurchased
a machineon 1.1.2o12under
Mr.pankaj. hirepurchasesystemfrom
Thecashpricewas, ,Rs.
,v.15,500.
,e,,.rvu.
The
I ne paymentforthepurchase
be madeas under. is to
..
on signingof the agreement
Rs.3,000,firstyearend
endRs.5,000andthirdyear Rs.5,000,second year
endRs.5,000.
Makethe necessaryJournar
entriesin the booksof
depreciation
at 10"/oondiminishing Mr. Guptacharging
Bafance method.
Iilillll llilil||
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arethebalancesheetsof M/sABandM/sXY as on 31stof December


g. Following
2011.

Liabilities A & B X&Y Assets A&B X&Y


(in Rs.) (in Rs.) (in Rs') (in Rs.)

Creditors 16,000 23,000 Building 50,000

Reserves 10,000 Machinery 20,000 30,000

Capitals Patents 10,000 5,000

A 40,000 Stock 25,000 20,000

B 10,000 Debtors 10,000 16,000

X 50,000 Investments 5,000

Y 50.000 Cash 6,000 2,000

76,000 1,23,000 76,000 1,23,000

A andB sharedprofitandlossesintheratioof 3 : 2 andX andY sharedequally.

Thefirmsdecided to amalgamate terms:


onthefollowing
a) lnvestments of A andB werenotto betakenoverbythe newfirmA andB to
l takethemin theirprofitsharingratio'
of A andB wasRs,20,000andthatof X andY Rs.40,000'
b) Goodwill
c) patentsof A andB wereRs.15,000andstockRs.30,000.A provision of B%
wasto be createdon debtors.
d) Machinery of X andY to be writtendownto Rs.25,000stockof X andY was
foundovervalued by Rs.2,000andthebookdebtsof Rs.1,000wasbadand
had to be writtenoff. Parentsof X and Y were valuedat Rs. 8,000.
Youarerequired to:
i) Prepareledgeraccounts inthe booksof A B andX Y (Oldfirms)
amalgamated
ii) Prepare sheetofthenewfirm'
balance
os - 302
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of A andB.The 'Balance
Ltd.wasformedto takeovertheassetsandliabilities
10..,R
Sheetof A andB on 31-12-2011,
wasasfollows:

Liabilities (Rs.) Assets (Rs')

TradeCreditors 8,000 Cashin hand 2'000'

Capital Cashat Bank 12'000


ir_ ,

A 80,000 Bookdebts 18'000

B 80,000 Stock 78'000

Furniture 10,000

LandandBuildings 48,000

1,68,000 1,68,000

Thepurchase
consideration andwasto be paidas
wasagreedat Rs'2,00,000
under:

a) 5,600equitysharesof Rs.20 eachfullypaid'

sharesof Rs' 100eachissuedat par'


b) Rs.68,000in 6% preference

c ) R s . 2 0 , 0 0i0n c a s h .
t'

werevaluedas perbalancesheetexceptthe book


Allthe assetsandliabilities
debtswhichweresubjectto a baddebtprovision of 5%.

Thecompanyraisedfurthercapitalby issueof 15,000equitysharesoJ


Rs.2Oeach. '
|ilililil
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premises
Theadjoining werepurchased
forRs.1,00,000
andadditionalstock
of
Rs.1,40,000wasobtainedfromopenmarket.

Recordtheabovetransaction
inthebooksof R Ltd.throughJournalEntriesand
draftitsOpeningBalanceSheet.

11. NiscfialMinesCompanytooka leasefroma landlordfor a periodof 10 years


ftun 1* January2012 on a Royaltyof Rs.10 perton of coalraisedwitha dead
rentotRs.40,000andpowertorecoupshortworkingsduringthefirst4 yearsof
fease.

Year Output(tons)

2005 2,000

2006 3,000

2007 4,000

2008 4,500

2009 5,000

Prepare:

a) DeadRentA/c

b) RoyaltiesA/c

c) ShortworkingsA/cand

d) Landlord
A/cin the booksof NischalMinesCompany.
os - 302 -B- ItH$ffiHllllllll

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Aqtorl - sl

(8x2=16)
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or dddoddrildO-8

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dOdzmario$dpdriooa&dlcb'Ad?
b) oorddd z-d1od$

c) doeod -e.r d$ddo_uooad erddlornd Eldneado-


msrerodd>
de drrd)
dozsdndozJed:
?

dOe dd1o$Ed
d) oaorrooddoCn ea;dobO-doddoi odr u4dddldridrdraddo
aa$Odenrbd)cjJ?
Oe3o3:O-

e) dlodd deaaodded:?

f) dodzmariaodded:?

ulobdldddazudo{u*de ? ad ?
g) dod:dodc,cdobO-CI$o$cnd$

h) i oo3oerdrtosd oJ:$oddobdl d: ad ?
i o*ld O-{l do djo e-rrand

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add; d*dddd,lse&o.
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dlJo& ddlerl *8or ds ddf aou) eroddgb.


dr Eq#odoJndloaddro (3x8=24)

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- - - dr dddoder&
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o 4
t ocbmwo.rod io{ouod
e
a
drtd>dooad.

dra.

qiotu abQ do^1d 45,000

o$odgedddeo 20,000

mB$ 20,000

abodrtC) 23,000

tddeodd>oa 16,000

zroO
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aoaznodd.) 28,800

aJe3odrdldodrbaouo:
6eErdPer,drD.28,800&da dadcnn{ .aDOeo

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dro.10,000;odnd, de&dddro.1OdDsDLJeJob
drosbd dodO?"&d.
t/ qJ

dodrbaoc:o.
dqldodadddeod erlob ddcb &Jeio$d1

dlodd Oeaddea dro.4,500

I dedod> dJo.4,200

ll dedod> dro.3,900

lll dedod: dJo.3,600

lV dedod: d,o.3,300

?JaddEe10 asaard.

i,i
,
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wd{andoJr$odolnorr'
4. dr dddodaddrieodoasgdddqdry! dractd
a) dO{marl aoard drD.20'000

ds t"lQ{do.s.00
b) oaagdd
c) dodd erud$-eru{ddrieedddddode-r4ddrddO-dDg
d) dodoa ddrdd eruoa$d.

2000- 2000u$dsb

2001- 3000e3dldqr)

2002-4000 $d]"lgt)

2003- 4500rr$i"l$b.

d*Ed {dneado- *rd d*{ dl doasdoqd M d:* N erdd erxr6d"?tJoodrd


31-12-2011dodr€roeg'ad.

dt"3sr
eJfuD3do?irooo

tgane,troo d.o. ulti+tl dJa.


o

;oOdd> 3,000 dlid) 1,000

uodaadand mR$ 2,000

M - 3,000 naerrodd> 2,000

N - 2,000 5,000 .ledoedddea 1,000

odrodgedddeo 2,000

8,000 8,000
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M tb{ €r dddoa td,odCod


N, O ab* P dodobO-dooSoexdrfodoe;:

Eednr&xrd&.

o$odgedddrddddlda.1,600Ed,d)* me$ dra.1,800Ed

d:{;,-oOdddldrdcbOJ$doddrldrdndoul
me.rrodd;do. 1,680{ "tedoedddea

Od,.or:denndl.

M $* N d aaeprDofdo{oldleroEd:rhpder: doeaoeD$eJoidludor:o.

t-od: doeund:oaddldod:$OeAdqlo$O-*F&
6. Ooood1.1.2006dod>.)ago1:"

aad9dndz.Jeaond.
dodoor:odcoeaxd:.€r dddodod
doee,,nd

dcDu)#.6,
rt
ibaaoaarl dro.40,000

I deddrd dodolrO- dro.76,000

ll deddrd drodcrO dra.60,000

lll deddrd drodo$O do.55,000

aaard uG.de10%do$ddO-deod.

dde u6odd0-).
dddeaoard de20 ddg(a*bdo deJod>

a6odf dr$ddOouqero%drtdodrqdaJn ol.


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sqtDrl- tu

dddodoJndloaddooae))*ddjderi*€ol de ddJ 15 eroddd:. (4x15=60)

.
dodOo::lz"ocbg!*Qdo$ $oeo dqlobo;aDoeaxd>
T. ooaod1.1.2012dod:erdned
, i:..

do. 46,500
g6"d ddcb aJeJ
.:
aaard dro.15,000
deodq d*& dod:rldO-
doadl*gd*db aad:aorldo. 1,500erupd
de5%doduB deol.

dddeaoard de.10 e$do dejo$ uqEddO-


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erdoeddddd)dddO-erdd,

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8. aoad 1.1.2012dod: dcaqdd& uod5 oJr€dq?DPri dosboado$
15,500ddldradrd aOad€r Eddodod'ad.
dodarddood$oea:.rd&.ddcb sJeJ

doad:d9{ db aadomrl drD.3,000

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dode.rde dra.5,OOO

adddeddrd drodrl dra.5,000

dmdde ddrd dodrl drd.5,000

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_13_
os _ 302
9. A ob*B, X ab&y
of,u>o)ddc
,{o$ uxrEa-rzroo
i[^131.12.2011,
doc$d*orgqd.
E3.b?,roooil$b
A&B X&y s,lilsb
-o--- A&B X&Y
Rs. Rs.
Rs. Rs.
;.rrOdd: 16,000 2g,000
de^$dvb
50,000
Cedsb 10,OO0
o$odgedddea
20,OO0 30,000
uodmd
Psqd.l 10,000 s,goo
A
Fl 4o,ooo Des zs,ooo 2o,ooo
B 10,000
ar:Denodd) 10,000 16,000
X
50,000 dJaaddsb
5,000
Y
so,ooo ddcb
6,000 2,ooo
76,0001,23,000
76,000 1,2g,wo

l:-1Xb?*:?3*3ffi *yd$dxnmao=?jl{,*qdoa:do$ug
*' il;:X,:Ti.S;,;.: erqj
" ;SH5n*.mff*q ddc
2) A djJ* B 01>xborab
do.20,000d:* X db* y
3) A ab* B o$ Doe* xOoaab
d/0.40,000
dro.1s,oo0abdJdd$
eOo$d] ddd ..r_ dro.30,000,nosrodd
srleri drlOods,.Je$. abeejdeg
4) x $$ y ot
oJ:odgeiddeao, &je,orrdrdo. 25,000
dgri erroda&d,dddo
#j;::f:$;T,ffi :f;f,USp':'l'ddd,^,Dodrndudood
(
1.l \r) A
.n\ B
n---.r r ---
u a*?n
b * X y rd to5ngO_erddrda>ddddldobo,rr.
odrid
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no{Od1 BdoQdennC'
10. A $4 B aDwelroddo{o::d1$oeodw R uodand
dt^131.12'2011, docb6* oegqd'
A rb* B o$ erl 66"?troo

dJa. el:rd$ dtd'


66"u4)orl$b

8,000 ddd) 2,000


drdoadd:iaOrl&

uD5osdO-deo 12'000
uodFtd,and:

80,000 rae':rodd: 18'000


A

80,000 m4$ 78'000


B

.ledoedddeadsb 10,000

doar $d; dqdd*b 48,000

1,68,000 1,68,000

drod*ado$LjeJobdro.2,00,000udd:o€roegaodgietrnd.
nadnd,ded:deb
1) do. 20 $)sD LJeJo3:5,600
6%dddJ udrd de&d+t>
2) 100dro. *)sD aJeic) 68,000do' dfoe-rrd

3) 20,000do. ddcb.
drl&dood:
LJeJrl
dodooJl me))6"of do{o$ ae+eJl d)* ?3d"sJDooobqdt)sD
:osrodorlde5%dd*dd& meleQdQt:eienfloxrd'

dodOobdro.20d))$ LJeJo$15,OOO mdnd, de&zfddluodaadrlnddari dnoot'g


** 6Eedq
dDad. uod deodo-dgddo-ecbddqdddldo. 1,00,000derl
eoeDeso$d1$dl
1,40,000do. rlgri$oeotud.R dodood:dl{ddo-udog:ddoeao
dado$qdofr 0&.
qrl 6d5rz,rJoo
Itfiiiltillt[flffitffilftl -15-
os - 302
11' o&)" TiFd
dodpolD dnoedoodd$ ddrrrd ederrl -1 -zolzood
"%d" nb€rro$dl
ddo.I*' ds sqd*-dw wo;cdri
aasdd dro.10,deds-ari do.
+0,000abd)
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erdQo$dode.pDs* ddrrrdo_
erQoodad .
D&Fd wo;Cd€r dddodo8d.

ddr Eusodd(rrdlrl$OJ

2005 2ooo

2006 3000

2W7 4000

2008 4500

2009 5o0o

0**f dsddoded{ddde1

a) do{e,nariarrd

b) oarddand

c) dnddwd{and

d) qio dnOedmdo$d1dCIno&.