G 401.2 Reg. No.

St Aloysius College (Autonomous)

Mangaluru
II Internal Exam – February 2020
B.B.A. - Semester II
FINANCIAL ACCOUNTING – II
Time: 1½ hrs. Max Marks: 50

SECTION – A
1. Answer any FIVE of the following in two-three sentences (5x2=10)
each:
a. What is Joint Venture?
b. State any 2 features of Joint Venture.
c. Write any 2 difference between joint venture and Consignment
d. What do you mean by overriding commission?
e. What are the elements to be considered for calculation of abnormal loss?
f. Mr. Arvind has consigned good to Mr.Bharath costing Rs. 75,000 at a proforma
invoice so as to show the profit of 25% on cost. Calculate the loading of goods
consigned
g. What are the non-recurring expenses of the consignee?
SECTION – B
2. Answer any TWO of the following questions: (2x5=10)

a. Write the difference between Joint Venture and Partnership

b. Mr Sandesh and Mr Hardik entered into joint venture to deal with the sports
materials. Sandesh bought sports equipment of ₹30,000 spending ₹1,500 for
freight. Mr Hardik what materials worth ₹ 25,000 and spent for godown rent,
insurance, carriage inward, etc, ₹3,500.
Sandesh realise ₹35,000 by selling the whole lot. He had to spend ₹2,000 and
selling expenses. Mr Bopanna all the materials at ₹41,000 spending ₹2000 as
selling expenses. Prepare Joint venture a/c.
c. 5,000 watches costing ₹10,00,000 where sent on consignment.

Consignor spent ₹36,000 on freight and insurance. 100 watches were

destroyed during the transit. The consignee incurred the following
expenses in connection with consignment.
1. ₹9,000 by way of duty and dock dues
2. ₹10,000 by way of advertisement and salesman remuneration.
Consignee sold all the watches for ₹12,00,000. Consignee's commission
amounted to ₹24,000
Calculate the value of Abnormal Loss and Consignment Stock.
 Contd…2
G 401.2 Page No. 2

SECTION – C
3. Answer any TWO of the following questions: (2x15=30)

a. Anurag of Mumbai sends a consignment of goods to Dhanush of Kannur and

charges at proforma invoice price so as to show the profit of 25% on cost. The
agent received commission at 6% + 4% del credere commission on all sales
made by him. During the year 31st December 2019 Anurag had following
transactions with Dhanush
1. Proforma invoice price of 200 cases of goods consign to Dhanush
₹80,000
2. Advance received from Dhanush ₹30,000
3. Freight and insurance paid by Anurag ₹3,000
4. Sales made by Dhanush
a. 80 cases for cash ₹30,500
b. 85 cases on credit ₹52,000
5. Selling expenses paid by agent 3,500 and discount allowed ₹500.
6. Owing to poor packing of 20 cases of goods were damaged and a
claim under return was settled by Anurag for ₹3,500
7. Out of goods sold on credit ₹2,500 was irrecoverable and considered
as bad by the agent
8. The agent remitted the balance due by him by a bank draft
Show the necessary ledger accounts in the books of Anurag

b. Anjali and Vinay were partners in a joint venture sharing profits and losses in
the ratio of 3:2. They need a contract to underwrite 4000 shares of ₹100
each of Arunodaya limited. According to this contract Anjali and Vinay have
to pay all the preliminary expenses and Arunodaya limited agree to allot
them 200 shares of ₹100 each fully paid up in consideration of their services.
Expenses incurred by Anjali:
Registration ₹ 250, advertising ₹ 4280, printing and stationery ₹ 400, legal
expenses ₹ 1000
Expenses incurred by Vinay:
Office rent ₹ 100,salaries ₹150 stamp ₹120 and sundry expenses ₹150
Applications received for 3,900 shares only. Vinay contributed for the
undersubscribed shares. The company allotted them 200 shares as per the
contract. Anjali receive the sale proceeds of 200 shares at ₹98 and the
remaining shares were sold by Vinay at rupees 95 each.
You are required to prepare the joint venture and individual accounts of
Anjali & Vinay.
c. The Indian products Ltd.Kolkata consigned cotton goods costing ₹80,000 to
M/S Khanna and Co.of Mysore and invoiced them at a price so as to show a
25% profit on sales. They paid freight and insurance ₹ 4,000. Khanna took the
delivery of the consignment paying ₹1000 for octroi and carriage. They
accepted a 3 month’s bill for ₹30,000 as an advance.
The Indian Products Ltd. received the account sales from the consignees
showing that 3/5 of the goods were sold for ₹60,000 and 1/5 of the goods
were returned as they were unsaleable. The selling expenses amounted to
₹2,500
The consignee was entitled to a commission of 3% + del credere commission
of 2% on sales. One customer who had brought goods worth ₹1,000 on credit
failed to pay the amount due.
Chatterjee remitted the Balance due to the consignors after deducting their
commission and expenses
Prepare consignment account, goods sent on consignment account and
consignee’s account in the books of the consignors

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Date: 06.01.2020 Time: 3.00 - 4.30 Copies: 241