Set.

1
ACCOUNTING FOR SPECIALIZED INSTITUITIONS
Time: 3 hrs Max. Marks: 75

Section A

Answer the following. Each Question carries one Mark.

1. What is a Non-banking Asset?

2. What is NPA?
3. What is Double Insurance?
4. What is Surrender of Policy?
5. What is General Balance Sheet?
6. What is Contingency Reserve?
7. Who is a Jobber?
8. What is Municipal Fund?
9. What is Public Account?
10. Expand IAAD.
(10x1=10 marks)

Section B

Answer any seven questions. Each question carries 2 marks.

11. What are the Chief Registers maintained by a banking company?

12. Mention two advantages of slip system of posting
13. Give examples of Contingent Liabilities in Banks.
14. Give a Specimen of Valuation Balance Sheet.
15. What is from B-RA, form B-PL and form B-BS as per IRDA Regulations?
16. Explain the “System of Presenting Financial Statements” of Public Utility
Concerns.
17. Mention the practical steps in the preparation of the “Statement of Total Surplus”
of a public utility concern, available for disposal.
18. Write a brief note on “Clients Account” in the books of a broker.
19. Explain 2 important features of Grama Panchayath Accounting.
20. What are the powers of C & AG?
21. Write a note on Public Accounts Committee (PAC)

(7x2=14 marks)
 Section C
Answer any three questions. Each question carries 7 marks.
22. The Trial Balance of Vijaya Bank Ltd. as on 31 st March 2018 showed the
following balances:
₹
Interest and discount - 37,27,170
Rebate on Bills Discounted (1-4-2017) - 7,150
Bills Discounted and Purchased - 2,27,500
The unexpired discount as on
31st March 2018 amounted to - ₹. 24,125.
Pass necessary adjusting entries.

23. A life Assurance Corporation gets its valuation made once in every two years. The
life assurance fund on 31st March, 2018 amounted to ₹ 41,92,000 before providing
for ₹ 32,000 for the shareholders’ dividend for the year 2017-18. Its actuarial
valuation on 31st March, 2018, disclosed net liability of ₹ 40,40,000 under the
assurance and annuity contracts. An interim bonus of ₹ 40,000 was paid to the
policyholders during the period ending 31st march, 2018.
Prepare a statement showing the amount now available as bonus to
policyholders.

24. Universal Electric Supply Ltd. rebuilt and re-equipped one of their Mains at a
Cash Cost of ₹. 40,00,00. The old Mains thus superseded cost ₹ 15,00,000. The
capacity of the new Main is double that of the old Main.
₹ 70,000 was realised from sale of old materials. Four old motors valued at
₹. 2,00,000 salvaged from the old Main were used in the reconstruction. The cost
of Labour and Materials is respectively 30% and 25% higher now than when the
old Main was built. The proportion of Labour to Materials in the Main then and
now is 2:3
Show the Journal entries for recording the above transactions, if accounts
are maintained under Double Account System.

25. Mr. Ram had the following transaction with his share brokers Bright Securities
Ltd. for the settlement period 4thJanuary to 30thJanuary 2018.

January 4 Buys 600 Orion @ ₹ 20

January 12 Sells 600 Orion @ ₹ 21
January 15 Buys 400 Starlite Shares @ ₹100
January 18 Buys 200 Reliance Shares@ ₹ 700

January 28 Sells 200 Reliance Shares @ ₹ 750

 January 29 Sells 300 Starlite Shares@ ₹ 120

The balance of unsold shares are carried forward to the next settlement period at a
change of ₹ 2 per share . The brokerage is 1% on the purchase and selling price.
The starlite shares are valued at ₹ 115 on 30th January. Prepare Rams Account.

26.Give the format of the Balance sheet of a Bank as per Form A .

(3x7=21
marks)

Section D
Answer any two Questions. Each Question carries 15 marks.
27.From the following particulars, prepare profit and Loss Account of United Bank
for the year ended 31stMarch,2018.

₹ (’000) ₹ (’000)
Interest on Deposits 3,200 Discount on Bills discounted 1,490
Commission (Cr.) 100 Interest on overdrafts 1,600
Interest on Loans 2,490 Interest on cash credits 2,320
Sundry Charges (Dr.) 30 Auditors’ Fees 35
Rent and Taxes 200 Directors Fees 16
Payment to Employees 500 Bad Debts to be written of
Printing and stationery 40 amounted to 300
Law Charges 10 Postage and Telegram 20

28.Prepare a Revenue Account in respect of Fire Business from the following details
for the year 2017-18.
₹ ₹ ₹
Reserve for Unexpired Risk Premium recovered 4,86,000
on 1.4.2017 @ 50% 1,80,00 Premium on Re-Insurance
0 Accepted 32,000
Additional Reserve 36,000 Premium on Re-insurance Ceded 43,000
Estimated Liability for claims Commission on Direct Business 48,600
intimated on 1.4.2017 31,000
On 31.3.2018 42,000 Commission on Re-Insurance
Accepted 1,600
Claims paid 3,65,00 Commission on Re-Insurance
0 Ceded 2,150
Medical Expenses 4,800 Expenses of Management 96,000
Re-insurance Recoveries 32,000 Interest, Dividends and Rent 24,000
Profit on Sale of Investments 3,000

Create Reserves on 31st March 2018 to the same extent as on 1st April, 2017.
29. Following balances have been extracted, at the end of the year 2017-18 from the
books of an electricity company.
₹ ₹
Share Capital 1,00,00,000 Depreciation Reserve on
Reserve Fund (invested in Fixed Assets 30,00,000
8% Govt. securities at par) 60,00,000 Consumers’ Deposits 40,00,000
Contingencies Reserve Amount contributed by
invested in 7% State Loan 12,00,000 consumers towards cost of
fixed assets 2,00,000
Loan from State Electricity Intangible Assets 8,00,000
Board 25,00,000 Tariffs and Dividends Control
12% Debentures 20,00,000 Reserve 10,00,000
Development Reserve 8,00,000 Current Assets (monthly
Fixed Assets 2,50,00,000 average) 15,00,000

The company earned a profit of ₹ 28,00,000 (after tax) in 2017-18. Show how
the profits have to be dealt with by the company, assuming that the Bank Rate was
10%. All workings relating to calculation of capital Base, Reasonable Return,
Surplus etc should form part of your answer.

30.What is Government Accounting? Explain the General Principles of Government

Accounting and Differentiate Govt. Accounting from Commercial Accounting
(2x15=30
marks)