Paper Code.

1933001

Faculty of Commerce
B.Com. II Year – III Semester Examinations July / August - 2022
Advanced Accounting
Time: 3 Hrs Marks: 75

SECTION- A
Answer any five questions 5 x 5 = 25 Marks
1. What is partnership? Explain the essential features of partnership.
2. Explain the difference between revaluation account and realization account
3. What do you mean by fixed and fluctuating capital account
4. Explain the insolvency of partners
5. Mention the guidelines for issue of bonus shares
6. Define Debenture. Explain different types of debentures
7. Explain the methods of Goodwill
8. Discuss the methods of valuation of shares

SECTION - B
Answer all questions 5 x 10 = 50 Marks

9. A) Define Partnership. Explain the characteristics of partnership

OR

B) The following is the balance sheet of A, B and C sharing profits and losses
in the ratio of 6:5:3 respectively
Liabilities Rs. Assets Rs.
Capital Cash 1,890
A: 35400 Debtors 26,460
B: 29850 Stock 29,400
C: 14550 79,800 Furniture 7,350
Gen Reserves 10,500 Land & buildings 45,150
Bills payable 6,300 Goodwill 5,250
Creditors 18,900

1,15,500 1,15,500

They agreed to take D into partnership and give him 1/8th share on the
following terms:

i. Furniture is to be depreciated by Rs.920/-

ii. Stock is to be depreciated by 10%
 iii. A provision of Rs.1320 to be made for outstanding repair bills
iv. The value of land and buildings to be appreciated to the extent of
Rs.59,850/-
v. D should bring as his share of goodwill Rs.14070/-
vi. D should bring Rs.14070/- as his capital
Prepare the necessary accounts and new balance sheet.

10.A) Distinguish between Dissolution of partnership and Dissolution of firm

OR

B) X, Y and Z are partners sharing profits and losses in the proportion of 5:3:2.
They decide to dissolve the partnership firm when the balance sheet as on
31-03-2001 was as under:

Liabilities Rs.Assets Rs.

Capital Bank 18,000
X: 3,30,000 Sundry Debtors 1,52,000
Y: 1,30,000 Stock in trade 60,000
Z: 32,000 4,92,000 Furniture 10,000
Land & buildings 1,12,000
Sundry Creditors 1,50,000 Plant 2,90,000

6,42,000 6,42,000
The assets realized as follows: land and buildings Rs.1,00,000/-,
plant Rs.2,50,000/-, stock Rs.45,000/-, furniture Rs.9,000/-, sundry debtors
Rs.1,30,000/-. Expenses on dissolution Rs.11,000/-. Prepare necessary accounts
in the books of dissolution of the firm.

11. A) Tulasi hotels offered 1,00,000 equity shares of the nominal value of Rs.10/-
each for public subscription at Rs.12/-. The amount payable on shares were on
application Rs.4.50, on allotment (including premium) Rs.4.50. On first and final
call Rs.3.00.
The actual subscription was for 90,000 shares. All money payable by the
shareholders was received except from 1000 shares who failed to pay the final
call amount and those shares were forfeited and reissued for Rs.6/- each.
Show the journal entries in the books of the company in respect of the
above transactions including cash transactions.
OR
B) Explain the guidelines issued by the SEBI for issue of Bonus shares
12. A) from the following information provided by Rohan Co. Ltd., Prepare P & L A/c
Statement for the year ended 31-03-2015.
Particulars Rs. (in 000s)
Cost of materials consumed 186
Sale of products 457
Salaries and wages 63
Contribution to PF 12
Interest received 83
Depreciation 16
Auditor’s remuneration 10
Rent 12
Repair 8
Insurance 7
Managing Directors remuneration 12
Dividend received 24
Interest on loan 14
Net gain on sale of investments 12

OR
B) Define Profit prior to Incorporation. Explain the methods of computing Profit
prior to Incorporation

13. A) What do you mean by Goodwill? Explain the super profit method for valuation
of goodwill
OR
B) From the following information, find out the valuation of each share.
Balance sheet of X Company Ltd.,
Liabilities Rs. Assets Rs.
Share Capital 20,000 Fixed assets:
equity shares of Rs.10/- Goodwill 1,90,000
2,00,000 Investments 3,00,000
Reserves & Surplus
Reserves 2,50,000 Current assets, Loans &
P&L A/c 30,000 Advances:
Unsecured loans 80,000 Current assets 50,000
Current liabilities 20,000 Loans and advances 30,000
Misc. expenditure 10,000

5,80,000 5,80,000
For the purpose of valuation of shares goodwill shall be taken at two years
purchase of the average profit of the last five years. The profit for the last five
years is Rs.60,000/-, Rs.70,000/-, Rs.40,000/-, Rs.50,000/- and Rs.50,000/-
respectively.