‘010000 SN- 451 | Semester B.Com. Examination, November/December 2017 (F+R) (CBCS) (2014 - 15 and Onwards) Commerce Paper — 1.3 : FINANCIAL ACCOUNTING —1 Time : 3Hours Max. Marks : 70 Instruction : Answer should be written completely either inEnglishor in Kannada, SECTION-A 1, Answer any fivesub-questions.Each sub-question carriestwomarks, (6x2=10) a) What do you mean by Accounting Standards ? b) Mention any two objectives of Financial Accounting. c) Bring out the meaning of short working with an example. 4d) What is single entry system ? €) State two features of hire purchase system. f) Whatis Realisation Account ? 9) Mention the two methods of purchase consideration. SECTION-B. Answerany three questions. Each question carries sixmarks. (8x6=18) 2. Describe any three advantages and three limitations of Financial Accounting. 3. Prepare an analytical table of royalties from the'following details : a) Minimum Rent %20,000p.a. b) Royalty 2.00 per ton of ore raised c) Short workings are recoverable during the first 3 years of the lease only 4) The output for the first 4 years was 2013: 2,000 tons, 2014 : 5,000 tons, 2015 : 15,000 tons, 2016 : 20,000 tonsSN - 451 2 0 0 | 4. Ms. Venya purchases a motor car on hire purchases system. Calculate cash price of the motor car from the following. Down payment % 20,000 ; 1*' yearly installment 28,000 ; 24 yearly installment % 36,000 ; 34 yearly installment 33,000 ; Rate of interest 10 % p.a. 5. Calculate the total purchases from the following information, Particulars Rs. Opening Balance of creditors 3,000 Cash paid to creditors 90,000 Goods returned to creditors 15,000 Acceptances issuedto creditors 90,000 Discount allowed by creditors 2,000 Closing balance of creditors 6,000 Cash purchases during the period amounted to Rs. 50,000/- 6. Caloulate the amount of purchase consideration from the following : ‘The purchasing Co., has agreed to issue 30,000 equity shares off 10 each ata premium of 10 %, 1,000, 8 % preference shares of € 100 each at par, 1,000, 6 % debentures of € 100 each ata discount of 10 % and pay cash equal to % 25,000. SECTION-—C Answerany three questions. Each question carries 14 marks. (3x14=42) 7. On 1-1-2012 Deeksha and Company purchased a machinery under hire purchase system. The cash price was 17,000 payable as under, € 2,000 on signing the agreement and the balance in 3 installments of @ 5,000 each together with interest at 8 % p.a. On 315t of December each year the asset is depreciated at 10% p.a. on original cost method. Prepare necessary Ledger Accounts in the books of Deeksha and Co., under asset accrual method. 2 Ms. Monika patented an Automatic Door Closer and granted to Ms. Suraksha the licence to manufacture and sell the Door Closers for 10 years on the following terms. a) Suraksha to pay a Royalty of €5 for every door closer sold with a minimum rent of 82,500 p.a. b) Suraksha could set off the short workings arising in any year against surplus royalties payable in the next 2 years.‘A * © SN - 451 c) From the second year onwards the dead rent is agreed upon at = 2,000 instead of 2,500 and all other terms being unchanged. The other details are: Year Sales (units) 2013 100 2014 200 2015 300 2016 500 ‘Show ledger accounts in the books of Suraksha and Co., including minimum rent account. Mr. Ridhansh, a general goods merchant does not maintain his books of accounts systematically. However the following information could be ascertained from his books of accounts for the year ended 31° March 2016, Assets and Liat Balances 1-4-2015, 31-3-2016 z z Plant and machinery 63,000 63,000 Stock of goods 28,000 24,500 Sundry debtors 7,000 40,500 ‘Sundry creditors 17,500 16,310 Balance at bank 14,000 16,110 Cash Transactions during the year eee 31-3-2016: Particulars Wages paid 21, a Sundry expenses 8,250 Advertisement expenses 3,920 Rent paid 8,750 Purchase expenses 8610 Cash collected trom debtors 2,88,750 Cash paid to creditors 2,25,190 Drawings 10,920 Mr. Ridhansh drew goods worth? 2,730/- from the business during the year for his household purposes. The purchase returns and sales retums during the year amounted to 7,000!--and®3,500/- respectively. The plantand machinery have to be depreciated at 5 %. Prepare Trading and Profit and Loss A/c for the year ended 315! March 2016 and also Balance Sheet on the same date.SN - 451 4 (AE 10. Ram and Prem are partners havings profit sharing ratio of 2: 1 and their Balance Sheet as on 31-3-2017 was as follows : Liabilities x Assets z Creditors 40,000 Cashinhand 300 Billspayable 10,000 _Bills receivable 5,000 Ram'sloan 20,000 Debtors 60,000 Ram’scapital 30,000 _Less : Reserve 3000 57,000 Prem’scapital 20,000 Stock 43,700 Reservefund 6,000 Machinery 20,000 1,26,000 4,26,000 They agreed to sell the business to a Limited Co. and the Co., to take over the assets and liabilities as follows : Machinery at 16,000, Stock at 35,000, Debtors at % 50,700. B/R at € 5,000 and Goodwill atz 6,000. The company agreed to take over Creditors at t 38,000 and B/P at % 10,000. The expenses of realisation amounted to 300. The firm received 40,000 of the purchase price in % 10 fully pald equity shares and the balance jin cash. Distribute the shares as per original capital ratio. Prepare the necessary Ledger Accounts in the books of the firm. 41. a) From the following detalls drawn from the books of Pradeeksha, you are required to ascertain the opening stock z Purchases made during the year 22,000 Sales made during the year 33,000 Closing stock 2,000 Wages, Freight 500 Indirect expenses 700 Rate of gross profit on cost 50% Return inwards 3,000 Return outwards 2,000 b) Calculate the amount of Interest included in each instalment of hire purchase system. Cash price Z 1,50,000, Down payment % 45,000, 3 annual instalment of 760,000, 45,000, ¥ 30,000 respectively payable at the end of each year.(AOAC s SN - 451 os dyprt- 2 1, canada § eua-afajien engon ga euat-a¥A 2 wodrie. (6x2=10) a) Segoe, Waived accidea? b) sromm> Seas conamaide ada vudesinvay 20, 0) tds esis emirate work eumaideiod shoes Ben. d) 28 delaodd sigs aocidea? 2) mar dava8 ads ade opparivah, 26%. f) agemd seg aocidesdd? 9) DOI eieloddAL KombsBoins acme) soarive S22. aywn- wo cineca 3 aaron eugon Bo Bs 6 eodrivh (@x6=18) 2. Beamer dyes shedd watnorid sbay shedd aoeriday adorn, 8. déysod Astdrecd mugs aseateso weggdoay eodwOr: a) tox, mari isirg, de. 20,000 b) cones da. 2.00 x38 e271 ¢) S208 eumpdobay teed aided Saios Sxirrve, ang toskdoboae> 6) Sario meg asierlé ews 2013 : 2,000 estate 2014 ; 5,000 wxdrie 2015 : 15,000 texte 2016 : 20,000 ssadrte 4, Besos sien, Saeench mda ear tadjoted aeaibd Doemaced. i #end Sadriges w mos arin eidarse, dorddsosBenDs. snore ato de. 20,000 ; start snaird todd ca. 28,000 ; adeete smart tos Ge. 36,000 ; aaadse sar s Bos Ce. 33,000 ; 2, Bd smart de. 10.SN - 451 + ‘Ce 5. Bend arto umace seed 2.439, aod Bey,.O8 "ocba, BorotefseN0. aati Be. nee, Borie edogs 803 3,000 moron tts, sri 90,000 meron naib, sind aide 15,000 Gea som anit 90,000 Porlpod woke 2,000 Bore eogci 83, 6,000 siirc rich 2000 sing 50,000 6. ds BUNS Dstdreod sOed ridasday, Powdtetsan0. DONT HomtDodw a. 10 stusdelsat> 30,000 mosine, decbrivety Be. 10 ales ode, Deda 1,000, de. 8 daigind wes Sechriday ataaedsard de, 100.08 need 1,000, 8. 6 0cia.100 aiandedelody meigride Be. 10 d Ocdncws aoa, nee bey arich do. 25,000. aypen- 2 ah tend cingionddde 3 deen engos. 8 8h 14 wodiieh. (x14=42) 7. 1-4-2012 dood Oeg, aba) Hostnods on oiboraa man Hadden sinscrd, DOLaNE. Aric vie da. 17,000 day, sados DqwN, da. 2,000 ay alone see abe) our arent, stad mard dosbrive, da. 5,000 dos apare Be. 8 BwAoD ad toaach obogadh Zs sar 31 axowo' ve 10 dade, Lowser ext, dedobd), dake anaearoaiah. eg, shay domino ajqfeig, engenc alos wosswn wRotay, aeotbst cinktodo, Hing emdrivay Zoinon. 8. Beads alocad aounsistch welorsintier decor kgmors sietlotsaly ahnodch, Beads Aodk, counatsiort waist, odmorbs abey alncba isk 10 slater’ mo edo Awopsind eqodd aed Deeded: a) And, staomesmdd ale decor Eagoride Sdalmd cons Ranbabc abe hal, wart mong do. 2,500. b) AUER Eads eusgaidy aoods 2 aelerve, BuO comgkood aomess aindwabds,‘0 7 wale dpoets (Zar) (units) 2013 100 2014 200 2015 300 2016 500 2 SodRORO, th aday wememonsd aabdacod 142015 31-39-2016 z z mglorit aba) axbosrid 63,000 63,000 aR 28,000 24,500 morndd> 7,000 10,500 dane 17,500 16,310 wont smado 802 14,000 16,110 snes'r 31, 2016 § acbalsecro: Asn dane, 8nd mats 21,000” 388 sdederied 8,250 tater) eg, 3,920 marnmss 8,750 age aederiss 8,610 abetted ate ric 2,88,750 garter’ daky, dic 225,190 Ros wert 10,920 3730 Gard aac rdsrds gc odatat Aos§ say ewadro@rigo, D000) sane aarte Brome saws gadann de. 7,000 a de. 3,500. “magid se Obese sibeed Seeks dab, ALB. 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'2.35,000, airedrio i. 50, 700, descr boars Un, 5,000 soe araoado die. 6,000, goaded Porday 38, 000 dr. nert Sraotagen wad, dontend Boas da. 10,000 %, dxwrhovr Sey, i. 300, speneBUd> 40,000 Da.rivat, dorkad Zoaadaiaty Bn.10 ears soe Rommaband maine, Sedorivdowe | wood mdi are Baxigecse weicied, Secoriday spermdori ead: ‘hav wormed gainewo, Bowso, meomedon x joo Bede, ergiwd 2ep.. sooSrivsy, ZeAROA. 11. a) Bet, somsaitd aaereod sedond cidens asidneon, dex aadore Rea, PordbtoBcn3: da. Sairmogg amas Doedrisy 22,000 air cog atnad dmonuaritd 33,000 sos Hob 2,000 Bad, MIDE eg, 500 Sedslo sdeberied 700 RQO ea} wads aaaw vod sed 3250 wewod ade 3,000 av heed Ace 2,000 b) ear danas sega w8 Hoke achs wap ategai, cobeacmwe. ari edeSci01}50,000, stnoridanais dia 45,000, 3 sare eodrivocidia 60,000, oa. 45,000 airy de, 30,000 gabann, as Baird tedobd, masieorbaich.