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Total No. of Pages: 3 / 6682Register Number:
Name of the Candidate:
M.Com. DEGREE EXAMINATION May 2014
(SECONDYEAR)
240: ADVANCED CORPORATE ACCOUNTING(Common for M.Com. (N.R.), M.Com. A&F (N.R.) M.Com. CA (N.R.))
Time: Three hours / Maximum: 100 marksSECTION - A
Answer any FIVE questions.(5 × 8 = 40)
2. / H Ltd. Acquired 80% of shares of S Ltd for Rs. 48,000. The Balance Sheet of the two companies are as under:
Liabilities / H Ltd. / S Ltd. / Assets / H Ltd. / S Ltd.
Share Capital (Rs. 10) /
2,00,000 /
50,000 / Fixed Assets / 1,90,000 / 40,000
Long term liability /
40,000 /
-- / Investment – 4000 shares @ 12 per share /
48,000 /
--
Current liabilities /
60,000 /
20,000 / Current Assets / 62,000 / 30,000
3,00,000 / 70,000 / 3,00,000 / 70,000
Prepare a consolidated Balance Sheet.
3. / What do you understand by Liability of customers for Acceptances?
4. / From the following information, find out the amount of discount credited to Profit & Loss Account:
Rebate on bills discounted (1.4.2012) Rs. 32,480. Discount received Rs. 1,08,000.
An analysis of the bills discounted shows the following:
Amount of the bill / Rate of Discount / Due Date (including grace days)
73,000 / 12% p.a. / June 14, 2012
1,46,000 / 11% p.a. / July 19, 2012
4,38,000 / 10% p.a. / August 10, 2012
Pass the necessary Journal Entries for the unexpired discount as on 31st March 1995.
5. / What are the various types of claims?
6. / Differentiate between Single Account System and Double Account System.
7. / On 17th June 2012 a fire occurred in the premises of M/s Taraporewalla, a booksellers. Most of the stock was destroyed, with the cost of salvaged stock being Rs. 11,200. In addition, some stock was salvaged in damaged condition and its value was estimated at Rs. 10,400. From book of account the following particulars are available:
(1)Stock at close of accounts on 31st December 2011 was valued at Rs. 83,500.
(2)Purchases from 1.1.2012 to 17.6.2012 amounted to Rs. 1,12,000 and sales during that period amounted to Rs. 1,54,000.
(3)On the basis of past 3 years it appears that on an average gross profit of 25% is earned on sales.
(4)Stock was insured for Rs. 75,000.
Compute the amount of claim.
8. / Explain the concept Human Resource Accounting.
SECTION - B
Answer any THREE questions.(3 × 20 = 60)
10. / Give the proforma of Bank balance Sheet, specially showing the details of book debts.
11. / What do you understand by the expression “Consolidation of Financial Statements”. State the advantages and disadvantages of consolidation of financial statements.
12. / A fire occurred on 1st October 2012 in the premises of X Co. Ltd. Fromthe following figures, calculate the amount of claim to be lodged with the insurance company for loss of stock (all figures in rupees).
Stock at cost on 1.1.2011 / 90,000
Stock at cost on 1.1.2012 / 70,000
Purchasing during 2011 / 4,00,000
Purchases from 1.1.2012 to 30.09.2012 / 6,00,000
Sales during 2011 / 6,00,000
Sales from 1.12012 to 30.09.2012 / 8,80,000
You are informed that (a) In 2012 the cost of purchases has risen by 20% over the levels prevailing in 2011, (b) In 2012 the selling prices have gone up by 10% over the levels prevailing in 2011; and (c) salvaged value is Rs. 5,000.
13. / From the following details relating to an electricity undertaking, you are required to draw the Capital Account and General Balance Sheet as on December 31, 2012 under the Double Account System.
Authorised Capital: 8,000 shares of Rs. 100 each. Issued Capital: 4,000 shares of Rs. 100 each fully paid (out of which 500 shares were issued during the year) 13% Debentures Rs. 2,0,000. Trade creditors Rs. 50,000; Reserve Fund Rs. 1,00,000; Trade Debtors Rs. 90,000 and Cash at Bank Rs. 50,000. Reserve Fund Investment (cost) Rs. 1,00,000; (Market Value Rs. 1,10,000; Stock Rs. 60,000).
Fixed Assets: Spent upto 1.1.2012:
Machinery Rs. 3,00,000;
Building Rs. 2,00,000;
Additions in the year; Machinery Rs. 60,000;
Depreciation Fund: Machinery Rs. 70,000;
Buildings Rs. 10,000. Profit and Loss Account Rs. 40,000.
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