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I Semester B.Com. Examination, Nov./Dec. 2018(F+R) (CBCS) (201 4-15_qld Onwards)

COMMEHCE1.3 : Financial Accounting

s$ * 465

Max. Marks: 70

written completely either in English or in

SECTION _ A

Answer any five sub-questions. Each sub-question carries two marks,

1. a) Define GAAP.

b) State the objectives of Accounting Standards.

c) Give any four demerits of Single Entry system.

d) What is lnstallment system of purchase ?

e) What is meant by Dead Rent ?

(5x2=10)

f) How do you treat the excess price paid by the purchasing company whilepurchasing the assets and liabilities of the firm ?

g) What do you mean by purchase consideration ?

SECTION _ B

Answer any three questions. Each question carries six marks.

2. Discuss the users of Accounting lnformation.

3. Ascertion credit sales and credit purchases from the following :

(3x6=18)

Time : 3 Hours

lnstruction : Answer should beKannada.

Opening Balance of Debtors

Closing Balance of Debtors

Opening Balance of Creditors

Closing Balance of CreditorsCash Received from DebtorsCash paid to CreditorsDiscount Allowed

t10,000

14,000

8,000

9,50016,40012,000

3,000P.T.O.

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Discount ReceivedB/R Received from DebtorsAcceptances given to CreditorsBad debtsB/R dishonoured

Year2012 * 13

2013 * 142014 * '15

2015 - 16

2016 - 17Prepare an analytical table

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2,40A12,5008,0002,0002,500

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5 per tonrent over

4. National Trading Company bought a rnotor van frr:m Honda Company on hirepurchase system over a term of 2 years starting frorn -lotApril 20i6. The cashprice of tlre motor van was t 29,740 ancj tlre payrnent was to be made asfollows . { 2,74A on signing of the agreement anO 'ihe balance in 4 halt yearlyinstallment of t 7,500 each. The Honda Company changes interest at the rateof B"/" p.a' working on half yearly rest. Calcuiate"the int6rest included in eachinstallment.

Bharath mines took a lease from a land Lorcl for a period of 10 years f roml ntApril 2a12 on royalty of { 5 per ton of coal raisecl wiih a dead rent bf T 20,000

and power to recoup short working during the first four years of the lease. Theoutput was as follows :

tr

Output (Tons)2,0003,0004,0004,5005,000

of royalties from the above details.

6. Pasg incorporation entries in the books of a company from the followingparticulars.Purchase consideration { 10,00,000Value of sundry assets taken over { 9,50,000Current liabilities taken over t 75,000Settlement of purchase consideration,75%in equity shares of t 100 each, 1,000 debentures of t'100 each and thebalance in cash.

SECTION _ C

Answer any three questions, Each question carries fourteen marks.

7. A Mining company leased a property from Ajay singh at a royalty of {with a minimum rent of T 12,000 p.a. each year excess of minimumroyalty is recoverable out of the royalties of the next three years.

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The results of the working are as follows :

Year Output {Tons)2013 * 14 1,0002014 * 15 1,5002015 * 16 2,0002016 * 17 3,0002017 * 1g 4,500Prepare :

a) Minimum Rent Account c) Short Workings Accountb) Royalties Account d) Ajay Singh's Account

Ham purchased a motor car on hire purchase system trom Sagar Motors on1't April 2016. He pays T 1,00,000 down payment and t 80,000,-{ 70,000 andT 60,000 at the end of 1*t, 2"d and 3'd year respectively. lnterest is changed bythe vendor at2Ao/" p.a. Ram writes off 10% p.a. on diminishing balance m-etfrod.What was the cash price of the motor car ? Also prepare the necessary LedgerAccounts in the books of Ram under Asset Accrual method.

The books of Suresh which are maintained under Single Entry System, revealthe following information.

Assets and Liabilities 1-4-2017 g1-g-2018

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9.

Cash

Stock

Debtors

Creditors

Buildings

The cash book showed

Receipts from Debtors

Private dividend received

Business expenses

Drawings

Paid to creditors

Discount received

16,800

40,000

96,200

?

10,000

the following information :

T

2,72,000

4,000

39,300

9,200

2,24,000

2,4A0

49,900

50,000

?

40,000

10,000

The total sales during the year were { 2,80,800. Suresh maintained a grossprofit of 25?. on sales. Prepare Trading and Profit ancj l-oss Account tor tfreyear ending 31" March 2018 and Balance sheet as on that date.

ss - 465

'10. Ravi and Kiran sharing prof its and losses in the ratio of their capitals deciderj toconveft their business into a limited company on 31"tMarch 2018, when theirBalance Sheet stood as follows :

Balance Sheet as on 31"1 March 2018

Liabilities t Assets {Creditors 55,000 Cash 4,500Reserve fund 7,000 Debtors 40,000

Capitals : Stock 37,000Ravi 75,000 Plant and Machinery 85,000Kiran 50,000 lnvestments 20,500

1,87,000 1,87,000

The firm was acquired on the following terms :

a) The company took over the whole concern except cash and investments at10% less than the book values.

b) The Creditors were taken over at the book figure.

c) The company agreed to pay { 5,000 for goodwill.

d) The firm realized its investments at 5% less than the book value,

e) The purchase price was paid half in cash and half in fully paid shares of thecompany.

f) The shares are to be disgtributed according to profit sharing ratio.

Prepare Ledger Accounts to close the books of the firm.

1 1, a) Calculate the amount of purchase consideration from the following :

Purchasing company agreed to issue 100000 equity shares of T 1O eachvalued at t 1 1 per share, 50,000 B% , Debentures of { 10 each at a discountof 5% and pay cash equal lo 25% of the total purchase consideration.

b) From the following details find out opening stock :

Cash sales

Credit sales

Cash purchases

Credit purchases

t15,000

25,000

10,000

45,000

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Return inwardsFleturn outwardsCarriage inwardsCarriage outwardsWagesSalariesRate of gross profit 25o/" orl cost.

10,000

5,0007,0008,0005,000

10,000

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