Advance Financial Accounting
2013 (November)
Commerce (Speciality)
Course: 301: Advance Financial Accounting)
Full Marks: 80
Pass Marks: 32
The figures in the margin indicate full marks for the questions.
The figures in the margin
indicate full marks for the questions.
1. (a) Choose the correct answer: 1x3=3
a)
Preferential creditors are shown under List A/
List B/ List E.
b)
Revenue account of life insurance Act, A-RA/
A-PL / A-BS.
c)
A term loan is treated as non performing asset
(NPA), if interest n it remains unpaid for a period exceeding 90 days/ 100 days
/ 120 days
(b) Fill the blanks: 1x3=3
a)
The IRDA was set up in the year ______.
b)
During the period of inflation, profits are _____.
c)
Banking companies are governed by the Banking
Regulation Act, _____.
(c) Write true or false: 1x2=2
a)
Adjusting account to changing prices is a
never-ending process.
b)
In case of marine insurance, the provision against
unexpired risks 100%.
2. Write brief answer of the
following: 4x4=16
a)
Distinction between the Presidency Town
Insolvency Act and the Provincial Insolvency Act.
b)
Explain the accounting for price level changes
under current cost accounting (CCA) method.
c)
Discuss briefly how the following are treated
in preparing Revenue Account of insurance company :
Ø
Bounds is reduction of premium
Ø
Premium
d)
Explain money at call and short notice.
3. (a)
From the following information, prepare Profit & Loss Account of thirty
Bank for the year ended on 31st March, 2012 by showing necessary
schedules: (in’000) 12
|
Interest on Loans
Interest on fix Deposits
Commission
Payment to Employees
Discount on Bills Discounted
Interest on Cash Credits
Rent, Taxes and lighting
Interest on overdrafts
Directors’ Fees, Allowance and
Expenses
Auditors’ Fees and Expenses
Interest on saving Bank Deposits
Postage, Telegrams and Telephone
Printing and Stationary
Sunday Charges
|
2590
3170
82
540
1060
2230
180
1540
30
12
680
14
29
17
|
Additional Information:
a)
Provisions for contingencies—Rs. 200000
b)
Transfer to reserves Rs. 1557000
c)
Transfer to Central Government—Rs.200000
Or
(b) Explain the following in the context
of the Banking Companies Accounts: 12
1.
Standard Assets
2.
Substandard Assets
3.
Doubtful Assets
4. (a) Sunrise
Life Insurance Co. Ltd. Had a paid up capital of Rs.1000000 divided into 100000
shares of Rs. 10 each. Its net liability on all contracts its faces on 31st
march, 2012 was Rs.9600000 and as on 31st march, 2011 was 8400000.
The company had paid interim bounds of Rs. 260000 and 20% 0f the surplus is to
be allowed to shareholders, 20% to reserves and balance being carried forward.
The following figures are extracted from the books of the company for the year
ended on 31st march, 1012: (in’000) 11
|
Premium Less Re-insurance Premium
Interest, Dividend and Rent
Fees
Income Tax
Management Expenses
Annuities Paid
Commission
Surrenders
Surplus on Revaluation of Reversions
Re-insurance Irrecoverable
Claim Less Re-insurance Claims
Consideration for annuities granted
|
5720
2800
16
440
700
50
220
320
20
16
3400
160
|
Prepare Revenue Account.
Or
(b) Point
out the main features of Accounts of ‘General Insurance Companies’. Explain the
purpose of creating reserve for unexpired risk in insurance business. State its
accounting treatment. 11
5. (a)
Mohan filed a position for bankruptcy on 30th June. His books showed
the following balances: 11
|
Cash in
Hand
Fixture
and Fittings (estimated to produce Rs.80)
Stock in
Trade (estimated to produce Rs.1200)
Sundry
Creditors :
Trade
Creditors
Bills
Payable
Sundry Debtors :
Good:
(Rs.) 1000
Doubtful:
(Rs.) 2000 (Expected to realize 50%)
Bad 2000
Bank
Overdraft
Capital
|
10
250
1800
5000
|
2000
2200
1200
1660
|
|
7060
|
7060
|
a)
Liability on Bills discounted Rs. 500
b)
Expected to rank Rs. 100
c)
His household furniture was valued at Rs. 250
d)
He owned a house valued at Rs. 750 having a
mortgage on it of Rs.600 at 4% interest paid Up to the preceding 31st
December.
e)
Preferential Creditors amounted to Rs. 35
(included in Sundry Creditors) and Rs. 15 for the rate and house.
Prepare
a statement of affairs and Deficiency Account of Mohan.
Or
(b)
Mention various lists that have to be prepared in support of The Statement of
Affairs under the Insolvency Law, giving short particulars as to the contents
of each of them. 11
6. (a)
Mukesh held on 1/1/2011, Rs. 300000 of 12% Government Securities (tax free) of
Rs. 100 each at Rs. 282500. On 1/6/2011,Mukesh purchase a furniture Rs. 200000
of the security at Rs. 96*1/2 cum-interest, brokerage being ½% on face value. On
31/7/2011, Rs 250000 of the security was sold at Rs. 94*1/2 % ex-interest,
brokerage being ½% on face value. On 1/12/2011, Rs. 100000 of the security was
again sold at Rs. 96 Cum-interest.
Interest
on security was paid each year on 31st March and 30th
September and was created by the bank on 3rd April and 4th
October respectively. The price of the security on 31/12/2011 was Rs. 94. Mukesh
closes his books on 31st December each year. Draw up Investment
Account in the books of Mukesh. 11
Or
(b) Distinguish between the following: 5.5 x 2=11
(i)
Cum-dividend and Ex-dividend transactions
(ii)
Cum-interest and Ex-interest transactions
7. (a)
From the information given below, ascertain the cost of sales and closing
inventory under current purchasing power method if the organization follows: 11
1)
First-in-First out (i.e., FIFO) system
2)
Last-in-First out (i.e., LIFO) system
|
Inventory on 31.03.2011
Purchase during 2011-12
Inventor on 31.03.12 (Average for
2011-12)
|
Historical
Cost (Rs.)
|
General
Price Index
|
|
40000
310000
50000
|
200
220
230
|
Or
(b) Discuss the methods which can be adopted
to adjust price level charges in determining income. 11
***
Post a Comment
Kindly give your valuable feedback to improve this website.