Gauhati University Question Papers
Financial Accounting - II (May-June’ 2016)
Full Marks: 80
Time Allowed: 3 hours
Answer either in
English or Assamese
The figures in the
margin indicate full marks for the questions
1.
Answer the following questions: 1x10=10
a)
Discount allowed to debtors is not shown in
Branch Account. (State whether the statement is True or False)
b)
Revenue arising from sale of old furniture is
not recognized as income as per AS-9. (State whether the statement is True or
False)
c)
Depreciation Accounting as per AS-6 does not
deal with
1) Goodwill.
2) Livestock.
3) Mineral.
4) All
of the above.
(Choose the correct answer)
d)
In branch accounting the excess of selling price
over wholesale price is considered as the profit of _____. (Fill in the blanks)
e)
Cash sent by the Branch not received by the HO
is debited to _____ A/c by the year end. (Fill in the blanks)
f)
Goodwill is an asset which can be disposed off
only in the event of the business being sold as a going concern. (State whether
the statement is True or False)
g)
What is Departmental Accounting?
h)
Section 39 of the Indian Partnership Act, 1932
relates to
1) Admission
of partners.
2) Insolvency
of partners.
3) Treatment
of goodwill.
4) Dissolution
of partnership firm.
(Choose the correct answer)
i)
When an unrecorded asset is taken over by a
partner, realization account is created. (State whether the statement is True
or False)
j)
What is sliding scale method of valuation of
goodwill?
2.
Answer the following questions in brief: 2x5=10
a)
Name two items of inventories which are outside
the scope of AS-2.
b)
Why is Branch Adjustment A/c prepared?
c)
State two basic differences of Branch Accounting
and Departmental Accounting.
d)
When all partners become insolvent, what will be
the treatment of ‘unpaid balance’ in Creditors A/c?
e)
How is interdepartmental transfer at cost price
recorded?
3.
Answer any four of the following questions: 5x4=20
a)
Give a brief note on AS-10 on valuation of fixed
assets.
b)
State how the compliance of Accounting Standards
in India is ensured.
c)
Guwahati Branch of Kolkata HO does not maintain
its own books. Pass necessary Journal entries in the books of Kolkata HO for
the following transactions effected during the year assuming books are kept
under Stock and Debtors system:
|
Rs.
|
Goods sent to branch
Goods received by
Branch
Cash remitted by
Branch to the HO
Cash received by HO
|
30,000
25,000
40,000
32,000
|
d)
KGR runs a chemist shop. His net assets on 31st
March, 2016, amounted to 20,00,000 After paying rent of 15,000 a year to the
landlord (who is also an employee in the shop) for premises valued at 1,00,000,
salary of 20,000 to the chemist, he earns a profit of 1,50,000. His landlord
who incidentally is the chemist of the shop is keen to purchase the shop. 12%
is considered to be a reasonable return on capital employed for this type of
business. What can KGR expect as payment for goodwill? Make any reasonable
assumption, if necessary.
e)
From the following information, calculate
absolute surplus capital:
1) Balance
of partners capital as per last Balance Sheet:
A: 80,000
B: 50,000
C: 20,000
2) Profit
& loss A/c (Cr.) as per last Balance Sheet 24,000
3) Profit
sharing ratio = 3 : 2 : 1
f) Explain
the features of Independent Branch. Is a Foreign Branch an Independent Branch?
4.
Answer the following questions: 10x4=40
a) Explain
the procedure to be followed for issuing IFRS by IASB. 10
Or
Explain briefly the requirement of the Accounting Standard -1
(AS-1) for disclosure of accounting policies. 10
b) A
company having its HO at Guwahati has a Branch at Tinsukia. The Branch receives
all goods from HO who also remits cash for all expenses. Sales are made by the
Branch on credit as well as for cash. Total sales made by the Branch for the
year ending 31st March, 2016 amounted to 5,75,000 out of which 20%
is cash sales. The following further information is available:
|
Rs.
|
Stock on 01.04.2015
Debtors on
01.04.2015
Petty cash on
01.04.2015
Remittances to
Branch:
For Salary
For Rent
For Petty Cash
Petty expenses
incurred by Branch
Cash received from
Debtors
Bad debts written
off
Normal loss of goods
at Branch
Stock on 31.03.2016
|
85,000
80,000
1,200
30,000
10,000
4,800
4,000
4,80,000
500
200
36,000
|
All
sales are made by Branch at cost plus 25%
Prepare
Tinsukia Branch A/c in the books of HO of the year ended 31st March,
2016. 10
c) Mr.
Rahul Bajaj carries on his business through two departments – Department A and
Department B. Following are the extracts of his Trial Balance as on 31st
December, 2015:
Opening Stock:
A
B
Purchase:
A
B
Sales:
A
B
|
12,000
6,000
24,000
20,000
40,000
34,000
1,200
|
Purchase Return:
A
B
Sales Returns:
A
B
Salaries:
Advertisement
Depreciation
|
4,000
3,000
2,000
1,400
3,600
2,700
|
Additional
Information:
1) Stock
as on 31.12.15:
A = Rs. 8,000
B = Rs. 11,000
2) The
unallocated expenses are to be charged to each department in proportion to the
cost of goods sold.
Prepare
Departmental Trading and Profit & Loss A/c for the year ended 31st
December, 2015. 10
d) A,
B and C are partners in a firm sharing profits in the ratio 3 : 2 : 1 with the
following assets and liabilities:
Balance Sheet
Liabilities
|
Amount
|
Assets
|
Amount
|
Capital accounts:
A
B
Reserve
Creditors
|
20,000
12,000
6,000
12,000
|
Sundry Assets
Profit & Loss
A/c
Cs Capital
|
30,000
18,000
2,000
|
|
50,000
|
|
50,000
|
Assets
realized 18,500 and expenses of realization amounted to 500. C became insolvent
and his estate paid 50% of his debt. Close the books of the firm applying
Garner Vs Murray rule. 10
Or
Describe
the procedure of determining the purchase consideration on case a partnership
firm is sold to a company. Also state the Journal Entries to be passed in the
books of the partnership firm in such a scale. 4+6=10
***
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