Gauhati University Question Papers
Financial Accounting - II (May-June’ 2017)
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 as directed:
a)
State whether the following statements are true
or false: 1x4=4
1)
Accounting Standard AS-2 deals with disclosure
of significant accounting policies followed in preparing and presenting financial
statements.
2)
International Financing Reporting Standards are
prepared by FASB.
3)
Foreign branches are always established in
foreign countries.
4)
Accounting Standard AS-10 is not applicable to
forest resources.
b)
Fill in the blanks: 1x2=2
1)
Accounts for depended branches are maintained by
_____.
2)
In departmental accounting, bad debts are
apportioned in ratio of _____.
c)
Give the meaning of the following terms: 1x4=4
1) Goodwill.
2) Insolvent
partner.
3) Consolidated
financial statements.
4) Inland
branch under Branch Account.
2.
Answer the following questions very briefly: 2x5=10
a)
Mention two objectives of Branch Accounting.
b)
State two functions of International Accounting
Standard Board.
c)
Mention two special features of Departmental
Accounting.
d)
Mention any two features of Goodwill.
e)
State two methods of recording departmental
transactions in departmental accounts.
3.
Answer any four of the following questions: 5x4=20
a)
Discuss the process of issuing International
Financial Reporting Standards (IFRS).
b)
The following particulars are available in
respect of the business carried on by Raghuraman Choudhury.
1) Capital
Invested Rs. 50,000.
2) Trading
results:
|
Year
|
Result
|
Rs.
|
|
2013
2014
2015
2016
|
Profit
Profit
Loss
Profit
|
12,200
15,000
2,000
21,000
|
3) Market
rate of return on investment 10%.
4) Remuneration
from alternative employment of the proprietor (if not engaged in business) Rs.
3,600 p.a.
Calculate
the value of goodwill of the business on the basis of 3 years’ purchase of
super profit taking average of last four years.
c)
Define the term ‘cash-in-transit’ and
‘goods-in-transit’ and write the accounting treatment of ‘cash-in-transit’ and
‘goods-in-transit’ under Debtors system of Branch Accounts.
d)
Briefly explain the modes of dissolution of
Partnership Firm.
e)
Pass journal entries for the following
transactions at the time of dissolution of a partnership firm:
1) Partner
Ram has taken over furniture having book value Rs. 2,000 at Rs. 1,500.
2) Partner
Hari has agreed to pay a creditor of Rs. 5,000 less 10% discount as final payment.
3) Expenses
of realisation paid by the firm Rs. 5,000.
f)
On 1st April, 2016 ABC Ltd. opened a
branch at Shillong. From the following particulars, pass the necessary journal
entries for the year ended on 31st March, 2017 in the books of Head
Office:
|
Goods sent to Branch
Cash sent to Branch
for expenses
Cash sales
Stock on 31.03.2017
|
Rs. 70,000
Rs. 12,000
Rs. 96,000
Rs. 40,000
|
4.
Answer the following questions:
1) State
the disclosures to be made as per AS-3. 10
Or
Explain how revenue is recognised as per AS-9 10
2) Explain
the methods of converting the figures of Trial Balance of a foreign branch into
the home currency. 10
Or
X Ltd. of Guwahati has a branch at Kolkata. Goods are
invoiced to the branch at cost plus
. 10
The branch remits all cash received to the head office and
all expenses are paid by the head office. From the following particulars,
prepare:
a) Branch
Stock Account.
b) Branch
debtors Account.
c) Branch
Adjustment Account.
d) Branch
Expenses Account.
e) Branch
Profit and Loss Account.
|
|
Rs.
|
|
Branch debtors on
01.04.2016
Branch stock on
01.04.2016
Cash sales
Credit sales
Goods from head
office at invoice price
Cash received from
debtors
Discount allowed to
debtors
Bad debts
Branch expenses paid
by head office
Branch stock on
31.03.2017
|
6,000
2,400
3,000
60,000
72,000
57,600
1,400
300
10,000
11,400
|
3) Explain
the Super Profit method of a valuation of goodwill long with suitable
illustrations. 10
Or
From the following Trial Balance extracted from the books of
M/S Ravina Stores, prepare the departmental Trading and Profit & Loss A/c
for the year ended 31st March, 2017: 5+5=10
Trial Balance as at
31.03.2017
|
Particulars
|
Dr. (Rs.)
|
Cr. (Rs.)
|
|
Opening stock
Radio department
Television
department
Purchases and sales:
Radio department
Television
department
Carriage inward:
Radio department
Television
department
Machinery:
Ratio department
Television
department
Salaries
Rent
Repairs to machinery
Debtors and
Creditors
Capital
Cash in hand
Bills receivable and
Bills payable
Buildings
|
10,000
8,000
18,000
15,000
400
200
2,000
1,600
6,000
1,200
3,000
4,500
-
1,200
1,900
8,000
|
30,000
28,000
6,000
16,000
1,000
|
|
Total
|
81,000
|
81,000
|
Additional
information:
a)
Closing stock on 31.3.2017:
Ratio department Rs.
14,000
Television department
Rs. 12,000
b)
Salaries to be allocated in the ratio of 7 : 3
and repairs to machinery in the ratio of 2 : 3.
c)
Area of building is occupied in the ratio of 3 :
2.
d)
Depreciate building at 5% p.a. and machinery at
10% p.a.
4)
State the accounting entries for closing of
books of accounts of a firm on sale to or conversion into a company. 10
Or
Alok and Pulak are partners in a firm sharing profits and
losses in the ratio of 3 : 2. They decided to dissolve their firm on 31st
March, 2017 when their Balance Sheet of their firm was as follows:
Balance Sheet as at
31-03-2017
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Capital accounts:
Alok
Pulak
Creditors
Profit and Loss A/c
|
17,500
10,000
2,000
4,500
|
Freehold Property
Investment
Debtors
Stock
Bank
Cash
|
16,000
4,000
2,000
3,000
2,000
7,000
|
|
|
34,000
|
|
34,000
|
The
partners decided to dissolve the firm on the above date. Alok took over the
investment at an agreed value of
Rs. 3,800. Other assets were realised as follows:
|
|
Rs.
|
|
Freehold property
Debtors
Stock
|
18,000
80%
2,800
|
Creditors
of the firm agree to accept 5% less.
Expenses on realization of assets amounted to Rs. 400.
There
was a typewriter in the firm which was bought out of the firm’s money and the
same was not shown in the above Balance Sheet. The typewriter is now sold for
Rs. 1,000. Close the books of accounts of the firm by preparing a Realization
Account, Partner’s Capital Accounts and Bank Account. 4+2+4=10
***
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