Gauhati University Question Papers
Financial Accounting - II (May-June’ 2013)
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)
Under Stock and Debtor System Branch Stock
account is treated as _____ account. (Fill in the blanks properly)
b)
There are _____ types of methods of recording
departmental transactions. Fill in the blank selecting correct answer from the
following:
1) 2
2) 3
3) 4
4) 5
c) To
which account non-departmental expenses are charged under Departmental Account
System?
d) Write
meaning of Inter-departmental transfer.
e) Write
the meaning of Dissolution of Partnership Firm.
f) A
partnership firm is sold to a company and the later has acquired only a few
assets of the firm. You are required to show the Journal Entry to be passed by
the firm for the assets acquired by the company.
g) Where
all partner become insolvent, what will be the treatment of ‘unpaid balance’ in
Creditors Account?
h) What
is the meaning of ‘Exposure Draft’ in the context of setting accounting
standards?
i)
State when AS-21 is mandatory for a company?
j)
According to AS-3, Interest received by a Bank
is cash flow from _____ activity. (Fill in the blank correctly)
2.
Answer the following: 2x5=10
a) Write
two objectives of International According Standards Committee Foundation.
b) Mention
any two objectives of Branch Accounting.
c) One
of the methods of Branch Accounting is Debtors System. Why is it so called?
d) What
basis shall be followed for the apportionment of the following common expenses
among Departments?
1) Rent.
2) Canteen
Expenses.
e) Mention
two advantages of Departmental Accounting.
3.
(a) State the functions and responsibilities of International Accounting
Standard Board. 5
Or
Write a critical note on the enforcement of accounting
standards in India.
(b)
Give Journal entries for the following transactions in the books of Gauhati
Head Office:
1) Goods
sent by Raha branch to Tezu branch for Rs. 3,000 are yet to be recorded.
2) Tezu
branch paid Rs. 7,000 for machine purchased by the head office.
3) Goods
valued at Rs. 2,000 were returned by Raha branch.
4) Raha
branch paid Rs. 1,000 to a local supplier on behalf of the head office.
Head office closes its books on 31st December
each year. 5
Or
(b)
From the following particulars prepare Branch Account in the books of Head
Office.
1) Head
Office: Delhi.
2) Branch
Office: Guwahati.
3) Branch
Opening Data: 01.01.2012
4) Goods
Sent to Branch: Rs. 50,000
5) Cash
sent to Branch for expenses: Rs. 5,000
6) Sales
(Cash): Rs. 80,000
7) Stock
on 31.12.2012: Rs. 20,000
8) Petty
cash at branch on 31.12.2012 Rs. 200
(c)
Explain various methods of valuation of Goodwill. 5
Or
Compute the value of Goodwill, from the following
information and on the basis of two years purchase of super profits calculated
on the average profit of last three years. 5
Information:
1) Average
Profits (after tax) for the last three years Rs. 3,30,000 which includes Rs.
30,000 loss on sales of a plot of land.
2) The
company declares 50 per cent dividend on the shares of Rs. 10 each fully paid.
3) Market
value of each share is Rs. 50.
4) Average
capital employed is Rs. 20,00,000.
(d)
From the following information you are required to find out the number of
shares along with the value of shares each partner will get as part of sale
price from GB Ltd. 5
1) Partners:
G and B.
2) Profit
sharing Ratio: Equal.
3) Total
Purchase Consideration: Rs. 8,00,000
4) Cash
Payment: Rs. 4,80,000
5) Payment
through issue of shares: Rs. 3,20,000
6) Value
of each share: Rs. 10
7) Capital
Balances on the date of Sale:
G: Rs. 3,50,000 (cr.)
B: Rs. 2,50,000 (cr.)
8) Profit
on Realisation: Rs. 2,00,000
Profit
on Realisation was not adjusted to the Capital balances on the date of sale.
4.
Write a critical note of any one of the following in about 600 words: 10
1) Valuation
of Inventory as per AS-2 issued by ICAI.
2) Depreciation
accounting as per AS-6 issued by ICAI.
5.
Unique Ltd. Guwahati opened a branch at Barpeta and invoiced goods at cost plus
20%. From the following particulars, you are required to prepare Memorandum
Branch Trading and Profit and Loss Account, Memorandum Branch Stock Account and
Memorandum Branch Debtors Account in the books of Head Office under ‘Final
Account System’. 5+3+2=10
|
|
Rs.
|
|
Goods sent to Branch
Goods returned by
Branch
Cash sent to Branch
for expenses
Cash Sales
Credit Sales
Expenses at branch
Goods returned by
debtors to Head Office
Goods returned by
debtors to Branch
Cash remitted to
Head Office
Normal loss at
invoice price
Abnormal loss at
invoice price
|
2,88,000
20,400
6,000
93,600
1,92,000
6,000
18,000
36,000
1,80,000
2,400
12,000
|
Or
Discuss
the different methods of maintaining accounts in the books of Head Office in
Branch Accounting. 10
6.
(a) Pinaki stores carries its business from a building valued at Rs. 10,00,000
which is shared equally by Department A and Department B. From the following
information allocate the expenses between Department A and B stating the basis
of such allocation.
|
|
Rs.
|
|
Insurance of stock
Depreciation on
Building
Carriage Inward
Advertisement
Salary
|
8,000
50,000
35,000
27,000
54,000
|
Additional
information:
|
|
Department A (in Rs.)
|
Department B (in Rs.)
|
|
Opening stock
Closing stock
Purchases
Sales
|
3,00,000
2,00,000
23,00,000
30,00,000
|
1,20,000
1,80,000
12,00,000
24,00,000
|
(b)
The following information have been extracted from the books of M/s Good
Furniture Ltd.
|
|
Rs.
|
|
Realisable value of
fixed assets
Realisable value of
current assets
Total outside
liabilities
|
10,23,000
18,00,000
15,00,000
|
The
company earns an average profit of Rs. 2,00,000 for the last five years. It is
considered that a return of 10% on net assets is reasonable in the industry.
Ascertain
the value of goodwill at two years purchase of the annual super profit. 5
7.
Anu, Binu and Chinu are partners sharing profit and losses in the ratio of 2 :
2 : 1. Their Balance Sheet is given below:
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Creditors
Capitals:
Anu
45,000
Binu
36,000
Chinu
12,000
|
45,000
93,000
|
Cash in hand
Debtors
Stock
|
6,000
66,000
66,000
|
|
|
1,38,000
|
|
1,38,000
|
The
firm was dissolved and the assets realised gradually Rs. 30,000 were received
first. Then Rs. 45,000 and Rs. 27,000 finally. Show how each instalment is to
be distributed according to proportionate capital method.
Or
Discuss
briefly different modes of dissolution of partnership firm.
***
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