Advanced Financial Accounting Question Paper 2023 [Dibrugarh University BCOM 5th SEM HONS]

Advanced Financial Accounting Question Paper 2023

5 SEM TDC DSE COM (CBCS) 502 (GR-I)

2023 (November)

COMMERCE (Discipline Specific Elective)

(For Honours and Non-Honours)

Paper: DSE-502 (Group-I)

(Advanced Financial Accounting)

Full Marks: 80

Pass Marks: 32

Time: 3 hours

The figures in the margin indicate full marks for the questions

1. (a) Fill in the blanks:   1x4=4

(1) A banking company cannot grant loan to any of its _______.

(2) _______ is prepared to know surplus or deficiency of life insurance.

(3) General insurance includes all types of insurance, except _______ insurance.

(4) Investments are freely bought and sold in the _______ through banks and brokers.

(b) Write True or False:                                  1x4=4

(1) Rebate on bills discounted for a banking company is an income.

(2) In case of marine insurance, the provision against unexpired risk is 100% on net premium.

(3) Life insurance has an element both of protection and investment.

(4) Ex-interest price is less than the cum-interest price.

2. Write short notes on (any four):                            4x4=16

(a) Rebate on Bills Discounted.

(b) Bonus in Reduction of Premium.

(c) Fire Insurance.

(d) General Insurance.

(e) Balancing of Investment Account.

3. (a) Explain the following items relating to a banking company:  3½ x 4 = 14

(1) Statutory Reserve.

(2) Non-banking Assets.

(3) Statutory Liquidity Ratio.

(4) Current Assets.

Or

(b) From the following particulars, prepare Profit & Loss A/c of Moon Light Bank Ltd. for the year ending on 31^st March, 2023:

Rs. (‘000)

Interest on Loans Interest on Cash Credits Discount on Bills Discounted (Net) Interest on Overdrafts Interest on Savings Bank Deposits Interest on Fixed Deposits Commission, Exchange and Brokerage Rent and Taxes Auditor’s Fees Postage and Internet Expenses Sundry Expenses Interest Charged against Current A/c Advertisement Cost Director’s Fees Printing and Stationery Law Charges Payment to Employees Locker’s Rent Transfer Fees Depreciation on Bank’s Property

518 446 390 108 220 559 16 36 3 2 2 45 2 6 2 2 108 1 2 10

Additional Information:

	Rs. (‘000)
(i) Rebate on Bills Discounted (ii) Provision for Bad Debts (iii) Provision for Taxation	90 50 10

 

4. (a) Explain in brief the following items relating to insurance business: 3½ x 4 = 14

(1) Outstanding premium.

(2) Outstanding claim.

(3) Reversionary bonus.

(4) Endowment Policy.

Or

(b) (1) Distinguish between ‘claim’s by death’ and ‘claims by maturity’ in the life insurance business.                         4

(2) The Life Assurance Fund of an Insurance Company on 31^st March, 2023, showed a balance of Rs. 87,76,500. It was later found that the following were not taken into account:

(a) Dividend from investment Rs. 4,80,000.

(b) Income tax on above Rs. 48,000

(c) Bonus in reduction of premium Rs. 8,77,500 (not taken as expense)

(d) Claims covered under reinsurance Rs. 4,23,000.

(e) Claims intimated but not accepted by the company Rs. 7,62,000.

Ascertain correct balance of fund.                                            10

5. (a) Prepare a Revenue A/c in respect of fire insurance business from the following details for the year ended on 31^st March, 2023:                                     14

(Rs.)

Reserve for unexpired risk on 01-04-2022 @ 50% Additional reserve on 01-04-2022 Estimated liability for claims intimated on: 01-04-2022 31-03-2023 Claims paid Legal expenses Medical Expenses Reinsurance recoveries Bad debts Premium received Premium on reinsurance accepted Premium on reinsurance ceded Commission on direct business Commission on reinsurance accepted Commission on reinsurance ceded Expenses of management Interest, dividend and rent Profit on sale of investments

1,80,000 36,000   31,000 42,000 3,65,000 6,000 4,000 32,000 800 4,86,000 32,000 43,000 48,600 1,600 2,150 90,000 24,000 3,000

Create Reserve on 31^st March, 2023 to the same extent as on 1^st April, 2022.

Or

(b) Explain the following items in the Annual Accounts of a General Insurance Company: 3½ x 4 = 14

(1) Reinsurance recoveries.

(2) Profit on sale of investments.

(3) Interest and dividend outstanding.

(4) Agents’ balance.

6. (a) (1) What is Investment Account? Discuss the special features of an Investment Account.    2+6=8

(2) Distinguish between Cum-interest and Ex-interest.         6

Or

(b) AK Investments held 600, 6% debentures of Rs. 100 each in JK Ltd. on 01-04-2022 at a cost of Rs. 72,000. Interest is payable on 30^th June and 31^st December every year. On 1^st June, 2022, 250 debentures were purchased cum-interest at Rs. 37,750. On 1^st November, 2022, 400 debentures were sold ex-interest at Rs. 46,250.

On 30^th November, 2022, 250 debentures are purchased ex-interest for Rs. 23,250. On 31^st December, 2022, 350 debentures are sold cum-interest at Rs. 42,000.

Prepare Investment A/c for the year ended 31^st March, 2023 valuing closing stock at cost (using FIFO method) or market price whichever is less. Debentures are quoted at Rs. 140 on 31^st March, 2023.     14

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Advanced Financial Accounting Question Papers (Dibrugarh University) 2023

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