|Time Allowed : 3 Hours||Full Marks : 100|
|Attempt Question No. 1 which is compulsory and any five from the rest.|
|1.||(a)||A going concern is one, which has not contemplated going into liquidation even in the remotest future all the time of preparing its latest financial statements. True or False.||2x10||(1)|
|(b)|| Link–up the items with appropriate Accounting system. |
|(c)||State two reasons for which a Trial Balance does not agree.||(1)|
|(d)||State how Profits prior to Incorporation is treated in Accounts.||(1)|
|(e)||Two types of errors do not affect the agreement of a Trial Balance. — Mention names clearly.||(1)|
|(f)||Name four concepts on which Financial Accounting is founded.||(0)|
|(g)|| How are the following Items treated while preparing the Income & Expenditure a/c and Balance Sheet? |
|(h)||How Loss due to Short Sales is calculated in connection with Loss of Profits policy?||(1)|
|(i)||In respect of a Dependent Branch, a Head Office may follow any of the four methods of Accounting. Name these clearly.||(1)|
|(j)||Mention any two purposes for which Share Premium Account can be utilised.||(1)|
|2.|| The following are the summarised Balance Sheets of H. Ltd and S. Ltd as at 31st December, 2001. |
H Ltd. acquired 80% of the Shares in S. Ltd. On 1st July 2001 included in the Assets of H. Ltd., there is Rs. 30,000 Loan to S Ltd. Shown as creditors in S. Ltd. Sundry Assets of S Ltd. include furniture & fittings of Rs. 40,000 to be revalued at Rs. 50,000 being over depreciated as at 31st July, 2001. Prepare Consolidated Balance Sheet of H Ltd. as at 31st December, 2001.
|3.|| PBX Co. Ltd. have three ledgers — Debtor’s Ledger, Creditor’s Ledger and General Ledger which are kept under Seft–balancing system. |
From the following particulars, prepare the relevant Adjustment Accounts that would appear in each of the Ledger:
|4.|| From the following information, prepare: |
The Branch books show the Head Office Account at Rs. 9,000 (Cr.) and the Head Office books show the Branch Account at Rs. 24,000 (Dr.). The Branch receives all its supplies from the Head Office, which are Invoiced at 25% over cost; During the year, the Head Office sent Invoices to the Branch to the tune of Rs. 1,04,500. The Head Office credits Its Sales Account with the Invoice price of the goods sent to the Branch.
The Head Office billed the Branch for Rs. 12,000 on 31st December 2001 representing the Branch's share of the expenses Incurred by the Head Office. The said expenses had not been recorded in the books of the Branch.
The expenses of the Branch are met by the Head Office from time to time for which amounts are sent in advance to the Branch. A sum of Rs. 3,000 sent to the Branch by the Head Office on 29th December, 2001 in this connection, was received by the Branch on 3rd January, 2002.
|5.|| The business of Rundown Ltd. was being carried on continuously at losses. The following are the extracts from the Balance Sheet of the company as on 31st March 2002: |
Note: Dividends on Cum. Pref. Shares are in arrears for three years.
|6.|| On 1st January 200, RAMAN Ltd. wants to implement its programme of expansion but finds that there is a short of funds. On 1st January, 2001, it had a balance in Bank – Rs. 1,80,000. |
From the following information, prepare a statement for Board of Directors to show how the overdraft of Rs. 68,750 as at 31st December, 2001, has arisen.
The profit for the year ended 31st December 2001 before charging depreciation and taxation amounted to Rs. 2,40,000.
Rs. 1,37,500 were paid in March 2001 by way of Income Tax.
Dividends were paid as follows:
For 2000 (Final) on the capital on 31.12.2000 at 10% less tax at 25%.
|7.|| The Trading Account of M/s Abraham & Co. for the year ending 31st March, 2001 is given below. |
A fire occurred in their godown which was situated behind their office premises, on 31st December, 2001. A considerable part of the stock of ready-made garments was destroyed by fire. The salvaged stock realised for Rs. 2,255. The stocks and the premises were fully insured against fire risks.
Considering the following further particulars, prepare a statement showing the amount of claim to be lodged by M/s Abraham & Co. with the Great India Insurance Company Ltd. for the loss of stock only.
Sales for the period ending 31st December, 2001 were Rs. 1,09,200. The amount paid for the purchases was Rs. 88,016 including a cheque for Rs. 562 which was not presented to the bankers up to 31.12.2001.
As shown by the books of account. Trade creditors on 31.3.2001 amounted to Rs. 24,608 and on 31st December, 2001 were Rs. 22,112. Goods worth Rs. 6,390 were returned to creditors during the period ending 31st December, 2001. Working shall be treated as part of your answer.
|8.||(a)||Write Short notes on:-||4x2=8|