|Time Allowed : 3 Hours||Full Marks : 100|
|The figures in the margin on the right side indicate full marks|
|Answer Question No. 1 which is compulsory and any five from the rest|
|Total six questions are to be answered.|
|1.||(a)||Accounting involves communication. Comment.||2x10||(0)|
|(b)||Define accounting regulations. State in this context the present framework of corporate accounting in India.||(0)|
|(c)||Define cash and cash equivalent as suggested in accounting standard 3 to be used for preparing a cash–flow statement||(0)|
|(d)||Distinguish between prior period items and accounting estimates.||(0)|
|(e)||Accounting to sec. 79 of the Companies Act, 1956, what are the two provisions when companies cannot issue share at a discount.||(0)|
|(f)||What is meant by sweat equity share?||(0)|
|(g)||State the disclosure requirement in a case where the Profit and Loss Account and Balance Sheet of a company do not comply with the accounting standard.||(0)|
|(h)||When can revenue be recognized in the case of a transaction of sale of goods?||(0)|
|(i)||Can a company changes the method of providing depreciation?||(0)|
|(j)||What is the function of suspense account in Government Accounting?||(0)|
|2.|| Barun Limited operates a number of retail outlets to which goods are invoiced at wholesale price which is cost plus 25%. The outlets sell the goods at the retail price which is wholesale price plus 20%. Following is the information regarding one of the outlets for the year ended 31.3.06. |
You are required to prepare the following accounts in the books of Barun Limited for the year ended 31.03.06:
|3.|| The following were the Balance Sheets of Bimal Ltd. And Robin Ltd. As at 31st March, 2006: |
All the bills receivable held by Robin Ltd. Were Bimal Ltd.‘s acceptances.
You are required to:
|4.||From the following information prepare (i) Debtor’s Ledger Adjustment Account and (ii) General Ledger Adjustment Accounting under self balancing system: |
Opening Balance of Sundry Debtors as per list’ Rs. 20,000 (Dr.), Rs. 1,000 (Cr.)
Cash and Cheques Receipts ’ Rs. 80,000 per special column in Cash Book
Credit Sales Rs. 1,00,000 ’ per Sales Day Book
Discount Allowed Rs. 3,000 ’ per Cash Book
Returns Inwards Rs. 2,000 ’ per Return Book
Bad Debt Rs. 1,500 ’ per Journal
Bills Receivable Received Rs. 10,000 ’ per Bills Receivable Book
Bills Receivable Discounted Rs. 4,000
Provision for bad debt Rs. 1,000
Bad Debt Dividend Rs. 500
Closing Credit Balance in Sundry Debtors ’ Rs. 3,000
Rs. 500 is to be transferred from Debtor’s Ledger to Creditor’s Ledger, similarly, Rs. 600 is to be transferred from Creditor’s Ledger to Debtor’s Ledger.
|5.|| Tile Company leased land in 2002 at a royalty of 10 paise per ton on all the clay raised. Dead rent was Rs. 10,000. Short working was to be recouped during the first 4 years. The clay raised in the first 4 years was as follows: |
There was a provision for proportionate reduction in dead rent in case of stoppage of work by strike, lock-out, accident etc.
|6.||Y Ltd. Undertook a contract No. 80 for Rs. 7,50,000. The contract account showed the following particulars: |
Materials Rs. 30,000, Wages Rs. 25,000, Overheads Rs. 10,000, Plant Rs. 1,00,000 and Materials at the site at close Rs. 3,000.
Materials Rs. 1,00,000, Wages Rs. 60,000, Overheads Rs. 15,000, Materials Returned Rs. 8,000. The Plant at its depreciated value was transferred to contract No. 88. Uncertified work Rs. 15,000.
Materials Rs. 1,60,000; Wages Rs. 1,00,000, Overheads Rs. 28,000 and Materials sold Rs. 4,000.
The amount of work certified at the end of the first year was Rs. 1,00,000. The work certified up to the end of the second year was Rs. 4,00,000 and the work certified in the third year was Rs. 3,50,000. 80 per cent of the certified work was received in cash.
Profit to be taken credit for are one-third and one-half on cash basis in each of the two years respectively. Depreciate plant by 10 per cent on balance at the beginning of each year.
Prepare accounts in respect of the contract at the end of each year.
|7.|| From the following particulars finished by OPTEX Ltd., prepare the Balance Sheet as at 31st March, 2006 as required by Part I, Schedule VI of the Companies Act. Give notes at the foot of the Balance Sheet as may be found necessary. |
The following additional information is also provided:
|8.||Write short notes on the following:||4x4|
|(b)||Difference between Government and commercial functions;||(0)|
|(c)||Principles of Government Accounting;||(0)|
|(d)||Demand for grant.||(0)|