|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 to be answered.
|1.||(a)||What are the three major considerations governing the selection and application of Accounting Policies?||2x10||(0)|
|(b)||Fill up the blanks:|
|(i)||Capital Reserve arises in purchase of business when the purchase consideration is _______ than the net assets acquired.||(0)|
|(ii)||Secret Reserve is created by _______ of liabilities.||(0)|
|(c)||(i)||A partly owned subsidiary is one in which the ________ does not hold all shares.||(0)|
|(ii)||The wholly owned subsidiary is one where ________ are owned by the holding company.||(0)|
|(d)||Define a cash and cash equivalents as suggested in accounting standard 3 to be used for preparing a cash flow statement.||(0)|
|(e)||What is meant by sweat equity shares?||(0)|
|(f)||What is the objective of Accounting Standard?||(0)|
|(g)||For what purposes Contingency Reserve may be utilised by an electricity undertaking?||(0)|
|(h)||State the cases where the creation of Debenture Redemption Reserve is not mandatory as per SEBI guidelines.||(0)|
|(i)||State whether each of the following statement is true or false:|
|(i)||Going concern means that business has entered into a process of liquidation.||(0)|
|(ii)||The principle of consistency requires that all business enterprises should follow the same method of accounting.||(0)|
|(j)||When parties are considered ‘Related’ as per A.S. 18?||(0)|
|2.|| A furniture firm maintained books of account on cash basis. Fire occurred on 30th June, 2006 in the premises of the firm destroying portion of stock and records. However the following data are available. |
Transactions of the firm for the period from 1.1.2006 to 30.6.2006 were as follows:
It is agreed with the insurer that the results of the operations for the period from 1.1.2006 to 30.6.2006 should be based on the average of the gross profit ratio of the calendar year 2004 and 2005. Firm’s stock was insured for Rs. 2 lakhs and the policy contains 60% co–insurance clause. Stock salvaged is agreed at Rs. 48,000.
|3.|| Sun Ltd. and Moon Ltd. agreed to amalgamate and form a new company Star Ltd. with an authorised capital of Rs. 5 lakhs divided into 50,000 Equity Shares of Rs. 10 each on 31st March, 2008. The condensed Balance Sheet of respective companies were as follows: |
Revaluation was agreed upon as follows:
Debtors and Creditors include Rs. 50,000 owed by Sun Ltd. to Moon Ltd.
(a) Compute the amount of shares and debentures to be issued to Sun Ltd. and Moon Ltd.
|4.|| The following is the Balance Sheet of the retail business of Sri Lahiri as at 31st December, 2007: |
You are furnished with the following information:
Analysis of the Bank Pass Book for the 13 weeks period ending 31st March, 2008 disclosed the following:
The following are the balances on 31st March, 2008:
On the evening of 31st March, 2008 the Cashier absconded with the available cash in the cash book. There was no cash deposit in the weekend on that date.
You are required to preparea statement showing the amount of cash defalcated by the Cashier and also working notes on
(2) Total Sales
(3) Credit Sales
(4) Cash Sales
for the 13 weeks up to 31.3.2008 and Bank Balance as on that date.
|5.||Y Ltd. Undertook a contract No. 80 for Rs. 7,50,000. The contract account showed the following particulars: |
|6.|| Black, Red and White were partners sharing profits and losses in the ratio of 5 : 3 : 2 respectively. The Trial Balance of the firm as on 31st March, 2008 was the following: |
Interest on capital accounts at 10% p.a. on the amount standing to the credit of partners‘ capital account at the beginning of the year, was not provided before preparing the above Trial Balance. On 1st April, 2008 they formed a Private Limited Company with an authorised share capital of Rs. 2,00,000 in shares of Rs. 10 each to be divided in different classes to take over the business of partnership.
You are required to Prepare:
|7.||A machinery is sold on hire purchase. The terms of payment is four annual installments of Rs. 6,000 at the end of each year commencing from the date of agreement. Interest is charged @ 20% and is included in the annual payment of Rs. 6,000. |
Show machinery account and hire vendor account in the books of the purchaser who defaulted in the payment of the third yearly payment whereupon the vendor repossessed the machinery. The purchaser provides depreciation on the machinery @ 10% per annum on written down value basis.
All workings should form part of your answer.
|8.||Write short notes (any four) of the following:||4x4|
|(a)||Disclosure requirements as per Companies Act, 1956 in case of non–compliance of accounting standards;||(0)|
|(b)||Statutory reserve in case of accounting of banking companies;||(0)|
|(c)||Dessenting shareholders in case of amalgamation, absorption or reconstruction;||(0)|
|(d)||Demand for grant in Government finance;||(0)|
|(e)||Finance accounts of Central Government;||(0)|
|(f)||Methods of Government accounting.||(0)|