BACHELOR'S DEGREE PROGRAMME
Term-End Examination June’ 2015
ELECTIVE COURSE: COMMERCE ECO-14: ACCOUNTANCY-II
Time: 2 hours Maximum Marks: 50
Note: Attempt any four questions including question no. 1 which is
compulsory.
You
have to attempt total four questions out of total seven questions in which 1st
question is theoretical and compulsory. From rest 6 questions you have to
attempt only 3 question in which you can select cash flow and funds flow theory
section, ratio analysis practical section and partnership practical section
from which 2 questions are certain. For the last one, you can select issue of
shares and debentures section.
Chapter wise selected questions:
Theory Section
Departmental accounts: MUST
STUDY
1. What is departmental
accounting? Mention its uses. Explain the basis of allocation of various
expenses amongst various departments.
2. How Inter-departmental
transfer is treated in departmental accounts? Explain the treatment of
unrealized profit in departmental account.
3. Distinguish between
departmental and branch accounting.
Branch account: MUST
STUDY
1. What is Branch accounting?
What are its objectives? Distinguish between department and branch accounting.
2. Explain three methods of
preparation of accounts of dependent branch.
3. Explain the treatment of fixed
assets and depreciation when accounts are maintained by head office.
4. How branch accounts are
incorporated in head office books?
Cash flow and funds flow: MUST
STUDY
1. What is cash flow? What are
its uses?
2. What is funds flow (Statement
of changes in working capital)? Distinguish between cash flow and funds flow.
3. What are various sources and
applications of funds?
Partnership Accounts:
1. What is goodwill? Mention
various factors affecting goodwill. Explain three methods for valuation of
goodwill.
2. Explain the treatment of
goodwill at the time of admission of a partner. VVI
3. What is Joint life policy?
Explain two methods of treatment of joint life policy in partnership accounts.
4. What is dissolution of firms?
Distinguish between dissolution of partnership and dissolution of firms. What
are the various ground on which a firm can be dissolved.
5. What is fixed capital and
fluctuating capital? Distinguish between them. Give a Proforma of such
capitals. VVI
6. State the legal provisions for
settlement of accounts of a partnership firm after dissolution.
7. Explain the rights and duties
of partners in case of dissolution of firms.
Issue of Shares and Debentures: Preferred
chapter
1. Explain the various provisions
relating to issue of shares at a discount and issue of shares at a premium. VVI
2. What are financial statements?
What are its features and limitations? VVI
3. Explain the sinking fund
method of redemption of debentures.
4. Explain the treatment of issue
of debentures as a collateral security.
5. What are various methods for
redemption of debentures?
6. Explain the procedure and
accounting treatment of forfeiture of shares.
7. Pass the necessary journal
entries for issue and redemption of debentures at a premium, discount and at
par.
Hire Purchase and installment purchase system:
1. What is hire purchase system?
Distinguish between hire purchase and installment purchase system.
2. Define hire purchase agreement
and state the legal position of a hire vendor in case of default in payment by
the hire purchaser.
3. Explain HP Trading system and
Stock and debtors system of preparation of accounts in case of hire purchase.
Practical section:
Cash flow, funds flow and Ratio analysis:
1. Learn how to calculate:
Current Ratio, Liquid ratio, Net Profit ratio, gross profit ratio, debt equity
ratio, proprietary ratio. (Follow my solved question papers)
2. Learn how to calculate funds
from operations
Partnership accounts: (One practical is almost sure from this section)
– Must Study – Follow my solved question papers
1. Preparation of balance sheet
in case of admission of a partner
2. Preparation of balance in case
of retirement of a partner
3. Dissolution of partnership
firms accounts.
Hire purchase account: (Most difficult practical section avoid)
1. Calculation of cash price and
preparation of accounts
2. Preparation of Vendee account
and machinery account in case of repossession of assets.
3. Preparation of HP Trading
Account
4. Preparation of various
accounts under stock and debtors system of hire purchase account
Branch account: (Simple section, follow my solved question papers and
your study material – one question expected)
1. Preparation of Branch account
2. Preparation of various
accounts under stock and debtors system
Issue of shares and debentures: (One question is almost sure, follow my
solved question papers and your study material – one question expected)
1. Journal entries for issue of
shares together with forfeiture of shares
2. Issue of debentures with
redemption option
3. Issue of shares and debentures
for consideration other than cash