Gauhati University Question Papers
Financial Accounting - II (May-June’ 2015)
Full Marks: 80
Time Allowed: 3 hours
Answer either in
English or Assamese
The figures in the
margin indicate full marks for the questions
1.
Answer the following questions: 1x10=10
a) Choose
the correct alternatives:
AS-6 relates to:
1) Accounting
for Amalgamation.
2) Revenue
Recognition.
3) Depreciation
Accounting.
4) Accounting
for Fixed assets.
b) From
the following options, select the Accounting Standard which is applicable to
consolidated financial statements:
1) AS-9
2) AS-10
3) AS-14
4) AS-21
c) AS-10
is applicable to all fixed assets including wasting assets like minerals, oils
and natural gas. (State whether the statement is true or false)
d) The
difference between goods sent to branch and goods received by branch represents
_____. (Fill in the blank)
e) Choose
the correct alternatives:
Under Stock and Debtors System, gross profit or gross loss at branch is
ascertained by opening:
1) Branch
Account.
2) Branch
Cash Account.
3) Branch
Adjustment Account.
4) None
of the above.
f) What
is the meaning of Inland Branch under Branch Account?
g) Goodwill
is an advantage of keeping the permanent customers of the business only. (State
whether this statement is true or false)
h) Choose
the correct alternatives:
Super Profit is the:
1) Excess
of normal profit over actual profit.
2) Excess
of previous year’s profit over current year’s profit.
3) Excess
of actual profit over normal profit.
4) Excess
of current year’s profit over previous year’s profit.
i)
Goodwill can be disposed of separately apart
from the business as a whole. (State whether this statement is true or false)
j)
When a firm is dissolved, _____ Account is
prepared to ascertain profit or loss on realisation. (Fill up the blank)
2.
Answer the following questions in brief: 2x5=10
a) Write
a short note on “Exposure Draft” in the context of setting IFRS. 2
b) Mention
any two objectives of Branch Accounting. 2
c) What
is purchased Goodwill? 2
d) Mention
any two objectives of preparing departmental accounts. 2
e) What
basis shall be followed for the apportionment of the following common expenses
among departments?
1) Discount
allowed.
2) Medical
benefits.
3.
Answer any four of the following questions: 5x4=20
a) Write
a critical note on the enforcement of accounting standards in India.
Or
Briefly explain the process of issuing International
Financial Reporting Standards.
b) Explain
the method of converting the figures of a foreign branch Trial balance into the
home currency.
c) The
net profit of a company, after providing for taxation, for the past five years
are Rs. 42,000, Rs. 47,000, Rs. 39,000 and Rs. 47,000. The capital employed in
the business is Rs. 4,00,000 on which a reasonable rate of return of 10% is
expected.
Calculate the goodwill under –
1) Capitalisation
of average profit method and
2) Capitalisation
of super profit method.
d) Explain
in brief the various modes of dissolution of a partnership firm.
e) Briefly
explain the reasons for disagreement between the balance of the Branch Account
in Head Office books and the balance of Head Office Account in Branch books.
4.
Answer any four of the following questions: 10x4=40
a) Elaborately
explain the AS-3 (cash flow) prescribed by the ICAI.
Or
Describe the different methods of valuation of goodwill.
b) From
the following particulars relating to Dibrugarh Branch for the year ending
December 31, 2014, prepare Dibrugarh Branch Account in the books of Head
Office:
Rs.
|
|
Stock on 1st
January, 2014
Debtors on 1st
January, 2014
Petty cash on 1st
January, 2014
Goods sent to Branch
during the year
Goods returned to
Head Office
Sales to branch:
Cash
Credit
Sales return to
branch
Bad debts written
off
Branch expenses paid
by Head Office
Petty cash sent to
the branch
Furniture purchased
by branch
Stock on 31st
December, 2014
Cash received from
customers
Petty expenses
incurred by branch
|
30,000
12,000
200
50,000
600
30,000
42,000
300
350
3,000
500
1,000
12,500
35,000
400
|
c) From
the following balances, extracted from the books of a Departmental Store,
having two departments prepare Departmental Trading and Profit and Loss Account
for the year ended 31st March, 2015:
Department A (in Rs.)
|
Department B (in Rs.)
|
|
Stock on 01.04.2014
Purchases
Sales
Wages
Purchase Returns
Sales Returns
|
3,400
7,280
12,560
1,740
280
560
|
2,900
6,300
9,620
440
300
620
|
Other expenses and
incomes:
|
Rs.
|
Salaries
Advertisement
Carriage Inwards
Rent and taxes
Electric charges
Discount allowed to
Debtors
Discount received
from Creditors
Sundry Expenses
|
600
736
468
1,878
627
441
1,968
720
|
The
following further information is given:
1) Stock
on 31st March, 2015:
Department A = Rs. 3,348
Department B = Rs. 2,410
2) The
following items are to be apportioned between Department A and Department B in
the ratio of 2 : 1.
3) Rent
and Taxes, Sundry Expenses, Electric charges, Salaries and Carriage inward.
4) Advertisement
is to be apportioned equally.
d) Sachin,
Rahul and Kumbli sharing profits in the proportion of 3 : 2 : 1 agreed upon
dissolution of their partnership on 31st March, 2015 on which date
on which date, their Balance Sheet was as follows:
Balance Sheet
Liabilities
|
Amount
|
Assets
|
Amount
|
Creditors
Mrs. Sachin Loan
Joint Life Policy
Fund
Capital accounts:
Sachin
Rahul
|
18,000
5,000
2,000
40,000
20,000
|
Inventory
Investments
Joint Life Policy
Debtors
Kumbli Capital
Cash
|
50,000
9,000
3,000
20,000
2,000
1,000
|
85,000
|
85,000
|
Sachin
agreed to pay his wife’s loan. Rahul took over investment at Rs. 8,000. All
other assets were realised at
Rs. 1,00,000. Realisation expenses amounted to Rs. 1,000. Prepare the
necessary ledger accounts for closing the books of the firm.
e) The
following is the Balance Sheet of Barun and Tarun who share profits equally:
Balance Sheet
Liabilities
|
Amount
|
Assets
|
Amount
|
Creditors
Tarun Loan
Capital accounts:
Barun
Tarun
|
27,000
10,000
50,000
40,000
|
Goodwill
Land & Building
Furniture
Stock
Debtors
|
5,000
45,000
20,000
30,000
27,000
|
1,27,000
|
1,27,000
|
Brahmaputra
Industrial Ltd. acquired all the assets except goodwill and all liabilities
except Tarun loan at the following agreed values:
Rs.
|
|
Land & Building
Furniture
Stock
Debtors
|
55,000
16,000
28,000
25,000
|
Creditors
at Book Value
Purchase
consideration was discharged as follows:
Rs.
10,000, 6% Debentures to pay off Tarun loan
6,000
equity shares of Rs. 10 each and the balance in cash
Expenses
of realisation amounted to Rs. 2,000.
Give
the journal entries in the books of the firm.
***
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