Wednesday, February 13, 2019

Gauhati University Question Papers:Financial Accounting - II (May-June’ 2015)


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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