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Wednesday, February 13, 2019

Gauhati University Question Papers:Financial Accounting - II (May-June’ 2017)


Gauhati University Question Papers
Financial Accounting - II (May-June’ 2017)
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 as directed:
a)         State whether the following statements are true or false:                  1x4=4

1)      Accounting Standard AS-2 deals with disclosure of significant accounting policies followed in preparing and presenting financial statements.
2)      International Financing Reporting Standards are prepared by FASB.
3)      Foreign branches are always established in foreign countries.
4)      Accounting Standard AS-10 is not applicable to forest resources.
b)         Fill in the blanks:                                     1x2=2
1)      Accounts for depended branches are maintained by _____.
2)      In departmental accounting, bad debts are apportioned in ratio of _____.
c)          Give the meaning of the following terms:                   1x4=4
1)      Goodwill.
2)      Insolvent partner.
3)      Consolidated financial statements.
4)      Inland branch under Branch Account.
2. Answer the following questions very briefly:                                  2x5=10
a)         Mention two objectives of Branch Accounting.
b)         State two functions of International Accounting Standard Board.
c)          Mention two special features of Departmental Accounting.
d)         Mention any two features of Goodwill.
e)         State two methods of recording departmental transactions in departmental accounts.
3. Answer any four of the following questions:                                  5x4=20
a)         Discuss the process of issuing International Financial Reporting Standards (IFRS).
b)         The following particulars are available in respect of the business carried on by Raghuraman Choudhury.
1)      Capital Invested Rs. 50,000.
2)      Trading results:
Year
Result
Rs.
2013
2014
2015
2016
Profit
Profit
Loss
Profit
12,200
15,000
2,000
21,000
3)      Market rate of return on investment 10%.
4)      Remuneration from alternative employment of the proprietor (if not engaged in business) Rs. 3,600 p.a.
Calculate the value of goodwill of the business on the basis of 3 years’ purchase of super profit taking average of last four years.
c)          Define the term ‘cash-in-transit’ and ‘goods-in-transit’ and write the accounting treatment of ‘cash-in-transit’ and ‘goods-in-transit’ under Debtors system of Branch Accounts.
d)         Briefly explain the modes of dissolution of Partnership Firm.
e)         Pass journal entries for the following transactions at the time of dissolution of a partnership firm:
1)      Partner Ram has taken over furniture having book value Rs. 2,000 at Rs. 1,500.
2)      Partner Hari has agreed to pay a creditor of Rs. 5,000 less 10% discount as final payment.
3)      Expenses of realisation paid by the firm Rs. 5,000.
f)          On 1st April, 2016 ABC Ltd. opened a branch at Shillong. From the following particulars, pass the necessary journal entries for the year ended on 31st March, 2017 in the books of Head Office:
Goods sent to Branch
Cash sent to Branch for expenses
Cash sales
Stock on 31.03.2017
Rs. 70,000
Rs. 12,000
Rs. 96,000
Rs. 40,000

4. Answer the following questions:
1)      State the disclosures to be made as per AS-3.                                             10
Or
Explain how revenue is recognised as per AS-9                                  10
2)      Explain the methods of converting the figures of Trial Balance of a foreign branch into the home currency.        10
Or
X Ltd. of Guwahati has a branch at Kolkata. Goods are invoiced to the branch at cost plus .                      10
The branch remits all cash received to the head office and all expenses are paid by the head office. From the following particulars, prepare:
a)      Branch Stock Account.
b)      Branch debtors Account.
c)       Branch Adjustment Account.
d)      Branch Expenses Account.
e)      Branch Profit and Loss Account.

Rs.
Branch debtors on 01.04.2016
Branch stock on 01.04.2016
Cash sales
Credit sales
Goods from head office at invoice price
Cash received from debtors
Discount allowed to debtors
Bad debts
Branch expenses paid by head office
Branch stock on 31.03.2017
6,000
2,400
3,000
60,000
72,000
57,600
1,400
300
10,000
11,400

3)      Explain the Super Profit method of a valuation of goodwill long with suitable illustrations.     10
Or
From the following Trial Balance extracted from the books of M/S Ravina Stores, prepare the departmental Trading and Profit & Loss A/c for the year ended 31st March, 2017:                                            5+5=10
Trial Balance as at 31.03.2017
Particulars
Dr. (Rs.)
Cr. (Rs.)
Opening stock
Radio department
Television department
Purchases and sales:
Radio department
Television department
Carriage inward:
Radio department
Television department
Machinery:
Ratio department
Television department
Salaries
Rent
Repairs to machinery
Debtors and Creditors
Capital
Cash in hand
Bills receivable and Bills payable
Buildings

10,000
8,000

18,000
15,000

400
200

2,000
1,600
6,000
1,200
3,000
4,500
-
1,200
1,900
8,000




30,000
28,000









6,000
16,000

1,000

Total
81,000
81,000

Additional information:
a)         Closing stock on 31.3.2017:
          Ratio department Rs. 14,000
          Television department Rs. 12,000
b)         Salaries to be allocated in the ratio of 7 : 3 and repairs to machinery in the ratio of 2 : 3.
c)          Area of building is occupied in the ratio of 3 : 2.
d)         Depreciate building at 5% p.a. and machinery at 10% p.a.

4)         State the accounting entries for closing of books of accounts of a firm on sale to or conversion into a company.  10
Or
Alok and Pulak are partners in a firm sharing profits and losses in the ratio of 3 : 2. They decided to dissolve their firm on 31st March, 2017 when their Balance Sheet of their firm was as follows:
Balance Sheet as at 31-03-2017
Liabilities
Amount
Assets
Amount
Capital accounts:
Alok
Pulak
Creditors
Profit and Loss A/c

17,500
10,000
2,000
4,500
Freehold Property
Investment
Debtors
Stock
Bank
Cash
16,000
4,000
2,000
3,000
2,000
7,000

34,000

34,000
The partners decided to dissolve the firm on the above date. Alok took over the investment at an agreed value of         Rs. 3,800. Other assets were realised as follows:

Rs.
Freehold property
Debtors
Stock
18,000
80%
2,800
Creditors of the firm agree to accept 5% less.  Expenses on realization of assets amounted to Rs. 400.
There was a typewriter in the firm which was bought out of the firm’s money and the same was not shown in the above Balance Sheet. The typewriter is now sold for Rs. 1,000. Close the books of accounts of the firm by preparing a Realization Account, Partner’s Capital Accounts and Bank Account.                                                 4+2+4=10

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