Wednesday, February 13, 2019

Gauhati University Question Papers:Financial Accounting - II (May-June’ 2013)


Gauhati University Question Papers
Financial Accounting - II (May-June’ 2013)
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)                  Under Stock and Debtor System Branch Stock account is treated as _____ account. (Fill in the blanks properly)
b)                  There are _____ types of methods of recording departmental transactions. Fill in the blank selecting correct answer from the following:
1)      2
2)      3
3)      4
4)      5
c)       To which account non-departmental expenses are charged under Departmental Account System?
d)      Write meaning of Inter-departmental transfer.
e)      Write the meaning of Dissolution of Partnership Firm.
f)       A partnership firm is sold to a company and the later has acquired only a few assets of the firm. You are required to show the Journal Entry to be passed by the firm for the assets acquired by the company.
g)      Where all partner become insolvent, what will be the treatment of ‘unpaid balance’ in Creditors Account?
h)      What is the meaning of ‘Exposure Draft’ in the context of setting accounting standards?
i)        State when AS-21 is mandatory for a company?
j)        According to AS-3, Interest received by a Bank is cash flow from _____ activity. (Fill in the blank correctly)
2. Answer the following:                                               2x5=10
a)      Write two objectives of International According Standards Committee Foundation.
b)      Mention any two objectives of Branch Accounting.
c)       One of the methods of Branch Accounting is Debtors System. Why is it so called?
d)      What basis shall be followed for the apportionment of the following common expenses among Departments?
1)      Rent.
2)      Canteen Expenses.
e)      Mention two advantages of Departmental Accounting.
3. (a) State the functions and responsibilities of International Accounting Standard Board.                            5
Or
Write a critical note on the enforcement of accounting standards in India.
(b) Give Journal entries for the following transactions in the books of Gauhati Head Office:
1)      Goods sent by Raha branch to Tezu branch for Rs. 3,000 are yet to be recorded.
2)      Tezu branch paid Rs. 7,000 for machine purchased by the head office.
3)      Goods valued at Rs. 2,000 were returned by Raha branch.
4)      Raha branch paid Rs. 1,000 to a local supplier on behalf of the head office.
Head office closes its books on 31st December each year.                                                        5
Or
(b) From the following particulars prepare Branch Account in the books of Head Office.
1)      Head Office: Delhi.
2)      Branch Office: Guwahati.
3)      Branch Opening Data: 01.01.2012
4)      Goods Sent to Branch: Rs. 50,000
5)      Cash sent to Branch for expenses: Rs. 5,000
6)      Sales (Cash): Rs. 80,000
7)      Stock on 31.12.2012: Rs. 20,000
8)      Petty cash at branch on 31.12.2012 Rs. 200
(c) Explain various methods of valuation of Goodwill.                                      5
Or
Compute the value of Goodwill, from the following information and on the basis of two years purchase of super profits calculated on the average profit of last three years.                         5
Information:
1)      Average Profits (after tax) for the last three years Rs. 3,30,000 which includes Rs. 30,000 loss on sales of a plot of land.
2)      The company declares 50 per cent dividend on the shares of Rs. 10 each fully paid.
3)      Market value of each share is Rs. 50.
4)      Average capital employed is Rs. 20,00,000.
(d) From the following information you are required to find out the number of shares along with the value of shares each partner will get as part of sale price from GB Ltd.                                               5
1)      Partners: G and B.
2)      Profit sharing Ratio: Equal.
3)      Total Purchase Consideration: Rs. 8,00,000
4)      Cash Payment: Rs. 4,80,000
5)      Payment through issue of shares: Rs. 3,20,000
6)      Value of each share: Rs. 10
7)      Capital Balances on the date of Sale:
        G: Rs. 3,50,000 (cr.)
        B: Rs. 2,50,000 (cr.)
8)      Profit on Realisation: Rs. 2,00,000
Profit on Realisation was not adjusted to the Capital balances on the date of sale.
4. Write a critical note of any one of the following in about 600 words:                                    10
1)      Valuation of Inventory as per AS-2 issued by ICAI.
2)      Depreciation accounting as per AS-6 issued by ICAI.
5. Unique Ltd. Guwahati opened a branch at Barpeta and invoiced goods at cost plus 20%. From the following particulars, you are required to prepare Memorandum Branch Trading and Profit and Loss Account, Memorandum Branch Stock Account and Memorandum Branch Debtors Account in the books of Head Office under ‘Final Account System’.                                                5+3+2=10

Rs.
Goods sent to Branch
Goods returned by Branch
Cash sent to Branch for expenses
Cash Sales
Credit Sales
Expenses at branch
Goods returned by debtors to Head Office
Goods returned by debtors to Branch
Cash remitted to Head Office
Normal loss at invoice price
Abnormal loss at invoice price
2,88,000
20,400
6,000
93,600
1,92,000
6,000
18,000
36,000
1,80,000
2,400
12,000

Or
Discuss the different methods of maintaining accounts in the books of Head Office in Branch Accounting.             10
6. (a) Pinaki stores carries its business from a building valued at Rs. 10,00,000 which is shared equally by Department A and Department B. From the following information allocate the expenses between Department A and B stating the basis of such allocation.

Rs.
Insurance of stock
Depreciation on Building
Carriage Inward
Advertisement
Salary
8,000
50,000
35,000
27,000
54,000
Additional information:

Department A (in Rs.)
Department B (in Rs.)
Opening stock
Closing stock
Purchases
Sales
3,00,000
2,00,000
23,00,000
30,00,000
1,20,000
1,80,000
12,00,000
24,00,000

(b) The following information have been extracted from the books of M/s Good Furniture Ltd.

Rs.
Realisable value of fixed assets
Realisable value of current assets
Total outside liabilities
10,23,000
18,00,000
15,00,000
The company earns an average profit of Rs. 2,00,000 for the last five years. It is considered that a return of 10% on net assets is reasonable in the industry.
Ascertain the value of goodwill at two years purchase of the annual super profit.                              5
7. Anu, Binu and Chinu are partners sharing profit and losses in the ratio of 2 : 2 : 1. Their Balance Sheet is given below:
Liabilities
Amount
Assets
Amount
Creditors
Capitals:
Anu                      45,000
Binu                     36,000
Chinu                  12,000
45,000



93,000
Cash in hand
Debtors
Stock
6,000
66,000
66,000

1,38,000

1,38,000
The firm was dissolved and the assets realised gradually Rs. 30,000 were received first. Then Rs. 45,000 and Rs. 27,000 finally. Show how each instalment is to be distributed according to proportionate capital method.
Or
Discuss briefly different modes of dissolution of partnership firm.

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