Advanced Financial Accounting Question Paper 2021, Dibrugarh University B.Com 5th Sem CBCS Pattern

 Dibrugarh University B. Com 5th Sem Question Papers CBCS Pattern
5th SEM TDC DSE COM (CBCS) 502 GR-I
Advanced Financial Accounting Question Paper 2021
(Held in January/February, 2022)
Paper: DSE-502 (Group-I) (Accounting and Finance)

Full Marks: 80

Pass Marks: 32

Time: 3 hours.

The figures in the margin indicate full marks for the questions.

1. (a) Write ‘True’ or ‘False’:                                        1x4=4

(1)       Banking companies are governed by the Banking Regulation Act, 1989.

(2)       Life insurance business is carried on by Life Insurance Corporation of India since 1956.

(3)       General insurance includes all types of insurances.

(4)       Investments may be fixed or current asset.

(b) Fill in the blanks:        1x4=4

(1)       A banking company cannot grant loan to any of its _______.

(2)       _______ is prepared to know surplus or deficiency of life insurance.

(3)       In case of marine insurance, the provision against unexpired risk is _______.

(4)       Investments are freely bought and sold in the _______ through banks and brokers.

2. Write short notes on (any four):            4x4=16

(a)       Rebate on Bills Discounted.

(b)       Surrender Value.

(c)        Fire Insurance.

(d)       Valuation Balance Sheet.

(e)       Columnar Investment Account.

3. (a) Discuss the following items relating to a banking company:  3½ x 4=14

(1)       Cash Credit and Overdraft.

(2)       Non-performing Assets.

(3)       Statutory Reserve.

(4)       Liability for Bills Discounted.

Or

(b) From the following information, prepare Profit & Loss A/c of North East Bank Ltd. for the year ended on 31st March, 2021:     14

 

Rs. (‘000)

Interest on Loans

Interest on Fixed Deposits

Commission

Payment to Employees

Discount on Bills Discounted

Interest on Cash Credit

Rent, Taxes and Lighting

Interest on Overdraft

Directors’ fees

Auditors’ fees

Interest on Savings Bank Deposits

Postage and Telephone Expenses

Printing and Stationery

Sundry Expenses

5,180

6,340

164

1,080

2,120

4,460

360

3,080

60

24

1,360

28

58

34

Additional information:

 

Rs. (‘000)

(1) Provide for contingencies

(2) Transfer to reserve

(3) Transfer to Central Government

400

300

400

4. (a) What is ‘life insurance’? What are the statutory and subsidiary books maintained by a Life Insurance Company? 2+6+6=14

Or

(b) The following information has been supplied relating to Jai Bharat Life Insurance Company for the year ending on 31st March, 2021:

 

Rs.

Life Assurance Fund

Insurance Premium

Interest, Dividend and Rent Received

Fines and Fees

Bonus in cash

Income Tax

Management Expenses

Bonus in Reduction of Premium

Commission

Surrender Value

Surplus on Revaluation of Reversion Purchased

Reassurance Balance Irrecoverable

Claims

Consideration for Annuities Granted

24,50,000

13,80,000

7,50,000

720

1,58,400

1,18,500

1,75,000

1,976

54,000

85,200

4,800

1,250

8,90,000

45,000

According to actuarial valuation, the net liability on the policies of the company including the annuity transactions amounted to Rs. 22,50,000. The surplus is to be allocated as 25% to shareholders, 70% to policyholders and the balance to be carried forward to the next period. The company also paid interim bonus amounting to Rs. 1,03,806. Prepare the Revenue a/c on the basis of the above information and also show the Valuation Balance Sheet.    10+4=14

5. (a) From the following particulars, you are required to prepare the Fire Revenue A/c of the North Bank Fire Insurance Company Ltd. for the year ending on 31st March, 2021:                   14

 

Rs.

Claims Paid

Claims Outstanding on 01-04-2020

Claims Intimated and Accepted but not Paid

Premium Received

Reinsurance Premium

Commission on Direct Business

Claims Intimated but not Accepted on 31-03-2021

Commission:

Reinsurance Ceded

Reinsurance Accepted

Expenses of Management

Reserve for Unexpired Risk on 01-04-2020

Additional Reserve for Unexpired Risk on 01-04-2020

Bonus in Reduction of Premium

4,20,000

42,000

65,000

10,60,000

1,80,000

2,20,000

8,000

 

12,000

6,000

2,80,000

3,90,000

40,000

15,000

You are asked by the management to provide for additional reserve for unexpired risk at 1% of the net premium in addition to the opening balance.

Or

(b) What is ‘general insurance’? How does it differ from life insurance? Explain ‘reserve for unexpired risk’ in case of general insurance.           3+5+6=14

6. (a) Write notes on the following:                          5+5+4=14

(1)  Cum-interest purchase and ex-interest purchase.

(2)  Cum-interest sale and ex-interest sale.

(3)  Features of Investment Account.

Or

(b) Assam Investment Ltd. holds 1,000, 15% Debentures of Rs. 100 each in Brahmaputra Industries Ltd. as on 1st April, 2020 at a cost of Rs. 1,05,000. Interest is payable on 30th June and 31st December every year. On 1st May, 2020, 500 Debentures are purchased cum-interest at Rs. 53,500. On 1st November, 2020, 600 Debentures are sold ex-interest at  Rs. 57,300. On 30th November, 2020, 400 Debentures are purchased ex-interest at Rs. 38,400. On 31st December, 2020, 400 Debentures are sold cum-interest for Rs. 55,000. Prepare Investment A/c valuing holdings on 31st March, 2021 at cost.      14

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