Advanced Financial Accounting Question Paper 2022 [Dibrugarh University BCOM 5th SEM HONS]

Advanced Financial Accounting Question Paper 2022

Dibrugarh University BCOM 5th SEM HONS

 5 SEM TDC DSE COM (CBCS) 502 GR-I - 2022 (Nov / Dec)

COMMERCE (Discipline Specific Elective)

(For Honours and Non-Honours)

Paper: DSE-502 (Group-I)

(Advanced Financial Accounting)

Full Marks: 80

Pass Marks: 32

Time: 3 hours

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

1. (a) Fill in the blanks:                   1 x 4 = 4

(1) Schedule-1 of banking companies deals with _______.

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

(3) In case of fire insurance, the provision for unexpired risk is maintained at _______% of net premium.

(4) Period of holding is a type of _______.

(b) Write True or False:             1 x 4 = 4

(1) Substandard, doubtful and loss assets are types of non-performing assets.

(2) Life insurance contracts are contracts of indemnity.

(3) General insurance policies are normally issued for long terms.

(4) Cum-dividend price is not the real price of investment.

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

(a) Slip system of posting in bank.

(b) Insurance regulatory and development authority.

(c) Double insurance and reinsurance.

(d) Reserve for unexpired risks.

(e) Cum-dividend and ex-dividend.

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

(1) Rebate on Bills Discounted.

(2) Cash Reserve Ratio.

(3) Pay-in-slip.

(4) Standard Assets.

Or

(b) From the following information, prepare Profit & Loss A/c of Bharat Bank Ltd. for the year ended on 31st March, 2022:

 

Rs. (‘000)

Interest on Loans

Interest on Fixed Deposits

Commission

Exchange and Brokerage

Salaries and Allowances

Discount on Bills Discounted

Interest on Temporary Overheads in Current A/cs

Interest on Cash Credit

Interest on Savings Bank Deposits

Postage, etc.

Printing & Stationery

Sundry Expenses

Rent

Taxes and Licenses

Audit Fees

300

275

10

20

150

152

30

240

87

10

20

10

10

15

10

Adjustments to be made:

(1) Rebate on bills discounted = Rs. 30,000.

(2) Salary to managing director = Rs. 30,000.

(3) Bad debts = Rs. 40,000.

(4) Provision for income tax to be made @ 40% (to be rounded off to nearest thousands)

(5) Interest of Rs. 4,000 on doubtful debts was wrongly credited to interest on Loans Accounts.

4. (a) Explain the following relating to  Life Insurance Company:          3½ x 4=14

(1) Surrender Value.

(2) Consideration for Annuities Granted.

(3) Valuation Balance Sheet.

(4) Life Assurance Fund.

Or

(b) (1) Following figures are extracted from the books of Bright Life Assurance Co. Ltd. for the year ended on 31st March, 2022:          10

 

(Rs.)

Premium less Reinsurance Premium

Claims less Reinsurance Claims

Reinsurance Irrecoverable

Consideration for Annuities Granted

Annuities Paid

Surrenders

Commission

Surplus on Revaluation of Reversions

Interest, Dividends and Rents

Income Tax

Management Expenses

42,90,000

25,50,000

12,000

1,20,000

37,500

2,40,000

1,65,000

15,000

21,00,000

3,30,000

5,25,000

The net liability on all contracts in force as on 31st March, 2022 was Rs. 72,00,000 and on 31st March, 2021, the liability was Rs. 63,00,000.

You are required to prepare Revenue A/c according to the IRDA Regulations, 2013.

(Note: Schedules need not be prepared)

(2) Distinguish between Life Insurance and General Insurance.            4

5. (a) From the following information as on 31st March, 2022 of Luit Fire Insurance Co. Ltd., prepare Revenue A/c reserving 40% of the net premiums for unexpired risks and an additional reserve of Rs. 3,50,000:             14

 

(Rs.)

Reserve for unexpired risk on 31st March, 2021

Additional reserve on 31st March, 2021

Claims paid

Estimated liability in respect of outstanding claim on 31st March, 2021

Estimated liability in respect of outstanding claims on 31st March, 2022

Expenses of management (including Rs. 45,000 in connection with claims)

Reinsurance premium paid

Reinsurance recoveries

Premiums

Interest and dividend (gross)

Profit on sale of investments

Commission

7,50,000

1,50,000

9,60,000

97,500

1,35,000

4,20,000

1,12,500

30,000

16,80,000

75,000

15,000

1,75,000

Or

(b) (1) Point out the main features of accounts of General Insurance Companies.       4

(2) What are statutory books required to be maintained by a General Insurance Company under the Insurance Act?          5

(3) How is the profit or loss of a General Insurance Company ascertained?             5

6. (a) (1) What is an Investment A/c? How is it prepared? Point out the special features of an Investment A/c.     2+3+3=8

(2) How are stock exchange transactions (sale and purchase of securities) recorded in books?  6

Or

(b) Mr. Manohar furnishes the following details relating to his holding in 6% Government Bonds of Rs. 100 each:

Opening balance face value Rs. 60,000 cost of which Rs. 59,000.

01/03/2021

01/07/2021

01/10/2021

01/11/2021

100 units purchased ex-interest at Rs. 98.

Sold 200 units ex-interest out of the original holding at Rs. 100.

Purchased 50 units at Rs. 98 cum-interest.

Sold 200 units ex-interest at Rs. 99 out of the original holdings.

Interest dates are 30th September and 31st March. Mr. Manohar closes his books every 31st December.

Show Investment A/c as it would appear in his books.             14

This is all about Advanced Financial Accounting Question Paper 2022. For more Dibrugarh University Question Papers click here.

Also read: 

Advanced Financial Accounting Question Papers (Dibrugarh University) 2021

Advanced Financial Accounting Question Papers (Dibrugarh University) 2022

Advanced Financial Accounting Question Papers (Dibrugarh University) 2023

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