Advanced Financial Accounting Question Paper 2023 [Dibrugarh University BCOM 5th SEM HONS]

Advanced Financial Accounting Question Paper 2023

5 SEM TDC DSE COM (CBCS) 502 (GR-I)

2023 (November)

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:   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) General insurance includes all types of insurance, except _______ insurance.

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

(b) Write True or False:                                  1x4=4

(1) Rebate on bills discounted for a banking company is an income.

(2) In case of marine insurance, the provision against unexpired risk is 100% on net premium.

(3) Life insurance has an element both of protection and investment.

(4) Ex-interest price is less than the cum-interest price.

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

(a) Rebate on Bills Discounted.

(b) Bonus in Reduction of Premium.

(c) Fire Insurance.

(d) General Insurance.

(e) Balancing of Investment Account.

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

(1) Statutory Reserve.

(2) Non-banking Assets.

(3) Statutory Liquidity Ratio.

(4) Current Assets.

Or

(b) From the following particulars, prepare Profit & Loss A/c of Moon Light Bank Ltd. for the year ending on 31st March, 2023:

 

Rs. (‘000)

Interest on Loans

Interest on Cash Credits

Discount on Bills Discounted (Net)

Interest on Overdrafts

Interest on Savings Bank Deposits

Interest on Fixed Deposits

Commission, Exchange and Brokerage

Rent and Taxes

Auditor’s Fees

Postage and Internet Expenses

Sundry Expenses

Interest Charged against Current A/c

Advertisement Cost

Director’s Fees

Printing and Stationery

Law Charges

Payment to Employees

Locker’s Rent

Transfer Fees

Depreciation on Bank’s Property

518

446

390

108

220

559

16

36

3

2

2

45

2

6

2

2

108

1

2

10

Additional Information:

 

Rs. (‘000)

(i) Rebate on Bills Discounted

(ii) Provision for Bad Debts

(iii) Provision for Taxation

90

50

10

 

4. (a) Explain in brief the following items relating to insurance business: 3½ x 4 = 14

(1) Outstanding premium.

(2) Outstanding claim.

(3) Reversionary bonus.

(4) Endowment Policy.

Or

(b) (1) Distinguish between ‘claim’s by death’ and ‘claims by maturity’ in the life insurance business.                         4

(2) The Life Assurance Fund of an Insurance Company on 31st March, 2023, showed a balance of Rs. 87,76,500. It was later found that the following were not taken into account:

(a) Dividend from investment Rs. 4,80,000.

(b) Income tax on above Rs. 48,000

(c) Bonus in reduction of premium Rs. 8,77,500 (not taken as expense)

(d) Claims covered under reinsurance Rs. 4,23,000.

(e) Claims intimated but not accepted by the company Rs. 7,62,000.

Ascertain correct balance of fund.                                            10

5. (a) Prepare a Revenue A/c in respect of fire insurance business from the following details for the year ended on 31st March, 2023:                                     14

 

(Rs.)

Reserve for unexpired risk on 01-04-2022 @ 50%

Additional reserve on 01-04-2022

Estimated liability for claims intimated on:

01-04-2022

31-03-2023

Claims paid

Legal expenses

Medical Expenses

Reinsurance recoveries

Bad debts

Premium received

Premium on reinsurance accepted

Premium on reinsurance ceded

Commission on direct business

Commission on reinsurance accepted

Commission on reinsurance ceded

Expenses of management

Interest, dividend and rent

Profit on sale of investments

1,80,000

36,000

 

31,000

42,000

3,65,000

6,000

4,000

32,000

800

4,86,000

32,000

43,000

48,600

1,600

2,150

90,000

24,000

3,000

Create Reserve on 31st March, 2023 to the same extent as on 1st April, 2022.

Or

(b) Explain the following items in the Annual Accounts of a General Insurance Company: 3½ x 4 = 14

(1) Reinsurance recoveries.

(2) Profit on sale of investments.

(3) Interest and dividend outstanding.

(4) Agents’ balance.

6. (a) (1) What is Investment Account? Discuss the special features of an Investment Account.    2+6=8

(2) Distinguish between Cum-interest and Ex-interest.         6

Or

(b) AK Investments held 600, 6% debentures of Rs. 100 each in JK Ltd. on 01-04-2022 at a cost of Rs. 72,000. Interest is payable on 30th June and 31st December every year. On 1st June, 2022, 250 debentures were purchased cum-interest at Rs. 37,750. On 1st November, 2022, 400 debentures were sold ex-interest at Rs. 46,250.

On 30th November, 2022, 250 debentures are purchased ex-interest for Rs. 23,250. On 31st December, 2022, 350 debentures are sold cum-interest at Rs. 42,000.

Prepare Investment A/c for the year ended 31st March, 2023 valuing closing stock at cost (using FIFO method) or market price whichever is less. Debentures are quoted at Rs. 140 on 31st March, 2023.     14

This is all about Advanced Financial Accounting Question Paper 2023. 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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