Advanced Financial Accounting Important Questions [For Dibrugarh University BCOM 5th SEM NEP Syllabus]

Advanced Financial Accounting Important Questions
For Dibrugarh University BCOM 5th SEM NEP Syllabus

Pattern of Question Paper

1. MCQs: 1*8=8

2. Short Note: 4*3=12

3. Long Answer Type Questions: 10*4=40 (One theory and Practical from each unit)

Unit 1: Final Accounts of Companies and Valuation of Goodwill and Shares

PART A - Practical Problems

A. Final Account of Companies, Preparation of Provision for taxation account. Every Year

B. Preparation of Provision for income tax, advance tax account     2017

PART B – Theoretical Questions from Valuation of Goodwill and Shares

Q. What is Goodwill? What are its features? Explain various factors affecting valuation of goodwill.

Q. What are various types of goodwill?

Q. Why valuation of goodwill is necessary? Explain various methods for valuation of goodwill. 2022

Q. Why shares are valued? Explain various methods for valuation of shares. 2022

PART C – Theory Questions from Final Accounts

Q. What are IFRS and Accounting Standards? Explain its relevance. Explain some specific IFRS (From 1 to 9). 2015, 2016

Q. What are divisible profits? Explain the provisions of Companies Act relating to transfer of profit to reserves.

Q. What is dividend and Interim divided? What are various sources of dividend? Distinguish between Interim and Final dividend.

Q. Explain the format of Statement of profit and loss and Balance sheet of a company.     2016, 2017

Q. Explain the treatment of the following items whiling preparing the final account of a limited company:

a)      Share Capital, Loans, Current Liabilities, Fixed Capital Expenditure        2018,

b)      Managerial remuneration, Preliminary Expenses, Provisions and Reserves, Provision for income tax, Tax deducted at source, Corporate dividend tax, Advance income tax  2015, 2019

Q. Write Short notes on:

Ø  Payment of dividend out of capital profit.           2015

Ø  Advance Payment of Tax              2016

Ø  Interim Dividend               2018

Ø  Corporate Dividend Tax                2017

Ø  Preliminary Expenses.

Unit 2: Amalgamation and External Reconstruction (Part – A)

Q. What is amalgamation and external reconstruction? Explain its features. Explain its various types (2010, 2013) with examples. Distinguish between amalgamation and absorption. 2016

Q. Explain Amalgamation in the nature of merger and Amalgamation in the nature of purchase and distinguish between them. Also explain the treatment of reserve in case of amalgamation.    2014, 2015, 2018

Q. What is pooling of interest method and purchase method? Explain the differences between pooling of interest method and purchase method.                     2015, 2016

Q. Explain various methods for calculating purchase consideration with examples.           2010, 2014

Q. Write short notes on:

Ø  Purchase consideration    2015, 2017, 2019

Ø  Amalgamation in the nature of purchase.                        2012, 2018

Ø  Amalgamation in the nature of Merger                           2012, 2018

Ø  Treatment of reserves in case of amalgamation in the nature of merger and purchase            2018

Q. Practical Problems: Journal Entries for Amalgamation and External Reconstruction and Preparation of balance sheet 2010, 2012, 2014, 2017, 2019

Unit 2: Internal Reconstruction and Capital Reduction (Part – B)

Q. What is internal reconstruction? Explain its Need and scope.

Q. Explain the various provisions of Alteration and capital reduction of share capital with examples. 2011, 2012, 2017, 2019

Q. Practical Problems: Journal Entries and Preparation of balance sheet in case of Internal Reconstruction 2011, 2013, 2015, 2016, 2018

Unit 3: Accounts of Holding Companies

Student Must Complete this chapter

Q. What do you mean by Consolidated Financial Statements? What are the objectives and scope of these statements? Also point out the advantages and disadvantages of consolidation.    2015, 2018

Q. What are the advantages and disadvantages of Holding Companies? Explain the transactions which must be eliminated while preparing consolidated balance sheet.             2015, 2016

Q. “Balance Sheet of Holding Company to include certain particulars as to its subsidiaries”. Considering this statement explain the provisions of the Companies Act, 2013.                    2014, 2017

Q. What do you mean by Holding and Subsidiary Company (2013, 2015, 2016)? How would you ascertain the amount of minority interest and goodwill or capital reserve while preparing a Consolidated Balance sheet? 2010, 2013

Q. Explain the treatment of the following items in Consolidated Balance Sheet:     2012

Ø  Contingent liabilities

Ø  Mutual owing

Ø  Bonus shares

Ø  Unrealised Profit

Q. Write short notes on:

Ø  Minority interest               2014, 2015, 2017

Ø  Cost of Control or Goodwill                      2017

Ø  Pre-acquisition and post-acquisition profit                      2013

Ø  Consolidated Balance Sheet         2016

Ø  Rationale of Holding Companies

Ø  Capital Profits                   2018   

Ø  Capital reserve                  2014

Q. Practical Problems: Follow illustrations given in your book          Every Year

👉👉Advanced Financial Accounting Chapterwise Notes

Unit-I: 

Preparation of financial statements of companies

FINAL ACCOUNTS OF COMPANIES

Valuations of Goodwill and Shares

VALUATIONS OF GOODWILL AND SHARES

Unit-II: Amalgamation, External Reconstruction and Internal Reconstruction

1. AMALGAMATION AND EXTERNAL RECONSTRUCTION
2. INTERNAL RECONSTRUCTION AND CAPITAL REDUCTIONS

Unit-III: Accounts of Holding Companies

ACCOUNTS OF HOLDING COMPANY COMPLETE NOTES

Unit-IV: Accounts of Banking Companies and Life Insurance Companies

 ACCOUNTS OF BANKING COMPANIES

Past Exam Solved Practical Problems and Solutions

Unit – 4 (Part A): Accounts of Banking Companies

Q. List out the form of business in which Banking Company may engage as detailed in Section 6 of the Banking Regulations Act. Or Mention the features of a banking company.                2018

Q. Write a brief note on various types of advances provided by bank. (Cash Credit, Overdraft, Loan, Discounting) 2015SN, 2021

Q. Write a brief note on various classes of advances (Standard assets, sub-standard assets, doubtful assets, loss assets. Also mention % of provision required in these classes.  2013, 2022

Q. Explain the following in relation to the Banking Company:

a)      Slip system of posting and its merits and demerits                                 2015, 2018, 2022

b)      Rebate on Bills Discounted and its treatment      2014, 2016, 2017, 2019, 2021, 2022

c)      NPA 2015, 2019, 2021

d)      Non-banking Assets         

e)      Form B of the Banking Company

f)       Format of financial statements of banking companies                2016

g)      Books maintained by banking companies

h)      Money at call and short notice (Schedule 7)                                2013SN, 2017SN, 2018SN

i)        Difference between performing and non-performing assets      2016

j)        Inter branch adjustments             2017

k)      Contingent liabilities                    2017

l)        Statutory reserve  2019, 2021

m)   SLR and CRR                      2019, 2022

Q. Preparation of Profit and Loss Accounts of Banking Companies – Almost every year

Q. Calculation of Provisions and Preparation of rebate of bills discounted

Unit – 4 (Part B): Accounts of Life Insurance Companies

1. What is Insurance? What are various elements of Insurance?

2.    What do you understand by life insurance and Life Fund? Where does it appear in the final accounts? 2022

3.    Explain revenue account of life insurance companies. How it is prepared? Give a Proforma with imaginary figures.  2018

4.    What is valuation balance sheet (2016SN)? How it is prepared. Distinguish between valuation balance sheet and general balance sheet.     2021SN, 2022SN

5.    Explain the financial statements that are to be prepared by the life insurance companies as per the IRDA Regulations, 2002. Point out the general instruction on preparation of financial statements.        2014, 2021

6.    Distinguish between

A) Life insurance and general insurance        2021

B) Cash bonus and reversionary bonus

C) Life policy and endowment policy.

D) Surrender policy and paid-up value 2015, 2017, 2021, 2022

E) Re-insurance and Double insurance           2015

7.    Mention the statutory and statistical books maintained by life insurance companies.   Explain their purposes. 2016, 2017, 2019

7.    Explain various items of revenue account of life insurance companies. VVVI

a)   Premium                                        2013

b)   Bonus in reduction of premium     2013, 2018

c)    Bonus                                              2015

d)   Annuities and Consideration for annuities granted          2022

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