Bangalore University Second Semester B.Com Advanced Financial Accounting Question Paper of May 2015
Section - A
1.
Answer any five of the following Each question carries two marks (5×2=10)
a) What is Del-credere commission?
b) Who is consignor?
c) Why is Memorandum Trading Account prepared?
d) State the method of accounting for Joint Venture.
e) From the following information find out fire insurance claim
Value of stock on the date of fire 2,00,000
Policy amount 1,50,000 Goods saved from fire 50,000.
f) What do you mean by load price?
g) How do you allocate the following expenses in departmental accounting?
i) Carriage outwards
ii) Canteen expenses.
Section - B
Answer any three of the following Each question carries six marks (3×6=18)
2. On 15th June 2014 the premises and the stock in a firm was destroyed by fire, but the accounting records were saved, from which the following particulars were available.
Stock on 1-1-2013
1,75,000
Stock on 31-12-2013
1,95,000
Purchases for the year 2013
8,76,000
Sales for the year 2013
11,69,000
Purchases from 1-1-2014 to 15-6-2014
3,84,000
Sales from 1-1-2014 to 15-6-2014
5,54,400
Stock salvaged
81,200
Show the amount of claim.
3. Lokesh of Mysore sends 2000 Kgs of oil at 120 per Kg to Nataraj at Hubli. The consignor spends 11,000 on cartage, insurance and freight. On the way 100 Kgs of oil was lost (normal loss) due to leakage and evaporation. Nataraj took delivery of the consignment and spent 9,000 on octroi and carriage. His selling expenses were 7,000 on 1700 Kg’s of oil sold.
Determine the value of stock.
4. Kavitha and Kalpana are entered into a joint venture sharing profits and losses in the ratio of 3:2. Kavitha contributes 1,20,000 and Kalpana 1,60,000. The amount contributed by them were deposited into a joint bank account. They bought goods for cash 2,00,000 and from Kavitha for 80,000. They paid for carriage 15,000. Rent 4,000, Insurance 5,000 and other expenses 9,000. All the goods were sold for 3,50,000.
Pass necessary journal entries.
5. Keerthi Ltd. had its Head Office in Bengaluru and branch at Mysuru. You are given the following information relating to Mysuru branch for the year ended 30-6-2014.
Stock at branch on 1-7-2013
38,400
Petty cash at branch on 1-7-2013
130
Goods sent to branch
55,100
Goods returned by the branch
4,700
Cash sales at branch
85,200
Cash sent to branch for expenses - Salaries 15,300, Rent 3,600, Petty cash 3,100.
Prepare Mysuru Branch A/c in the books of H.O.
6. From the following indirect expenses, determine the basis of apportionment among the department.
1) Labour welfare expenses.
2) Insurance premium on building.
3) Electricity bills (lighting etc.)
4) Reserve for bad debts.
5) Repairs and insurance of building.
6) Aftersales service.
Section - C
Answer any three of the following Each question carries fourteen marks (3×14=42)
7. The premises of Bharath Traders were destroyed by fire on 30-4-2015.
The stock was fully insured. The concern has made accounts up to 31-12-2014. The following information is available.
Stock on 1-1-2014
1,52,720
Stock on 31-12-2014
1,16,140
Purchases from 1-1-2015 to the date of fire
3,68,270
Purchases up to 31-12-2014
4,72,580
Sales up to 31-12-2014
5,40,000
Sales from 1-1-2015 to the date of fire
5,11,700
Further information is also available
1) In Feb. 2015 goods costing 15,000 were given away for advertising purpose, no entry being made in the books.
2) During 2015 a clerk had misappropriated cash sales of ` 6,000.
3) The rate of gross profit is constant over the year.
4) Value of stock saved was 18,000 and the expenses incurred to extinguish fire is 1,200.
From the above information prepare a statement showing the claim to be lodged for loss of stock.
8. M/s Raghu and Co. of Delhi consigned on 15th March 2012, 45 cases of glass at cost price 45,000 to Reddy and Co. of Hyderabad for sale on commission at 5% on gross sale proceeds. The consignor paid freight and carriage amounting to 539.The goods arrived at Hyderbad on 20th March 2012, Reddy and Co. paid clearing charges 235, sundry charges 59, carriage 102 and godown charges ` 90. The goods were sold by Reddy and Co. as under 15 cases at 1,000 per case, 22 cases at 1,050 per case and the remaining 8 cases at 1,250 per case. On June 21, 2012, Reddy and Co. sent a draft for 10,000 to M/s Raghu and Co. on account. On 1st July 2012, Reddy and Co. forwarded an account sales together with a Bill of Exchange for the balance.
Give journal entries to record the above transactions in the books of consignor and consignee. Calculations are to be made to the Akash and Ashwin undertook a joint venture for construction of a college building. A nearest Rupee.
9. Joint bank account was opened in which Akash deposited 2,00,000 and Ashwin 50,000. The contract price was 10,00,000. The profit of joint venturewas to be shared as to Akashand Ashwin
.
The details of the transactions are as follows :
Salaries
30,000
Wages
1,80,000
Materials supplied by Akash
35,000
Building materials purchased
4,00,000
Materials supplied by Ashwin
35,000
Architect’s fees
25,000
Carriage
45,000
Machinery purchased
80,000
On the completion of the contract the unused materials of the value 40,000 were taken over by Akash. The machinery was sold for ` 60,000. Mr. Ashwin was to be paid a remuneration of 30,000 for his service which is to be charged to the joint venture.
Prepare the necessary ledger account.
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