Dr.N.G.P.

ARTS & SCIENCE COLLEGE

DEPARTMENT OF COMMERCE WITH COMPUTER APPLICATIONS
MODEL EXAMINATION-MARCH - 2016
I B.COM CA
Time: 3 hrs

Marks:75
Advance Accounting
Section-A (10*1=10)

1. In the hire purchase system the buyer become the owner of goods on _____
a. Signing the agreement
b. The payment of first installment
c. The payment of last installment
2. All the expenses of branches are paid directly by ______
a.Head of Branch
b.Head office
c.Stock reserve account
3. ______is the property in goods passes to the purchases immediately on signing the contract
a. Installment Purchase system
b. Hire purchase
c. Accounting Treatment
4. Statementof affairs is also called as ______
a.Single entry b. Conversion c. Net worth
5. The amount payable to the retiring partner may be paid ______
a. Lumpsum payment
b. Payment in installments with interest
c. All of these
6. Sacrificing ratio can be calculated by______
a. Net ratio less old ratio
b. Old ratio less new ratio
c. Old ratio less gaining ratio
7. Upon dissolution of a firm, liability taken over by a partner is to be ____
a. Debited to partners capital
b. Credited to partners capital
c. Credited to realization account
8. Head office sends goods to branch at _____
a. Cost price
b. Invoice price
c. Market price
9. Revaluation account is a ________
a.Personal account
b. Real account
c. Nominal account
10. The amount payable to the retiring partner may be paid ______
a. Lumpsum payment

b. Payment in installments with interest

c. All of these
Section B (5*5=25)
Answer all the questions:
11. (a) Explain the features of the consignement.
(b) State the difference between hire purchase and installment?

(OR)

12. (a)From the following details, prepare the account sales :

Consignor : Ajantha cycles Ltd., Haryana.
Consignee : Sri Ram cycles, Chennai.
Consignment : 100 cycles @ Rs. 1,200 each.
Sales

: 50 cycles @ Rs. 1,400 each.

20 cycles @ Rs. 1,500 each.

Consignees expenses :
Freight and cartage Godown rent
Other expenses

Rs. 5,000

Rs. 2,000
-

Rs. 1,000

Consignees commission - 10 %

(OR)

(b) A company sends 300 bales of cotton to its consignee costing Rs 600 Per bale.
The following expenses were incurred in the connection
(a) Rs 900 paid by the consignor for dispatching the goods
(b) Rs 2000 paid by the consignee by the way of freight, duty and clearing
charges
(c) Rs 1000 paid by the consignee by the way of godown rent and salaries of
salesmen
You are required to calculate the value of stock at the end, if the consignee sells twothirds of the consignment at Rs 700 per bale. The consignee is to receive a commission of
11% on sales

13. (a)The following information relates to Madurai Branch

Rs
Stock on 1.1.2015
Branch debtors on 1.1.2015
Goods sent to branch
Cash sent to branch for
Rent
1500
Salaries
3000
Petty cash
500
Sales at branch
Cash
25000
Creddit
30000
Cash received from debtors
Stock on 31.12.2015

Rs
11200
6300
51000

5000
64000
41200
13600

(OR)
(b)Mr. X purchased a machine on hire-purchase system, Rs. 3000 being paid on delivery
and the balance in five instalments of Rs. 6000 each, payable annually on 31 st December.
The cash price of the machine was Rs. 30,000.Compute the amount of interest for each
year.
14. (a)From the following details, find out the net credit sales for the year:
Rs.
Opening balance of sundry debtors(Dr)
20,000
Cheque collection during the year
1,80,000
Cash collection during the year
25,000
B/R received during the year
5,000
Closing balance of sundry debtors(Dr)
24,000
Bad debts written of
2,500
Discount allowed
1,000
Goods returned by customers
2,500
Cheque dishonoured
500
(OR)
(b)A firm earned net profits during the last 3 years as follows: Rs.
I year 36000
II year 40000
III year 44000
The Capital investment of the firm is Rs.120000 a fair return on the
capital having regard to the risk involved is 10%. Calculate the value of
goodwill on the basis of 3years purchase of super profits.

15. (a)Deepa and kasthuri shares profits and losses in the ratio of 5:3. Brindha joins on 1st
April, 1999. The following revaluations were made:
a. Increase the value of building by Rs.10000.
b. Raise goodwill for Rs.16000.
c. Reduce the value of Debtors by Rs.2000. Prepare Revaluation account
(OR)
(b)The following is the balance sheet of X, Y and Z on 31.3.94.
Liabilities
Rs.
Assets
Rs.
Capital a/cs
Furniture
40000
x
50000
Plant & Machinery 20000
y
30000
Stock
40000
General Reserve
30000
Sundry Debtors
20000
Sundry Creditors
40000
cash at bank
12000
Z s capital
18000
_______

_______

150000

150000

Z is insolvent but his estate pays Rs. 4000. It is decided to dissolve the partnership.
The assets realized as follows:
Sundry debtors: Rs.15000; Furniture Rs.28000; Stock Rs.32000;
Plant & Machinery Rs. 14000
The dissolution expenses amounted to Rs. 5000
Give accounts to close the books of the firm if the capitals are fluctuating.
SECTION C (5*8=40)
Answer all the questions:
16. (a)Difference between branch and departmental accounts?
(b)Write notes on: a) Interest on capital
b) Interest on Drawing
c) Salary and commission to partners(OR)

17. (a)Balan of Bangalore consigned 190 bags of sugar to Raghu of Chennai, invoicing goods at
Rs. 180 per bag. Balan paid Rs. 1,200 as cartage and other expenses. The consignor drew a
bill of exchange for Rs. 12,000 which was later discounted at Rs. 11,800. The consignee
rendered an account sales showing the following details:

100 bags sold at Rs. 240 each on credit.

90 bags sold at Rs. 230 each for cash.
Carriage charges Rs. 2,000
Transit insurance Rs. 600
Commission at 5 % being deducted.
The consignee sent a bill for the amount due.You are required to prepare ledger accounts
in the books of both the parties assuming that the consignee incurred a bad debt of Rs.
400.
(b)Vijay of Trichy has a branch at Perambalur are sent by Head Office at invoice price which
is at the profit of 20% on cost price.All expenses of the branch are paid by Head office.
From the following particulars prepare Branch a/c in the Head office books showing
goods at invoice price.
Opening balances :
Stock at invoice price 11,000
Debtors 1,700
Petty cash 100
Goods sent to branch at invoice price 20,000
Expenses paid by Head office :
Rent 600
Wages 200
Salary 900
Remittance made to Head Office :
Cash sales 2,650
Cash collected from debtors 21,000
Goods returned by branch at invoice price 400
Final accounts :
Balances at the end stock at invoice price 13,000
Debtors 2,000
Petty 25
18.(a)Thiru kumaran keeps his books under single entry system. On 1.1.2002 his
capital was Rs.69000. An analysis of his cash book for the year gives the following
particulars :
Recipts

Rs.

Payments

Rs

Received fromDebetors
Paid on capital A/c

60000
5000

Due to bank(1.1.2002)
Payment to creditors
General expenses

7400
25000
10000
Wages

Drawing
Balance at bank
Balance in hand

3000
4000
100
______
65000

15500

______
65000_
The following were his assets and liabilities
1.1.2009

31.12.2009

Rs.

Rs.

Debtors

53000

88000

Creditors

15000

19500

Stocks

17000

19000

Plant

20000

20000

Furniture

1400

1400

From the above particulars prepare trading and P & L account and Balance sheet as on
31.12.2002 after providing interest on capital at 5% depreciation on furniture at 5%,
depreciation on plant at 10% and a reserve of 5% on debtors.
(b)Write up the capital and current accounts of partners A and B from the following
Particulars
Capital on 1.1.08
Currents accounts on 1.1.08(cr)
Drawings during 2008
Interest on drawings
Share of profit for 2008
Interest on capital
Salary

A
400000
2000

B
350000
1000
80000 70000
1000
33000
6%
NIL

2000
42000
6%
36000

19. (a)The following is the balance sheet of X& Y. Sharing profits is in the ratio of 3:2 as on
31.12.2006
Liabilities

Rs

Assets

Rs

Creditors

Cash
Debtors
Stock
Building
Furniture

10000

Capital:
X

1500
6500
18000
34000
20000

40000
30000
Y
80000
80000
They agreed to admit Z into partnership with a capital of Rs 25000. The new
profit sharing ratio is 5:3:2 the following revaluation was made.
1. Stock to be depreciated at 10%
2. Provision for bad debts is to be Rs 500
3. Furniture to be depreciated at 5%
4. Building is valued at Rs 40000
Pass the journal entries and prepare revaluation account and balance sheet after
admission of Z.
Particulars
Rs
Particulars
Rs
As capital
20,000
Sundry assets
42,000
16,000
2,000
Bs capital
Drawings A
Profit& loss
8,000
appropriation
a/c
44,000
44,000
(b)From the following balancesheet of A and B, calculate the interest on capital at 5% p.a
for the year ending 31st dec 2012.
During the year 2008 As drawings were Rs.2,000 and Bs drawing
Rs.6,000. profit during the year 2008 were Rs.12,000.
20. (a)T and C share profit and loss in the ratio of 3:2 and from 1st jan 2009 they desired
to admit D who is to have 1/10 share in profit with a minimum guarantee of profit of
Rs.30,000. T and C agree to share the profits as before and sustain the excess 1/10th
profit to D,in the ratio of 4:1. Prepare the necessary account if the netprofit for the year
was Rs.2, 00,000.
(b).P and Q are partners sharing profits and losses equally with capitals of
Rs.60,000 and Rs.40,000 respectively. Their drawings during the year are as follows:
Ps drawing on:

Rs.

31.3.2008

1,000

30.4.2008

1,200

01.7.2008

900

01.12.2008

2,800

Q drew Rs.400 at the end of each month. The deed provides interest on capitals and
drawings at 6%. Calculate on capitals and drawings.