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B.Com (II Semester) Examination
COMMERCE
Paper : BCM–203 (New Course)
( Financial Accounting—II )
Full Marks : 80
Pass Marks : 35%
Time : Three Hours
Note : 1. Answer as per instructions given in each Section.
2. The figures in the margin indicate full marks for the questions.
Section—I
1. Answer any five questions of the following : 2×5=10
(a) What do you mean by the term ‘consignment’?
(b) Define the term ‘partnership’.
(c) What do you mean by non-profit organisation? Cite some examples.
(d) What is invoice price?
(e) What do you mean by hidden goodwill?
(f) What is Balance Sheet?
(g) Define normal loss.
Section—II
2. Answer any four questions of the following : 5×4=20
(a) Distinguish between Joint Venture and Consignment.
(b) How would you value the unsold stock in consignment?
(c) Write down the disadvantages of single-entry system of Bookkeeping.
(d) Distinguish between Receipt and Payment Account and Income and Expenditure Account.
(e) Write about the average profit method of valuation of goodwill.
(f) What do you mean by normal and abnormal loss related to consignment? Cite some examples also.
(g) If goodwill is valued twice of superprofit and the value of goodwill is Rs 50,000, find out the value of superprofit.
(h) If goods are consigned at 20% above cost and goods sent at invoice price is Rs 1,20,000, calculate loading.
Section—III
3. Answer any five questions of the following : 10×5=50
(a) Mr. X and Mr. Y entered into a joint venture for purchase and sale of various types of cottage industries articles. They agreed to share the profit and loss in the ratio of their contribution. Mr. X contributed Rs 10,000 in cash and Mr. Y contributed Rs 13,000. The entire amount was deposited into a Bank A/c. Further, goods were purchased by Mr. X for Rs 10,000 and expenses paid by Mr. Y amounted to Rs 2,000. They also purchased goods for Rs 15,000 through the Joint Bank Account. Other expenses amounted to Rs 4,000 met through Joint Bank Account. Goods costing Rs 20,000 were sold for R 45,000 and the Balance was lost by fire. You are asked to prepare Joint Venture, Joint Bank Account and Venturer’s Account in the Books of Joint Venture. 10
(b) The Balance Sheet of Sunder and Chand who share profits and losses in the ratio of 3 : 2 at 31.3.2019 is as follows :
(i) The new profit-sharing ratio shall be 1 : 2 : 2
(ii) Moon is to bring his capital of Rs 50,000 and to pay Rs 20,000 as his share of goodwill in the firm
(iii) Existing goodwill is to be written off
(iv) The other assets be revalued as under :
Machinery—Rs 50,200
Furniture—Rs 30,000
Stock—Rs 62,000
Debtors—Rs 12,000
Prepare Revaluation Account, Partner’s Capital Account, Bank Account and Balance Sheet of the new firm as on 1.4.2019. 10
(c) On 1st January, 2019, Mr. X of Kolkata sends 300 chests of rare medicine to Mr. Y of Itanagar on consignment basis. The cost of each chest was Rs 1,000 only. Mr. X incurred the following expenses like railway freight Rs 750 and Rs 450 on insurance.
Mr. Y spends Rs 1,200 on various accounts when the chests reached Itanagar, 200 chests were sold by Mr. Y @ Rs 2,000 per chest. Out of these, 10 chests were sold to a party on credit and it proved bad. Mr. Y sent an account sales on 30th June, 2019 which revealed that he charged 5% as ordinary commission and 10% as del credere commission. The consignee sent a bank draft for Rs 90,000.
You are asked to give in Consignor’s Book : 10
(i) Consignment to Itanagar A/c
(ii) Mr. Y’s Account
(iii) Goods Sent on Consignment A/c
(d) Mr. Ram does not keep a double entry set of books. On 1st January, 2019, he had the following assets and liabilities :
Stock—Rs 20,000
Sundry debtors—Rs 30,000
Furniture—Rs 5,000
Cash at Bank—Rs 12,000
Sundry creditors—Rs 20,000
On 31st December, 2019, his position was as follows :
Stock—Rs 25,000
Sundry debtors—Rs 45,000
Sundry creditors—Rs 32,000
Cash at Bank—Rs 18,000
Furniture—Rs 7,000
During the year he introduced fresh capital Rs 3,000, while he withdrew Rs 8,000 for household purposes. You are required to ascertain his profit during the year after making the following adjustments : 10
(i) Furniture depreciated by 5%
(ii) Reserve for Bad debt is to be raised @ 3% of Sundry debtors
(e) A cricket club of Kolkata prepared its Receipts and Payments Account for the year ended 31.12.2019 is as follows :
Sports equipment—Rs 15,000
Club ground—Rs 7,000
Investment—Rs 10,000
Furniture—Rs 2,000
You are required to prepare the Income and Expenditure Account for the year ended 31.12.2019 after considering the following : 10
(i) Subscription for 2019 still to be collected Rs 300
(ii) Depreciation to be provided @20% p.a. on sports equipment and 5% p.a. on furniture
(f) What is Account Sales? Prepare an Imaginary Accounts Sales in respect to consignment. 10
(g) What is del credere commission? Distinguish it from general commission. 6+4=10
(h) X, Y and Z share profits and losses in the ratio 5 : 3 : 2. Z retires and surrenders 1/5th of his share in favour of Y and remaining in favour of X. Calculate New Profit Sharing Ratio (NPSR) and Gaining Ratio (GR). 10
(i) Write down the difference between Sacrificing Ratio (SR) and Gaining Ratio (GR). 10
