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B.Com (II Semester) Examination
COMMERCE
Paper : BCM–202 (Old Course)
( Financial Accounting—II )
Full Marks : 80
Pass Marks : 35%
Time : Three Hours
Note : 1. Answer as per instruction in each Section.
2. The figures in the margin indicate full marks for the questions.
Section—I
I. Answer the following questions : 2×5=10
(a) What do you mean by joint venture?
(b) What do you mean by Single Entry system of Book-keeping?
(c) What do you mean by Del credere commission?
(d) Define Goodwill.
(e) Write down the features of partnership.
Section—II
2. Answer any four from the following : 5×4=20
(a) Distinguish between Joint venture and Partnership.
(b) Write down the feature of Balance Sheet.
(c) What do you mean by normal loss and abnormal loss? How would you treat both the losses in Consignment A/c?
(d) Write down the advantages of Single Entry system of Book-keeping.
(e) How would you value the closing stock in case of consignment?
Section—III
3. Answer any five from the following : 10×5=50
(a) (i) Mr. A and Mr. B are in partners sharing profit and losses in the ratio of 3 : 2. On 1.1.2020, C was admitted as a partner paying Rs 30,000 as capital and Rs 20,000 for goodwill. His share of profit is 1/6 which he acquires equally from A and B.
Journalize the above transactions.
(ii) A and B who shared profits in the proportion of 5 : 3 had capital of Rs 70,000 and Rs 40,000 respectively. They agree to admit C into partnership for 1/4th share in future profit. C brings Rs 30,000 as capital and is unable to bring Rs 1,600 as his share of Goodwill in cash. Pass Journal entries. 5+5=10
(b) Sen and Co. of Kolkata consign goods costing Rs 2,50,000 to their agent Mustak of Mysore on which they pay freight, insurance charges to the extent of Rs 15,000 and drawing a bill on him at 90 days for Rs 2,00,000. They discount the bill with the Bank, who charged Rs 2,000 as discount. After two months, Sen and Co. received an account sales from the agent and it was informed that entire goods sold for Rs 3,50,000 and expenses paid by them Rs 7,000, and charged commission @ 2% on amount realized. A draft was enclosed for the balance due.
Prepare Consignment A/c, Consignee’s A/c and Goods Sent on Consignment A/c in the books of Consignor. 10
(c) Mr. A and Mr. B were partners in a joint venture sharing profit and losses in the ratio 4 : 1. A supplies goods to the value of Rs 5,000 and incurs expenses amounting to Rs 400. B supplies goods to the value of Rs 4,000 and his expenses amount to Rs 300. However B sells the entire goods on behalf of joint venture and realizes Rs 12,000. B is entitled to a commission @ 5% on sales. B settles his accounts by bank draft.
Prepare necessary accounts, i.e., Joint Venture Accounts, Mr. B’s A/c and Bank Accounts in the books of Mr. A. 10
(d) Mr. Ali keeps his books by Single Entry system. He provides you the following information from which you require to ascertain the profit or loss during 2019–20 :
(e) A, B and C are the partners sharing profits and losses in the ratio 3 : 2 : 1. The firm’s Balance Sheet as on 31st March, 2019 was as follows :
B retires on that date, subject to the following adjustments :
(i) The Goodwill of the firm to be valued at Rs 27,000 and only B’s share is to be recorded
(ii) Plant to be decreased by 10% and Computer by 15%
(iii) Stock to be appreciated by 20% and Building by 10%
(iv) Provision for Doubtful Debts to be increased by Rs 2,925
(v) Unrecorded investments were sold for Rs 18,000
Prepare Revaluation A/c and B’s Capital A/c. 10
(f) (i) Distinguish between Receipt and Payments A/c and Income and Expenditure A/c.
(ii) Distinguish between Sacrificing ratio and Gaining ratio. 5+5=10
