JUNE-2021
B.Com. (2nd Semester) Examination
COMMERCE
Paper: BCM-203(New Course)
FINANCIAL ACCOUNTING – II
Full Marks : 80
Pass Marks : 35%
Time : Three Hours
Notes: (i) Answer all questions
(ii) The figures in the right margin indicate full marks for the questions.
SECTION: A
I. Answer the following questions: (2X5=10)
(a) Define goodwill.
(b) What do you mean by consignment?
(c) Define the term Partnership as per Partnership Act 1932.
(d) What do you mean by del-credere commission?
(e) What do you mean by singe entry system of book keeping?
SECTION – B
I. Answer any four of the following questions: (5x4=20)
(a) Distinguish between joint venture and partnership.
(b) Mr. X or Mr. Y are in partnership sharing profit in the ratio of 7:9. Mr. £ is admitted for 1/6th share in profits. Calculate the new profit sharing ratio and sacrificing ratio of the partners.
(c) Distinguish between single entry system and double entry system of book keeping.
(d) What do you mean by account sales? Prepare a proforma of account sale, considering imaginary figures.
(e) Describe and Explain various methods of valuation of goodwill.
(f) Distinguish between receipt or payment accounts and income and expenditure account.
SECTION-C
II. Answer any five of the following questions: (10X5=50)
(a) The balance sheet of A or B who shared profit and loss equally was as follows:
Balance Sheet as on 31.03.2021
On 1.4.20221, Mr. ‘C’ joints the firm for 1/5th share of future profits on the following term and conditions:
(a) Goodwill is ranked at Rs.1,00,000/- and Mr. C is to bring the necessary amount in cash for goodwill.
(b) C is to bring Rs.50,000/- as capitals.
(c) A provision of 10% is to be created on bills receivables.
(d) Land or Building is to be appreciated to Rs.40,000/-.
(e) Stock & plant & machinery is to be reduced by 20%.
Pass necessary journal entries and prepare revaluation account partner’s capital account.
(b) Mr. X of Guwahati sent 100 no. bicycles each costing Rs.15,000/-each, to Mr. Y at Tezu to be sold at his risk. Mr. Y, will get a commission @5% on sales and is to be reimbursed for expenses. Mr. X, spent Rs.5000/- as freight which is of non recurring in nature and Rs.6,000/- for salesmen’s salaries and godown rent etc. Mr. Y, sold 80 bicycles @14,500/- each and settled his accounts with Mr. X. Prepare the consignment account and goods sent on consignment account and Mr. Y account in the books of Mr. X.
(c) Mr. Ali keeps him books of account lender single entry system. The summarized information are as follows:-
Mr. Ali had withdrawn Rs.30,000/- during the year but had introduced fresh capitals of Rs.6,000/- on 1st July’2020. A provision of 5% on secondary debtors is necessary. Write depreciation on plant @5% P.A. Interest on capital is to be allowed @ 5% P.A.
(d) Rajeev and Pradeep entered into joint venture for purchase and sale of various types of cottage industry articles. They agreed to share the profit and losses at the ratio of their contribution. Rajeev contributed Rs.10,000/- in cash and Pradeep contributed Rs.13,000/-. The whole amount was placed into a joint bank account. Goods purchased by Rajeev for Rs.10,000/- and expenses paid by Pradeep amounted to Rs.2,000/-. They also purchased goods for Rs.15,000/- through the joint bank account. Goods costing Rs. 20,000/- were sold for Rs. 45,000/- and balance was lost by fire.
You are asked to give the joint venture account, joint bank account and ventures account in the book of joint venture of Rajeev and Pradeep.
(e) The South Sports Club gives you the following receipts and payments account for the year ended 31st December’2020.
Subscription due on 31st December’ 2019 and 31st December’ 2020 were Rs. 900/- and Rs. 800/- respectively. Subscription also includes subscription for 20201 Rs.200/-. Depreciation on sports equipment during the year Rs.1,000. The mowing machine was purchased on 1st July’2020 is to be depreciated @ 20% P.A. Office expenses includes Rs. 300/- for 2019 and 400/- are bill due for payment. Tournament Receipt or expenses to be treated as capital. Prepare income and expenditure account in the book of South Sports Club for receipts or payment account.
(f) What do you mean by normal and abnormal loss? Discuss the treatment of such losses in consignment account.
(g) Write a note on the advantages and disadvantages of single entry system of book keeping.
