Page I ofl0

{A{TtqrP{srFr 442
DEFENCE ACCOUNTS DEPARTMENT

srsftfier*qr*fl qfrerr- qrrr t

(W.q.\r{T.)
S.A.S. EXAMINATION _ PART I

SFIRt/August, 2016

iqqq: yfrq=r tll -aqrffir

SUBJECT: PAPER III _ ACCOUNTANCY
{lwiTime 3 {t/Hours 3Tfir+-dq eiqT lvlax. Marks. I 50

ffirqiTNotes t
l. qrqFliiierirls-flocsfrqqrlsTfrqt lesril-rr-r+.aiitzssqrrr-lltmnsittl,ylr$rFr-rrr*qruff
ygsczn I iTeli rnrr-ttt ftygdreqr O erMtr
..Only 6 questions should be attempted by the candidates. I question from Section-I,2 out of 4 questiorrs
, tiom Section-ll and 3 questions out of 5 from Section-Ill are to be attempted.
Question No. I of Section-I
and Question No. 6 of Section-Ill are COMPULSORY.

2. t{TrI-I.Frc$ , OO ei#oril tn'r-tt *'ry&+cs ZS sitfi*ltt qrrT-III s'rgt**sg ZO sfttiq;.rtr

Question I in Section-l carries 40 marks. Each question in Section-Il carries 25 marks. Each question in
Section-lll carries 20 marks.

3. er *elfr !fl-ril+TarqsSPIHctfrqqri=nR(r
Answers to all parts of question should be written in one place only.

4. rrFrsric+qqfuaw*frurqrfl qrfrqr t
Indication of Section should appropriately be made.

qm r - 1erfu*{1
- (Compulsory)
Section I
l. * +fi{ + FrqftTfuT t silcrarr sqr+sii * qsrd 3v03tz0t6 *} srns E{ * ftq q*, ftFtqpr,
fr
qtqR sfr{ dr.T aprT Hfr +qr den Brr dr{q *t fufr * sqvn
w tRFr q{ +qR 6t:
From the following particulars of Mr. Baker, prepare Manufacturing, Trading and profit &
Loss Account for the year ehded 3110312016 and the Balance Sheet as on that date after
necessary adj ustments.

(40 Marks)
;Tfi/Deb't e stttT/Credit C3
Particulars

Tdi 10,00,000
Capital
3TTflUI 40,000
Drawings ,_
kmq 21,00,000 /-
Sales /
sr2oBcofi6-P-m-1A
\,

r- \
 Page 2 of10

t5q 6,20,000
Purchases
3{Tfr €Iq 20,000
Opening Stock
fu*l{ EIq-S 12,000
Sales Return
Hqqrqs 24,000
Purchase Return
frfur+GT( 80,000
Sundry Debtors
frtut{<n 95,000
Sundry Creditors
ft;{Tqr 22,000
Rent
ftErqq 16,000
Advertisement
grqrqq{t 32,000
General Expenses
Bfu{tqffi{ft 1,12,000
Manufacturing Wages S
+s it tsg 32.000
Cash at Bank
efirlqxur 11,000
Bad Debts
frfrqfurqq 2,53,000
ManufacturingExpenses fO
+f{ 2,4t,000
Salaries
€{esfury66 12,50,000
Plant and Machinery
{gr 3,900 2,500
Discount
fi-sqqrfl 3,5E,000
Motor Vehicle
frgo.fr{i*rt 20,000
Power and Fuel \$
*)3TFJq 72,000
Advance to Supplier
dqr 12,500

s/20Bco/15-P-ilt-1
 Page 3 of l0

Insurance
ETT+ENTI€I 4,800
Carriage in wards t4
EIItltF ql-gt 6,400
Carriage outwards
qifuH 8,400 12,500
Commission
frr 32,34,000 32,34,000
Total

ffifudsqlqtq-{frqrw+t:
The following adjustments are to be made:

r. fra qrrq +) l0% fi <tt 3fr{ w,ffi +1 I s?6 fi <{ t TFr6rq *tt
Depreciate Motor Vehicle @l0o/" and Plant and Machinery @lSoh.

2. $ma+
Prepaid expenses:
(i) frqYlnsurance-t1,000
(ii) ttrqlsala.]--t8,000
3.^ Mt q{ s% fr <t t 3irilw S{ €ttTrqE ei"it + fo sfu Hi w sfl + ft{q 2% fr< t q+en
. dir
Provision for bad and doubtful debts @5% on debtors and2oh for Discount on Debtors.

4. tt*fryr+i fr1 glnfrilfi.Gtqsrdfir{meTTlr w l0% ff<ttvEitt-fi+s.frflqffq+en+tr

Manager's Commission at l0o/o on Net profits after charging Such commission.
,r/Proide
s. 3v03tzot6 6 forfr * .,WR 3iT €i-fi r 7s,000 t sfu sq ilrfts 6 ftrft t n+en €rfi +.r qMR

Tst 92,500 em

The Closing Stock as on 31/0312016 is t 75,000 and the Market value of the stock as on that
date was t 92,500.
6. t 4,000 ff wrTfrr qS +q rS t, Ritfr, Mt iit qq, t{flt ftlerfuqrtt
An amount of t 4,000 is not recoverable as one of the Debtors is insolvent

7. frHqqdi+.r rrrrar+*+o l t {frittftTqfswrnlT pITt

Manufacturing expenses were paid only for 11 months.

 Page 4 of 10

qp1 II ArrrfrE;rur
-
Section II - Costing

/ cTrrrd eci6,r t sdrq Hr s{flt il qst qnn 3t{q il

(a) What do you mean by Cost Accounting? What are its objectives? (5 Marks

1q) ry*fu{uTff q.*.S. wndwril gs*mn+ q-drqr

(b) What is the ABC system of inventory cbntrol? Discuss its advantages. (5 Marks

(T) fu{ *'rg sfu qsr srf,r E6r ircn 3Tpi il S{ Afi * fiq + eiar *i +qs dir

(c) What do you mean by bin card and stbres ledger? Explain the difference between th
(5 Marks,

1v) u.ac+-wt (in Stq fut *) qmrm *ir Srenr qk'rurq fu* * F* *Tp
,-.n.. *r]r,. How is it carcurated?
1a) ffifuH dfr t
A A A \\S._
^L
3TrFf6 snE{r qnr ,l_:._
1{ efr.q) qr qilr e'nq: ffiff*u.*l
qrffi*'rffi:6oootftc
flrrftff"frtfr.Frrrkr: uo
t5 srrkr*1t) 3fr{ersEFfiffurro: 160
w qfrc fi erfif*. 16{ f*frrrl Ftrrkt: qre.^q-S {s tr-t 109/o

(e) Find out the Economic Ordering Quantity (EOQ) fro4g!@fullowing particulars: .

Annual usage:6000 units LW

/ j'acer.. 'l rorr- e"-F
cost of material p.. rnit, <20 'n^CO
CostofPlacingandreceivingoneorder:<6011*ff
Annual carrying cost of one unit: l0o/" of inventory value.
(5 Marks)

3. (6) qre ETrrfrfi{q *r yfrqr arrft*.r"r * *q ffir 3idt il

(a) \Uhat is the difference between job costing and process costing? (5 Marks)

(s) ffifurso)'it it a+rq frs y+'n fi drrrfr*.rur rdfr fr ffi d\fo

i. gquntrq
ii. qe6rqqr+
iii. rTcrta HdYnmr
iv. *ftq,nqr+
v. q{f{Mq
vi. qr^dq
gEl-tfl.lrfi{H
vii. geqrdsRsr+
viii. *trrorer+
 Page 5 of 10

ir. n-O qkfuTflrdT

x. *iu Gfiqiq
(b) What method of costing would you recommend in the following industries?
i. Printing press
ii. Textile mills
iii. Repair Shops
iv. Sugar mills
v. Machine Making
vi. Text book publication
vii. Steel mills
viii. Coal mining
ix. Oil Refinerl'
x. Cement Manulacturing
(5 Marks)
qgfud s{rflul * srq
fr) @ il +} +qrsdir
i sniTkd 1p1i9 er,IT
ii.mrrraqfo
iii. arrn ir;q
(c) Erplain an)'tno with a suitable example.
i. Imputed cost
ii. Cost Unit
iii. Cost Centre (2.5X2=5Marks)
(q) f{fuq*tcr 6i+n 3Tpf t ofu eilrqfddrrdfusqfr*r+rf*-ssrn 3Trsd{frqrqrartt
(d) \l'hat is meant b1' Idle Time and state how it is treated in cost accounts?
(5 Nlarks)

(q) aTT ckcpT ryd fuA 6F-6e t *r qrqn ii T6 wi qmqqot t,

(e) What is Profit Volume ratio and why is it important in busiiness?
oyrs Marks)
(s) Frrqf,dfua i € Hrfr-{*Tertr6t -
i. sElrg
ii. f{r
iii. rr{rE *4 pntre
iv. <trrwi
(a) Describe an!' three of the following -
i. Scrap
ii. Waste .

iii. Spoilage
iv. Defectives (3X2=6Marks)

I
 page 6 of l0

(s) ti€R q-dr dgr sr srfu rnq frsrfufua 6+{i sT <vrlm t:

sfidfr I eil-frils: soo tker4 fiE{+
qi-dtr fe-ftT t yrs, 2oo
Tfre r 4.2s fi
5
et H
qrdt fr*-dTqyru, Tfur4. lo fiett
l2 l5o
qq-{fr 20 fr*-dr t yrs, 3oo
Ttc r 4.so ff <t €
q{-cfi 25 frhngyrs: 4ooTfur1fi<td
ulqlfr61ffiiacrft1fu6 q-r.
qq-dt 4
-200 qkc. w{dft r0 - 400 qfu. qrrs rs _ r00
?6 - 2oo qfrc. srdt 30 _ zso qfrz
{frc.qrdf.re _ r001fu, vr
frriq HT srrd fuirrT .ee.,T qreq, e** qr6rEi, +
kd q{ fu-,{r qr+r tr
qq-dfr qr6 * ftru uir6; {rqq fr t]-sTi e-S *w fuir
(b) The Receipt side of the stores Ledger Account
shows the follorving particulars:
Jan. I Opening Balance: 500 units (a-, a 4
Jan. S Received ltom vendor: 200 units @ ? 4.25
Jan. lZ Received l.romvendor: 150 units (@, t 4.I0
Jan. Z0 Received from vendor: 300 units @)t4.50
Jan. 25 Recei'ed from vendor: 400 units @ 14
Issues of materiils lvere as follows:
Jan 4 - 200 units. Jan l0 - 400 units, Jan 15 100
- units, Jan
200 units. Jan 30
19 - 100 units, Jan 26
- 2S0 units.
Issues are to be priced on the principar of ..first
in lirst out,,.
write the Stores Ledger Account in respect of the materials
for the month of January.
(10 Markr
(1T) grdRIHqI fr:
i. q.dii* HKr drrril s{i i EqR qrs 6rdr t srqrr. ,rq 3frr
dir q,fi-"6d
I
;i. ffiysqTdndi+qftqtfrs)
Trq t w+ snar tt
i i' t srrro * q'EE frq T q orffiq<t
i
* qrd * fo fuR r6t t fu{ fu ,rq qt{i t qt fi+EET!

;v' $ 6p6 ffi $ frq qq fu*€ q+ 3{q-{rq

t +=qr+r qT H.F.'T i, s+ EF6r Enf,r l
v' t orro qt sdqrd* wrt if qkilfq * srq v-rqT .nrila ".,i
i Frq *a t ut_-*o qrar tr
(c) Fill in the blanks
i' In classifying costs by'erements, we have materiars, rabour and
ii. The addition of all direct costs is known as
iii' Cost which are fixed for a given range of activitv
level but which change discretelS
for ranges of activity revers beyond the given ranges
are carted
'iv' costs which may be saved by the adoption of a given
alternative option unorn,
"I
 ._-__-

Page 7 of l0
v. Costs which vary in direct proportion
with changes in activity levels are called
inlsr."&= Le{.-

(q) sqifufr rqrffiro errr#*.s

fr gw Evrvflq m tr
(5lVlarks)

(d) What are the main features

of Marginal Costing?

s (s) (4 Marks)

ffilm;ffi}$mT-T.s
m,nT,;H i &.,* #
drq.
{.
#H
-;T
"tu ffi sd
.+
drrd. tuTr,r qq,,*qfl

illl iI TL i{*: lll x ;:':4;;,; worr *p"o,.;ffiffiT;:,:T:Ii

showin
; l#., ;
"[ffi,HT:
g prime cost,
;
nc crn,
:::ffi i,ill,"lT:t
Cost and Total Cost:
r

u-+nFr6qriy
y{ffi 6-At qrm Amount (Rs.)
Raw }laterials used q 2,00"000
€?rrBfue6-+nffi
Repairs to Plant & Machine.r, ..,ps tc\
B'nqTstuEE
Rents & Rates, Factorv**
6Eq{ifiHqfr+-ffiq{m
Loss on Sale of Company.,s
property
qlrndrq )A
Tral'elling Expenses t 6,500
BflresTsrfr
Productive Wages q 1,50,000

dT{s+{q{ftili-qr@
Depreciation on plant & Machinery\! 8,500

Depreciation on Office fu.nitu.e & Equipment

hJ_^

Director's Fee
mitrq*'r*r+t:,+ffi
NI"""g1Salary (3/4,n factory., l/4,h office)
16,000

Utilities, Factory 3,000

W
Utilities, Phh{-, 1,000
qFITEIar{I
General Expenses

r
 Page 8 of l0

t'""""'
i Preliminary Expenses
frqfi ,ni {TrqBqi w srT.rfr qrsr
Carriage Inwards on materials purchased

TrdlTftqT
qqr illTiTr
t
j Dividends paid
f*-flqr sfuA. +.rqiw
Rents & Rates, Office SJ.,*'
qg srt sTEfr lr$ wrfr
!Vritten off Goodwill
drrrd + 3rfirr fu{fr Tc + q-qtrEMH
fi T$
Give annotations in respect of anv item excluded from cost. (r5 Ir
(s) drrrd asim{ s-r Ercq re{tr HT t,
(b) What is the main object of Cost Accounting? (5 Mr
(q) fu{fufua + d}q i}iil{ artrrq (gFArf; sr gfi scr6{ur il:
i. F.q6 Tsrq $fu sqtHK ted lk-fcl
ii. !=[TeHlenwErl 3+{qkqrmT1frr1erreq;ruT
(c) Distinguish the following (Give one exampte of each):
i. Joint Product and By Product
ii. Operating Costing and Operation Costing
2.5X2:5 M
qFI III - 6s.t 6 tqtfr*. - srffi1
Section III - (e. No. 6 Theoretical - Computsory)

,r/
6. (s) ffi sBtr q"naft ffi 66t & gsm ei €rq tl
(a) What is Double Entry System? What are its advantages? (5 Ma
({il) qqr xuFrr{ s} qfu{rkd +tr srq * qfi x'urr{ 3fu qfi fu * *u n *, t frrcil +1 fir+qr
(b) Define a Debenture. Also enumerate the points of distinction between a Debenture
a Share. (6 Ma
(r) lrqqffs fr ftfitsr tQz crO q'ffi sfu Hrnrrf, 6rH tffifun q-dfr + eref. un+ 3fu 3rsl
der 3q3iFdr + 3{Pf tf,f ws str
(c) Explain the meaning, advantages and disadvantages and suitability of Straight I
and Diminishing Balance methods of Depreciation. (9 Mar
7. (s) frqfrbattfuffi*+1+qs6t:
i.3rs{(r$fur
 (a)
ii d+rrHiarffi
iii. {r{.eYw
Explain any two of the following:
i. Underwriting
ii.Issue of Bonus Shares
iii. Rights Issue
Page 9 of 10
ry\ftn
w
(2X5=10 Marks)
(q) 1u** frlqts t 100 s+fi Rq t 10,000, 12% fu{+€ xuiwr snrt orm tr qfr xqryT
turftrtuasqttdv+dyfrE*,
; { sqftq q{ ++fu t efrt :x * fiftqq qr qrt fmq qrt tr
ii. a s% frfr€rq q{ ffiq t sfu 2% qgr q{ qFft.fmq vrt tr
(b) PQR Ltd' issues 10,000, l27o Secured Debentures of t 100 each. Give journal entries if
the debentures:
i. Are redeemabre at par and are issued at a premiu m
of 3oh.
r ii' Are redeemable at
-- a- premium
r' lv q,u
of r57o
v' and .rc
are rllu.u at a ulscoun
issued 4t discou nt of 2oh.
/
(2X5=r0 Marks)
,U, Hgffi ffr euifi s) qfuilflrd mtr rnro it r{ga
$r HqftqT ft's oTprfrqq t ftt6-a dd tz
(a) Define Joint Stock Companies. Joint Stock Companies in
rndia are governed by which
Act? (5 Marks)
(u) mfuq q( ffi srwft*{TftF$66tt efu e}otr}uri*qrfr*iqimr e+pf il
(b) what is issue of shares at premium and what do you mean by issue of shares
at
discount? (5 Marks)

0r) etrd eqr q{ dftTsfroTuftfu}r

(c) Write short note on Suspense Accounts. (4 Marks)
(q) ffifutr i t t+-6 6 *1 qturrkd Edt-
i. qrqRecT
ii. HTrr 3fuErfrroT
iii. dan qi{
(d) Define any tw,o of the following-
i. Trading account
ii. Profit and Loss account
iii. Balance Sheet.
(3X2=6 Marks)
e' 3l qrd20ls 6)trcAr+&Yh€ffnssqSlit*frt2,260*rlq+)qsrfq1 sdi:r qrdt
gf t lo,ooo ft T{trfrr + +{ *fi 6} ti
qt, fr1 wr
g-fi + z16 q?il qeidr t fr sq. drfrg, + Td,
*q-m r 84,000 + ++, *1ilfsc fr'qr rrqr Efl
v*;qr{ -rd qr6 t +flq qrt flme.rq.,r^ooo \, i
iqit ii t t z,soo * *di rfu + * fuqr rrqr en sfu *q H.r
ry q,d grf,rqrrqrfr s *.r ftsr efl
qTH gfr fr ffifuo TrTFii 61 fi <qTfuT qil prT:

s/20Bco/16-P-lll-2
 Page l0 ofl0

6 effi %ffi * n+en r 3,320 mFffi 1u.+-d *"++ mft$; aer €) 3r"{t{it t aqwi v*
ffi{rrd*yfrt 5,000/-
qrq gs i rc <qrtm fr q* 1 q-{srt yfrrifuii q{ an$ t sq ii t 6,000 qf, fsqt efl iln t qrs
* sq it r s0 gt{ d* yqn * sq it t zo *1 srnX-o frqr ir W ilS ii TT drft, yrftrdi, qrs gnfr
ffd.$vfrerfrfrt
q6krwrr rfifrt*EdSii zo qrdsli;Bettmwrqtqlritt 110 6q PITI

3 I qrd 201 5 fi ftrfr * n+un rm 6* sq'Eilq kd{ul tqn 'Stt

On 31" March, 2015 the Cash Book of lfls:=Illq ll$hgl!-showed a balance of !!@
at bank. They had sent chequ., u.orn-ting to t 90,000 to the bank before 31" Marcho
but it appears from the Pass Book that cheques worth only t 84,000 had been credited
before that date. Similarly, out of cheques for t 85,000 issued during the month of
March, cheques for t 2,500 were presented in April, the remaining having been paid in
March itself.
The Pass Book also showed the following payments:
(a) t 3,320 premium (On the joint life policy) according to standing instructions; and
(b) t 5,000 against a promissory note, as per instructions'
The Pass Book showed that the bank had collected t 6,000 as interest on Government
securities. The bank had charged interest t 50 and bank charges, { 20. There was no
entry in the Cash Book for the payments, receipts, interest, etc'
It was found that the total to the credit Bank column in the Cash Book on 20th March
wastll0short.
Prepare the Bank Reconciliation Statement as on 31" Nlarch, 2015
(20 Marks)

10. (6) fr-{ 6RUit t qfisrqfr q.r qcoru drcr il qw-arv * frq q+en Bq qr} fr wT enqrqo-m il
(a) What factors cause depreciation of an asset? What is the necessity of provision for
depreciation? (10 Marks)

(q) \rfi sSt t W, 2011 ft1 ( s0,000 {Fr ft qs qrtr{ fi sfiE fir vfr e{ to YFdYrd fr E{ t
grdr {rnr tr q,{ eftHS 31 qd *1 3{Ffi qkft *1
Tqarfi * Csm
H'rar A r t qrd zo to
EiE

*1"o'* qiq fuim+ q{ * frq *fi}sr f* mO refr *{ ETfrH Gttq srs1 {cq q-{ft *
3{?tr{ qarT-erarr q{ffi tor fon .Rtt

(b) A lirm purchased machinery on 1" June, 2011 for t 50,000. Depreciation is written off
@ l0% per annum. The firm closes its books on 31" March every year. Prepdre
Machinery Account under Straight Line Method and Written down Value Method
separately for five accounting years ending 31" March,2016.
(10 Marks)