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Res. No. : ..1i.9... !3. 8....t4..9.9.3..'

Name, ...$r^dl*okL*s* r-S. r.hr.**^'

Second Semester B.Com. Degree Examination, July 2015

(Career Related First Degree Programme Under CBCSS)
Group 2(b) : Commerce with Computer Application
Core Course : V
CC 1242 - ADVANCED FINANCIAL ACCOUNTING
(2013 Admn.)

Time : 3 Hours Max. Marks : 80

SECTION _ A

Answer all questions on one word to maximum two sentences. Each question
carries 1 mark.
I

t'I t. What is the decision in Garner Vs Murray ?

2. When all the partners of the firm are said to be insolvent ?

3. Define partnership deed.

4. Define partnership.

5. Write any two factors that give rise to Goodwill.

6. For what purpose revaluation account is prepared.

7. Define branch Accounting.

8. What is cash in transit ?

9. Branch'expenses paid by the branch. What is the journal entry in books of

a branch ?

10. Write journal entry in the HO books for dispatch of goods to branch by H.O.
(10x1 =10 Marks)

P.T.O.
 4763 -2- Iillllr]lr

SECTION _ B

Answer any eight questions not to exceed in one paragraph. Each question carr
2 marks.

u 11. When a partnership is dissolved ?

12. The profits of a firm for the year ended 31st March for the tast five years werr
as follows :

2009 Rs.20,000
2010 Rs.24,000
2011 Rs.30,000
2012 Rs.25,000
2013 Rs. 18,000
Calculate the value of goodwill on the basis of 3 years purchase of weight
average profit after weights 1, 2,9,4 and 5 respectively.

/13. what is gaining ratio ? when gaining ratio is calculated ?

hq. Write journalentryforadjusting goodwillaccount in capitalaccounts white retirit

a partnerfrom the firm.

ItS. Sneha and Pradeep are paftners, sharing profit in the ratio of 5 : 3. They adr
Nisha as a new partner for 1/6 share in profit. She acquires this share as 1
from Sneha and ll24sharefrom Pradeep. Calculate the new profit sharing rat

16. Explain debtors system in branch accounts.

/ 17 - A, B and C are equal partners sharing profits and losses in the ratio of 3 : Z :
B and C are entitled to received a salary of Rs. 500 and Rs. 300 per mon
respectively. The profit earned by the firm during the year amounted to Rs. 5B,O(
before charging salaries of the partners. Find out the total amount due to ear
paftner.

f tA. fxptain fixed capital method for maintaining capitalaccounts of partners.

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19. What are the modes of dissolution of partnership firms ?

20. What are methods followed under Piece-meal Distribution ?

What are the adjustments required while admitting a new partner ?

i21.
/'22. What are the different types of partners ? (8x2=16 Marks)

SECTION _ C

Answer any six questions not to exceed in 120 words. Each question carries four marks.

Z\ from the following balance sheet of X and Y, calculate interest on capitals

@ 1l/op.a. payable to X and Y for the year ended 31st December, 2008.
Liabilities Amount Assets Amount

X's Capital 50,m0 Sundry Assets 1,00,000

Y's Capital 40,000 Drawings X 10,000

P and L Appropriation A/c (2008) 20,000

1,10,0m 1,10,000

Duringtheyear2003, X'sdrawingswere Rs. 10,000andYs Drawingswere Rs.3,000.

Profit during the year 2008 was Rs. 30,000

24. What are the various accounting aspects involved on retirement or death of a
partner ?

2*"Murli, Naveen and Omprakash are partners sharing profits in the ratio of gl8,1t2
and 1/8. Murli retires and surrenders z?rd of his share in favour of Naveen and
the remaining share in favour of Omprakash. Calculate new profit sharing and
the gaining ratio of the remaining partner.
\
26)Hanny, Pammy and Sunny are partners sharing profits in the ratio of 3 .2: 1.
Goodwillis appearing in the books at a value of Rs.60,000. Pammy retires and
at the time of Pammy's retirement; goodwill is valued at Rs. 84,O003efrn Ad
Sunny decided to share luture profits in the ratio of 2:1. Record the necessary
journalentries.
 -4- llltil ll|fllllll llllllll lll
4763 I

I
/ Zl. 3:2:1
Mitali, lndu and Geeta are partners sharing profits and losses in the ratio of
respectively. On March 31,2012 their Balance Sheet was as under:
Liabilities Amount Assets Amount
(Rs.) (Rs.)

Sundry Creditors 55,000 Goodwill 25,000

Reserve Fund 30,000 Buildings 1,00,000

CapitalAccounts : Patents 30,000

Mitali 1, 50,000 Machinery 1,50,000

lndu 1,25,000 Stock 50,000

Geeta 75.000 3,50,000 Debtors 40,000

Cash 40,000

4,35,0m 4,35,000

Geeta retires on the above date. lt was agreed that Machinery be valued at
ns. t7flffiF-atents at Rs. 40,000; and Buildings at Rs. 1,25,000. Record the
necessary journal entries and prepare the Revaluation Account.

28. What are the methods of valuation of goodwill ?

29. What are the objects of Branch Accounts ?

30. What are the reasons for the disagreement between Branch A/c in Head office
books and Head Office A/c in Branch books on the closing date ?

fl. nllls Mamata Traders of Kerala have_a branch at Kannur. The following are the
transactions for the year ended 31st ffi
Opening Balances (1 -4'201 3) Rs.

Stock 50,000

Debtors 40,000

Petty Cash 2,000

Goods sentto Branch 1,50,000

Cash sent to Branch for -

Salary 5,m0
Rent 6,000

Petty Cash 5,000

 4763
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Cash received from the Branch from

Cash Sales 1,50,000

Cash received from debtors 1,20,000

Closing Balances (31 -3-201 4)

Stock 25,m0
Debtors 20,000
Petty Cash 1,000
(6x4=24 Marks)
Pass journal entries in H'O' Books'

SECTION -D

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a$snoen
partnership on 31st March 2012 when their balance sheet was
Liabilities Rs. Assets Rs.
15,700 Bank 535
Creditors
6,300 Debtors 15,850
Employees Provident Fund
Stock 25,200
Capital Accounts :
800
A40,000 Prepaid ExPenses
20,000
B 20.@ 60,000 Plant and Machinery
Patents 8,000
C's CaPital A/c 3,200
D's CaPitalA/c 8,415
92,000 92,000

Following information is given to you :

was Rs' 5,000
1) one of the creditorstooksome of the patentswhose bookvalue
was paid at a discount of
at a valuation of Rs. 3,200. Balance of the creditors
Rs.400.
balance sheet)
2) There was a joint life policy of Rs. 20,000 (not mentioned in the
and this was surrendered for Rs' 4,500
: Debtors Rs' 10,800;
3) The remaining assets were realized at the following values
at 60% of their
stock Rs. 1s,ooo; Plant and Machinery Rs. 12,000 and Patents
1,500'
book-values. Expenses of realization amounted Rs.
rupee was received in respect
D became insolvent and a dividend ol2'paise in a
ledger accounts'
of the firms claim against his estate' Prepare necessary
4763 Illllllliltffilflililililll

33. Arunodaya Agencies opened a branch in Bangalore on 1st January, 201 3. Goods
Wereinvojcelatsellingpricffiw","i.o,tplus25per-cent.Fromthe
following particulars relating to the year 2A13 you are required to prepare different
accounts under the "Stock and Debtcrs System".
Goods sentto Branch Rs. 3,00,000
Sales: Cash 1,00,000

Credit 1,40,000
Goods returned by Customer 3,000
Cash received from Customer 80,000
Discount allowed 1,000

Cash remitted to branch lor : Rent 1,500

Branch Salaries 6,000
(..
Sundry Expenses 1,000

Defective goods written off 1.000

r
Goods returned by branch 12,m0
Stock at end 50,000

34. Bhanu and Etika are partners sharing profit and losses in the ratio of 3 : 2 respectively.
Their Balance Sheet as on March 31, 2013 was as under :

Balance Sheet of Bhanu and Etika as on March 31. 2013

Particulars Amount Particulars Amount
(Rs.) (Rs.)
Creditors 28,000 Cash in hand 3,000
Capitals: Cash at Bank 23,000
Bhanu 70,000 Debtors 19,000
Etika 70.000 1,40,000 Buildings 65,000
Furniture 15,000
Machinery 13,000
Stock 30,000
1,68,000 1,69,000
 a;t63
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onthaton",@\}pakintopartnershiplor1i3shareinfuturepro{iton
the following
term*'- by 10%'
i) Furniture and stock
*::: r be depreciated
Rs' 20'000' debtl'^^
ii) Buildinn tt 'OO"tt:"l-T o" rr doubtful debts'r0
Debtors for
is to be ,o""0 ano ns. 30,000
- ^ goodwill,
as ^^^rrrrrill
goodwill'
iii) s% oror,r,on as n,,,"0n,
to bring in Rs. 50,000
. iv) Deepak rs
in the
*":
Makenecessaryledgeraccountandbalancesheetofthenewtirm. prorits
sheet 9' A:I':tT::':l #'H[tl'H[
3s. rhe Barance betow :n"'"n31 2013
: 2' is given
ratio of 5 : 3 :-'-';T;:;t
-:;^n tuX*'n As on March '
"-"' Assets
BalanceSheetotnsnisn,sureshandLokeshAsonMarch3l,20l3 ^H:I
Liab*ities 4'00'000
Land 3'80'000
capitals: Building
Shyam 7'20'000
O'110^OO
Plant and Machinery
ru Fittings
G"g"; 4,15,000 ra no 000 t[:';"'"
14'80'000) Furniture and ' qr
'-''-'?oo
Ram 3.45.000 1
'85'000

i:H:::fftDeb'1ors
:::il'J;:i",,
ExPresses
;J
'1?'*o

'l'';'ffi
Outstanding ,r,;;,ffi are agreed upon
his
adiustments
and tottoiing
the above date
sur.uffi"@
retirerrbgt-:-/ e zo AAo
*as valued at Rs' '72'ooo'
1
1) ;; uland

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dec ded n"'i.

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or 2

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reconstituted tirm'