No. of Printed Pages : 8 ECO-14 C\J 00 ct- C:) BACHELOR'S DEGREE PROGRAMME Term-End Examination June, 2011 ELECTIVE COURSE : COMMERCE ECO-14 : ACCOUNTANCY-II Time : 2 hours Maximum Marks : 50 Note : Attempt any- four questions including question no. 1 which is compulsory. 1. Attempt any two of the following questions : 7, 7 (a) Write short notes on the following : (i) Cash in Transit (ii) Goods in Transit (b) Describe the advantages of Departmental Accounts. (c) Explain the legal provisions relating to the utilization of share premium. (d) What is profit prior to incorporation? How is it calculated and accounted for in books of account? ECO-14 1 P.T.O.
2. From the following information, calculate : 12 (a) Debtors Turnover Ratio (b) Average Collection Period (c) Creditors Turnover Ratio (d) Average Payment Period given : Rs. Total sales 4,00,00,000 Cash sales 40,00,000 Creditors 12,00,000 Bills Receivable 8,00,000 Bills Payable 60,000 Debtors 40,00,000 Bad-debts 50,000 Purchases 1,50,00,000 3. A and B share the profits of a business in the ratio 12 of 5 : 3. They admit C for 1/4th share in Profits and Losses to be contributed equally by A and B. On the date of admission of C, the Balance Sheet of the firm was as follow : Liabilities Rs. Assets Rs. A's capital 40,000 Machine 30,000 B's capital 30,000 Furniture 20,000 Creditors 2,000 Stock 15,000 Provident Fund 10,000 Debtors 15,000 Reserve Fund 4,000 Bank 6,000 86,000 86,000 ECO-14 2
Terms of C's admission were as follows : (a) C will bring a total amount of Rs. 30,000 which will consist of his share of capital and goodwill. (b) Goodwill of the firm has been valued at 3 year's purchase of the average super profits of last 4 years. Average profits of the last 4 years are Rs. 20,000 while the normal profits that can be earned with the capital employed are Rs. 12,000. (c) Furniture is to appreciated by Rs. 6,000 and the value of stock is to be reduced by Rs. 2,000. Provident Fund be raised by Rs. 1,000. Prepare Revaluation Account, Capital Accounts and the new balance sheet of the firm. 4. Y Ltd. issued 10,000 shares of Rs. 10 each payable 12 as follow : Rs. 2.50 on application, Rs. 2.50 on allotment, Rs. 3 on Ist call and Rs. 2 on final call. A holding 200 shares did not pay the allotment money and first call, and his shares were forfeited. Final call was made after forfeiture. B, holding 500 shares failed to pay the final call and his shares were forfeited. Make Journal entries and prepare the Balance Sheet. ECO-14 3 P.T.O.
5. Anamica Ltd. issued 1000 14% Debentures of 12 Rs. 300 each at a discount of 5% on January Ist 2005. Interest on these debentures is payable annually on 31st December each year. Debentures are redeemable at par in three equal instalments at the end of third, fourth and fifth year. Prepare 14% Debenture Account, Debenture Interest Account and Discount on Issue of Debenture Account for 2005 to 2009. 6. State the characteristics of a hire-purchase 12 agreement. Discuss the similarities and dissimilarities of Hire Purchase System and Instalment Payment System. ECO-14 4
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