No.

of Printed Pages : 8 ECO-14

BACHELOR'S DEGREE PROGRAMME

Term-End Examination
00
December, 2011

N-
CO ELECTIVE COURSE : COMMERCE
CD 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) Explain the three systems of maintaining
accounts of a dependent branch by the head
office.

(b) Distinguish between fixed and fluctuating

capitals of partners and list the items that
usually appear on the debit and credit sides
of a partner's current account.

(c) State the legal provisions relating to issue of

shares at a discount and its accounting
treatment in the books of a company.
(d) What is profit prior to incorporation and
how is it calculated ?

ECO-14 1 P.T.O.
2. PQR Ltd. sold a machine to RST Ltd. on 12
April 1, 2007 under a hire-purchase agreement.
The payments were to be made in four annual
instalments of Rs. 84,600 each at the end of each
year which is inclusive of interest at 5% per
annum. RST Ltd. paid two instalments on time
but defaulted at the time of third instalment and
PQR Ltd. repossessed the machinery.

Calculate the cash price and prepare necessary

accounts in the books of RST Ltd. who charged
depreciation at 10% per annum on written down
value method ?

3. Following is the balance sheet of a partnership 12

firm of 'A' and 'B' who shared profits in the ratio
of 3 : 2 respectively as on 31 March, 2010 :

Liabilities Rs. Assets Rs.

Creditors 1,52,000 Cash in hand 46,000
Bills Payable 60,000 Stock 24,000
Mrs. A's Loan 40,000 Debtors 76,000
Reserve Fund 20,000 Machinery 1,12,000
capital :
A 40,000 Furniture 16,000
B 32,000 Investments 40,000
P & L A/C 30,000
3,44,000 3,44,000

ECO-14 2
 The firm was dissolved on March 31, 2010, A
took over investments at Rs. 32,000 and agreed
to pay off Mrs. A's loan. Stock realised.
Rs. 20,000; Debtors Rs. 74,000 ; furniture
Rs. 18,000 ; and machinery Rs. 1,00,000. The
1
creditors were paid at a discount of 2- %
2
B agreed to realize assets and pay off the liabilities
on a remuneration of Rs. 4,400. Give journal
entries for closure of the books.

4. (a) Define fund flow statement, and state the 8 , 4

main sources and application of funds.

(b) State the factors that affect the goodwill of

a firm.

5. The total capital employed in a company is

Rs. 1,70,00,000 out of which Rs. 80,00,000
represents equity capital, Rs. 20,00,000 general
reserves, Rs. 50,00,000 long term borrowings in
the form of debentures and Rs. 20,00,000 bank
overdraft. The current assets of the company are
Rs. 85 lakh, make up of stock Rs. 30 lakh, debtors
Rs. 35 lakh, advances Rs. 14 lakh and cash
Rs. 6 lakh. Compute (a) Current Ratio (b) Quick
Ratio and (c) Debt Equity Ratio. 4+4+4

ECO-14 3 P.T.O.
6. (a) A Ltd. issued 5,000 14% debentures of 8 , 4
Rs.100 each at a discount of 6% on
January 1, 2007. The entire amount is
payable on application. These debentures
are redeemable at a premium of 5% on
December 31, 2009. The interest is payable
annually on December 31 each year and any
loss on their issue is to be written off in three
years. Give journal entries for the above in
the books of the company for 2007, 2008
and 2009.
(h) Explain the concept of unrealised profit in
relation to interdepartmental transfer and
its accounting treatment.

7. Draw necessary journal entries relating to issue 6+6

of shares (a) at par and (b) at premium.

ECO-14 4


i cl Ch '3CartT Ch I ch

1.c1
'F, 2011

r'VeW qicktigt-i : ui ,sti

tA.34.--14

: 2 31fiichr/41 3J : 50

V1-6" : WIT We 3Tr .6,7itg7 f-4-4304i qt9q/ 1 7/1Th7

Terw di6 3e-4ard g.

1. +.§7 if *11%77 "?'10-ii 3htitr7:§RI 7 , 7

(a) 1=f7f
. r' t tn4
sr ff W-171

(b) Tr*r4 a1 T-P-Tr-41 721T lt31 14

tqc11.W 3117, 74TTT 7rIT1r4 .*. tf--4a
7014 kill-H- ' ttlTzff \TO' 1141 iQ W .3"— "U
•41-A7

(c) *srzrif mg f4ri-wi fetTw -graITA

z-A-{fr *WA Tr-RFT. fw 4,411 .4-
7r-414 7rwr r -F-*-zrr \micir t?
-

(d) 197TR-i. A ti.7` -or94 (profit prior to

incorporation) tf T-TT 71-*1 4ftmMti
*-{4 f%-zir t?

ECO-14 5 P.T.O.


2. PQR fc7. 1 31T* 2007 1:rti RST 12

31-4--wq 3f-d-ria 4911 7i--0

- -Fd'i 14 f*-7;11
14 84,600 T. t tilt qlfft f*
21T f:114 5 Trfd-F-d of *f 7TTF-47
RST frl. t Tfrizi TR Wt f-czTT
f*-7-ff Tr-1 r9. 7:frgf (default) et)•&
1 14k PQR fcT. -4 1=1*4 -a-9-ftuT oht f-OzET

.9.Tq 174 (cash price) T 4 R.hol sOf-

MIT RST fT. 14 3 W /NM. I
1:171- 1-i 1 R . T#11. T1 RIRT (written down value
f i t .4 tc-q
method) 34717 10 -51t7iff 5I
tI

3. 'A' MTT 'B' 3 : 2 t 31--ITITU 14 t, 12

Tritiqft NETT "1' 31 Hiti, 20101 F-P-1

211- :

tErat" T. 4 44 TN . T.
.."1.- R 1,52,000 1'1 46,000

tcf f-47 60,000 7ziT 24,000

tifff A Wt itui 40,000 -Kit 76,000

ft74 1-ii5 It 20,000 771711- 1,12,000

A 40,000 M-491 16,000
B 32,000 fTkt4T 40,000
`fffiT-Tri VIM 30,000
3,44,000 3,44,000

ECO-14 6
 31 1-114, 2010 74 -TT fq'gra-ff 1qqi -ITTITI A -4
32,000 T. 14 L64 * fift -ffeTT trtt A * itut
ITT7qTff ctA t.1 4-R1 I trim A. 20,000 T.
- 9-7-4 -4 74,000 T.79-Th7 *1 18,000 T. c .2TT TRW *f

1,00,000. I (-1q14 'T). 2-2-1 %7 -7 yr-dF

tzir Trzir I B 4 tifikiLifivii -P-Trktrata-ff*-

779 F\314-.)qik1 c RTR-1 Ri 3-4 4,400 T. k
, 30 I

- IFTA cf.) 31-m-zrw

Rd
4i

4. (a) -Wfti. -51-47 ?I-47T .T1' LIFOTTEITT-rA7

- 'ff2TT *st * 8 , 4
TiLfzi of 770-4 wr WIFE 1
(b) 1-h -UTTF-d (goodwill) 'T). WITTFTd Th-74 cti

5. *Tit T1. T far-ttezin Tt 1,70,00,000 T. t

fqT114 80,00,000 T. 1; 20,00,000 T.
ft-7-4 ; 50,00,000 T. Waltrl'i* ttLi cltIcnioli
ffq- 20,00,000 T. T-1-4.T 31)-1--(71:a t 1 *tlt
-

Lirk4,-11-rigi 85 7175 T. 'F'T4 30 T. TT

(--e.ich, 35 'TTg. T. * k9-7{ 14 r T.T-1 3tirr 71f4TzTI

(advances) 721T 6 'MU T. r I (a) 11c1

31TO (b) citd 3T-1TO'fft1T (c)
1tui tr-qz1Z1 4 4, 4
7
,

'IuMI

ECO-14 7 P.T.O.
6. (a) A 797ft, 2007 100 T. -5ifff Atur44* 8 , 4
5,000 14% itulL1 ,1 6 -51ft7TU Id IT{ F-141F4-11 fa.)
TriTRifliv 3-Tikqff 'TT tzi t I itur-1715%
ITT 31 fq.#-4.{, 2009 704 t I -Wf
q1 ,3-1 31f014 31 k fqqi zifrif t 'ff2TT 7-9*
f9-T* ITT awl'
t I 7TO 4 zzlziW1 t 2007,

2008 1?-TT 2009 "k 3-7.4vw A4(.1 xi'arbe. ,47

1-F7-R
-

(b) 31T{fq4uTitzt
i n t U r?T4 343-rcTi
(unrealised profit) 4,4,(-411 T1. 0,11i5_,41 =4, s-TR
- ff2T1 -4TT T41-T-r ((gict.)-1 -473- ucbI4, -4-7T
ziitift?

7. (a) 117 v,c (b) 1,4 Hq1-1 3-114 (tzTtl) TT fa711:rff 6+6

7114 cii(41 xrcirtd41 -Tr

, - I

ECO-14 8