RAM-57

104 : Financial Accounting and Costing

(811040)
Total Pages : 3]
Time: 2 Hours Max. Marks : 60
Instructions to Candidates-
1. Do not write anything on question paper except seat no.
2. Answer sheet should be written with black ink only. Graph or diagram should be drawn with
same pen used for writing or black HB pencil.
3. Student should note that no supplements will be provided.
4. Question No.1 is compulsory. In addition, Attempt any one question from Q.2 and Q.3
5. Attempt any three questions from section II
6. All questions carry equal marks.
7. Use of simple calculator is permissible.

Section -I
1. A) Write Precise answers on Financial Accounting (any two) 6
a) What are the Objectives of Accounting Standard?
b) What is the necessity of Amalgamation?
c) Define Joint Venture. Write the features of Joint Venture
B) Write Precise answers on Costing (any two) 6
a) Distinguish between direct and indirect labour. Give examples
b) What is cost sheet? Give a specimen of cost sheet.
c) Write a note on classification of cost.
2. Calculate –
i] Prime Cost ii] Factory cost iii] Cost of Production
iv] Total Cost and v] Profit 12
Direct Material Rs.1,25,000
Direct wages Rs.30,000
Direct Expenses Rs.10,000
Factory Overheads Rs.15,000
Office Overheads Rs.10,000
Selling & distribution Overheads Rs.5,000
Sales Rs.2,00,000

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3. From the following information prepare a statement of Cost. 12
Direct Material Rs.60,000
Direct Labour (20,000) 1/3rd of Direct Material Cost
Direct Expenses (20% of 80,000) =16,000 20% of Direct material & Direct labour Cost
Factory Overheads (12,000) 1/8th of Prime Cost
Office Overheads (27,000) 25% of factory cost
Selling & Distribution Overheads (13,500) 10% of cost of Production
Profit (29,700) 20% of total cost

Section-II
4. Following is the Balance sheet of Anil Sunil, and Manish Sharing Profit and Losses in the
ratio of 2:1:1 respectively. 12
Balance Sheet as on 31-03-2022
Liabilities Amount Assets Amount
Capital Account Machinery 40,000
Anil 20,000 Debtors 30,000
Sunil 16,000 Stock 12,000
Manish 14,000
Creditors 32,000
82,000 82,000

The partners decided to dissolve the firm and the assets were gradually realized as follows-
Ist Instalment-Rs.30,000/- IInd Instalment- Rs.14,000/- IIIrd Instalment - Rs.26,000/-
Show how the proceeds should be distributed as and when realized as per Surplus Capital
Method.
5. Star, Moon and Sun were partners in Partnership firm sharing profit & Loss in the ratio
2:1:3. They decided to convert their firm into a limited company on 31 st March 2022.
Capital Balance as per their profit-sharing ratio. Pass the Journal entries to close the books
of the partnership firm. 12
i) All assets amounted to Rs.3,88,000 (excluding cash of Rs.12,000) taken over by new
company at Rs.3,80,000.
ii) All current liabilities of Rs.34,000 taken by new company at Rs.30,000.
iii) General Reserve amounted to Rs.66,000 stood in balance sheet.
iv) Company agree to pay the purchase consideration of Rs.3,50,000/.
v) Company Settled the purchase consideration by 3,300 equity (shares of Rs.100 each
and balance in cash Rs.20,000)

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 vi) Realization Expenses amounted to Rs.8,000
vii) Partner agree to share Realization loss of Rs.12,000
viii) Partners agree to share equity shares in profit sharing ratio.
ix) Balance cash of Rs.24,000 distributed by partners.
6. Abhinav and Vaibhav entered into Joint Venture and agreed to share Profit and Losses in
the ratio of 3:2. They opened a Joint Bank in which Abhinav and Vaibhav contributed
Rs.30,000 and Rs.20,000 respectively. They also brought goods Abhinav Rs.10,000 and
Vaibhav Rs.5,000. 12
They purchased goods worth Rs.35,000 and incurred expenses of Rs.12,000. The Goods
were sold for Rs.90,000 except goods of Rs.5,000 unsold taken by Mr. Abhinav. The
accounts were duly settled.
Pass necessary Journal Entries assuming that a separate set of books is maintained by the
Joint Venture
7. M and N were partners sharing profits & Losses in the ratio of 2:1. O and P were equal
Partners. Following were the Balance Sheet as on 31.3.2021 12
Liabilities M& N O &P Assets M& N O &P
Creditors 16,000 12,000
Capital Cash 12,000 4,000
M 40,000 - Stock 36,000 31,000
N 30,000 - Furniture 4,000 4,000
O - 25,000 Debtors 8,000 6,000
P - 20,000 Investments 6,000 -
Machinery 20,000 12,000
86,000 57,000 86,000 57,000

The above two Firms amalgamated on the following terms-

1. Provision for doubtful debts to be made at 5% on the debtors of both the firms.
2. Stock of both the firm to be valued at 10% above book value.
3. Furniture and Machinery of both the firms to be written down by 5%
4. The value of Investment was Rs.7000 but they were not taken over by new Firm.
Prepare Realization A/c, Partner’s Capital A/c, and New Firm A/c in the Books of M
& N Firm.