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B.Com. II Semester (NEP) Degree Examination,
September/October - 2022
Advanced Financial Accounting

Time : 3 Hours Maximum Marks : 60

Note : Answer all sections.

SECTION - A

Answer the following sub-questions, each question carries one mark. 10x1=10
1. (a) What is insurance claim ?
(b) What are the types of insurance claim ?
(c) What is hire purchase system ?
(d) What do you mean by cash down payment ?
(e) What do you mean by departments ?
(f) State any one expenses which are allocated on net purchase ratio.
(g) What do you mean by branch ?
(h) Give any one objective of branch accounting.
(i) Give the meaning of single entry system.
(j) State any one features of single entry system.

SECTION - B

Answer any four of the following questions, each question carries five marks.
4x5=20
2. Briefly explain the various methods of foreign currency translation.

3. A fire occured on 16-12-2021 in the shop of M/s Krishna & Bros. From the following
information ascertain the claim to be lodged.
Sale from 01-04-2021 to date of fire ` 3,00,000 stock 01-04-2021 ` 50,000
Purchases from 01-04-2021 to date of fire ` 2,00,000 wages from 01-04-2021 to
date of fire ` 50,000 other manufacturing expenses from 01-04-2021 to date of
fire ` 20,000
The rate of gross profit is 20% on sales. The stock salvaged was valued at ` 10,000.

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4. Mr. Shivanand purchased on 01-01-2019 machines on hire purchase system. The

total payment being ` 2,00,000 and the payment was to be made as under on
signing the agreement on 01-01-2019 ` 32,000. At the end of 2019 ` 54,000. At
the end of 2020 ` 70,000. At the end of 2021 ` 44,000. Interest was charged by the
vendor company at 10% p.a on the unpaid balance.
You are required to ascertain the cash price of the machines.

5. From the following information prepare departmental trading account :

Opening stock Dept X 20,000
Dept Y 40,000
Purchases Dept X 1,20,000
Dept Y 1,60,000
Sales Dept X 2,50,000
Dept Y 3,00,000
Closing stock Dept X 10,000
Dept Y 20,000
Transfer of goods from Dept X to Y.

6. Prepare statement of affairs from the following information.

`
Creditors 50,000
L&B 50,000
Cash 60,000
B/P 50,000
O/S incomes 6,000
Furniture 40,000
Debtors 1,00,000
Stock 60,000
B/R 70,000
O/S expenses 10,000
Rent paid in advance 6,000
Loose tools 20,000
Bank loan 50,000

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7. Anand purchased a vehicle from Bajaj Auto Ltd. on 01-01-2013 on hire purchase
system and agreed to pay interest at 15% p.a. on unpaid balances of cash price.
He paid ` 40,000 on signing the contract and the balance in the following three
annual installments.

on 31-12-2013 ` 1,74,000

on 31-12-2014 ` 1,56,000

on 31-12-2015 ` 1,38,000

Ascertain cash price and interest of each installment.

SECTION - C

Answer any three of the following questions. Each question carries ten marks.

8. A fire broke out in the premises of Sachin traders on 03-08-2015. From the following
information prepare statement of fire claims. 3x10=30
`

Stock on 01-04-2014 60,000

Purchase of 2014-15 3,00,000

Sales of 2014-15 4,00,000

Wages of 2014-15 40,000

Carriage of 2014-15 20,000

Stock on 31-03-2015 1,00,000

Purchase from 01-04-15 to date of fire 2,00,000

Sales from 01-04-15 to date of fire 3,50,000

Wages from 01-04-15 to date of fire 30,000

Carriage from 01-04-15 to date of fire 10,000

Stock salvaged & returned 15,000

Expenses incurred on extinguishing fire 5,000

Returns outward from 01-04-15 to date of fire 20,000

Returns inward from 01-04-15 to date of fire 50,000

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9. ABC Co. Ltd. acquired on asset on 01-01-2019 of the cash price of ` 3,72,400 on
hire purchase system, payable ` 1,00,000 on signing the agreement and balance
in three equal installments of ` 1,00,000 each at the end of every year. Interest
is charges at 5% p.a. ABC Co. Ltd. provides depreciation at 10% p.a on reducing
balance method.

Show the necessary accounts in the books of ABC Co. Ltd.

10. From the following information prepare the departmental Trading & P & L A/c for
the year ending 31-12-2013.

Particulars Dept A Dept B Total

Opening stock 12000 10000 22000

Purchases 124000 62000 186000

Sales 203000 152000 355000

Returns outwards 4000 2000 6000

Wages 8000 15000 23000

Salaries to staff - - 50000

Rent & Taxes - - 9000

Discount allowed - - 7000

Discount earned - - 6000

Carriage outward - - 2800

General expenses - - 8400

Other information :

(a) Office staff appointed Dept A. 4 persons and Dept B. 6 persons.

(b) Depreciation on machinery worth ` 1,00,000 at 10% & furniture worth

` 30000 at 20% to be distributed between the departments equally.

(c) Area occupied A. 600 sqft . B. 1200 sqft.

(d) Stock of goods on 31-12-2013 Dept A ` 16000, Dept B ` 8000.

(e) Inter departmental transfers Dept A to Dept B ` 20,000. Which is not included
in the above information.

(f) Exclude interdepartmental transfers for calculation of ratio.

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11. From the following informations prepare the branch account in the books of head
office. All the expenses are paid by the head office & daily collections of branch
are remitted to head office.
Stock on 1-4-2021 ` 7,500
Stock on 31-03-2022 ` 12,500
Debtors on 01-04-2021 ` 5,000
Debtors on 31-3-2022 ` 7,000
Petty cash on 01-4-2021 ` 15
Petty cash on 31-3-2022 ` 10
Goods sent to branch ` 35,000
Cash sales remitted to head office ` 15,000
Cash collected from debtors &
remitted to head office ` 14,000
Cash sent to branch for
Salary 800
Rent . 200 ` 1,000
Discount allowed to customers ` 300
Bad debts ` 200
Goods returned by branch ` 2,500

12. From the following information furnished by a trader who keeps his books of
accounts on single entry system. Prepare his trading and P & L A/c for the year
ending 31-03-2007 & the B/s as on that date.
(a) Summary of cash transactions for the year 2006-07.
Bank overdraft on 01-04-2006 60,000
Opening cash balance 12000
Cash Sales 138000
Drawings 30000
Manager’s salary 24000
Rent 12000
General Expenses 42000
Wages 48000
Paid to creditors 372000
Received from debtors 450000
Cash in hand on 31-03-2007 3000
Cash at bank on 31-03-2007 9000

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(b) Other assests & Liabilities as on :

31-3-07 1-04-06
Building 240000 240000
Machinery 24000 24000
Stock 162000 132000
Debtors 72000 54000
Creditors 78000 90000
(c) Other information :
(i) Depreciate building & Machinery at 10% each
(ii) Provide for doubtful debts at 5% on debtors
(iii) The manager is entitled to commission at 20% on the net profit and the
same is to be provided for.

-oOo-

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