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SF-7464] 1 [Contd...

*SF-7464*SF-7464 Seat No.__________

Second Year B. Com. ExaminationMarch / April 2006

Accounting & Finance : Paper I

(New Course)

Time : 3 Hours] [Total Marks : 100

(1) f H .(2) w H I_ k VW H .

1 _ .1-1-2005 . 1-5-2005 20 . V . . 31-12-05

w. w." 31,950 H (25 ) 21,600


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SF-7464] 2 [Contd...

. 31-3-05 o w. 20,000 . hH _ H w. 1,00,000 _ w , 10T H_.


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_ _ w. w.

2000 . " w.100 2,00,000

1000 . " w. 100 1,00,00015 L 1,50,000 L 80,000 10,000 - 2,00,000 L 1,00,000 _h 60,000 20,000 L T 22,500 " 77,500 I 1,50,000 H 25,000 10,000 -^ 40,000 -"L 80,000 H 5,00,000


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_ _ _ , 10_. B _ _ _ .

3 () "L_ _ _ _ Q 10

(W )() "L . . 1-4-05 , 10

N w. 85,00,000 . C _ w. 60,000 _ _. T- w. 10,00,000 . Q w. 10,000 C _ Y. Q _^ w. 90,00,000 F w. 70,00,000. _ C. w. 1,00,000 .

w _ _ __ H.

4 () H _ _ _ h H_ _ . H_ 10__ __ .

() Vw H_ >__ . 10

4 () _ _ H. 10

() QE o{ . 10

5 >_ C ( ) 20

(1) C z "L

(2) L T L

(3) T{

(4) V" @L " L .

(5) y "

(6) |I

(7) L

(8) z "L

ENGLISH VERSION

Instructions :(1) All questions carry equal marks.

(2) Show the calculation with the answer where

necessary.

SF-7464] 4 [Contd...


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1 Ayushi Co. Ltd. was incorporated on 1-5-2005 to take 20

over the business of Paras Traders from 1-1-2005, the

details on 31-12-05 :Rs. Rs.

Office expense 31,950 Sales expenseCarriage outward 12,000 (25% variable) 21,600

Rent 78,000 Debenture int. 5,000

Preliminary exp. 3,000 Bad debt (Rs.550

Director fee 10,000 upto 1-5-05) 1,500

Salary 18,900 Interest on purchase

value (Purchase value

paid on 1-6-05) 3,000

Interest received Rs. 25,000 after 1-7-05.

Other details :

(1) Advertisement exp. Rs. 7,500 included in office expense.

(2) Labours upto 1-5-05 were 60 after ward they were 20.

(3) Average monthly sales of last six months was three

times as of average monthly sales of first six months.

(4) Gross profit rate during the year is same and it is 25%

of the cost price, annual sales Rs. 7,50,000.

Prepare a statement showing profit prior to and after

incorporation.

OR

1 Shri Nathalal applied for insolvency on dt. 31-3-05, his 20

position on that date was as under :Rs. Rs.

Pref. Creditors 10,000 First mortgage on machine 30,000

Unsecured creditors 2,00,000 Second mortgage on machine 70,000

Liability on disc bill 2,000 Receiver expense 5,000

Unsecured creditors includes insolvent's wifes loan of

Rs. 10,000, she has given 80% of the loan from stridhan.

Nathalal has given a car as gift to his friend on

1-1-04 of Rs. 50,000, its cost as on 31-3-05 Rs. 20,000.

He started the business before three years with capital

Rs. 1,00,000. On this capital 10% interest is calculated. Total

profit for first two years is Rs. 1,00,000 and loss of third year

is Rs. 60,000. His total drawings is Rs. 62,000.

Assets Book value Realisable value

Rs. Rs.

Building 0,80,000 50,000

Machine 1,50,000 70,000

Debtors 0,50,000 30,000

Stock 1,20,000 50,000

Cash-Bank 0,18,000 18,000

Prepare statement of affairs and deficiency A/c.

SF-7464] 5 [Contd...


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2 Shobheshwar Store have a branch in Rajkot, sends goods 20

at cost price, Branch sales on cash and credit, Branch sends

daily cash to H.Q. Head office pays all expense of the branch.

Prepare Branch A/c, Branch Trading and profit loss A/c.

On Dt. 1-1-05 : Stock Rs. 20,000, Debtors Rs. 5,000, FurnitureRs. 50,000, Pettycash Rs. 500

On Dt. 31-12-05 : Stock Rs. 7,000, Petty cash Rs. 200

Transactions during the year : Rs.Goods sent to Branch ....................... 3,20,000

Goods returned to H.O......................... 20,000

Goods return from debtors .................... 5,000

Cash received from debtors................. 80,000

Sales Debit ......................................... 2,00,000

Cash.......................................... 3,40,000

Discount to debtors ...................................500Bad debts.................................................... 400

Branch expenses : Rent 4,000, Salary 12,000,

Advertisement Rs. 3,000, Petty cash sent Rs. 700.

Goods destroyed by fire Rs. 1,200, Depreciation on

furniture 20%.

OR

2 The Trial Balance of Vikram Electric Co. Ltd. as on 20

31-3-05 and additional details, prepare according to double

A/c systems. Revenue accounts, Net revenue A/c. Capital

income expense A/c and Balance sheet.Particulars Dr. Rs. Cr. Rs.

2000 equity share each of Rs. 100 2,00,0001000 Pref. share each of Rs. 100 1,00,00015% debenture 1,50,000Mains 80,000 Meters 10,000 Land-Building 2,00,000 Transformers 1,00,000 Machine 60,000 Furniture 20,000 Debenture interest 22,500 Office expense 77,500

Electric generation cost 1,50,000 Electric distribution expense 25,000 Repairs expense 10,000 Salary-wages 40,000 Cash-Bank 80,000 Sales of Electricity 5,00,000Meter Rent 1,20,000Interest on Investment 1,10,000Depreciation fund 2,00,000Contingency reserve 40,000Investment 6,00,000 Debtors-Creditors 25,000 30,000Net reserve A/c on 1-4-04 50,000

15,00,000 15,00,000

SF-7464] 6 [Contd...


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Other details :

(1) Additional during the year :

Land-Building Rs. 1,00,000, Mains Rs. 50,000

Pref. share capital Rs. 50,000, Machines Rs. 30,000

(2) Provide depreciation fund Rs. 30,000

3 Preyansi Insurance Co. ltd. presents the following 20

information of Fire and Marine insurance for year

ended on 31-3-05 :

Details Marine Fire

Rs. Rs.

Reinsurance premium 10,000 20,000

Claims paid 3,00,000 4,00,000

Commission on Reinsurance paid 30,000 40,000

Commission on Reinsurance accepted 20,000 30,000Expense to control fire 10,000

Re-insurance recoveries 5,000 8,000

Premium received 8,00,000 9,00,000

Commission on direct business 1,50,000 1,00,000

Interest-dividend 50,000 60,000

Profit on sales of investment 40,000 20,000

Reserve for expected risk

on 31-3-04 5,00,000 2,00,000

Liabilities for out standing claims :

On Dt. 31-3-04 30,000 40,000Dt. 31-3-05 60,000 50,000

Additional reserve on 31-3-04 50,000 1,00,000

Additional reserve of both the department by increase

10% of premium. Make proper provision for expected risk.

Prepare Revenue accounts of the both departments.

OR

3 (a) Give specimen of revised formats of Balance sheet 10

and Profit and loss A/c of Commercial Bank. (without

schedule)

(b) Following are balances of Viraj Bank Ltd. on 1-4-05 10

Loan-cash credit and O.D. A/c Rs. 85,00,000, Bad debt

reserve A/c Rs. 60,000, Income from Interest discount

Rs. 10,00,000. Bad debt write off during the year

Rs. 10,000, Loan sanctioned during the year

Rs. 90,00,000, Amount returned during the year

Rs. 70,00,000, Bad debt reserve at the end of year

Rs. 1,00,000.

From the above particulars calculate the amount

of profit and how much amount should state in Balance

sheet, by preparing necessary accounts.

SF-7464] 7 [Contd...


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4 (a) The duty of financial management is not only to get 10

finance. Conclude the statement in context to F.M.

(b) Describe briefly the financial sources of securities. 10

OR

4 (a) Describe factors affecting estimate of working capital. 10

(b) Mutual funds Discuss in detail. 10

5 Write short notes : (any four) 20

(1) Small Industries Development Bank

(2) Zero interest bond

(3) Derivatives

(4) National Stock Exchange of India

(5) Right shares

(6) Speculative transactions

(7) Methods of debenture issue

(8) Industrial development Bank of India.

SF-7464] 8 [10,000/292-124]

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