Asian College of Higher Studies(ACM)
Grade-XII FM:100
Subject:- Accounting-II SET-----B PM:40
Time: 3 Hrs
Third Term Exam-2012
Q.1. List the contents of Memorandum of association. 3
Q.2. Distinguish between equity share & preference share. 2
Q.3. Give the meaning of financial statement analysis. Mention any two limitations. 3
Q.4. Briefly explain any two objectives of Ratio analysis. 2
Q.5. Show the advantages of time rate system of wage payment. 2
Q.6. Write down the importance of cost accounting. 3
Q.7. Write in brief the classification of cost on the basis of element. 3
Q.8. Give the meaning of allocation of overhead with suitable examples. 2
Q.9. A public company authorized with the share capital of Rs.10,00,000 divided into 10,000 equity shares, issued 6,000 shares for public subscription. The share money was payable as on application Rs.30, on allotment Rs.50 (after adjusting discount of 10%) and balance on calls. All the shares were subscribed and allotted. All the money was received on due date.
Required:- Journal entries for application & allotment 1+2=3
Q.10. Bagmati Co issued 40,000 equity shares of Rs.100 each payable at a premium of 10% payable as Rs.30 application, Rs.50 on allotment and balance on first & final call. The applications were received for 60,000 shares and the allotment was made as under:
To the applicants of 10,000 shares--- Nil
To the applicants of remaining shares----Pro-rata
All the calls were made and money was realized excepting from a shareholder who had applied for 5,000 shares failed to pay money due on allotment and calls. Subsequently his shares were forfeited through a resolution of directors.
Required:- Journal entries for allotment, calls & forfeiture 2+2+2=6
Q.11.Kantipur co. acquired the following business of Kathmandu co. by issuing 8,000 equity shares of Rs.100.
Fixed assets Rs.5,50,000 Creditor Rs.1,00,000
Debtors Rs. 50,000 Unearned income Rs.35,000
Prepayments Rs.60,000 14% Debenture Rs.1,20,000
Unpaid expenses Rs.25,000 Stock Rs.75,000
Required:- Journal entries for business purchase 3
Q.12. Mero bank Ltd issued 2,000, 16% redeemable debenture of Rs.100 each at a discount of 10% which was repayable at the end of 2nd year at a premium of 15%.
Required:- Journal entries for issue & redemption 4
Q.13. The following is the trial balance of a business as on 31st Chaitra, 2067.
| Dr balance | Amount Rs. | Cr balance | Amount Rs. |
| Inventory Furniture & Fitting Trade debtors Bad debts Cash & bank Miscellaneous expenses Accrued commission Calls in arrears Goodwill Income tax Salaries & wages Preliminary expenses Interim dividend | 40,000 1,40,000 1,00,000 10,000 1,00,000 15,000 20,000 5,000 80,000 15,000 80,000 50,000 25,000 | 13% Mortgaged loan Provision for bad debts Share capital@Rs.100each Gross profit P/L account General reserve
| 1,60,000 5,000 3,00,000 2,50,000 51,000 80,000
|
|
| 6,80,000 |
| 6,80,000 |
Adjustments:
a) Depreciate furniture by 5% p.a. & write preliminary expense off by 1/4th.
b) Authorized capital of the company is divided into 10,000 shares.
c) Rent earned Rs.5,000 but not received yet. Provision for tax for the year Rs.8,000.
d) Increase provision for bad debts from Rs.5,000 to Rs.11,000.
e) The BOD decided to pay dividend @ 5% & increase General reserve to Rs.1,00,000.
Required:- Profit & Loss account; Profit & Loss appropriation account & Balance sheet 5+2+5=12
Q.14. A business firm gives you the following trial balance.
| Debit balances | Amount Rs. | Credit balance | Amount Rs. |
| Purchase Furniture & Fitting Cash & bank Preliminary exps Interim dividend Salaries Calls in arrears | 60,000 1,80,000 1,20,000 1,40,000 10,000 25,000 15,000 | 15% Loan Share capital Retained earning Sales Commission unearned Provision for tax
| 40,000 2,80,000 50,000 1,50,000 16,000 14,000 |
| Total | 5,50,000 | Total | 5,50,000 |
Additional information:-
a) Tax provision for the year Rs.3,500.
b) Salaries prepaid Rs.10,000.
c) Reserve fund created Rs.20,000.
Required:- Adjusting entries & work sheet(Twelve column) 2+6=8
Q.15. You are given the following information.
Equity share capital of Rs.100 each Rs.2,60,000 12% Pref. share capital Rs.1,40,000
General Reserve Rs.50,000 Preliminary expenses Rs.50,000
Retained earning Rs.40,000 15% Debenture Rs.1,00,000
Redemption Reserve Rs.60,000 EBIT Rs.4,00,000 (Tax rate@40%)
Required:- i) Earning after Tax ii) Return on equity shareholder’s fund
iii) Return on capital employed 1+2+2=5
Q.16. The following information is given.
Increase in cash & bank Rs.50,000.
Increase in creditors Rs.40,000
Decrease in debtors Rs.30,000
Decrease in advance income Rs.10,000
A part of plant costing Rs.45,000, book value being Rs.25,000 sold for Rs.20,000.
Issue of share Rs.1,50,000
Loan borrowed from EDB Rs.1,00,000.
Required:- i) Effect on working capital ii) Funds flow statement 2+3=5
Q.17. You are given the following information.
Balance sheets of MSP company
| Liabilities | Last Yr Rs. | This Yr Rs. | Assets | Last Yr. Rs. | This Yr. Rs. |
| Equity share capital Pref. share capital 15% Debenture Reserve P/L account Creditors Bills payable Expenses due Short-term loan Provision for tax | 2,00,000 1,00,000 1,50,000 50,000 1,00,000 1,20,000 50,000 25,000 70,000 12,000 | 3,25,000 50,000 1,00,000 85,000 2,50,000 40,000 1,10,000 40,000 20,000 28,000 | Machinery Investment Debtors Stock Bills receivable Cash & Bank Preliminary exp Accrued income
| 2,00,000 1,77,000 100,000 40,000 30,000 165,000 125,000 40,000
| 3,50,000 60,000 1,70,000 1,71,000 12,000 1,70,000 65,000 50,000 |
| Total | 8,77,000 | 10,48,000 | Total | 8,77,000 | 10,48,000 |
Other information:
§ Sales Rs.5,80,000 during the year
§ Cost of goods sold Rs.1,80,000; Provision for Tax during the year Rs.30,000.
§ Operating expenses Rs.1,20,000 including depreciation of Rs.10,000 & interest Rs.15,000.
§ Investment was sold at a profit of Rs.10,000 & debenture was repaid at 10% premium.
§ Dividend paid during the year Rs.10,000
Required:- Cash Flow Statement using direct method 4+3+3=10
Q,18. A worker worked 250 hours during a month. The standard wage rate per hour is Rs.120. The standard time allowed for a unit is 10 minutes.
Required:- Total weekly wages applying Piece rate system 2
Q.19. A supplier gives you the following information.
Consumption per day 4,000 to 5,000 units
Re-order period 5-10 days
Re-order quantity 45,000 units
Required:- Average stock level 3
Q.20. A storekeeper undergoes the following transactions.
July-1, Issued 5,000 units
------10, Purchased 2,000 units @ Rs.5 each.
------12, Issued 1,200 units
------14, Return to store 20 units
-------20, Order received 4,000 units Rs.18,000.
-------30, Shortage found 20 units on physical verification.
There was stock of 6,000 units valued Rs.24,000 at the beginning of the month.
Required:- Store ledger under LIFO 5
Q.21. A calculator manufacturing concern gives you the following information.
The concern is going to produce and sell 10,000 calculators next year and desiring to quote the price. The following estimations have been made for this purpose.
Material & labour cost will go up by 10%.
Other direct expenses will not be affected.
Profit 25% of cost
The past records of the concern for the production of 5,000 calculators are as follows.
Materials Rs.4,00,000 Wages Rs.2,00,000; Other direct expenses Rs.1,00,000
Factory overhead Rs.2,50,000; Office salaries Rs.80,000 & General charges Rs.20,000
Selling & distribution charges 20%
Required:- Price to be quoted showing amount of profit 10
Q.22. On reconciliation between cost & financial account, the following facts are brought to notice.
- Net Loss as per Financial records Rs.40,000
- Opening stock undervalued in cost account Rs.9,500.
- Closing stock found in excess in Financial account Rs.4,500.
- Depreciation charged in cost records Rs.25,000 & in P/L account Rs.45,000.
- Interest on debenture Rs.7,000 & Income from Government bond Rs.8,500 were recorded in financial accounts.
Required:- Cost Reconciliation statement 5
Best of luck
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