ECO-14 - ENG-J18 - Compressed-1

No.
of Printed Pages : 11 I ECO-014

LO
cD BACHELOR'S DEGREE PROGRAMME
CY)
4—I Term-End Examination
T-1
June, 2018
ELECTIVE COURSE : COMMERCE
ECO-014 : ACCOUNTANCY-II
Time : 2 hours Maximum Marks : 50

Weightage : 70%
Note : Attempt any four questions including question

no. 1 which is compulsory.
1. Attempt any two of the following questions : 7,7
(a) What steps would you take to calculate the

interest when total cash price and the
instalments are given ?
(b) How shall the new capital of each partner be

worked out if the capital is to be adjusted in
the new profit sharing ratio ? Explain with
examples.
(c) What do you mean by 'purchase

consideration ? Explain the various methods
of computing it.
(d) State the limitations of company financial

statements.
ECO-014 1 P.T.O.
2. ABC Ltd. has a branch at Chandigarh to which all 10+2
goods are invoiced at cost plus 20%. The branch
keeps its own sales ledger and deposits all cash
received daily to the Head Office Account in a
bank. All branch expenses are to be paid by head
office. The following are the particulars relating
to the transactions of its Chandigarh branch during
the year 2013.
Stock on 1.1.2013 (invoice price) 1,20,000

Stock on 31.12.2013 (invoice price) 1,80,000
Goods supplied to branch during the 9,45,000
year (invoice price)
Goods returned by branch 45,000
(invoice price)
Total sales 15,00,000
Cash sales 4,60,000
Debtors as on 1.1.2013 82,000
Debtors as on 31.12.2013 1,26,000
Discount to Debtors 8,000
Salary 70,000
General Expenses 54,000
Goods in Transit as on 31.12.2013 84,000
(invoice price)
Furniture purchased by Head 80,000
Office for the branch
Depreciation to be written off on furniture 10%.

Prepare Chandigarh Branch Account for the
accounting year ending on 31st December, 2013,
and memorandum Branch Debtors A/c.
ECO-014 2
3. X and Y are partners sharing profits and losses in
12
the ratio of 5 : 3. They admit Z as new partner who
brings in Z 1,08,000 as premium for goodwill for
his 1/5th share in future profits of the firm. Pass
journal entries in firm's books for adjustment of
goodwill brought by him, and show the new profit
sharing ratio of the three partners in each of the
following cases :
(a) If Z acquires his share in firm's profits from

the existing partners in their original profit
sharing ratio;
(b) If Z acquires his share in firm's profits from

the existing partners equally;
(c) If Z acquires his share in firm's profits from
the existing partners in the ratio of 3 :1; and
(d) If Z acquires his share in firm's - profitS
1/6th from X and 1/30th from Y.
4. (a) A, who holds 500 shares of Z 10 each paid 6,6

application money of Z 2 per share. The
amount called on allotment was Z 3. per share
which he did not pay. B, who holds 750
shares of Z 10 each failed to pay the first call
of Z 3 each and final call of Z 2 each. All the
above shares were forfeited after the second
call, and were subsequently reissued for Z 7
fully paid. Pass the necessary journal entries.
(b) What are preliminary expenses ? Explain

how are they treated in the books of account
of a company. Give examples.
ECO-014 3 P.T.O.
5. Basu Co. Ltd. is a company with an authorised
capital of 5,00,000 divided into 5000 equity shares
of 100 each. 2,500 shares were fully paid as on
31-12-2013. The following are the balances
extracted from the books of the company as on
31-12-2013: 6+2+4
Stock 50,000
Sales 4,25,000
Purchases 3,00,000
Wages (Dir.) 70,000
Discount allowed 4,200
Discount received 3,150
Insurance paid up to 6,720
31.03.2014
Salaries 18,500
Rent paid 6,000
Gen. Exp. 8,950
P/L A/c (Cr. balance) 6,220
Stationary 2,400
Advertisement 3,800
Bonus 10,500
Debtors 38,700
Creditors 35,200
Machinery 80,500
Furniture 17,100
Cash at bank 1,34,700
Gen. Reserve 25,000
Loan from mg. Director 15,700
Bad debts 3,200
Call in arrears 5,000
ECO-014 4
You are required to prepare Trading and Profit and
Loss A/c, Profit and Loss Appropriation
A/c and the Balance sheet. The following further
information is given :
(a) Closing stock Z 91,500.
(b) Depreciation to be charged on Machinery at
15% and on Furniture at 10% p.a.
(e) Outstanding liabilities : wages 5,200.
Salaries 1,200 ; and Rent Z 600.
(d) Dividend @ 5% on paid up capital is to be
provided.
6. (a) Explain, with an example, as to how would 5,7

you treat the goods repossessed in the books
of vendor when a hire purchase customer
commits default in payment of instalments.
(b) What do you understand by Cash Flow
Statement which forms an integral part of a
company's final accounts ? Give its latest
format.
ECO-014 5 P.T.O.

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No.

of Printed Pages : 11 I ECO-014

Time : 2 hours Maximum Marks : 50

Note : Attempt any four questions including question

1. Attempt any two of the following questions : 7,7

(a) What steps would you take to calculate the

(b) How shall the new capital of each partner be

(c) What do you mean by 'purchase

(d) State the limitations of company financial

Stock on 1.1.2013 (invoice price) 1,20,000

Depreciation to be written off on furniture 10%.

(a) If Z acquires his share in firm's profits from

(b) If Z acquires his share in firm's profits from

4. (a) A, who holds 500 shares of Z 10 each paid 6,6

(b) What are preliminary expenses ? Explain

6. (a) Explain, with an example, as to how would 5,7

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