B Com Financial Accounting

B. Com. DEGREE (C.B.C.S.S.
) MODEL EXAMINATION,2018
Second Semester
FINANCIAL ACCOUNTING- II
Time:3 hrs. Mark:80
Section - A
Answer any ten questions each question caries two marks
1. What are inter branch transactions?
2. What are departmental accounts?
3. Why goods are invoiced by the head office to branches at selling price?
4. What is branch adjustment account?
5. What is goods in transit?
6. Define branch
7. What do you mean by piecemeal distribution?
8. What do you mean by Realisation account?
9. How Joint Life Policy Reserve is treated during dissolution?
10. What is deficiency account?
11. What is base capital in the context of piecemeal distribution?
12. What is maximum loss?
Section B
Answer any six questions, each questions carries five marks
13. Distinguish between branch and department.
14. Mention the different ways of keeping the accounts of dependent branches by the head office.
15. State the objectives of keeping branch accounts.
16. Explain the objectives and advantages of preparing departmental accounts
17. From the following details prepare branch account in the head office books and ascertain profit or
loss for the year 2017
Branch stock on 1-4-2016 15,000
Branch debtors on 1-4-2016 30,000
Petty cash –opening 300
Goods sent to branch 2,52,000
Goods returned by the branch 2,000
Cash sales 60,000
Credit sales 2,28,000
Cheque sent to branch for:
Salaries 9,000
Rent 1,500
Petty expenses 1,100
Branch stock – closing 25,000
Debtors- closing 48,000
Petty cash –closing 200
18. Differentiate between dissolution of partnership and dissolution of firm?
19. Explain the two methods of piecemeal distribution?
20. Explain Garner Vs Murray rule?
21. What are the modes of dissolution of partnership firm?
Section C
Answer any two questions, each question carries 15 marks
22.Crown industries, Mumbai has a branch at Madurai to which goods are invoiced at cost plus 25%.The
branch makes sales both for cash and on credit .Branch expenses are paid direct from head office and
the branch remits all cash to the head office . From the following details prepare the necessary ledger
accounts in the head office books to calculate branch profit as per stock and debtors system.
Amount
Goods received from head office at invoice price 60,000
Goods return to head office at invoice price 1,200
Branch stock –opening(invoice price) 6,000
Cash sales 20,000
Credit sales 36,000
Branch debtors-opening 7,,200
Cash collected from debtors 32,000
Discount allowed 600
Bad debts 400
Goods returned by debtors 800
Rent and rates 1,800
Branch office expenses 600
Branch stock at invoice price- closing 12,000
23. The following is the trial balance of Kannoor Branch as on 31 -3-2017

Particulars Dr. Cr.
Purchases 75,000
Sales 1,40,000
Goods from H.O 15,000
Wages 5,000
Salaries 4,000
Carriage inwards 1,000
Goods sent too H.O 12,000
Cash at bank 8,000
Furniture 20,000
Opening stock 7,000
Sundry debtors 25,000
Sundry creditors 13,000
Rent and rates 4,000
Bills receivable 13,000
Discount 2,000
Head office account 10,000
1,77,000 1,77,000
======= =======
The branch account in the head office books shows a debit balance of rs.14,000. It is found that
goods costing Rs. 3,000 sent by H.O on 24-12-2017 has been received by the branch only on 5th
January 2017. It is also noticed that a cheque of Rs. 1,000 sent by the branch in December is received
by H.O only in January
Branch furniture required a depreciation of 10%. Salary outstanding at branch amounts to Rs.800.
Closing stock at branch is valued at Rs. 22,000
Prepare branch trading P&L account, give incorporating entries and branch account in the books
of Head office.
24. A and B were partners in a firm sharing profits and losses equally. Their balance sheet stood as
follows on 31-12-2017
Liabilities Amount Assets Amount
Creditors 390000 Cash at bank 30000
Capital-A 60000 Debtors 50000
Stock 62500
Furniture 40000
Plant & Machinery 147500
B’s Capital 120000
Total 450000 Total 450000
The assets were realized as follows
Amount
Stock- 35000
Debtors 50000
Furniture 20000
Plant & Machinery 70000
The realization expenses amounted to Rs.15000/-. A’s private estate was not sufficient even to pay his
private liabilities; whereas Rs.5000/- were collected from the private estate of B. Close the books of
the firm by opening Realisation A/C, Bank A/C, Creditors A/C, Partners Capital A/C, and Deficiency
A/C, assuming that all partners are insolvent.
25. The Balance Sheet of X, Y and Z, sharing profits and losses in the ratio of 2:2:1, as on 31-12-2016
stood as follows:
Balance Sheet
Liabilities Amount Assets Amount
Creditors 7000 Cash at Bank 2000
Loan from X 6000 Debtors 8000
General Reserve 5000 Stock 5000
Capital: X 7000 Plant & Machinery 7000
Y 4000 Land & Buildings 12000
Z 5000
Total 34000 Total 34000
The firm was dissolved on 31.12.2016. The assets were realized as follows:
Amount
1st Realisation 6500
nd
2 Realisation 7500
3rd Realisation 10000
Y took over stock worth Rs.2000/- at the time of third realization. The partners distributed the cash as
and when available.
Show the distribution of cash on the basis of proportionate capital method.

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B. Com. DEGREE (C.B.C.S.S.

23. The following is the trial balance of Kannoor Branch as on 31 -3-2017

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