Total No. of Questions : 4] SEAT No.

P-5884 [Total No. of Pages : 5

[6142]-502
T.Y. B.Com.
352 : ADVANCED ACCOUNTING - I
(2019 Pattern) (Semester - V)
Time : 2½ Hours] [Max. Marks : 70
Instructions to the candidates :
1) Question No. 1. is compulsory.
2) Solve any 2 Questions from the remaining Questions i.e. Q. No. 2,3 and 4.
3) Use of a simple Calculator is allowed.
4) Figures to the right indicate full marks.

Q1) A) Fill in the blanks (Any five) : [5]

i) ________ is a financial statement which summarizes the sources
and applications of funds of enterprises for a given period.
a) Fund Flow Statement
b) Trading Account
c) Profit and Loss Account
d) Balance Sheet
ii) AS-19 deals with __________.
a) Leases b) Government Grants
c) C.F.S. d) F.F.S.
iii) Purchase of securities on Ex-interest basis means the price
_________ interest.
a) Includes b) Excludes
c) Adds d) Outstanding
iv) Interest and brokerage are to be calculated on ________ of
investments.
a) Interest b) Face value
c) Cost d) Market value

P.T.O.

v) In the Balance sheet of a Banking company, investment in Silver

is shown on the asset side under the heading ________.
a) Advances b) Other asset
c) Operating expenses d) Investment
vi) The primary objective of ________ is to eliminate the
accumulated losses from the books and to bring down the assets
to their true values.
a) External Reconstruction b) Internal Reconstruction
c) Amalgamation d) Absorption
vii) Every Banking company prepares a Balance sheet and Profit and
Loss Account as on ________ each year.
a) 30th June b) 31st December
c) 31st March d) 1st January
B) True or False (Any five) : [5]
i) Accounting Standards in India are issued by the Institute of Cost
Accountants of India.
ii) As per AS-3 deals with Cash Flow Statements.
iii) The conversion of a Debt to Equity is a non—cash transaction.
iv) Bonus shares are issued to creditors.
v) Debentures are commonly known as preferred stocks.
vi) An asset becomes non-performing when it ceases to generate
income for a Bank.
vii) Banking Companies in India are governed by Company Act 2013
C) Match the following : [5]
i) IFRS a) ASB
ii) AS-12 b) Investments
iii) Gold c) Internal Reconstruction
iv) Accounting Standards in India d) Government Grants
v) Capital restructuring e) IASB

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D) Short Notes (Any three out of Five) : [15]

i) Cum Interest and Ex Interest under Investment Accounting
ii) Cash Flow Statement
iii) Need of Internal Reconstruction
iv) Contingent Liability
v) AS-19

Q2) The following is the Balance Sheet of Ayudeeps Ltd. Chennai as on

3lst March, 2023 [20]
Balance Sheet as on 31st March, 2023
Liabilities ` Assets `
Share Capital Goodwill 20,000
• 25,000 Preference 2,50,000 Leasehold Premises 1,07,000
Shares of ` 10 each Plant and Machinery 60,000
• 25,000 Equity 2,50,000 Patent 1,73,900
Shares of ` 10 each Preliminary Expenses 2,000
Sundry Creditors 40,000 Stock 34,000
Bank Overdraft 36,000 Sundry Debtors 56,000
Cash 100
Profit and Loss 1,23,000
Total 5,76,000 5,76,000
The company proved unsuccessful and resolutions were passed to carry out
the following scheme of reduction of capital -
a) Preference Shares be reduced to fully paid shares of ` 3 each.
b) Equity Shares be reduced to fully paid shares of ` 2.50 each
c) Sundry Creditors total claims be reduced by ` 15,000
d) Goodwill Account, Patents, Preliminary Expenses, and Profit and Loss
Account to be completely written off.
e) Leasehold Premises to be written off by ` 27,000.
f) Stock to be written-off by ` 14,000.
g) ` 5,600 is to be reserved for doubtful debts.
h) Plant and Machinery to be written off by 20%
Pass the necessary journal entries, prepare the Capital Reduction Account
and the revised Balance Sheet as on 31st March 2023.

[6142]-502 3

Q3) Following is the Trial Balance of Deepa Bank Ltd., Nasik as on 3lst March,
2023. [20]
Trial Balance as on 31st March, 2023.
Particulars Debit Credit
` `
Premises Less Depreciation 1,85,000 -
Money at Call and Short Notice 2,15,000 -
Furniture Less Depreciation 30,000 -
Depreciation on Bank’s Assets 11,000 -
Non-Banking Assets Acquired in Settlement
of Claims 20,000 -
Cash in Hand 3,00,000 -
Cash at Banks 2,50,000 -
Investments 3,50,000 -
Loans, Cash Credit and Overdrafts 12,65,000 -
Interest on Deposits and Borrowings 2,00,000 -
Audit Fees 4,500 -
Salaries and Allowances to Staff 40,500 -
Director’s Fees 4,000 -
Postage and Telegrams 1,350 -
Printing and Stationery 3,700 -
Other Expenditure 2,450 -
Interest and Discount - 3,67,500
Share Capital :
Authorized: 7,500 Equity Shares of ` 100 each - -
Issued and Subscribed 6,000 Equity Shares
of ` 100 each fully paid - 6,00,000
Statutory Reserve - 1,20,000
Deposits - 12,50,000
Provident Funds - 1,35,000
Borrowings from Maharaja Bank Ltd - 2,55,000
Unclaimed Dividend. - 4,000
Commission and Exchange - 37,500
Profit on Sale of Non-Banking Assets - 1,200
Profit and Loss Account as on 1 April 2022
st
- 1,12,300
Total 28,82,500 28,82,500

[6142]-502 4

Adjustments :
i) Provide ` 10,000 for Bad and Doubtful Debts.
ii) Acceptances, Endorsements and Other obligations amounted to
` 52,000.
iii) Provide ` 1,500 for Rebate on Bills discounted.
iv) Provide ` 10,500 for taxation.
v) Postage stamps of ` 160 and Stationery of ` 700 were in hand on
3lst March, 2023.
vi) Transfer 25% of the current year’s profit to statutory reserve.
Prepare Profit and Loss Account for the year ended 31st March 2023 and
the Balance Sheet as on that date as per the Banking Regulation Act, 1949.

Q4) Mansvi Investors Company Ltd, Nashik submits the following details
regarding their investment in 6% Debentures for the year 2022-23. [20]
Opening balance on 1st April 2022, face value Rs. 3,00,000/- at Rs. 2,80,000/
-. The following purchases and sales were made out of these investments
during the year ended 31st March 2023.
Purchases :
a) 1st August 2022 Face value Rs. 50,000/- at Rs. 101 cum interest.
b) 1st November 2022 Face value Rs. 75,000/- at Rs. 103 ex interest.
Sales :
a) 1st September 2022 Face value Rs. 50,000/- at Rs. 104 cum interest.
b) lst February 2023 Face value Rs. 1,00,000/- at Rs. 103 ex interest. The
interest is payable on lst January and 1st July every year.
Write up Investment Account as on 31st March 2023. Investments on
31st March 2023 are to be valued at cost as per First-in First out method.

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[6142]-502 5
Total No. of Questions : 4] SEAT No. :
P6474 [Total No. of Pages : 4
[5801]-502
T.Y.B.Com.
352 : ADVANCED ACCOUNTING - I
(2019 Pattern) (Semester - V)
Time : 3 Hours] [Max. Marks : 70
Instructions to the candidates:
1) Q1 is compulsory.
2) Sovle any 2 Questions from remaining Q. No. 2, 3 and 4.

Q1) A) Fill in the blanks (Any five out of 7). [5]

a) When new shares are being issued ________account is credited.
i) Share Premium ii) Share Capital
iii) Share reduction iv) Share investment
b) Ex-interest basis means the purchase price of securities _______
interest.
i) rolls ii) excludes
iii) takeover iv) outstanding
c) AS 3 deals with _______
i) Construction Contracts ii) Disclosures
iii) Cash flow Statement iv) Employee Benefits
d) Internal Reconstruction means that the scheme will be carried out
by means of ________of capital.
i) issue ii) rise
iii) increase iv) reduction
e) Converting share of smaller denomination into larger denominations
is called________.
i) Surrender ii) Face value
iii) Consolidation iv) Market value
f) Capital Reserve is written in_______ schedule number as per
Banking Company Accounts.
i) 2 ii) l
iii) 3 iv) 5
g) Brokerage is added to the______ price.
i) sale ii) income
iii) expense iv) purchase
[5801]-502 1 P.T.O.

B) True or False (Any five out of 7). [5]

a) Investment account is a real account.
b) Equity shares are long-term financing sources for any company.
c) Debentures are commonly known as preferred stocks.
d) Securities can be purchased at par, premium and at discount.
e) Fixed Assets include Stock.
f) The commission paid to the broker is known as Brokerage.
g) Bonus shares are issued to creditors only.

C) Match the following. [5]

a) Cost of bonus share - Schedule no. 7
b) Rent paid - Statutory audit
c) Financial accounting statements - Surrender of shares
d) Voluntary return of shares - Schedule no. 16
e) Money at call and short notice - Nil

D) Short Notes (Any three out of six) [15]

a) Introduction to IFRS
b) Capital Restructuring
c) Classification of Investments
d) Introduction to AS- 3
e) Introduction of Banking Company
f) Carrying cost of Investment

Q2) The following is the Balance Sheet of Citco Ltd. as on 31st March 2021.[20]

Balance Sheet as on 31st March 2021

Liabilities Amt Assets Amt
Share Capital 2000, 5% Goodwill 15,000
Cumulative Preference 2,00,000 Freehold Property 2,00,000
Shares of Rs. 100 each Plant & Machinery 3,00,000
4000 Equity shares of Rs. 100 each 4,00,000 Stock 50,000
6% Mortgage Debenture 1,00,000 Debtors 40,000
Bank overdraft 50,000 Profit & Loss 2,40,000
Creditors 1,00,000 Cash at bank 5,000
Total 8,50,000 Total 8,50,000
[5801]-502 2

The following scheme of reconstruction was duly approved by the court

a) 5 % Cumulative Preference Shares to be reduced to Rs.75 per share
fully paid up and Equity Shares to Rs.40 fully paid-up
b) Debenture holders took over the Stock in trade and the Book debts in
full satisfaction of the amount due to them
c) The Goodwill Account to be eliminated
d) The Freehold Property to be increased by 30 %
e) The value of Plant and Machinery to be depreciated by 33 1 3 %.
f) The expenses of Reconstruction amounted to Rs. 3000
Pass journal entries to record the above scheme of reconstruction in the books
of Citco Ltd. and a revised Balance Sheet as on 3lst March 2021.

Q3) The following is the trial balance of Dhanvikas Bank Ltd., Dharangaon as on
31st March 2022. [20]
Particulars Debit Credit
Subscribed Capital: 50,000 equity
shares of Rs. 10 each fully paid 5,00,000
Reserve fund 2,50,000
Loans, Cash Credits and Overdrafts 2,85,000
Premises 50,000
India Govt. Securities 4, 00,000
Current deposits 1,00,000
Fixed deposits 1,25,000
Savings Bank Deposits 1,50,000
Salaries 28,000
General expenses 27,400
Rent, Rates and taxes 2,300
Directors fees 1,800
st
Profit and loss account as on 1 April 2021 16,000
Interest and discount 1,28,000
Stock of Stationery 8,500
Bills purchased and discounted 46,000
Interim dividend paid 17,000
Recurring deposits 20,000
Shares 1,50,000
Cash in hand and with RBI 1,93,000
Money at call and Short notice 80,000
Total 12,89,000 12,89,000
[5801]-502 3

The following information should be considered:

a) Provision for bad and doubtful debts is required to be made at
Rs. 5,000
b) Interest accrued on investment was Rs. 8.000
c) Unexpired discount (rebate on bills discounted) amounted to 380
d) Interim dividend declared was 4% actual
e) Endorsements made on behalf of customers totaled Rs. 1,15,000
f) Authorised capital was 80,000 Equity shares of 10 each
g) Rs. 10,000 were added to Premises during the year, Depreciation @ 5%
on the opening balance is required
h) Market value of Indian Govt. securities was 3,90,000
Prepare Profit and Loss account for the year ending 31st March 2022 and
Balance Sheet as at that date in the prescribed form.

Q4) On 1st January 2019, ITC Finance Co. Ltd. bought Rs. 4,000 6 % Government
Bonds at 90, the cheque of Rs. 3,680 paid being Rs. 3,600 for the securities
and Rs.80 for the brokerage charges. Interest is receivable each year on 30th
June and 31st December.
On 1 st February 2019, Rs. 1,000 nominal value of securities is sold
cum-interest the net proceeds being Rs. 950. On 1st June 2019, Rs. 2,000
nominal value of securities sold Ex-interest net proceeds after brokerage being
Rs. 1710.
On 1 st February 2020, Rs. 5,000 nominal value of securities bought
cum-interest cost including brokerage being Rs. 4370. On 1st June 2020,
Rs. l,000 nominal value of securities bought Ex-interest cost including
brokerage being Rs. 9l0.
Write Investment account for the years 2019 and 2020. [20]

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[5801]-502 4
Total No. of Questions : 4] SEAT No. : vi) Under the _______ method of valuation of closing investment it is
assumed that the investment purchased first are sold first.
P-1788 [Total No. of Pages : 5
a) LIFO b) FIFO
[6032]-502 c) Simple Average d) Weighted Average
T.Y. B.Com. vii) Interest on investment is calculated on the _________.
352 : ADVANCED ACCOUNTING - I a) market value b) national value
(2019 Pattern) (CBCS) (Semester - V) c) face value d) prominent value

Time : 2½ Hours] [Max. Marks : 70

b) True of False (Any five out of 7) : [5]
Instructions to the candidates :
1) Q.1 is compulsory. i) The objective of Accounting Standard is to harmonise different
2) Solve any 2 questions from remaining Q. No. 2, 3 and 4. management policies.
ii) The Profit and Loss is an Account of Assets and Liabilities.
Q1) a) Fill in the blanks (Any five out of 7) [5] iii) Cash receipts are recorded on the Receipts side in the Cash Flow
i) __________ is an important tool used to manage finances by tracking Statement.
the cash flow for an organization. iv) The conversion of debt to equity is a non – cash transaction.
a) Fund Flow Statement b) Cash flow statement v) Acceptances, Endorsements and other obligations are a contingent
c) Balance Sheet d) Ratio Analysis liability of a Bank.
ii) A ________ is a financial statement that contains details of a vi) Profit and Loss accounts records purchases and sales.
company's assets or liabilities at a specific point in time. vii) Share capital is a Liability.
a) Profit & Loss Account b) Profit statement c) Match the following : [5]
c) Cash flow statement d) Balance sheet i) Unclaimed Divided a) Bonus shares
iii) Bills Payable is shown on the ________ side of the Balance sheet.
ii) Investments b) Purchase / Sale price of Securities
a) Liability b) Asset
iii) Free of Cost shares c) Schedule no. 8
c) Profit d) Loss
iv) Inflow and Outflow of Cash d) Schedule no. 5
iv) Every Banking company should prepare a Balance sheet and Profit
v) Market price e) Cash Flow statements
and loss account as on _______ each year.
d) Short Notes (Any three out of five) : [15]
a) 1st January b) 31st March
c) 30th June d) 31st December i) Explain the importance of AS.

v) An asset becomes non- performing when it _________ to generate ii) Explain the need of Internal Reconstruction.
income for a Bank. iii) Explain methods of Electronic Funds Transfer.
a) ceases b) starts iv) Explain FIFO method with an example.
c) opens d) creates v) Explain AS-12.
P.T.O.
[6032]-502 2

Q2) The following is the Balance Sheet of Bosco Ltd as on 31st March 2021.[20] Q3) Following is the Trial Balance of Laji Bank as on 31st March 2021. Prepare
Profit & Loss Account and Balance Sheet as on that date. [20]
Balance Sheet as on 31st March 2021 Trial Balance as on 31st March 2021
Liabilities Amt. Assets Amt. Particulars : Debit Credit
Equity Share Capital of Rs.100 each Rs.50 paid up 4,00,000
Issued and Subscribed Capital 4,00,000 Goodwill 60,000 Profit & Loss Account on 1st April 2020 1,60,000
Current Deposit Account 13,64,000
4000 Equity Shares of 100 Buildings 1,50,000 Fixed Deposit Account 15,60,000
Savings Bank Account 10,26,000
each fully paid Machinery 3,00,000
Directors Fees 18,000
3000 7 % Preference Shares of 3,00,000 Patents 30,000 Audit Fees 4,000
Furniture (Cost Rs. 4,00,000) 3,48,000
100 each fully paid Stock 2,20,000 Interest and Discount Received 8,40,000
Commission and Exchange 4,00,000
Profits Prior to Incorporation 10,000 Debtors 1,50,000 Reserve Fund 1,40,000
Printing and Stationery 16,000
6 % Debentures 3,00,000 Cash 5,000
Rent and Taxes 34,000
Sundry Creditors 2,00,000 Preliminary Expenses 25,000 Salary 2,80,000
Buildings (Cost Rs. 12,00,000) 9,00,000
Profit and Loss 2,70,000 Law Charges 6,000
Cash in Hand 64,000
Total 12,10,000 Total 12,10,000 Cash with RBI 14,00,000
Cash with other Bank 13,00,000
The following scheme of reconstruction was duly approved by the court
Investment at Cost 4,80,000
a) 7 % Preference Share to be converted into 9 % Preference shares the Loans, Cash Credits and Overdrafts 12,00,000
amount being reduced by 30 %. Bills Discounted and Purchased 5,60,000
Interest Paid 6,00,000
b) Equity Shares to be reduced to fully paid shares of Rs. 50 each. Borrowings from Brahmalya Bank 8,00,000
Branch Adjustment Account 5,20,000
c) Buildings to be appreciated by 20 %. Total 72,10,000 72,10,000
d) Debentures be reduced by 20 %. Following additional Adjustments are available -
a) The Bank has accepted on behalf of the customers bills worth Rs. 6,00,000
e) All intangibles assets and liabilities amounts including patents to be written against the securities of Rs. 7,60,000 lodged with the bank.
off. Utilise profits prior to incorporation if necessary. b) Rebate on Bills discounted Rs. 22,000
c) Provide Depreciation on Buildings 10% and Furniture 5% on cost.
Pass journal entries to record the above scheme of reconstruction in the
d) Provide Rs. 6,000 for Bad and Doubtful Debts.
books of Bosco Ltd. and a revised Balance Sheet as on 31st March 2021.
e) Transfer 25% of profit to statutory reserve.

[6032]-502 3 [6032]-502 4
Q4) M/s. Nilesh Investments Trust Ltd. submit the following details regarding one
of their investments for the year 2021. [20]
a) Opening Balance at cost (01.01.21) Rs. 90,000, Face value Rs. 1,00,000.
b) Purchased investments worth Rs. 40,000 on 1st March 2021 cum-interest
at 5% discount, Brokerage paid on it Rs. 400.
c) Sold investments worth Rs. 50,000 on 1st July 2021 cum-interest at 2%
premium. Brokerage paid on it Rs. 500.
d) Sold investments worth Rs. 30,000 1st Oct. 2021 ex-interest at par.
Brokerage paid on it Rs. 300.
e) Purchase investments worth Rs. 20,000 on 1st Dec. 2021 ex-interest at
2% discount. Brokerage paid on it Rs. 200.
f) Investment carries interest at 6% p.a. payable on every 31st March and
30th September. Prepare investment account as on 31/12/2021. Investments
are to be valued at cost by First-in-first out method.

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[6032]-502 5