rJO.wO.w~. ~oaE'"O ~rDC±>dcte Ocldea:> ~gojJC)(iJ

11111111111I111111111I1111111111111 rloqJc)~o:b 13131

I Semester B.Com.NExam;::li~:~-N~~;~~ber 2014(Revised New Scheme)

COMMERCEPaper - 1.4 : Financial Accounting - I

Time: 3 Hours Max. Marks: 80

Instruction: Answer should be written completely either in English or inKannada.

SECTION-A

~~rl-w

Answer any ten of the following sub-questions. Each sub-question carries

two marks. (10x2=20)

1. a) State the principles of Double Entry System of Book-Keeping.

C1- c:d~dJ cj~.;cm ~~r{~~ .;~~.

b) What are the objectives of amalgamation of firms?

c::JVm~eJ=a;:joo:irve~c;3cmero~e~r{~J~~~ ?

c) State two differences between hire purchase system and instalment

purchase system.

~~ti ~~~~ cj~'; oovr0v=60~ ~~~ cj~';r0v ~ro~~ddJ ci~;:jr{~~ ?,Jo()j)eJ.

d) Why 'Dead Rent' clause is included in Royalty agreement?

=6N~ ~~ti Nz;5odc;3cm~ oo~Qc:d?,v~odd~ ~=a;3eeJ;:j'detb?

P.T.O.

13131 11111111111I11I111111I11111 ~II-2-

e) What is realisation account? How it is closed?

~e5e~a cm~ woddec::0? edc::0 a5e~~o:bM~Ab~a ?• 0(. ~ •

f) What is short working?

~~c:;D~c:S woddec::0?<-lo(. •

g) Calculate cash price and interest amount.

Rate of interest 15% p.a.

Instalment paid ~ 23,000

w~ dd Zvo<:::b~c;iF~ ~k 15

~o~c:S05f@~ 23,000.

h) Book value of assets taken over t 15,00,000.

Assets taken over at 10% above book value.

Liabilities taken overt 5,00,000.

Compute purchase consideration.

~~<:::b'6JvotiJ~ed e~7i~ ~;J~ zje5 ~ 15,00,000..» .»

c:;DeeJc:Se~7i~c::0'6Jv~,mZvcjodzje5~e. 1Od~ ~;J~ zje5l1~ a5~.~ 0(. v <-l eJ~ t.d

~~<:::b'6JvotiJ~er0~ 2;;$~~a7i~ zje5 ~ 5,00,000.Q

'6Jv~~ zje5o:b~ ~otiJe:o~cma.

i) Calculate short working or surplus.

Dead Rent per year~ 50,000

Royalty of the year t 40,000

(Strike for a period 6 months)

As per agreement during strike period 'Dead rent' is reduced proportionately.

II 1I 1111111111I1111111111111 -3- 13131

~C3c;i)e.rJ3~e~wv cEm e.rJ3~~OdJ&>C3cmt>.wc{ z.:t wc{

Zvoru ~~F~ ~N~ u.)C3t1~ 50,000

e ~~Fd (f.)z:;r.)t:J.)o:b~40,000

(6 ';o~eJuv~ ~d;:)~d)

~~d ~~Fd~ ~N~ u.)C3t1om ed~c3~f@d~ ~C3c;i)o::ffi>rb~d

j) Compute depreciation on diminishing balance method for two years.

Cash price of asset ~ 60,000

Down payment" 15,000

Rate of depreciation 20% p.a.

~~~w ~eJ.:icdd.;o:b c3uvd~ddJ ~~F~~t1 ;:S~~~o:b~ ~odJ&>C3cmt>.u Q c{

e:5F.>o:b~~ru zj~ ~ 60,000~

5.R>O~~ 5.R>e.3a5f@~ 15,000eJ

~~F5, ;:S~~~ dd ~~.20.'11

k) Mr. Raju purchased a machinery on instalment system payable in two

instalments at an interest rate of 20% p.a. on unpaid balance.

1st lnstalment t 5,60,000

(1st year ending)

IInd Instalment ~ 4,80,000

(IIndyear ending)

Find cash price.

(f.)z;:»~Zvoru o:b~,~~ 5.R>OC3~c:3.a5f@~~~~.20d 'lJC3o:b03~ddJ ~oiJ~eJ()--/ c{ ~ c{ a, M

5.R>dru Zvcll~c:3.w ~c;irc)d~~~Fd 5.R>c:3o:b()~~oiJ~ 5,60,000

M

~ddc:3o:b~~Fd 5.R>c:3o:b~oiJ~ 4,80,000

o:b~d ~~ru zj~o:b~ ~OdJ&>C3cmt>.

-

13131

13131 1111111 ~III-4-

I) A purchased a machine on H.P. system. Cash price of machine ~ 47,0 0

payable on signing the agreement is~ 10,000 and balance in 4 instalmen s

of ~ 10,000 each at the end of each year. Find the total interest paid.

A .wotJJc:5c:5c:bt:JVts71~~-?,c:5cjd.3o:b~ t.,oru o:b~,c:5c:b~odc:b. edd cS;1y Q M ../ ol

~ 47,000. ~ 10,000 3~t;)~dJ.3vc;3. ~d a5t;)c:5c:b~ 10,000 d03 4 ~03Jrt <0~ ~ ol M

c:5~F"d~c;3o:b~ ~dJ.3vc;3. ec:5c:b~~ wts .w~ ?M ~ e..J Q, e..J'

SECTION-B

~~r(-~

Answer any three questions. Each question carries five marks. (3x5=1S)

2. Explain any five important accounting concepts.

~~(;Jc)ddJv c:oru6~, ef.);:jdcja~eJc;3;1~c:b;:jo-&cjc;J.)l1~c:5aAl.u '<:!J w ol ~

3. Prepare revaluation account from the following in the books of A and B. They

are equal partners.

a) Machinery worth ~ 1,00,000 to be depreciated by 10%

b) Building worth ~ 2,50,000 to be appreciated by 10%

c) Outstanding sataryr 10,000

d) Stock ~ 10,000 was destroyed by fire and 25% was received from insurance

company.

1111

11111111111I11I111111I11I1111111111 -5- 13131

:ffi 5~F\c;5;)~dii~od A c;i)~ B ~;:i~d!>~c;5ry-cifo~.c:fuc:dc;5.;u.)3cmc:$)2JOOl)b.e~dJJ) J) MOo(.

;:ic;i)covm~ddJ.

d) ~ 10,000 d ~;;JC)c:$)'2.Jo-&cm!>~bdJ c;5~~F\(:i ;)c:fu ~oc:dC)o::bJlBe. 25 d~ c;5~J) M eJ eJ eJ

~otJd

..4. Pass incorporation entries in the books of the company from the following

particulars.

Purchase consideration ~ 10,00,000

~ 12,00,000

~ 1,20,000

Value of assets taken over

Current liabilities taken over

Settlement of purchase consideration:

Equity shares of ~ 100 each 60%

6% Debentures 30%

Cash 10%

~ 10,00,000

~ 12,00,000

~ 1,20,000

131~1

13131 11111111111I111111111I1111111111111-6-

30%

10%

5. A car was purchased on hire purchase system. The payment of instalments

was made at 5% Interest.

At the end of I year ~24,000

At the end of 11year ~ 31,000

At the end of I11year ~33,600

Down payment was ~20,000

Ascertain cash price of asset and interest included in each instalment.

Zvott>'o.)dc:n '2,Y.)~71'6ovac:3e) =5JvodJ=5Jv~\~l'\d ZJ~ ~e. 5 d~ ~ea~ '6~7i~c:n '6~l'\c:3~0{ M y ~ 0{

~c:$';~~l'\d

~24,000

~ 31,000

~ 33,600

~20,000

11111111111I111111111I1111111111111 -7- 13131

6. From the following information calculate the number of books sold in eachyear.

Year 2009 2010 2011 2012 2013

Books printed 6000 4000 8000 9000 7000

Closing stock of books 1000 2000 3000 2000 1000

~ =a~11~;)c;5dii~od~(J.)wc;J.)d~~~ii~~ ~or;5)Co~cma.~ et

~~F 2009 2010 2011 2012 2013

~9~~~~ii~~ 6000 4000 8000 9000 7000

"d~~~ii~~ 1000 2000 3000 2000 1000~

SECTION-C

;Jmrl-~•

Answer any three questions. Each question carries 15 marks. (3x15=45)

~ ;)?1fc)iid~ojJC)~<:3VdM~dJ ~~ii~~ ~a~. ~~ ~~~ 05~~t;±) eo~ii~~.

7. X and Y are partners of X and Y company sharing profits and losses in theratio of 3 : 1. Y and Z are partners of Y and Z Co. sharing profits and losses inthe ratio of 2 : 1. On 31-12-2013 they decided to form a new firm XYZ Co.where they would share profits and losses in the ratio of 3 : 2 :1. The BalanceSheets of two firms on the above date were as under.

Liabilities XandY YandZ Assets XandY YandZ

Capital:

X 4,80,000 - Building 1,00,000

Y 3,20,000 4,00,000 Machinery 3,00,000 3,20,000

Z 2,00,000 Furniture 40,000 12,000

13131 11111111111I111111111I1111111111111-8-

Reserve Fund 1,00,000 3,00,000 Stock 2,40,000 2,80,000

Creditors 2,40,000 2,32,000 Debtors 3,20,000 4,00,000

Dueto X and Y Co. 2,00,000 Cash 40,000 20,000

Bank Loan 1,60,000 - Bank 60,000 1,80,000

Due from

YandZCo. 2,00,000

Advances - 1,20,000

13,00,000 13,32,000 13,00,000 13,32,000

Amalgamated firm took over the two firms on the following terms.

a) Building of X and Y Co. was valued at~ 2,00,000.

b) Machinery of X and Y Co. and Y and Z Co. were valued at ~ 4,00,000 and

~4,50,000.

c) Goodwill valued - X and Y Co. ~ 1,00,000 and Y and Z Co. ~ 82,000 but

goodwill will not appear in the books of XYZ and Co.

d) Partners of new firm would bring in necessary cash to pay other partners to

adjust their capitals according to new profit sharing ratio.

Give necessary ledger accounts in the books of old firms and prepare

Balance Sheet of new firm.

11111111111I111111111I1111111111111 -9- 13131

x ~ Y d~dJ x ~ Y =do. cme')~~Jx:J~davl1dJ e~d e~cm ~ ~~ a502,j5-D -D M Q -D eJ

~~t'@3: 1. Y~Z d~dJ Y ~~Z =do.cm~~m~ddJ~ e~deT.)zi5~~

~~ a502,j5 cd,~t'@ 2 :1 . e~dJ EJN'Vo=d31-12-2013 de') XYZ ~ so. <wowa5Jv;:jeJ ~ M -D

<wd~ ;:jo~ii~ e~~ cd~5~=dodo~~.Q eJ

~~~el1~ X~~Y y~~Z ~~11~ X~~y y~~ZQ .JJ .JJ .JJ .JJ .JJ

wodCSc)~ii~J:

X 4,80,000 - =de.3dii~ 1,00,000eJ

Y 3,20,000 4,00,000 cm~ii~J 3,00,000 3,20,000

Z 2,00,000 ~eMecd=ddt'@ii~J40,000 12,000

uvEJa~dN~ 1,00,000 3,00,000 ~;wc:;b 2,40,000 2,80,000-D

Qr@ii~ 2,40,000 2,32,000 :xbr@ii~ 3,20,000 4,00,000

X~Y71-D

~dz3euvddJ 2,00,000 ~iidJ 40,000 20,000Q

ZJVz50~ ;We,) 1,60,000 - 9~ 60,000 1,80,000

Y~ZNod-D

wdz3euvddJ 2,00,000Q

~oiidii~J - 1,20,000

13,00,000 13,32,000 13,00,000 13,32,000

1~1~1

13131 11111111111I111111111I1111111111111-10-

;;Joo.irv~~~'60c:dNo::bJ~ '8~F\c:5No:bc±>r<~c:d,u.>d <wd~ ;;JO~r<~~ 3~d,)'8~OriJ../ GJ cl.

~~rb~dJ.

a) X ~ Y '60.'6eJdr<~zj~ ~ 2,00,000.~ eJ

b) X c;i)~ Y '60.~ Y c;i)~Z '60.No:bo:b~r<~ zj~ ~ 4,00,000 c;i)~ ~ 4,50,000.

c) ;::b(;jVc;i)dzj~ - X c;i)~ Y '60.~ 1,00,000 ~ Y ~ Z '60.~ 82,000. edo~ ~ ~

XYZ ~ '60c:dNo:b~;::b(;jVc;i)~ro~t)eJ.~ M ' M

d) a3.fv;;J;;JO~o:D~mwvdro ~ro~ e~'6 a3£c)~~~~d ~mwvda71 e~d ZJod~~~

~ot);;Jm e~d ~;;J eJV~a3ot3'8~~£C)d03 a30z,3eJVrb~dJ.

a3~;;JO~r<~~e~~,;)ro~ cm3r<~~ 30cma c;i)~ ~;;J;;Jo;:Jo:be~c;:5 c:dw~~aFJ.GJ M v cl. ~ GJ eJ

8. X, Y and Z are equal partners in XYZ firm. Their B/S as on 31-12-2013 was as

follows:

Liabilities ~ Assets

Capitals: X 50,000 Land and building 1,20,000

Y 1,00,000 Plant and machinery 2,00,000

Bank loan 5,00,000 Stock 3,00,000

Creditors 1,00,000 Debtors 1,00,000

Z's capital 30,000

7,50,000 7,50,000

11111111111I111111111I1111111111111 -11- 13131

On that date, it was decided that the firm would be converted into a limited

company on the following terms.

a) Land and building be valued at~ 2,00,000

b) Plant and machinery be valued at~ 2,50,000

c) .10% of value of stock is written off

d) Provision for doubtful debts is made at 10%

e) A provision for discount on creditors at 6% is made

f) The new company would issue 12,000 equity shares of ~ 10 each, such

shares are valued at ~ 1,50,000 and 660, 10% debentures of ~ 100 each.

Shares and debentures of the company are to be distributed in their profit

sharing ratio. Close the books of the firm and write the opening entries in

the books of company.

x, Y ~ Z dc::5dJXYZ ;;j01oj)eJM;;j;i)~mWe)ddJ 31-12-2013 doru ec::5de~c3cd~ 5~tSod~c;3.

eJ

~~mar(~ ~ ~~r(~ tQ ~

ZJodc;J.)~~~ X 50,000 ~c':b ~ tSe.3d 1,20,000..J) eJ

Y 1,00,000 oj)~ ~ ~c::5d 2,00,000

~o=cb~(':) 5,00,000 We)~~ 3,00,000..J)

Qr@;i~,) 1,00,000 :Abr@;i~ 1,00,000

Z d ZJodc;J.)~ 30,000

7,50,000 7,50,000

13131

13131 11111111111I111111111I1111111111111-12-

f) c5J"v;j'i5~o:iDdrv. 10 d 12,000;wc;fu~ ~edJii~~~ 1,50,000 23~'i5~~~)xJ.)a:&

;jo;3ii~dJ~dJ ~ Urv. 100 d 660 ~e. 10 d ;weJc;j~,ii~~~dJ~dJ. ~edJii~JQ .» .../ et

~ ;weJc;j~ii~~ ~mCJ.)dd Uo)2;5~c;fuf@d~ a5oZ3~~~~dJ.

;jo;3oj)W;)3ii~~ ;i))Uo)oj)M~FJ,'i50c;3c:Joj)c0;j'i5d~~,doz;'J'i5Me~ CJ.)~~ii~~Q et -D ~ M.../ et

ZJocm1J.

9. Ramesh purchase a car from Bangalore Motors Ltd. on 1-1-2011 on hire purchase

system. The payment is to be made as follows:

~ 80,000 on delivery, ~ 76,000 at the end of 1styear, ~ 60,000 at the end of IInd

year, ~ 55,000 at the end of Illrd year. Ramesh charged depreciation on car at

20% per annum on diminishing balance method. Interest is charged at 10% p.a.

You are required to prepare ledger accounts in the books of Ramesh.

_ -' __ '" ~..J-4 ..•

1111111111I111111111I1111111111111 -13- 13131

d~e~c::5J tJCJ;)O:51-1-2011 dodJ ~~7i&V~~cj cj~~o:bo~ zjor<~J;)dJ ~e~dJ

;::Jo~o:JJodz..,odJUo)dc::5J&vo~~c;3. c;J;)cj~~~dJ .ffi ee~ ~dQ ~ Q Q

~ 80,000 r<~c::5JUo)dJ&vo05 3:5[';), ~ 76,000 r<~c::5J~deJc;3o:b cj~Fd &vc;3o:beJ ,~ w. ~ M

. ~ 60,000 r<~c:0 <wd05c;3o:bcj~Fd ~c;3o:beJ , ~ 55,000 r<~c:0 ~dc;3 ~Fd ~c;3o:DeJ.~ M ~ M

d~e~ ~k 20 d~ ~~ciD&) cjd~o:DeJ ;::Jcj:5~o:bc::5JUc)e~~ee3 c:JQ~c;3. ;weJo,:tr.)~Q M ~ .»

e3e.10 do~ t)~ c:JtJJ!.JdJ~d.~ I ~

10. On 1stJanuary 2012 'X' Oi ICompany purchased a machine from Delhi Company

on instalment system. Payment was made as follows:

Down Payment ~6,000

~ 14,400

~ 13,300

~ 12,200

~ 12,100

On 30-06-2012

On 31-12-2012

On 30-06-2013

On 31-12-2013

Rate of Interest charged by Delhi Company 20% p.a.

a) Calculate cash price of machine.

b) Write ledger accounts in the books of 'X' Oil Company.

'X' Company charged depreciation at 10% p.a. on written down value method.

13131

13131 11111111111I111111111I1111111111111-14-

t)M)otS~-1-2012 dodJ 'X' eo:JJd' tSocd~o:iD005e')tS~~o:JJod 2,vodJa:b~~~ ~=a~l1cSeJe";a:be')05f'@5.Jvdm 2,v~tScxbcdd";a:be')5.JvO~d

M c.J Q M

~6,000

~ 14,400

~ 13,300

~ 12,200

~ 12,100

30-06-2012 dodJ 5.JveJdJeJ Q

31-12-2012 dodJ 5.JveJdJeJ Q

30-06-2013 dodJ 5.JveJdJeJ Q

31-12-2013 dodJ 5.JveJdJeJ Q

ZJ~ dd ek 20 2,vodJ~~F=a" ~~tS~ dd ~~F=a, 10% d~ ~~~w dd cdd~a:b~.Cl. '0' '0' Q

a) a:b~d cS~dJ zj~ tSod:>~~o:JJeJ.

b) 'X' eo:JJd' tS~~a:b ~~tSde') ;);)Q w;)~~~c:DZJoo:JJeJ..oD M ci.

11. A company took a lease of mine on a Royalty of~ 10 per tonne. The minimum

rent was ~ 1,50,000 per annum. Each year's excess of minimum rent overroyalty is recoverable with in next five years. The lease provided that if in oneyear the minimum rent was not reached due to strike, the minimum rent to be

reduced proportionately. The details of production is given below:

Year 2005 2006 2007 2008 2009 2010 2011 2012

Production(In tonnes)

NIL 4,875 13,875 16,875 21,000 26,250 14,250 22,500

There was a strike during the year 2011 for a period of 3 months.

Prepare:

a) Minimum rent Alc

b) Short working Alc

c) Royalty Alc and

d) Land Lord Alc in the books of company.

(~------------------------~------~~--....~

I

JlIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII -15- 13131:131

~o<:0 =6oc:3(:)oiDtir@z;irv~oJJ~ e.3~ ~od~ ~ 10 ov~Wo)oJJd03 QJv~1~c:3~t)o.~o<:0 ~F~ =6(:)~?JVE3tioiD~1 ,50,000. =6t3c;D~c;5c;5~ ov~Wo)oJJd c;D~~c;i))ot)c;5

tr 0 wo(, 0(,

5 c;5~Fti~~ c:3~oJJ'l-Ja$)Wo)l\dc;i))~ d ;:J~oJJd~ =6(:)~?JVt3tioJJ~ ~eJ;:Jc;mrid utleJ~

;:J~c:J.)1\=6t3~ c;mri'l-Ja$)Wo)l\o.~eJ;:JdcP~~oe1.ffi ~~=6orio~o.

~~f" 2005 2006 2007 2008 2009 2010 2011 2012

=e=(~~~~~j ~eJM 4,875 13,875 16,875 21,000 26,250 14,250 22,500

2011 d~M3~oti~uveJ ;fu~dc':)tb~o.

=60c:3NoJJ~;:J=6d~ ~~ti~w ~cxmaFJ.~ M 0(,