Annamalai University december 2014 Question Paper B.Sc.Mathematics:Accountancy-II

Annamalai University december 2014 question paper
B.Sc. DEGREE EXAMINATION December 2014
(MATHEMATICS)
(SECOND YEAR)
(PART - III) – GROUP – B : Ancillary
670: ACCOUNTANCY-II
Time: Three hours Maximum: 75 marks
SECTION-A
(5× 6=30)
1. What is consignment? Why goods are sent on consignment at invoice price?
2. What are the differences between current a/c and capital a/c of a partner?
3. State the purposes of P & L appropriation a/c.
4. Specify the rules regarding redemption of preference shares.
5. How do you apportion various expenses and incomes between pre and post
incorporation periods?
6. Enumerate the different ways in which short workings can be ‘recouped’.
SECTION-B
(3× 15=45)
7. P & B undertook jointly to construct a building for Z Ltd for contract price of ` 1,60,000.
The price was to be paid ` 80,000 in cash and the balance in shares of Z Ltd. A banking
account was opened jointly, P contributing ` 45,000 and B `40,000 they agreed to share
profit or loss in proportion of 3/5 : 2/5 The joint venture transactions were as under
Materials purchased `74,000; wages paid ` 46,000; establishment expenses paid ` 6,000.
The contract was completed and the price was received. The shares were sold for
` 70,000. B took over the unused materials at ` 2000. Show the necessary accounts.
8. Prepare a Balance sheet as at 31st March 2010 from the following information of ABC Ltd
as required under the companies Act 1956.
` `
Term loan 10,00,000 Loss for the year 3,00,000
Creditors 11,45,000 Sundry debtors 12,25,000
Cash & Bank Balances 2,75,000 Loans from directors 2,00,000
Staff advances 55,000 Provisional for doubtful debts 20,200
Provision for Tax 1,70,000 Stock 4,00,000
Securities premium 4,75,000 Fixed assets (W.D.V) 51,50,000
Loose Tools 50,000 Finished goods 7,50,000
Investments 2,25,200 General reserve 20,50,000
Capital work in progress 2,00,000
a) Share capital consists of
(i) 30,000 equity shares of ` 100 each fully paid up
(ii)10,000-10% pref.shares of ` 100 each fully paid up
b) Term loan is secured
c) Depreciation of assets: ` 5,00,000
9. On 1.4.2010 Velan bought a machine from Devi & Co. on the instalment system. The
cost price of the machine was ` 17,430 and the payment was to be made as follows:
` 5,000 to be paid on signing of the agreement and the balance in three instalments of
` 5,000 each at the end of each year. It is agreed to charge interest at the rate of 10% by
Devi & Co., Velan had decided to write off 15% annually on the diminishing balance on
the value of the assets. Show the ledger accounts in the books of Velan.
10. A company acquired lease of a mine at a minimum rent of ` 10,000 p.a. The royalty was
fixed at ` 0.50 per tonne. Short workings could be recouped within three years following
the year in which the short workings occur. If there is stoppage of production due to
strike in any year, the minimum rent would be proportionately reduced in regard to the
length of the stoppage.
The output (in tonnes) of the mine was as follows:
2007-08 8,000 2010-11 26,000
2008-09 12,500 2011-12 17,000(strike)
2009-10 21,500 2012-13 30,000
During 2011-12, there was strike lasting for 3 months. Show the necessary ledger
accounts for each of the years in the books of the company.
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