HI-AIMS COLLEGE OF COMMERCE AND MANAGEMENT SARGODHA

SENDUP EXAM 2014, B.Com Part-II

Paper: Advanced Accountin Tota! Mar"#:
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Paper Code:&C '%$ Ti(e A!!o)ed: *+r
Note: Atte(pt an, -ive .ue#tion# A!! .ue#tion# carr, e.ua! (ar"#/
0ue#tion No/$: A company has outstanding 6% debentures of Rs.2,00,000 on 1
st
January 2013. The company
pays interest on 30
th
June and 31
st
ecember. !t purchases debentures of Rs.20,000 for cance""ation on 1
st
#ay,
2013 at Rs.101 cum$interest. !t further purchases for redemption debenture of Rs.%0,000 on 1
st
&eptember, 2013
at Rs.'( e)$ interest.
Re.uire(ent: *ou are re+uired to pass the necessary ,ourna" entries in the boo-s of the company for year
2013.
0ue#tion No/1: .n 1
st
January 2001 A/am trading ac+uired a machine on hire purchase. The terms on the
contract 0ere as fo""o01
i. The cash price of the machine 0as Rs 10,000.
ii. Rs 1,000 0ere paid on the signing of the contract.
iii. The ba"ance 0as to be paid in annua" insta""ments of Rs 3,000 p"us interest.
i2. !nterest chargeab"e on the outstanding ba"ance 0as 3% per annum
2. eprecation at 10 % per annum is to 0ritten off on the diminishing ba"ance method.
Re.uired: 2a3 4repare the machinery 5 hire 2endor account from 1
st
January 2001 to 31
st
ecember 2002
243 &ho0 the ba"ance account in the 6a"ance sheet of the purchaser as at ecember 31
st
ecember 2002.
0ue#tion/No/*: The fo""o0ing data is re"ated to A67 7ompany for the year 31
st
ec. 2011.
Ad5u#t(ent#:-
i/ The stoc- on 31
st
ecember 2011 0as at Rs. 1,30,21%
ii/ 4ro2ide Rs. 20,000 for deprecation on fi)ed assets, Rs. 6,300 for #anager 7ommission and Rs. 1,300 for
company8s contribution to0ards staff pro2ident fund
iii/ !nterest accrued on in2estment amount to Rs. 3,3%(.
iv/ A pro2ision of Rs 30,(%( is necessary for ta)ation.
De4it &a!ance R# Credit &a!ance R#
6ui"ding 193,000 !ssued, subscribed 5 paid up capita"
4urchases 300,'03 :60,000 e+uity shares of Rs. 10 each; 600,000
#anufacturing e)penses 202,(00 <enera" reser2e 230,000
=stab"ishment e)pense 36,(1% >nc"aimed di2idend 6,326
<enera" charges 31,09( Trade creditors 36,'9%
#achinery 200,000 &a"es '(3,'%9
#otor 2ehic"es '3,000 epreciation reser2e 91,000
?urniture 13,000 !nterest on in2estments (,3%%
.pening stoc- 192,03( 4rofit 5 @oss AAc 1
st
January 2011 16,(%(
ebtors 1%(,3(0 &taff pro2ident fund 39,300
!n2estments 2((,'30
7ash 92,336
irector8s ?ees 1(,000
!nterim di2idend %3,000
Repairs 5 Rene0a"s 10,000
1%6$$6**7 1%6$$6**7
Roll no________
v/ irectors propose a fina" di2idend of Rs. %3,000.
vi/ 7redit sa"es of Rs. 1,600 0ere "eft unrecorded.
Re.uired:-
4repare Trading and 4rofit and @oss Account and 6a"ance &heet.
0ue#tion/No/': ?o""o0ing are the e)tracts from the financia" statements of paradise paper "td at year ended on
31
st
ecember 200'
The company had issued 10,000 e+uity shares on 31
st
ecember 200' . #ar-et 2a"ue per share on 31
st

ecember 200' 0as R&. 23.
Ca!cu!ate:
i. 7urrent ratio ii. @i+uid ratio iii. ebt B e+uity ratio
i2. =arnings per share 2. !nterest co2erage ratio 2i. 4rice earning ratio
0ue#tion/No/8: A contractor ma-es up his accounts to ecember 31 in each year, contract no.33% commenced
on Apri" 1, 2009. The cost records yie"d the fo""o0ing information on ecember 31, 2009.
#ateria" 7harged out to site 2,130
@abour 3,130
?oremen 631
A machine costing Rs.1,300 has been on site 93 days, !ts 0or-ing "ife is estimated at fi2e years, its fina" scrap
2a"ue of Rs.100.A super2isor, 0ho is paid Rs. 1,200 per annum, has spent appro)imate"y one ha"f of his time on
this contract. A"" other e)penses and administration e)penses amounted to Rs.1,261. #ateria"s in store at site at
year end cost Rs. 233.The contract price is Rs.20,000. .n 31
st
ecember 2009 2A3 of the contract 0as
comp"eted. Architects certificate has been issued co2ering Rs. 10,000 and Rs. 9300 has so far been paid on
account.
Re.uired: 4repare a contract account and state ho0 much profit or "oss shou"d be inc"uded in respect of
7ontract Co. 33% in the financia" accounts to 31
st
ecember, 2001.
0ue#tion/No/9: A of @ahore consigned 300 radio sets costing Rs. 1000 each to 6 of &ia"-ot on 1
st
#arch 200%.
The e)penses on consignment 0ere freight Rs. 3,000 insurance Rs 2,300, carriage Rs 300.6 recei2ed the
de"i2ery of %90 radio sets. An account sa"e dated 30
th
June , 200% sho0ed that 3'3 sets 0ere so"d for Rs.
Particu!ar# R#/ Particu!ar# R#/
<ross &a"es 9,30,000 7ash 11,000
&a"es Return 10,000 #ar-etab"e securities 9,000
Cet profit before ta) 1,'0,000 Accounts recei2ab"e %9,000
!nterest e)pense 2%,000 !n2entory 30,000
!ncome ta) rate %0% Cet fi)ed assets 1,30,000
7urrent "iabi"ities 33,000 &hare capita" 1,00,000
@ong term "iabi"ities (0,000 4rofit and @oss 30,000
9,30,000 and 6 incurred Rs.2330 for carriage , Rs 6,903 for godo0n rent. 6 0as entit"ed to a commission at the
rate of 6 % on sa"es. A "odged a c"aim 0ith the insurance company 0hich 0as admitted at Rs. 22300.
Re.uired: &ho0 the necessary accounts in the boo-s of A.
0ue#tion/No/:: Dhat are departmenta" accountsE =)p"ain the basic of a""ocation of 2arious e)penses o2er
2arious departments.
0ue#tion No ;: iscuss the factors, 0hich shou"d be considered 0hi"e ma-ing the decisions regarding right
issue of share.
BEST OF LUCK
BEST OF LUCK
A contractor ma-es up his accounts to ecember,31 in each year, contract no,33% commenced on Apri" 1, 2001.
The cost records yie"d the fo""o0ing information on ecember 31, 2001. The cost of records yie"d the
fo""o0ing information on ecember 31, 2001.
#eteria" 7harged out to site 2,130
@abour 3,130
?oremen 631
A machine costing Rs.1,300 has been on site 93 days, !ts 0or-ing "ife is estimated at fi2e years, its fina"
scrap 2a"ue of Rs.100
A super2isor, 0ho is paid Rs. 1,200 per annum, has spent appro)imate"y one ha"f of his time on this
contract.
A"" o2er e)penses and administration e)penses amounted to Rs.1,261 #ateria"s in store at site at year
year end cost Rs,2%(.
The contract price is Rs.20,000 .n 31
st
ecember 2001 2A3 of the contract 0as so far been paid on
account.
Prepare a contract account and #tate +o) (uc+ pro-it or !o## #+ou!d 4e inc!uded in re#pect o-
Contract No/ 8*' in t+e -inancia! account# to *$
#t
Dece(4er6 1%%$/
0ue#tion No/9
A Fead office in Gohat has a 6ranch in @a"a #usa to 0hich goods are in2oiced by the Fead .ffice at 7ost
4rice 4"us 23%. ?rom the fo""o0ing particu"ars sho0 ho0 the 6ranch account 0i"" appear in the Fead .ffice
6oo-s :entries are to be made at in2oice price.;
Particu!ar#
&toc- on 1
st
Ju"y 2001 :!n2oice 4rice;
ebtors on 1
st
Ju"y 2001
<ood in2oice from Gohat
Remittance to Gohat
7ash &a"es
7ash recei2ed from ebtors
<oods returned to Fead .ffice
7he+ues recei2ed from Gohat1
Dages and sa"aries
Rent, rates etc.
&undry e)penses
&toc- on 31
st
ecember 2001 :in2oice price;
ebtors on 31
st
ecember 2001
R#/
16,000
2',300
11,000
3,000
310
R#/
12,300
12,000
%0,000
%3,300
2%00
1%,310
13,000
22,300
&EST OF L<C=