1. What is company? State any three feature of company.

(3)
2. What is Memorandum of Association? State its important clauses. (3)
3. What is cost accounting? State the objectives of cost accounting. (3)
4. What is cost? State any three differences of fixed cost and variable cost. (3)
5. State the differences between costing. and financial accounting. (3)
6. Write the essential feature of good wage payment system. (3)
7. State the differences of piece rate and time rate wage payment system. (2)
8. ABC limited company invited application for 10000 share of Rs 100 each at 10% premium. The
amount was payable as below
Rs 20 on application,
Rs 50 on allotment including premium
Remaining balance on first and final call
Applications were received for 25000 share. No allotment was made for 10000 shares and
remaining share applications were allotted on prorate basis. All money was duly received.
However, one shareholder holding 200 shares fails to pay final call money.
Required Journal entries For Application Allotment and call (5)
9. A limited company forfeited 600 shares of Rs100 each initially issued at 10 discount for the non-
payment of allotment and final call money Rs 40. Out of these forfeited shares 400 shares were
Re-issued at Rs 70 as fully paid up.
Required journal entries for
1. Forfeiture of share 2. Re-issue of share 3. Transfer to capital reserve (5)
10. A limited company forfeited 1000 shares of Rs100 each initially issued at 10 discount for the
non-payment of allotment and final call money Rs 40. Out of these forfeited shares 600 shares
were Re-issued at Rs 70 as fully paid up.
Required journal entries for
2. Forfeiture of share 2. Re-issue of share 3. Transfer to capital reserve (3)
11. Sun limited company tool over the business of Moon limited company at an agreed price of Rs
950,000. The assets and liabilities of Moon limited company are as bellows:
Fixed assets 400,000 Current Assets 200,000 Investment 600,000
Creditors 200,000 Outstanding Expenses 50000
Payment to Moon limited Company was made by issuing share of 100 each at 10% discount.

Required Journal Entries For

1.Purchase of Business 2. Payment made by issuing share (3)

12. A limited Company issued 5000, 10% debentures of Rs 100 each at 10% discount which are
redeemable after maturity at 5% Premium. (4)
Required Journal entries for issue and redemption of debentures
13. Trial balance of ABC limited company is provided as below:
Particulars Amount Particulars Amount
Opening stock 300,000 Share Capital 600,000
Purchase 600,000 5% Bank Loan 100,000
Furniture 80,000 Purchase Return 1,000
Equipment 200,000 Sales 1200,000
 Wages 40,000 Profit and loss account 220,000
Salary 160,000 Commission 2,000
Stationery 50,000 Creditors 120,000
Telephone and electricity 120,000
Discount 20,000
Land and building 300,000
Plant and machinery 100,000
Debtors 160,000
Interest 3,000
House rent 60,000
Cash in hand and bank 50,000

22,43,000 22,43,000

Additional information:
1.Value of closing stock 200,000
2. Depreciate plant and machinery by 10%.
3. Appreciate land and building by 5%
4. Provision for bad debt to be maintained at 5% of sundry debtors.
4. 10% proposed dividend on paid up capital.
5. provision for income tax 20,000
6. transfer to general reserve Rs 20000
7. Outstanding salary 5000 and interest Rs.2000
Required: 1. Trading account 2. P/L account 3. P/L App. Account 4. Balance Sheet (12)

14. The trial balance of a limited company is given as below:

Particulars Debit Amount Credit Amount
Equipment 1000,000
Furniture 300,000
Opening inventory 800,000
Debtors 500,000
Purchase 4000,000
Salary and allownaces 11,00,00
Miscelleneois 100,000
Share capital 200,000 1000,000
Sales 62,00,000
Creditors 600,000
Profit and loss app. Account 200,000
Total 8000,000 8000,000

Additional Information
1.Depreciate Equipment by 10%
 2. Salary is payable Rs 50,000
3. Proposed Dividend 10% of paid up capital
4.Closing Stock 300,000
Required: 1. Work sheet 2. Journal entries for adjustment (8)

15. Comparative balance sheet of year 1 and year 2 given as below:

Liabilities Year 1 Year 2 Assets Year 1 Year 2
Share capital 700,000 800,000 Plant and machinery 700,000 980,000
Share premium 70,000 80,000 Investment 50,000 30,000
Retained Earning 100,000 210,000 Inventories 80,000 40,000
8% Debenture 55,000 35,000 Debtors 100,000 50,000
Creditors 100,000 75,000 Prepaid expenses 10,000 50,000
Outstanding 15,000 50,000 Cash and bank 100,000 100,000
Expenses
10,40,000 12,50,000 10,40,000 12,50,000
Additional information:
1. Sale Revenue Rs 800,000
2. Cost of goods sold Rs. 460,000
3. Administrative Expenses Rs 125,000
4. Investment costing Rs 30000 was sold at a loss of Rs 5000..
5. Purchase of plant and machinery Rs300,000
6. Dividend paid Rs 80,000
7. Purchase of investment Rs 10000.

Required: Cash Flow Statement (10)

16. The receipts and issues of materials for the month of baishakh 2069 are given below

Baishakh 1 Opening balance 600 units Rs 10

4 purehase 800 units at Rs 11
10 Issued 300 unit
11 Issued 400 unit
12 Purehased 400 unit at Rs12
25 Received back from work order: 50 unit at Rs11
26 Stock verification loss from latest purchased 15 units
Required stores ledger under LIFO method (5)
17. The following data are available from the book of a company
Annual Requirement = 10000 units
Ordering cost = Rs 16 Per order
Carrying Cost = 10% of average inventory value excluding insurance charges Re 1
Cost per unit = Rs 10
Required 1. EOQ 2. No. of Order 3. Total Cost at EOQ (3)

18. The following information are given to you

Re-order quantity = 40000 units
 Re-order period = 10 to 20 days
Minimum usage = 800 units per day
Maximum usage = 1400 units per day
Normal usage = 1100 units per day
Requirement
1. Reorder stock Level 2. Minimum Stock Level 3. Maximum Stock Level 4. Average Stock
Level(5)
19. A worker produced 50000 units during a month. Standard production per hour is 20 units and
wage per hour is Rs100. Calculate the wage payable to the worker. (2)
20. The detailed information of manufacturing company are given as below
Direct material = Rs. 600,000
Direct labour = Rs. 500,000
Work overhead = Rs. 100,000
Office overhead = Rs. 60,000
The following estimation of direct cost and allocation of overhead were made for the
submission of tender sheet
Direct material = Rs.400,000 Direct labour = Rs.200,000
Work overhead on the basis of direct labour cost,
Office overhead on the basis of factory cost
The company wants to earn 25% profit on sales .
Required 1. Cost sheet 2. Tender sheet (10)
21. Net profit as per financial accounting Rs 150,000. On the comparison of cost and financial
account, the following differences were located
Factory overhead over charged in cost account Rs 10000.
Office overhead under charged in financial account Rs 15000.
Selling and distribution overhead over charged in cost account Rs 12000.
Income tax paid Rs 17000 recorded in financial account.
Goodwill written off Rs 25000 not shown in cost account.
A profit on sale of fixed assets Rs 20000 treated in financial account only.
Required : Cost Reconciliation Statement (5)