BCC203 Fall Drive Assignment 2012

7/29/2019 BCC203 Fall Drive Assignment 2012

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ASSIGNMENTS

B.Com GeneralSemester -II

Subject Name: Fundamental of Accounting II

Subject code: BCC 203

Fall Drive 2012

4 credits (60 marks)

(BKID: B1465)

Set 1

Answer the following questions. Each question carries 10 marks.

1. Discuss the manner in which the pricing of goods sent on consignment is done.2. State the features of Memorandum joint venture method.3. Describe the concept of independent branches.4. What do you mean by departmentalization of expenses?5. A colliery company purchases a machine on the hire purchase system over a period of

five years, payable by annual instalments of Rs.10,000.The vendor charges interest

@10% p.a. on annual balances. The cash value of the machine may be taken as present

value of the annuity of Rs.10,000 for five years at 10% interest. Reference to the

Annuity Table shows that the present value of the annuity of Re 1 for five years @10%

p.a. is Rs.3.791.You are required to calculate cash price and the amount of interest

included in each instalment.

6. Prakash and Suresh doing business separately as building contractors, undertake jointlyto construct a building for a newly started Joint Stock Company for a contract price of

Rs.1,00,000 payable as to Rs.80,000 by instalment in cash and Rs.20,000 in fully paid

shares of the Company.A bank account is opened in their joint names, Prakash paying

in Rs.50,000 and Suresh Rs.25, 000.They are to share profit or loss in the proportion of

2/3 and 1/3 respectively.


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Their transactions were as follows:

Rs.

Paid wages 30,000

Bought materials 40,000

Material supplied by Prakash from his stock 5,000

Material supplied by Suresh from his stock 4,000

Architects fees paid by Prakash 2,000

The contract was completed and price duly received.The Joint Venture was closed by

Prakash taking up all the shares of the Company at an agreed valuation of Rs.16,000.

Prepare the Joint Venture Account, showing profit or loss, and the accounts of Prakashand Suresh showing the final distribution.


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ASSIGNMENTS

B.Com GeneralSemester -II

Subject Name: Fundamental of Accounting II

Subject code: BCC 203

Fall Drive 2012

4 credits (60 marks)

(BKID: B1465)

Set 2

Answer the following questions. Each question carries 10 marks.

1. What do you understand by recoupment of shortworkings?2. What is meant by the Statement of Affairs?3. State the provisions under Section 32 of the Partnership Act relating to the retirement of

a partner from a partnership firm.

4. Write short notes on the following cases:i.Gradual realization of assets and piecemeal distribution

ii.Basis of distribution5. A, B and C are partners in a firm sharing profits in the ratio of 2: 2: 1.According to the

terms of the partnership agreement, C has to get a minimum of Rs.6000 irrespective of

the profits of the firm.Any excess payable to C on account of such guarantee shall be

borne by A.Prepare the profit and loss appropriation account showing the distribution of

profits among the partners in case the profits for the year 2007 are (a) Rs.25,000 and

(b)Rs.40,000.

6. From the following particulars, calculate the value of goodwill on the basis of 3 years purchase of super profits of the business:


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Rs.

i. Capital employed 50,000ii. Trading Profits: 2004 Profit 12,300

2005 Profit 15,000

2006 Loss 2,000

2007 Profit 21,000

iii. Normal Rate to Return 20%iv. Remuneration for alternative employment to the

proprietor if not engaged in the business Rs 5000


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Documents

BCC203 Fall Drive Assignment 2012