JaiSriGurudev||

Sri Adichunchanagiri Shikshana

BGSINSTITUTEOFMANAGEMENTSTUDIES
(Affiliatedto BengaluruNorthUniversity,AccreditedbyNAAC)
BGSCampusSJCIT,B.BRoad,Chickballapur -562101
Time:-2.5Hours Max. Marks:-60

MODEL QUESTION PAPER -1

FINANCIAL ACCOUNTING AND REPORTING

ANSWER ANY 5 OF THE FOLLOWING.

1. Give the definition of partnership firm.
2. What is goodwill?
3. What do you mean by preference shares?
4. What do you mean by current assets?
5. What is common size balance sheet
6. What is financial statement analysis?
7. what is corporate reporting?

I. Answer any three of the following.

1. Prasad and vinod are the partners in a firm sharing profit and losses in the ratio of 2:3 . on 1 st JAN
2020 their capitals are RS 40000 and 50000 respectively.
The partnership deed provides interest on capital at 6% p,a and pramod gets annual commission of RS
2400. interest on drawing for the year 200 & 150 respectively..
The net profit of the firm before adjusting the above items to RS 14000. prepare profit and loss
appropriation account.

2. The profits diclosed by sudha ltd for past five years were as follows:
2006 RS 20000 (including abnormal profit RS 2500)
2007 RS 25000 ( after charging abnormal loss RS 500)
2008 RS 22500 (excluding 2500 insurance premium)
2009 RS 30000
2010 RS 40000 (including profit on sale of building)
Calculate goodwill at 2 years purchase of average profit.

3. Karnataka LTD issued 10000 shares of RS 100 each at a premium of 10% payable as follows.
RS 30 on application, RS 60 on allotment (including premium) and balance on first and final call.
All the shares were subscribed and the money duely received.

4. Under the what heading do you show the following items in the balance sheet of a co.
Good will, fixed deposit from public, discount on issue of debentures, bank overdraft, underwriting
commission, bills receivable, unclaimed dividend, patents and trade marks, loan on mortgage.
5. From the following statement of profit and loss of ABC ltd you are required to prepare a
comparative statement of profit and loss.
Particulars 2018 2019
Purchase of stock in trade 600 750
Finance cost 30 40
Other expenses 40 50
Employee benefit expenses 30 40
Revenue from operation 800 1000
Other income 50 100
II. Answer any three of the following.
1. Following is the trial balance of M/s Gopal and Murthy who share profit and losses equally for the
year ending 31-3-2020.
Particulars Debit Credit
Gopal’s capital - 39000
Murthy’s capital - 20000
Stock (1-4-2019) 6000 -
Purchase and sale 72000 98000
Discount 2200 4400
Salaries 12000 -
Rent 6000 -
Trade expenses 500 -
Commission 4900 -
Debtors and creditors 28000 17000
Machinery 25000 -
Cash and bank balance 25500 -
Rent received - 2500
Loan from bank - 10000
Interest on loan 3900 -
Miscellaneous receipts - 800
B/R and B/P 5000 10000
Insurance 3000 -
Printing and stationery 2000 1000
Commission received - 3300
Adjustments :
1. Closing stock was valued at RS 12000.
2. Commission earned but not received rs 10000
3. Provide depreciation on machinery at 10%
4. Create reserve for doubtful debts at 5% on debtors
5. Prepaid insurance amounted to RS 500.
Prepare trading, profit and loss account and balance sheet.

2. the balance sheet of MSD LTd as on 31-12-2017

Liabilities Amount Assets Amount
Equity shares of RS 10 250000 Fixed assets 200000
each
General reserve 100000 Investments(5% govt 50000
bonds)
Profit and loss account 50000 Current assets 200000
Current liabilities 50000
Total 450000 Total 450000
Additional information:
Net profit after taxation : 2015 RS 65000, 2016 62500, 2017 75000.
A normal rate of return is 10%
Current assets are to be taken at RS 2,10,000.
Asertain the value of goodwill under
4 years purchase of Super profit.
Capitalisation of super profit.
Anuity of super profit taking anuity factor Re 1 for five years at 10% as RS 3.78

3. Amar trading company issued 10000 equity shares of RS 10 each at a premium of RS 2 per share.
The amount was payable as follows: RS 2 on application, RS 5 on allotment(including premium), RS 3
on first call and RS 2 on final call.
All the shares were subscribed and money duely received except the final call on 1000 shares. The
directores forfeited the shares and reissued as fully paid at RS 8 per share. Give journal entries in the
books of the company.
4. From the following detailes of Alfa Ltd. Prepare a balance sheet as on 31-3-2022.

Particulars Amount
Equity share capital 350000
Preference share capital 100000
Plant and equipment 534000
Furniture 12550
Land and buildings 280000
General reserve 90000
6% debentures 150000
Capital reserve 10000
Securities premium 60000
Provision for taxation 70000
Surplus in profit and loss statement 69100
Bills receivable 6200
Trade receiveables 34350
Trade peyables 35500
Stock in trade 42600
Cash at bank 24900
5. The following are the balance sheets of nethravathi compant Ltd., as on 31-3-2018. and 31--32019.
prrepare comparative balance sheet and study the financial position of the concern.
Equity and liabilities 2018 2019
Equity share capital 600000 8,00,000
Reserves and surplus 330000 2,20,000
Debentures 200000 3,00,000
Other non current liabilities 150000 2,00,000
Sundry creditors 100000 45,000
Other current liabilities 5000 1,20,000
Bills payable 50000 10,000
Total 1435000 14,35,000
Assets
Land and buildings 370000 2,70,000
Plant and machinery 400000 6,00,000
Furniture and fixture 20000 25,000
Goodwill 25000 30,000
Cash in hand 20000 80,000
Bills receiveables 150000 90,000
Sundry debtors 200000 2,50,000
Stock in trade 250000 3,50,000
Total 1435000 14,35,000

Iv. Answer any one of the following.

1. what is an annual report ? state the ideal characteristics features of annual report?
2. Explain in detail the Vision, mission, values and business model of a Infosys company.