Total No. of Questions : 4] SEAT No.

PA-1825 [Total No. of Pages : 5

[5952]-502
T.Y. B. Com
ADVANCED ACCOUTANCY - I
(2019 Pattern) (Semester - V) (352)
Time : 2½ Hours] [Max. Marks : 70
Instructions to the candidates:
1) Q1. is compulsory.
2) Solve any 2 Questions from remaining Q.No. 2, 3 and 4.

Q1) A) Fill in the blanks (Any five out of 7) [5]

i) When new shares are being issued __________ account is credited
a) Share Premium b) Share Capital
c) Share reduction d) Share investment
ii) Ex-interest basis means the purchase price of securities _________
interest
a) Rolls b) excludes
c) takeover d) outstanding
iii) AS 3 deals with __________
a) Construction Contracts b) Disclosures
c) Cash flow Statement d) Employee Benefits
iv) Internal Reconstruction means that the scheme will be carried out
by means of __________ of capital
a) Issue b) rise
c) increase d) reduction
v) Converting share of smaller denomination into larger denominations
is called
a) Surrender b) face value
c) Consolidation d) Market value

P.T.O.
 vi) Capital Reserve is written in __________ schedule number as per
Banking Company Accounts
a) 2 b) 1
c) 3 d) 5
vii) Brokerage is added to the ______________ price
a) Sale b) Income
c) expense d) Purchase

B) True of False (Any five out of 7) [5]

i) Investment account is a real account. True
ii) Equity shares are long-term financing sources for any company.
True
iii) Debentures are commonly known as preferred stocks. False
iv) Securities can be purchased at par, premium and at discount. True
v) Fixed Assets include Stock. False
vi) The commission paid to the broker is known as Brokerage. True
vii) Bonus shares are issued to creditors only. False

C) Match the following : [5]

i) Cost of bonus share - Schedule no 7
ii) Rent paid - Statutory audit
iii) Financial accounting statements - Surrender of shares
iv) Voluntary return of shares - Schedule no 16
v) Money at call and short notice - Nil

D) Short Notes (Any three out of six) [15]

i) Introduction to IFRS
ii) Capital Restructuring
iii) Classification of Investments
iv) Introduction to AS- 3
v) Introduction of Banking Company
vi) Carrying Cost of Investment

[5952]-502 2
Q2) The following was the Balance Sheet of Z Ltd as on 31st March 2021. [20]
Balance Sheet as on 31st March 2021
Liabilities Amt Assets Amt
Share Capital : Freehold Property 2375000
i) 15000, 7% Preference 1500000 Plant and Machinery 800000
Share of Rs. 100 each
ii) 275000 Equity Shares 2750000 Goodwill 300000
of Rs. 10 each
Share Premium 400000 Stock 350000
Sundry Creditors 400000 Debtors 225000
Preliminary Expense 250000
Profit and Loss 750000
5050000 5050000

The following scheme of reconstruction was approved and duly sanctioned

i) Preference share to be reduced to Rs.80 per share
ii) Equity shares to be reduced to Rs.5 per share
iii) Write off all intangible assets and share premium account
iv) Freehold property to be written down to Rs. 1850000
Give necessary journal entries to record the above transactions in the
books of Z Ltd. Also prepare a revised Balance Sheet after the scheme
of reconstruction as on 31st March 2021.

Q3) The following is the trial balance of Dhanvikas Bank Ltd., Dharangaon as on
31st March 2022. [20]
Particulars : Debit Credit
Subscribed Capital : 50,000 equity shares of Rs. 10 5,00,000
each full paid 2,50,000
Reserve fund
Loans, Cash Credits and Overdrafts 2,85,000
Premises 50,000
India Govt. Securities 4,00,000
Current deposits 1,00,000

[5952]-502 3
 Fixed deposits 1,25,000
Savings Bank Deposits 1,50,000
Salaries 28,000
General expenses 27,400
Rent, Rates and taxes 2,300
Directors fees 1,800
Profit and loss account as on 1st April 2021 16,000
Interest and discount 1,28,000
Stock of Stationery 8,500
Bills purchased and discounted 46,000
Interim dividend paid 17,000
Recurring deposits 20,000
Shares 1,50,000
Cash in hand and with RBI 1,93,000
Money at call and Short notice 80,000
Total 12,89,000 12,89,000
The following information should be considered:
i) Provision for bad and doubtful debts is required to be made at
Rs. 5,000
ii) Interest accrued on investment was Rs. 8,000
iii) Unexpired discount (rebate on bills discounted) amounted to 380
iv) Interim dividend declared was 4% actual
v) Endorsements made on behalf of customers totaled Rs 1,15,000
vi) Authorised capital was 80,000 Equity shares of 10 each
vii) Rs10,000 were added to Premises during the year, Depreciation @5%
on the opening balance is required
viii) Market value of Indian Govt. securities was 3,90,000
Prepare Profit and Loss account for the year ending 31st March 2022 and
Balance Sheet as at that date in the prescribed form.

[5952]-502 4
Q4) On 1st January 2019, ITC Finance Co. Ltd bought Rs.4000 6% Government
Bonds at 90, the cheque of Rs.3680 paid being Rs.3600 for the securities and
Rs.80 for the brokerage charges. Interest is receivable each year on 30th June
and 3lst December.
On 1st February 2019, Rs.1000 nominal value of securities is sold
cum-interest the net proceeds being Rs.950. On 1st June 2019, Rs.2000 nominal
value of securities sold Ex-interest net proceeds after brokerage being Rs.1710.
On 1st February 2020, Rs.5000 nominal value of securities bought Cum-
interest cost including brokerage being Rs.4370. On 1st June 2020, Rs.1000
nominal value of securities bought Ex-interest cost including brokerage being
Rs.910
Write Investment account for the years 2019 and 2020. [20]



[5952]-502 5
Total No. of Questions: 4] SEAT No. :
PA-2707 [5952]-502A
[Total No. of Pages : 4

T.Y.B. Com.
352 : ADVANCED ACCOUNTING-I
(2019 Pattern) (Semester-V)
Time : 2½ Hours] [Max. Marks : 70
Instructions to the candidates:
1) Q1 is compulsory
2) Solve any 2 Questons from remaining Q.No 2,3 and 4

Q1) A) Fill in the blanks (Any five out of 7) [5]

i) Cash flow statement exhibits the flow of _____and outgoing of
cash
a) Incoming b) reversal
c) funds d) operating
ii) Government Grants as per As-12, is to be accounted for on
____basis
a) Cash b) investment
c) accrual d) vertical
iii) Indian Accounting Standards are formulated on the basis of _____
a) ICMA b) ICMS
c) ICSI d) IFRS
iv) Under the _____method of valuation of closing investment it is
assumed that the investment purchased first are sold first.
a) LIFO b) FIFO
c) Simple Average d) Weighted Average
v) In the Balance Sheet of a Banking Company, investment in Silver is
shown on the asset side under the heading _____
a) Other assets b) Virtual assets
c) Current assets d) Fixed assets
vi) Ex-interest basis means the purchase price of securities
_____interest
a) Excludes b) includes
c) outgoing d) incoming
vii) The expenses incurred on sale of investments are to be ____from
the sale price of investment.
a) merged b) incurred
c) shared d) deducted
 B) True of False (Any five out of 7) [5]
i) Carrying Costs refers to the costs associated with the carrying value
of investments.
ii) Investments are treated as real accounts
iii) Interest is calculated on the face value of investment
iv) A security is said to be at discount when acquired or sold at a price
more than its face value
v) As per AS-3, increase in fixed asset will be net of interest capitalized
vi) Capital restructuring is a corporate operation aimed at changing the
ratio of equity and debt firms Capital structure.
vii) Banking Companies in India are governed by Banking Regulation
Act, 1949
C) Match the following. [5]
i) Income on Investments a) Bonus shares
ii) Other expenditure b) Purchase/Sale price of Securities
iii) Free of Cost Shares c) Schedule no. 16
iv) Statutory Audit d) Schedule no. 13
v) Market price e) Financial accounting statements

D) Short Notes (Any three out of five) [15]

i) Explain IFRS
ii) Meaning of Capital Restructuring
iii) Classification of Investments
iv) Carrying Cost of Investments
v) Banking Company Accounts
Q2) The following was the Balance Sheet of Z Ltd., as on 31st March 2021 [20]
Balance Sheet as on 31st March 2021
Liabilities Amt Assets Amt

Share Capital: Freehold Property 23,75,000

1) 15,000, 7% Preference 15,00,000 Plant and Machinery 8,00,000
Share of Rs. 100 each
2) 2,75,000 Equity Shares of 27,50,000 Goodwill 3,00,000
Rs.10 each
Share Premium 4,00,000 Stock 3,50,000
Sundry Creditors 4,00,000 Debtors 2,25,000
Preliminary Expense 2,50,000
Profit and Loss 7,50,000
50,50,000 50,50,000

[5952]-502 A 2
 The following scheme of reconstruction was approved and duly sanctioned
i) Preference share to be reduced to Rs. 80 per share
ii) Equity shares to be reduced to Rs. 5 per share
iii) Write off all intagible assets and share premimum account
iv) Freehold property to be written down to Rs. 18,50,000 Give necessary
journal entries to record the above transactions in the books of Z Ltd.
Also prepare a revised Balance Sheet after the scheme of reconstruction
as on 31st March 2021

Q3) Following is the Trial Balance of Vidya Bank as on 31st March 2021 [20]
Trial Balance as on 31st March 2021
Particulars: Debit Credit
Premises Less depreciation 1,85,000
Money at Call and Short Notice 2,15,000
Furniture Less depreciation 30,000
Depreciation on Banks Assets 11,000
Non Banking Assets Acquired
in Settlement of Claims 20,000
Cash in Hand 3,00,000
Cash at Banks 2,50,000
Investments 3,50,000
Loans, Cash Credit and Overheads 12,65,000
Interest, on Deposits and Borrowings 2,00,000
Audit Fees 4,500
Salaries and Allowances to Staff 40,500
Directors Fees 4,000
Postage and Telegrams 1,350
Printing and Stationery 3,700
Other Expenditure 2,450
Interest and Discounts 3,67,500
Share Capital
Authorised 7,500 Equity Share at
Rs. 100 each -
Issued and Subscribed 6000
Equity shares of Rs. 100
each fully paid 6,00,000
[5952]-502 A 3
 Statutory Reserve 1,20,000
Deposits 12,50,000
Provident Fund 1,35,000
Borrowings from Maharaja Bank 2,55,000
Unclaimed Dividend 4,000
Commission and Exchange 37 ,500
Profit on Sale of Non
Banking Assets 1,200
Profit & Loss Account
as on 1st April 2020 1,12,300
Total 28,82,500 28,82,500

Adjustments:
a) Provide Rs. 10,000 for Bad and Doubtful Debts
b) Bills for collection amounted to Rs. 1,05,000
c) Acceptances, Endorsements and other Obligations amounted to Rs.
52,000
d) Provide Rs. 1,500 for Rebate on Bills discounted
e) Provide Rs. 10,500 for taxation
f) Postage stamps of Rs. 160 and Stationery of Rs. 700 was in hand on
31st March 2021
g) Transfer 25% of profit to statutory reserve
Prepare Profit & Loss Account for the year ended 31st March 2021 and
the Balance sheet as on that data as per Banking Regulation Act. 1949

Q4) X Finance Company Ltd., submits the following detail regarding one of their
12% Investment for the year 2020-2021. Opening Balance on 01/04/2020 face
value Rs. 60,000 at Rs. 56,000. The following purchase and sales were made
out of these investments during the year ended on 31/03/2022. [20]
Purchases on.
i) 01/08/2020 Face value Rs. 10,000 at Rs. 101 Cum-interest.
ii) 01/11/2020 Face value Rs. 15,000 at Rs. 103 Ex-interest.
Sales on-
i) 01/09/2020 Face value Rs. 10,000 at Rs. 104 cum-interest
ii) 01/02/2021 Face value Rs. 20,000 at Rs. 103 ex-interest
The interest is payable on 1st January and 1st July every year. Write
up Investment Account as on 31/03/2021. Investments on
31/03/2021 are to be valued at cost by First-in-first out method.


[5952]-502 A 4