B.B.A. DEGREE EXAMINATION, APRIL 2018
Second Semester
International Business
ACCOUNTING
(2017 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 x 2 20)
Answer all questions.
1. What is Revaluation Account?
2. What is meant by Gaining ratio?
3. What are the adjustment entries?
4. What are the accounts that are prepared at the time of
dissolution?
5. How will you treat the unpaid amount of liability when
all partners are insolvent?
6. What is purchase consideration?
7. What is meant by surrender of shares?
8. Define Goodwill.
9. What is Internal Reconstruction?
10. Who is a liquidator?
Sub. Code
24
CP-8812
2
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Part B x 5 25)
Answer all questions.
11. Distinguish between Revaluation a/c and
memorandum Revaluation a/c.
Or
X and Y share profits and losses in the ratio of 3:2.
They admit Z with 1/5 share who pays only
Rs. 1,000 for premium out of his share of Rs. 2,500.
Good will a/c appears in the books at Rs. 5,000.
What entries would be made if no goodwill appear
in the books.
12. What are the reasons for amalgamation?
Or
The following was the Balance sheet of
Radha Krishna and Sankar as on 31.12.2003.
Liabilities Rs. Assets Rs.
Creditors 12,000 Machinery 25,000
General reserve 3,000 Stock 11,000
Capital Debtors 9,500
Radha 20,000 Goodwill 13,000
Krishna 15,000 Cash 1,500
Sankar 10,000
60,000 60,000
On the above data the firm was dissolved. The
assets realised Rs. 50,000. The creditors were
settled at Rs. 11,500. Dissolution expenses
amounted Rs. 1,000. The Partners has as their
profit sharing ratio.
Give necessary journal entries and Realisation a/c.
CP-8812
3
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13. What are the ratios used to calculate profit prior to
incorporation?
Or
A Company has fixed assets of Rs. 2,00,000 and
profit after depreciation p.a is Rs. 80,000 and
the income tax limit for depreciation is Rs. 8,000.
Calculate of the net profit as commission to
manager Tax provision at 50%.
14. What are the advantages of underwriting?
Or
X Co. Ltd, took over assets Rs. 3,50,000 and
liabilities of Rs. 30,000 of Y Co, for the purchased
consideration of Rs. 3,30,000. X Co. Ltd paid the
purchase consideration by issuing debenture of
Rs. 100 each at premium of 10%. Give journal
entries.
15. What are the factors affecting the value of shares?
Or
A firm has earned an average profit of Rs. 1,50,000.
The normal rate of return of this type of business
would be 10%. The assets of the firm other than
goodwill amounted to Rs. 16,20,000 and liabilities
amounted Rs. 5,60,000.
Find out the value of goodwill by capitalisation of
average profit.
Part C x 10 30)
Answer all the questions.
16. Explain the procedure for admission of a Partner.
Or
Discuss fire accounting concept in detail.
CP-8812
4
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17. A Company has Rs. 6,00,000, debentures
outstanding on 1st January 2007. On this date the
debenture redemption fund stood at Rs. 5,00,000
represented by Rs. 5,90,000, 4 ½ [2020] loan of
the govt. of India.
The annual installement added to the fund is
Rs. 82,300. On 31st December 2007, the bank
balance after the receipt of interest on the
investment was sold at 83% net and the debenture
were paid off. Show the necessary accounts for the
year 2007.
Or
Draft the balance sheet of a limited company is
prescribed form as per Schedule VI of Indian
Companies Act with imaginary figures.
18. What are the "Components" of "final accounts" of a
joint stock company?
Or
The liquidator of a Co. Ltd is entitled to get a
remuneration of on the amount realised from
the asset and on the amount distributed to the
unsecured creditors. From the following particulars
calculate the remuneration payable.
Rs.
Cash realised from assets 3,00,000
Preferential creditors 10,000
Amount due to unsecured creditors 4,00,000
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