BACHELOR'S DEGREE PROGRAMME
Term-End Examination June’ 2015
ELECTIVE COURSE: COMMERCE ECO-14: ACCOUNTANCY-II
Time: 2 hours Maximum Marks: 50
Note: Attempt any four questions including question no. 1 which is compulsory.
You have to attempt total four questions out of total seven questions in which 1st question is theoretical and compulsory. From rest 6 questions you have to attempt only 3 question in which you can select cash flow and funds flow theory section, ratio analysis practical section and partnership practical section from which 2 questions are certain. For the last one, you can select issue of shares and debentures section.
Chapter wise selected questions:
Departmental accounts: MUST STUDY
1. What is departmental accounting? Mention its uses. Explain the basis of allocation of various expenses amongst various departments.
2. How Inter-departmental transfer is treated in departmental accounts? Explain the treatment of unrealized profit in departmental account.
3. Distinguish between departmental and branch accounting.
Branch account: MUST STUDY
1. What is Branch accounting? What are its objectives? Distinguish between department and branch accounting.
2. Explain three methods of preparation of accounts of dependent branch.
3. Explain the treatment of fixed assets and depreciation when accounts are maintained by head office.
4. How branch accounts are incorporated in head office books?
Cash flow and funds flow: MUST STUDY
1. What is cash flow? What are its uses?
2. What is funds flow (Statement of changes in working capital)? Distinguish between cash flow and funds flow.
3. What are various sources and applications of funds?
1. What is goodwill? Mention various factors affecting goodwill. Explain three methods for valuation of goodwill.
2. Explain the treatment of goodwill at the time of admission of a partner. VVI
3. What is Joint life policy? Explain two methods of treatment of joint life policy in partnership accounts.
4. What is dissolution of firms? Distinguish between dissolution of partnership and dissolution of firms. What are the various ground on which a firm can be dissolved.
5. What is fixed capital and fluctuating capital? Distinguish between them. Give a Proforma of such capitals. VVI
6. State the legal provisions for settlement of accounts of a partnership firm after dissolution.
7. Explain the rights and duties of partners in case of dissolution of firms.
Issue of Shares and Debentures: Preferred chapter
1. Explain the various provisions relating to issue of shares at a discount and issue of shares at a premium. VVI
2. What are financial statements? What are its features and limitations? VVI
3. Explain the sinking fund method of redemption of debentures.
4. Explain the treatment of issue of debentures as a collateral security.
5. What are various methods for redemption of debentures?
6. Explain the procedure and accounting treatment of forfeiture of shares.
7. Pass the necessary journal entries for issue and redemption of debentures at a premium, discount and at par.
Hire Purchase and installment purchase system:
1. What is hire purchase system? Distinguish between hire purchase and installment purchase system.
2. Define hire purchase agreement and state the legal position of a hire vendor in case of default in payment by the hire purchaser.
3. Explain HP Trading system and Stock and debtors system of preparation of accounts in case of hire purchase.
Cash flow, funds flow and Ratio analysis:
1. Learn how to calculate: Current Ratio, Liquid ratio, Net Profit ratio, gross profit ratio, debt equity ratio, proprietary ratio. (Follow my solved question papers)
2. Learn how to calculate funds from operations
Partnership accounts: (One practical is almost sure from this section) – Must Study – Follow my solved question papers
1. Preparation of balance sheet in case of admission of a partner
2. Preparation of balance in case of retirement of a partner
3. Dissolution of partnership firms accounts.
Hire purchase account: (Most difficult practical section avoid)
1. Calculation of cash price and preparation of accounts
2. Preparation of Vendee account and machinery account in case of repossession of assets.
3. Preparation of HP Trading Account
4. Preparation of various accounts under stock and debtors system of hire purchase account
Branch account: (Simple section, follow my solved question papers and your study material – one question expected)
1. Preparation of Branch account
2. Preparation of various accounts under stock and debtors system
Issue of shares and debentures: (One question is almost sure, follow my solved question papers and your study material – one question expected)
1. Journal entries for issue of shares together with forfeiture of shares
2. Issue of debentures with redemption option3. Issue of shares and debentures for consideration other than cash