GU Advanced Financial Accounting 2016 Question Paper [Gauhati University B.Com Non-CBCS]

In this post we have Shared Gauhati University GU Advanced Financial Accounting Question Paper 2016 Pdf, B.Com Non-CBCS GU, Which Now very beneficial for FYUGP B.Com 3rd semester Accountancy Major Students of Gauhati University. So read this post from top to bottom and get familiar with the question paper.

Gauhati University Question Papers:ADVANCED FINANCIAL ACCOUNTING (MAJOR) (May-June’ 2016)

Gauhati University Question Papers

ADVANCED FINANCIAL ACCOUNTING (May-June’ 2016)

(MAJOR)

Full Marks: 80

Time Allowed: 3 hours

Answer either in English or Assamese

The figures in the margin indicate full marks for the questions

1. Answer as directed:                               1x8=8

a)  The Banking Regulation Act was passed in the year 1956. (State whether the statement is True or False)

b)  Non-banking assets must be disposed off within _____ years from the date of acquisition. (Fill in the blank with appropriate word)

c)   Commission on reinsurance ceded is treated as an

1)  Income

2)  Expenditure (Choose the correct alternative)

d)  Premium received by an insurance company is shown in the _____ Account. (Fill in the blank with appropriate word)

e)  Face value of the investment is always equal to the capital value. (State whether the statement is True or False)

f)   Cost of bonus shares is _____. (Fill in the blank with appropriate word)

g)  Government accounting always follows Double Entry System. (State whether the statement is True or False)

h)  The difference between the Standard Turnover and the Actual Turnover  during the indemnity period is called _____. (Fill in the blank with appropriate word)

2. Answer the following:                                           2x6=12

a)  Briefly explain the meaning of non-performing assets.

b)  What is a Valuation Balance Sheet?

c)   Mention any two features of Investment Accounting.

d)  What is a Loss of Profits Policy?

e)  Mention any two objectives of Government Accounting.

f)   What is Contingency Fund?

3. (a) Nirvan Bank Ltd. discounted bills of the face value of Rs. 10,00,000 for Rs. 9,68,000 on 13th January, 2014. Of the total discount, Rs. 12,500 pertains to the next accounting year, i.e., 2014-2015. Show the Journal entries to be passed at the time of discounting the bills. Also show the opening entry in the books of the bank at the beginning of the next year.                                                                                                                                                                                                           5

Or

Explain the special features of Bank Book Keeping.                              5

(b) The Revenue Account of a life insurance company shows the Life Assurance Fund on 31st March, 2015 at               Rs. 62,21,310 before taking into account the following items:

	Rs.
Claims recovered under reinsurance Bonus utilized in reduction of Life Insurance Premium Interest accrued on securities Outstanding premium Claims intimated but not admitted	12,000 4,500 8,260 5,410 26,500

Compute the correct Life Assurance Fund as on 31st March, 2015, after taking into account the above omissions.                                                                                                                                                                                                                                           5

Or

Write a brief note on Revenue Account of a General Insurance Company.                5

(c) A fire occurred on 25th April, 2015 in the premises of CARELESS Ltd. The information available from the books of the company is as follows:

	Rs.
The value of inventory on 01.01.2015 Purchases from 01.01.2015 to 25.04.2015 Direct labour payment Direct expenses paid Sales from 01.01.2015 to 25.04.2015 Gross profit ratio is 20% on sales Salvaged value of stock	50,000 3,00,000 75,000 50,000 5,00,000 - 10,000

Prepare a statement showing the amount of claim to be lodged in case of loss of inventory assuming that the whole of inventory is insured.                                                   5

Or

Explain bonus shares and rights shares.                       5

(d) Explain the responsibilities of Government Accounting Standards Advisory Board.                 5

Or

Write a note on Consolidated Fund of India.              5

4. From the following particulars, prepare the Profit & Loss A/c of UCO Bank Ltd. for the year ending 31st March, 2015:

	Rs.
Commission Charged Discount on Bills Discounted Director’s and Auditor’s Fees Establishment Expenses Interest on Loans Interest on Fixed Deposits Interest on Cash Credit A/c Sundry Expenses Interest on Current A/c Interest on Overdraft Interest on Savings Bank A/c Postage and Telegram Printing and Advertising Unexpired Discount on Bills Discounted Rent and Taxes	7,000 2,10,000 5,000 60,000 2,80,000 2,98,000 2,40,000 2,000 45,000 60,000 72,000 2,000 3,000 55,000 22,000

Make a provision of Rs. 30,000 for doubtful debts; Interest income of Rs. 2,000 on non-performing assets cannot be recognised as income in Profit & Loss A/c during the year.                                                                        10

Or

Explain the guidelines issued by the Reserve Bank of India to the banks on the concept of income recognition. 10

5. From the following figures, prepare a Revenue A/c in the statutory form for Life Insurance Corporation of India for the year ended 31st March, 2015:                                                                                                                  10

Rs.

Claims by death paid Claims by maturity paid Premium Consideration for annuities granted Annuities paid Bonus paid in cash Expenses of management Commission Interest, dividend and rent (net) Income tax deducted at source Surrenders Bonus in reduction of premium Dividend paid to shareholders Life Assurance Fund on 01.04.2014 Outstanding death claims on 01.04.2014 Outstanding death claims on 31.03.2015

1,42,000 70,200 14,12,100 1,64,000 1,06,900 4,800 76,200 19,140 1,95,700 12,400 26,300 1,800 9,000 30,45,000 22,000 16,000

Additional Information:

a)  Increase in net liability on all contracts in force on 31.03.2015 over the same on 31.03.2014 was Rs. 2,00,000.

b)  Transfer 20% of surplus to Shareholders Account and 10% to Catastrophe Reserve.

Or

             State the procedure of ascertainment of profit of a life insurance company and distribution of such profits.  10

6. Jaipur Investments Ltd. holds 1000, 15% debentures of Rs. 100 each in Udaipur Industries Ltd. as on 1st April, 2014 at a cost of Rs. 1,05,000. Interest on investment is payable on 30th June and 31st December every year. On 1st May, 2014, 500 debentures are purchased cum-interest at Rs. 53,500. On 1st November, 2014, 600 debentures are sold ex-interest at Rs. 57,300. On 30th November, 2014, 400 debentures are purchased ex-interest at Rs. 38,400. On 31st December, 2014, 400 debentures are sold cum-interest at Rs. 55,000.

Prepare an Investment A/c in the books of Jaipur Investment Ltd. valuing holding on 31st March, 2015 at cost (applying FIFO method).                                                                         10

Or

What is Investment Accounting? Explain the procedure of recording investment transactions in fixed income-bearing securities.                                                       3+7=10

7. From the following particulars, ascertain the amount of claim to be lodged in respect of the consequential loss policy:

a)  Fire occurred on 1st July, 2014 and it affected sales for three months.

b)  Sales for 3 months ending 30th September in 2013 and in 2014 were Rs. 1,50,000 and Rs. 50,000 respectively.

c)   The policy was for Rs. 4,50,000 with a 6 months period of indemnity.

d)  Sales for 12 months ending 30th June, 2014 were Rs. 19,00,000.

e)  Accounts are prepared on 31st December. The net profit for 2013 amounted to Rs. 2,50,000 after debiting insured standing charges totalling Rs. 1,10,000. Sales for 2013 were Rs. 18,00,000.

f)   A sum of Rs. 3,500 was spent as additional expenses to mitigate the effect of the loss.                       10

Or

Show the distinction between Government Accounting and Commercial Accounting.                             10

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