GU Advanced Financial Accounting 2017 Question Paper [Gauhati University B.Com Non-CBCS]

In this post we have Shared Gauhati University GU Advanced Financial Accounting Question Paper 2017 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’ 2017)

Gauhati University Question Papers

ADVANCED FINANCIAL ACCOUNTING (May-June’ 2017)

(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)  Write the meaning of Non-performing Assets of a Bank.

b)  Rebate on bills discounted for a banking company is an income. (State whether the statement is true or false.)

c)   Commission of re-insurance ceded is an income. (State whether the statement is true or false.)

d)  Consideration for annuities granted is _____ for a life insurance company. (Fill in the blank with appropriate word)

e)  Mention one feature of an Investment Account.

f)   Face Value of the investment is always equal to the Capital Value of the investment. (State whether the statement is true or false)

g)  Government accounts are generally kept under Single entry system. (State whether the statement is true or false.)

h)  Loss of Profit Insurance is also known as _____. (Fill in the blank with appropriate word/words.)

2. Answer the following:                                           2x6=12

a)  Briefly explain the meaning of ‘Capital Adequacy’ of a banking company.

b)  Mention two basic features of Government Accounting.

c)   Explain the meaning of ‘re-insurance’ in respect of insurance business.

d)  Mention two objectives of preparing Investment Account.

e)  What is ‘average clause’ in insurance claim?

f)   Write two differences between Government Accounting and Commercial Accounting.

3. (a) From the following particulars, calculate gross profit on short sales: 5

1)  Profit for 2015 amounted to Rs. 65,000 after debiting standing charges totalling Rs. 75,000.

2)  Sales for 2015 amounted to Rs. 11,20,000.

3)  Fire occurred on June 1, 2016 and affected sales for four months.

4)  Sales for four months ending September 30th, in 2015 and 2016 amounted to Rs. 3,00,000 and Rs. 40,000 respectively.

5)  Accounts are prepared on 31st December each year.

Or

Explain the accounting treatment of ‘bonus shares’ and ‘right shares’ in Investment Account.

(b) From the following information, find out the amount of provision to be made and to be shown in the Profit and Loss Account of a Commercial Bank as on 31.03.2017:                                           5

	Rs. (in lakhs)
Standard Assets Sub-standard Advance (unsecured) Sub-standard Advances (secured) Doubtful Advances (all unsecured) : Upto one year Upto three years More than three years Loss Assets	4,000 2,000 1,200 900 400 300 500

Or

State in brief the books maintained by a banking company.               5

(c) A Life Insurance Company gets its valuation made once in every three years. The Life Assurance Fund on 31st March, 2017 amounted to Rs. 40,00,000 before providing Rs. 45,000 for the shareholders’ dividend for the year 2016-17. Its actuarial valuation on 31st March, 2017 disclosed a net liability of Rs. 36,00,000 under the assurance and annuity contracts. An interim bonus of Rs. 60,000 was paid to the policy holders during the triennium ending 31st March, 2017. Prepare a statement showing the amount available as bonus to policy holders.                              5

Or

Point out the main features of accounts of General Insurance Company.                                                5

(d) Briefly describe five principles of Government Accounting.                               5

Or

Briefly describe the powers of the Comptroller and Auditor General of India in connection with audit of accounts.                                                                                                                                                                                                  5

4. From the following balances, prepare the Profit and Loss Account UCO Bank Ltd. for the year ended 31.03.2017:  10

Rs.

Rent and taxes Director’s fees Interest on overdraft ATM charges ATM maintenance charges Interest on Current Accounts Interest on Loans Interest on Fixed Deposit Commission and brokerage Establishment expenses Discount on bills discounted (gross) Interest on Cash credit Interest on Savings Bank Deposit Printing and Stationery Lockers rent Depreciation on Bank’s properties Sundry charges Other Information: 1)       Rebate on bills discounted 2)       Bad debt 3)       Provision for taxation to be made at 30%

26,000 6,000 3,00,000 1,000 500 84,000 5,18,000 5,50,000 15,000 80,000 4,00,000 4,60,000 1,36,000 5,500 2,000 10,000 3,400 90,000 12,000

Or

Explain the following items in the context of Bank Accounts:                   5+5=10

a)  Non-banking assets.

b)  Provision and contingencies.

5. Nagaon Investment Ltd. furnishes the following details relating to holding in 12% Government Stock:                            10

01.01.2016 Opening balance: Face value Rs. 30,000. Cost Rs. 25,000.

01.03.2016 Purchased Rs. 12,000 Stock @ Rs. 91 cum-interest.

01.06.2016 Sold Rs. 8,000 Stock @ Rs. 95 cum-interest.

01.08.2016 Purchased Rs. 6,000 Stock @ Rs. 94 ex-interest.

01.11.2016 Sold Rs. 10,000 Stock @ Rs. 96 ex-interest.

Interest being payable on 31st March and 30th September each year. Brokerage and other expenses being 1% in each case. Prepare an Investment Account in the books of Nagaon Investment Ltd. for the year ending 31st December, 2016. Apply FIFO method.

Or

Describe the procedure of recording for accounting for investments in variable income bearing securities. 10

6. From the following particulars, prepare a Fire Revenue Account of LM Insurance Co. Ltd. for the year ended 31st March, 2017:                                 10

	Rs.
Reserve for unexpired risk on April 1, 2016 Additional Reserve on April 1, 2016 Claims paid Management expenses Premiums Interest and Dividend Income Tax on Interest and Dividend Re-insurance premium Profit on sale of Investment Legal charges regarding claims Re-insurance recoveries Commission on direct business Outstanding claims: On 31st March, 2017 On 31st March, 2016	2,56,000 59,000 3,25,000 1,40,000 5,10,000 90,000 3,500 45,000 10,000 7,200 13,500 52,500 35,000 42,000

The Company calculates its reserve for unexpired risks at 50% of the net premium each year.

Or

Explain the method followed for assessing the profit of life insurance business.                                         10

7. A fire occurred on the midnight of 30th June, 2016 in premises of M/S Bad Luck Ltd. From the following figures, calculate the amount of claim to be lodged with the insurance company for loss of stock:                                            10

	Rs.
Stock at cost on 01.01.2015 Stock at cost on 01.01.2016 Purchases during 2015 Purchases from 01.01.2016 to 30.06.2016 Sales during 2015 Sales from 01.01.2016 to 30.06.2016	90,000 70,000 4,00,000 6,00,000 6,00,000 8,80,000

You are informed that:

a)  In 2016 the cost of purchases has risen by 20% over the levels prevailing in 2015.

b)  In 2016 the selling prices have gone up by 10% over the levels prevailing in 2015.

c)   Salvaged value is Rs. 700.

Or

Write in details the System of Financial Administration in India.                          10

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