B.

Com part 2
Admission Test
marks: 100
Paper: Advanced Accounting
Time: 3 hours

Total

Attempt any four question from the following questions:

Question # 1: On May 1, 2010 Salman & Co. Ltd., offered 40,000 ordinary
shares @ Rs. 10 each for public subscription. On May 10, 2010 (the closing
date for the applications) it is made known to the company that applications
were received for 35,000 shares. The 5,000 shares were not taken by the
public and as per agreement, taken up by the underwriters. On May 20,
2010 the company allotted the shares.
Req: Pass the journal entries and draft the balance sheet of the company.
Question # 2: XYZ CO. Ltd. presents the following balance sheet as on 31 st
December 2010.
Liabilities
Authorised Capital
Issued & Paid up:
9000 shares of Rs. 100
each
Reserves:
Reserve fund
Share Premium
Profit & Loss A/c
Current Liabilities:
Sundry Creditors
Provision of Taxation

Rs.
Assets
20,00,00 Fixed Assets:
0 Plant and Machinery
Furniture
900,000 Current Assets:
Stock
350,000 Debtors
50,000 Bills Receivable
120,000 Bank

Rs.
880,000
100,000
400,000
110,000
20,000
85,000

95,000
80,000

15,95,00
15,95,00
0
0
The Company purchases fresh machinery for Rs. 125,000 for which it pays
Rs. 25,000 by cheque and allots shares of Rs. 100 each at a premium of Rs.
25 per share for balance amount to vendors. The company then issues one
bonus shares for every four shares held at present. For the purpose of bonus
the balance in profit and loss account and reserve funds are used to the
necessary extent.

Req: Pass journal entries for the above arrangements and redraft the
companys balance sheet.
Question #3: A company has outstanding 10% debentures of Rs. 300,000
on 1st January 2010. The company pays interest on 30 th June and 31st
December. It purchases debentures of Rs. 40,000 for redemption on 31 st
March 2010 @ 102 cum-interest. It further purchases for cancellation
debentures of Rs. 60,000 on 31st August 2010 at Rs. 96 ex-interest. Req:
Pass the necessary journal entries in the books of the company (including
those for interest) for 2010.
Question # 4: A firm of building contractors began to trade on 1 st April,
2009. The following was the expenditure on the contract for Rs. 3,00,000.
Materials issued to contract Rs. 51,000; Plant used for contract Rs. 15,000;
Wages incurred Rs. 81,000; Other expenses Rs. 5,000.
Cash received on account by 31st March, 2010 amounted to Rs. 128,000,
being 80% of the work certified. Of the plants and materials charged to the
contract, plant which cost Rs. 3,000 and materials which cost Rs. 2,500
were lost. On 31st march, 2010 plant which cost Rs. 2,000 was returned to
the stores, the cost of work done but uncertified was Rs. 1,000 and
materials costing Rs. 2,300 were in hand on site.
Charge 15% depreciation of plant and take to the profit and loss account 2/3
of the profit received.
Req: Prepare a contract account, Contractees account and balance sheet
from the above particulars.
Question #5: On 1st Jan. 2010 Bashir & Co. consigned to Shabir & Co. 100
cycles at Rs. 500 each which was 20% above their cost price. Bashir & Co.
has paid Rs. 200 for packing; Rs. 50 for insurance and Rs. 250 for carriage.
On 1st march, 2010, Shabir & Co. sold 75 cycles for Rs. 45,000, the expenses
thereon being Rs. 2,000. Shabir & Co. are entitled for commission of 5% and
2% delcredere on sales and they remitted Rs. 30,000 on account. One
customer who purchased 5 cycles failed to pay his debts due to insolvency.
Req: Pass the journal entries and prepare the necessary ledger accounts in
the books of Bashir & Co.