Note:Good Morning all dear students. Copy only questions in the Blue Book. Write details on your blue book. Before answering in your blue book at 9 am getting my signature is mandatory, otherwise your answer booklet will not be valued. Malpractice is completely prohibited.
Suresh Babu MG
GOVERNMENT FIRST GRADE COLLEGE
GAURIBIDANUR 561208
SUB: ADVANCED FINANCIAL ACCOUNTING
DATE: 23.07.2023
TIME: 9AM TO 10.50 AM
Total Marks 20
Section A 2*2=4
1. Answer any TWO out of FOUR questions.
A.What is consignment accounting?
B.What are the features of consignment accounting?
C.What is short-working in royalty accounting?
D. What is royalty accounting?
Section B 2*8=16
2. Answer any TWO out of 4 questions.( Q 4 a and b both to answered & the last question no read as 5)
2. On June 10th 2022, ABC co., Chennai consigned 500 cases of goods costing Rs,150 each to Sethi & Co., Calcutta. On the same date the Consignor paid Rs. 2500 for carriage, Rs 1000 as loading chargesand Rs 1200 for insurance. On July 1st 2022 the Consignee paid Rs 1800for clearing charges and Rs 1750 for for warehousing and storage charges and Rs 900 for selling charges. He also remitted a bank draft of Rs 15000 as an advance against the Consignment. On July5th, 2022 they sold 275 cases at Rs 200 each. Sethi& Co are entitled to a commission of 5% on the gross sale proceeds. It found that 50 cases have been lost intransit. Sethi& Co submitted an account sales on 10 July 2022. Prepare the necessary accounts in the books of the Consignor.
3.Dr Murthy wrote a book on Financial accounting and got it published with Kalyani Publishers on the terms that Royalty will be paid Rs.10 per copy sold subject to a minimum rent of Rs.30,000 p.a. with a right to recoup short workings over the first 3 years of the lease.The detaila are as follows.
YEAR 2019 2020 2021
SALES 3000 8000 10000
prepare a) Minimum Rent a/c
b) Royalty A/c
c) Short Working a/c
d) Land lords a/c
4 a).Mr Ram Manohar of mumbai sent 100 bicycles which cost Rs 900 each to Gopal of Madras on Consignment basis. He paid freight Rs 1200 Cartage Rs.300 and Insurance Rs.400. In Madras Gopal paid Rs 100 cartage, loading and unloading Rs.50 the bicycles have been kept in a godown at a monthly rent of Rs.100 pm. at the end of accounting period 20bicycles remained unsold. The selling price of each bicycle was Rs.1000 in Madras.Calculate the value of closing stock.
4 .b)Ahuja Ltd had taken a lease of Mine on a Royalty of Rs.5 per ton on output with a minimum rent of Rs 20000 p.a. and power to recoup short workings during the first 3 years. The production was as under.
1st year 1000 tons, 2nd year 2400 tons, 3rd year 4000 tons.
Prepare a royalty analytical Table.
Comments