(Paper code - 72201) (Q.P.

Code – 21385)
Subject - Advanced Accounting, Corporate Accounting and Financial
Management : Advanced Financial Accounting

M.Com Sem – III (CBCS)

Model Answers

Q1 Kadamba Bank Ltd

Balance Sheet as on 31st March 2022
Particulars 6½
Schedule Marks
No.s Rs
Capital 1 16,00,000 ½
Reserves and Surplus 2 20,15,000 ½
Deposits 3 1,58,00,000 ½
Borrowings 4 32,00,000 ½
Other Liabilities and Provisions 5 23,93,000 ½
2,50,08,000 ½
Total
Assets 6 58,56,000 ½
Cash and Balance with Reserve Bank of India 7 52,00,000 ½
Balance with Bank and Money at Call and Short 8 19,20,000 ½
Notice 9 70,40,000 ½
Investments 10 49,92,000 ½
Advances 11 ---------
Fixed Assets 2,50,08,000 ½
Other Assets

Total
Contingent Liabilities 12 24,00,000 ½
Bills for Collection.

Profit and Loss Account

For the year ending 31st March 2022
Particulars Schedule 5
No.s Marks
Rs
I Income 13 32,72,000 ½
Interest Earned 14 16,00,000 ½
Other Income
Total 48,72,000 ½
II Expenditure
Interest Expended 15 24,00,000 ½
Operating Expenses 16 14,32,000 ½
Provisions and Contingencies 2,25,000 ½
Total 40,57,000 ½

Net Profit for the year 8,15,000 ½

Profit brought forward ( Opening Bal) 6,40,000 ½
14,55,000
Appropriation
Transfer to Statutory Reserve Fund 25% 2,03,750 ½
Balance Carried forward to Balance sheet 12,51,250
Schedules forming part of the answer

Particulars Rs Marks
3½
1 Share Capital
Authorised Capital
32,000 Shares of Rs 100 each 32,00,000
Issued , Subscribed, Called up and Paid up Capital
32,000 Shares of Rs 50 each 16,00,000 ½

2) Reserves and Surplus

Statutory Reserve Fund 5,60,000
+ Additions 2,03,750 7,63,750
Profit and Loss Account 12,51,250 20,15,000 ½

3) Deposits
Current Deposits 41,04,000
Savings Bank Deposits 62,40,000
Fixed Deposits 54,56,000 1,58,00,000 ½

4) Borrowings 32,00,000

5) Other Liabilities and Provisions

Branch Adjustments Account 20,80,000
Rebate on Bills Discounted 88,000
Provision for Taxation 2,25,000 23,93,000 ½

6) Cash and Balance with RBI

Cash in Hand 2,56,000
Cash with RBI 56,00,000 58,56,000

7) Balance with bank and Money at call and short

notice
Cash with other bank 52,00,000 52,00,000

8) Investments 19,50,000

9) Advances
Bills Discounted 22,40,000
Loans, Overdrfts and Cash Credits 48,00,000 70,40,000
½
10) Fixed Assets
Building 36,00,000
Furniture 13,92,000 49,92,000

11) Other Assets Nil

12) Contingent Liabilities

Acceptances on behalf of customers 24,00,000

13) Interest Earned

Interest and Discount Received 33,60,000

(-) Rebate on bills discounted 88,000 32,72.000 ½

14) Other Income

Commission and Exchange 16,00,000

15) Interest Expended

Interest Paid 24,00,000
 16) Operating Expenses
I Payment to and provision for employees 64,000
II Rent, Rates and Lighting 1,36,000 ½
III Printing and Stationary 11,20,000
IV Depreciation on Bank Property Nil
V Director’s Fees, Allowances and Expenses 72,000
VI Auditor’s Fees and Expenses 16,000 14,32,000
VII Law Charges 24,000
VIII Postages, Telegrams and Telephones etc. Nil

OR

Subhiksha Bank Ltd

Balance Sheet as on 31st March 2022
Particulars Marks
Schedule 6½
No.s Rs
Capital 1 20,00,000 ½
Reserves and Surplus 2 68,70,000 ½
Deposits 3 4,80,00,000 ½
Borrowings 4 8,00,000 ½
Other Liabilities and Provisions 5 16,60,000 ½
Total 5,93,30,000 ½
Assets
Cash and Balance with Reserve Bank of India 6 1,14,40,000 ½
Balance with Bank and Money at Call and Short 7
Notice 12,00,000 ½
Investments 8 1,20,00,00 ½
Advances 9 2,98,90,000 ½
Fixed Assets 10 48,00,000 ½
Other Assets 11 --------
5,93,30,000 ½
Total
Contingent Liabilities
Bills for Collection. 12 ½

Profit and Loss Account

For the year ending 31st March 2022
Particulars Marks
Schedule 5½
No.s Rs
I Income 13 20,00,000 ½
Interest Earned 14 ------
Other Income
Total 20,00,000 ½
II Expenditure
Interest Expended 15 8,00,000 ½
Operating Expenses 16 4,40,000 ½
Provisions and Contingencies 3,30,000 ½
Total 15,70,000 ½

Net Profit for the year 4,30,000 ½

Profit brought forward ( Opening Bal) 24,40,000 ½

Appropriation 28,70,000 ½
Transfer to Statutory Reserve Fund 25% 1,07,500 ½
Balance Carried forward to Balance sheet 27,62,500 ½
Schedules forming part of the answer

Particulars Rs 3
Marks
1 Share Capital
Authorised Capital
4,00,000 Shares of Rs 100 each 40,00,000
Issued , Subscribed, Called up and Paid up Capital ½
4,00,000 Shares of Rs 50 each 20,00,000

2) Reserves and Surplus

Statutory Reserve Fund 40,00,000
+ Additions 1,07,500 41,07,500
Profit and Loss Account 27,62,500 68,70,000 ½

3) Deposits
Current Deposits 2,80,00,000
Savings Bank Deposits 1,20,00,000
Fixed Deposits 80,00,000 4,80,00,000 ½

4) Borrowings 8,00,000

5) Other Liabilities and Provisions

Sundry Creditors 1,20,000
Bills Payable 12,00,000 ½
Unclaimed Dividend 1,20,000
Provision for Taxation 2,20,000 16,60,000

6) Cash and Balance with RBI

Cash in Hand 2,40,000
Cash with RBI 1,12,00,000 1,14,40,000

7) Balance with bank and Money at call and short notice

Money at call and short notice
12,00,000
8) Investments
12,00,000
9) Advances
Bills Discounted 20,00,000
Loans, Overdrfts and Cash Credits 2,80,00,000
Less Doubtful Debts 1,10,000 2,78,90,000 2,98,90,000 ½

10) Fixed Assets

Premises 48,00,000

11) Other Assets

-----------
12) Contingent Liabilities
Acceptances on behalf of customers 5,25,000

13) Interest Earned

Interest and Discount

20,00,000
14) Other Income

------------
15) Interest Expended
Interest Accrued and paid
8,00,000
16) Operating Expenses
I Payment to and provision for employees 3,20,000 ½
 II Rent, Rates and Lighting 1,20,000
III Printing and Stationary ------
IV Depreciation on Bank Property ------
V Director’s Fees, Allowances and Expenses ------
VI Auditor’s Fees and Expenses ------
VII Law Charges -------
VIII Postages, Telegrams and Telephones etc. -------
4,40,000

Q.2 In the Books of Sanskar Consumer Co Operative Society Airoli

Trading A/c

For the year ending 31st March 2022 3 Marks ( ½ each)

Particulars Rs Particulars Rs
To Opening Stock 12,10,000 By Sales 2,26,65,500
To Purchases 1,80,40,000 By Closing Stock 15,40,000
To Wages 1,10,000
To Gross Profit 48,45,500
2,42,05,500 2,42,05,500

Profit and Loss Account

For the year ending 31st March 2022 4 ( ½ marks each)

Particulars Rs Particulars Rs
To Salaries 7,81,300 By Gross Profit 48,45,500
+ Outstanding 22,000 8,03,000 By Interest on Investment 1,10,000
To Printing and Stationary 1,91,400
To Rent, Rates and Taxes 2,20,000
To Postage 1,33,100
To Depreciation
Furniture 52,800
Motor Vehicle 9,900 62,700
To Transfer to Education Fund 1,100
To Net Profit 35,44,200

49,55,000 49,55,000
 Balance Sheet
As on 31st March 2022 6 Marks
(1/3 each)
Liabilities Rs Assets Rs
I Share Capital I Cash Balance
Issued and Paid up Capital 17,60,000 Cash on Hand 2,75,000
Cash at Bank 18,70,000
II Reserves Fund and Other
Funds II Investments Nil
Reserve Fund 1,65,000
Consumer Welfare Fund 55,000 III Provident Fund Investment Nil
Education Fund 88,000 IV Loans and Advances Nil
+ Transfer 1,100 89,100 V Sundry Debtors 3,30,000
VI Current Assets
III Staff Provident Fund Nil Closing Stock 15,40,000
IV Secured Loans VII Fixed Assets
V Unsecured Loans Nil Premises 11,00,000
VI Deposits Nil Furniture 5,28,000
VII Current Liabilities and Less Depreciation 52,800 4,75,200
Provisions Equipment 2,20,000
Sundry Creditors 2,20,000 Motor Vehicle 99,000
Commission Payable 44,000 Less Depreciation 9,900 89,100
Outstanding Salary 22,000

VIII Unclaimed Dividend Nil

IX Interest due but not paid Nil
X Other Liabilities Nil
XI Profit and Loss Account 35,44,200

58,99,300 58,99,300

Memorandum Profit and Loss Appropriation A/c 2 Marks

Particulars Rs Particulars Rs

To Transfer to Reserve Fund 8,86,050 By Balance of Profit -----

By Net Profit 35,44,200
To Balance transferred to Balance 26,58,150
Sheet

35,44,200 35,44,200
OR

Revenue Account
For the year ending 31st March 2022
Particulars Schedule No. Rs 8 Marks
Premium Earner ( Net) 1 2,06,80,000 1
Profit/Loss/Redemption of Investment ------
Other ------
Interest, Dividend and Rent (Gross) ------

Total 2,06,80,000 1
Claims Incurred
Commission 2 3,11,280 1
Operating Expenses related to Insurance 3 11,40,000 1
business 4 4,29,000 1
Total 18,80,280 1
Operating Profit from Fire Insurance business 1,87,99,720 2
Schedules forming part of Revenue Account ( Net)

Schedule 1: Premium Earned (Net)

Particulars Rs 3
Marks
Premium Earned ( Net)
Premium Received 3,02,50,000 ½
Add Outstanding at the end 12,00,000 ½
3,14,50,000
Less Reserve for unexpired risk
( 1,57,25,000- 69,00,000) 88,25,000 ½
2,26,25,000 ½
Less Additional Reserve for unexpired risk 19,45,000 ½
Premium (Net) 2,06,80,000 ½

Schedule 2: Claims Incurred (Net)

Particulars Rs 2
Claims Paid 4,50,000 ½
Add Legal Expenses relating to claim 75,000 ½
5,25,000
Add Claims Outstanding at the end 12,71,280 ½
17,96,280
Less Claims Outstanding at the beginning 14,85,000 ½
3,11,280

Schedule 3: Commission

Particulars Rs Marks
1
Commission Paid 15,00,000 ½
Less Commission Received 3,60,000 ½
11,40,000

Schedule 4: Operating Expenses related to insurance business

Particulars Rs 1 Marks

Expenses of Management 4,29,000 1

Q. 3 In the books of CSP Ltd

Trial Balance as on 31st March 2022 5 Marks

Particulars Dr $ Cr $ Dr Rs Cr Rs
Purchases and Sales 1,29,172 2,03,622 89,12,868 1,40,49,918
Head Office Account --- 4,236 --- 1,94,833
Goods Received from H.O 3867 --- 1,85,600
Stock as on 1/4/21 4772 3,34,040
Plant and Machinery 11,374 7,39,310
Furniture and Fixture 5,438 3,53,470
Wages 150 10,350
Salaries 22,672 15,64,368
Cash at Bank 438 29,784
Cash on Hand 1,272 86,496
Office Rent 14,113 9,73,797
Taxes and Insurance 3,891 2,68,479
Debtors and Creditors 41,810 42,659 28,43,080 29,00,812
Legal Charges 817 56,373
Internet Charges of Computers 906 62,514
Postage and Telephone 4,049 2,79,381
Printing and Stationary 3,670 2,53,230
Courier Charges 2,106 1,45,314
Exchange Difference ---- ----- ,47,109 -----

2,50,517 2,50,517 1,71,45,563 1,71,45,563

Trading and Profit and Loss Account

For the year ending 31st March 2022 Trading A/c 3 Marks

Profit and Loss A/c 4 Marks

Particulars Rs Particulars Rs
To Opening Stock 3,34,040 By Sales 1,40,49,918
To Purchases 89,12,868 By Closing Stock 3,47,820
To Goods Received from H. O 1,85,600
To Wages 10,350
To Gross Profit 49,54,880
1,43,97,738 1,43,97,738
To Salaries 15,64,368
To Office Rent 9,73,797 By Gross Profit 49,54,880
To Taxes and Insurance 2,68,479
To Legal Charges 56,373
To Internet Charges of Comp. 62,514
To Postage and Tele. 2,79,381
To Printing and Stationary 2,53,230
To Courier Charges 1,45,314
To Depreciation
Plant and Mach 73,931
Furniture 70,694 1,44,625
To Exchange Difference 47,109

To Net Profit 11,59,690

49,54,880 49,54,880
 Balance Sheet 3 Marks

As on 31st March 2022

Liabilities Rs Assets Rs
Head Office Acc 1,94,833 Plant and Machinery 7,39,310
Add Net Profit 11,59,690 13,54,523 Less Depreciation 73,931 6,65,379

Creditors 29,00,812 Furniture and Fixture 3,53,470

Less Depreciation 70,694 2,82,776

Closing Stock 3,47,820

Debtors 28,43,080

Cash at Bank 29,784

Cash in Hand 86,496

42,55,335 42,55,335

OR
Revenue Account
For the year ending 31st March 2022 7 Marks

Particulars Schedule Rs Marks

No.
Premium Earned ( Net) 1 21,17,500 1
Profit/Loss/Redemption of Investment
Other
Interest, Dividend and Rent (Gross) 7,70,000 ½

Total 28,87,500 ½

Claims Incurred 2 12,09,300 1

Commission 3 1,18,250 1
Operating Expenses related to Insurance business 4 4,81,500 1
Total 18,09,050 1
Operating Profit from Marine Insurance business 10,78,450 1

Schedules forming part of Revenue Account ( Net)

Schedule 1: Premium Earned (Net) 3 Marks

Particulars Rs 3 Marks
Premium Received Direct 25,30,000
Re insurance 3,96,000
29,26,000 1
Add Receivable at the end Direct 1,03,125
Re insurance 1,37,500 2,40,125
31,66,125 ½
Less Receivable at the beginning Direct 1,43,000
Re insurance 1,40,250 2,83,250
28,82,875 ½
Less Premium paid on reinsurance ceded 2,53,000
Add Payable at the end 1,54,000
Less Payable at the beginning 2,00,750
2,06,250
Less Provision for unexpired risk 26,76,625 ½
(26,76,625-21,17,500) 5,59,125
Premium earned ( Net )
21,17,500 ½
Schedule 2: Claims Incurred (Net)

Particulars Rs 2
Claims Paid Direct 12,92,500 12,92,500
Reinsurance 1,65,000 1,65,000
14,57,500 ½

Add Claims payable at the end Direct 68,750

Re insurance 15,125 83,875
15,41,375 ½
Less Claims Payable at the beginning Direct 85,250
Re insurance 18,150 1,03,400
12,68,975 ½
Less Claims Received 70,150
Outstanding end 15,125
Outstanding beginning 6,600 78,675
11,90,300 ½

Add Legal expenses relating to claims 19,000

Claims Incurred ( Net ) 12,09,300

Schedule 3: Commission

Particulars Rs Marks
2
Commission Paid Direct 1,21,000
Re insurance 11,000 1
1,32,000

Less Commission Received on re insurance ceded 13,750

1,18,250 1

Schedule 4: Operating Expenses related to insurance business

Particulars Rs 1 Marks

Postage 16,500
Printing and Stationary 1,65,000
Legal Expenses ( 99,000-19,000) 80,000
Rent and Rates 2,20,000

4,81,500

Q.4 A.

1 b) Form B RA

2 d) 50%

3 b) Closing Rate

4 b) Average Rate

5 c) Income Received in advance

6 c) Investments

7 a) 25 %

8) a) Other Items
Q 4 B.

1) False

2) False

3) True

4) False

5) False

6) False

7) True