*71881/C130* (1) 71881/C130
Reg. No.
III Semester M.Com.2 (CBCS) Degree Examination, Jan. -2020
COMMERCE
(Regular)
Accounting For Specialised Institutions
(Group A : Accounting and Finance)
Paper - 3.5(A)
Time : 3 Hours Maximum Marks : 80
Section - A
1. Answer any TEN of the following sub-questions. Each sub-question carries 2 marks. (10×2=20)
a) Define Bank.
b) What do you mean by reasonable return?
c) What is an annuity?
d) How do you treat the following in Bank final accounts.
i) T.D.S.
ii) Unclaimed Divided
e) State two features of the Double Account system.
f) Differentiate between standard assets and sub standard assets.
g) What do you mean by Life insurance fund?
h) What is valuation balance sheet?
i) List out the different statutory books as per the Indian Insurance Act, 1938.
j) Classify the guest in hotel.
k) What is contingency reserve?
l) State the major sources of Income in Hospital Accounting.
Section- B
Answer any THREE of the following questions. Each question carries 5 marks. (3×5=15)
2. The followings two term loan were sanctioned by SBI Main Branch, New Delhi on 1st December,
2019. The detail are given below:
Particulars Loan A/c Loan A/c
Ram & Co. Rahim & Co.
i) Amount of Loan 7,20,000 12,00,000
ii) Period 6 years 6 years
iii) Basis of Installations Quaterly Half yearly
iv) Rate of Interest 12.5% 12.5%
v) Amount of Installaments 30,000+Interest 1,00,000+Interest
You are required to find out date on which these accounts will become NPA assuming that there is no
recovery.
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71881/C130 (2) *71881/C130*
3. M/s Dhasheel Gas Company Ltd. Rebuilds its works at a cost of Rs. 6,60,000. In the process it
completely replaces a part of the old works which had cost 2,60,000. In constructing the new works
old materials worth Rs. 8,600 is used and the value is included in the cost of the new works. The
balance of the material resulting from the old works which are replaced is sold for Rs. 20,000. In the
cost of the works which are replaced, the cost of materials is 70% and Labour 30% and the present
cost of material and labor have increased by 12.5% and 15% respectively.
Assuming the accounts are maintained under the Double Account System, Determine the amount to be
capitalized and the net charge to revenue.
4. From the following Information, Calculate:
a) Tier-1 and Tier-II Capital
b) Capital Adequacy Ratio
Particulars Rs. in Crore
Capital Funds:
Paid-up Equity Share Capital - 50 Crore shares of Rs. 10 each 500
Cumulative Perpectual Preference Shares 100
Statutory Reserve 100
Share Premium 100
Capital reserve (of which Rs. 20 crore were due to revaluation of assets
and balances arising out of surplus from sales of assets). 40
Investment Fluctuation Reserve 100
Accumulated Loss 10
Assets:
Cash, balances with RBI 40
Equity investments in subsidiaries 200
Other Investment 200
Investment in Government Securities 15
Loans and advances: 1600
Loans granted to public sector undertakings of central government 300
Loans Guaranteed by GOI 1800
Leased Assets 1000
Housing Loan to individuals against the mortgage of residential house
properties 1500
Premises, furniture and fixtures 9
Fictitious Assets
Off-Balance Sheet Items:
Endorsement and letter of credit 900
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*71881/C130* (3) 71881/C130
5. A three star hotel in Delhi has 370 rooms in all, out of which 26 rooms are used for operational
purposes and 4 rooms are used by the departmental managers. If 240 rooms are occupied by guests
on 2nd December, 2019. Calculate the room occupancy rates.
6. Explain the features of Hospital Accounting.
Section - C
Answer any THREE questions. Each question carries 15 marks. (3×15=45)
7. Indian Insurance Co. Ltd., furnishes you with the following information:
a) On 31.12.2019, it had reserve for unexpired risks to the tune of Rs. 40 Crores. It comprised of
Rs. 15 Crores in respect of marine insurance business, Rs. 20 Crores in respect for fire insurance
business and Rs. 5 Crores in respect to miscellaneous insurance business.
b) It is the practice of Indian insurance Co. Ltd., to create reserves at 100% of net premium income
in respect of marine insurance policies and at 50% of net premium income in respect of fire and
miscellaneous income policies.
c) During 2019, the following business was conducted:
Particulars Marine Fire Miscellaneous
Premium Collected from:
Insurance in respect of policies issued 18.0 43.0 12.0
Other insurance companies in respect of
risks undertaken 7.0 5.0 4.0
Premium paid/payable to other insurance 6.7 4.3 7.0
companies on business ceded.
Indian Insurance Co. Ltd., asks you to:
a) Pass Journal entries relating to “Unexpired Risks Reserve”.
b) Show in columnar form Unexpired Risks Reserve Account for 2019.
8. The following balance relate to the Bijlee Electric Co. Ltd, and pertain to the accounts for the year
ended on 31st March 2019:
Particulars Rs. Particulars Rs.
Share capital 200,00,000 10% Debentures 16,00,000
Fixed assets 400,00,000 Depreciation reserve on 1,60,00,000
fixed assets
Average of current assets 40,00,000 Security deposits of customers 1,50,00,000
Reserve fund (invested in 1,20,00,000 Customer contributions to main 4,00,000
6% Govt. Securities F.V. lines
Rs. 120 lakhs.
6% investments of the 40,00,000 Preliminary expenses 10,00,000
contingency reserve
Loan from electricity board 60,00,000 Tariffs and dividend control 12,00,000
reserve
Development reserve 20,00,000
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The company earned a profit of Rs. 22 lakshs before charging debenture interest. Indicate the
disposal of profit, bearing in mind the provisions of the Electricity (Supply) Act, 1948, assuming
the Reserve Bank of India rate on the relevant date was 8%.
9. Prepare the Profit and Loss Account of Syndicate Bank Ltd., for the year ended 31st March, 2019
from the following information.
Interest of loans 2,59,000 Rent and Taxes 18,000
Interest on cash credits 1,95,000 Directors and Auditors fees 6000
Interest on fixed deposits 2,75,000 Postage and Telegrams 4000
Interest on Current accounts 42,000 Printing and Advertisement 3000
Interest on Govt..Securities 54,000 General Expenses 2000
Interest on inter bank 68,000 Bad Debts 12,000
borrowings
Discount on bills discounted 1,95,000 Profit and Loss Account 30,000
(Cr) on 1.4.2004
Commission and Exchange 8000 Insurance 8000
Miscellaneous receipts 7000 Salaries 32,000
Rebate on bills 49,000 Contribution to Provident 20,000
Discounted (1.4.2018) Fund
Establishment expenses 54,000
Provide Rs. 8000 for depreciation, Rs. 20,000 for doubtful debts and Rs. 15,000 for taxation. An
interim dividend of Rs. 12,000 was paid. On 31.3.2019 the bills discounted outstanding with an average
due date of 22.6.19 were Rs. 5,00,000, discounted @ 10% p.a.
10. Explain an accounting system as employed in Hospital institutions. Do you suggest any modification in
the accounting system?
11. Explain the nature of hotel business. State the various departments in which a organisation can be
divided.
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P.T.O.
