DCM1203 B.Com FUNDAMENTALS OF ACCOUNTING II

Description

SESSION	MARCH 2024
PROGRAM	BACHELOR OF COMMERCE
SEMESTER	02
COURSE CODE & NAME	DCM1203  FUNDAMENTALS OF ACCOUNTING II

 

 

Assignment Set – 1

 

 

1. X and Y are partners sharing profits in the ratio of 3: 2 with capitals of ₹ 8,00,000 and ₹ 6,00,000 respectively. Interest on capital is agreed at 5% p.a. Y is to be allowed an annual salary of ₹ 60,000 which has not been withdrawn. Profit for the year ended 31st March 2019 before interest on capital but after charging Y’s salary amounted to ₹ 2,40,000. A provision of 5% of the profit is to be made in respect commission to the manager. Prepare an account showing the allocation of profits

Ans 1.

Calculation of Profit Allocation among Partners

Initial Profit Calculation:

X and Y are partners with a profit sharing ratio of 3:2. The initial profit available for the year before considering interest on capital but after charging Y’s salary is ₹2,40,000. Y’s salary of ₹60,000 is already deducted from this amount.

Interest on Capital:

Both partners are entitled to interest on their capital at a rate of 5% per annum.

 

Its Half solved only

Buy Complete from our online store

 

https://smuassignment.in/online-store/

 

MUJ Fully solved assignment available for session FEB 2024.

 

Lowest price guarantee with quality.

Charges INR 198 only per assignment. For more information you can get via mail or Whats app also

Mail id is aapkieducation@gmail.com

 

Our website www.smuassignment.in

After mail, we will reply you instant or maximum

1 hour.

Otherwise you can also contact on our

whatsapp no 8791490301.

 

 

 

2. Zenith is a partnership firm consisting of A and B as partners sharing their profits in 3:7.

A is entitled to receive Rs.1,000 per month as Salary.

A’s Initial Capital Investment = Rs.1,00,000

B is entitled to receive Rs.1,500 per month as Commission.

B’s Initial Investment = Rs.2,00,000

How will we show the above items under:

(a) Fixed Capital Method

(b) Fluctuating Capital Method

Ans 2.

Displaying Financial Items in Partnership Accounts

When handling partnership accounts, particularly those involving salaries and commissions, the method used to maintain the capital accounts of the partners—either fixed or fluctuating—impacts how these items are recorded.

(a) Fixed Capital Method:

Under the Fixed

 

 

3. Rupa, Sushi, and Shalu are partners who split profits in a 5:3:2 ratio. Ruppa retired with capitals of ₹ 46,000, ₹ 42,000, and ₹ 38,000, respectively, following all adjustments on retirement. Sushi and Shalu  chose to  set  the firm’s  total capital  at ₹  84,000,  with  a 7:5  ratio.  Make  the  relevant       notebook entries after calculating the actual amount to be paid or brought in by each partner.                       

Ans 3.

Initially, the partners’ ratio is 5:3:2. This means that Rupa gets 5 parts, Sushi gets 3 parts, and Shalu gets 2 parts of the total profit.

After retirement, each partner received a certain amount of money. We can represent these amounts as:

Rupa: ₹ 46,000

 

 

Assignment Set – 2

 

 

4. What is purchase consideration? Explain its methods of calculation

Ans 4.

Understanding Purchase Consideration

Purchase consideration refers to the total value transferred by an acquiring company to the owners of the target company in exchange for ownership or control. This value can be in various forms such as cash, shares, debentures, or even other assets. The determination of this consideration is crucial in mergers and acquisitions as it directly affects the financial structures and

 

5. Show what entries would be passed by the head office on 31st March 2015 to record the following transactions:
6. Goods amounting 5,000 transferred from Kolkata branch to Kanpur branch under instructions from head office.
7. Depreciation of branch fixed assets when such accounts are opened in the head office books.
8. A consignment of 3,000 made by the Kanpur branch to head office on 26th March and received by the head office on 4th April 2015.
9. Goods worth 5,000 sent by the head office to the Kanpur branch on 20th March 2015 and received later on April 15, 2015

Ans 5.

Journal Entries for the Head Office on 31st March 2015

When recording transactions between the head office and its branches, it’s important to maintain clarity and consistency in the accounts to ensure accurate reporting of inter-branch transfers and asset management. Here’s how the head office would record the transactions specified:

1. Goods Transferred from Kolkata Branch to Kanpur Branch

When goods are

 

 

6. Urmila and Umesh decided to undertake a venture jointly. They agreed to share profits & losses in the ratio of 3: 2. Urmila supplied from her own stock goods worth ₹2,00,000 and paid ₹4,950 for freight and ₹1,200 for Sundry Expenses. Umesh purchased goods of ₹1,95,000 for the venture and paid ₹ 7,000 for selling expenses. Umesh accepted a bill for 3 months of ₹95,000 drawn by Urmila as an advance. This bill was discounted immediately by Urmila for ₹92,000 and the amount of discount was charged to joint venture A/c. Umesh sold all the goods for ₹5,00,000. At the end of the venture, the accounts were settled. Give journal entries for the above transactions, in the books of Urmila

Ans 6.

To properly record the transactions for the joint venture between Urmila and Umesh in the books of Urmila, we need to create journal entries reflecting all aspects of their agreement, expenses, sales, and settlements. Below are the respective journal entries:

Journal Entries in the Books of Urmila

1. Recording Goods Supplied and Expenses Paid by Urmila:

Joint Venture Account (Dr