Advanced Financial Accounting Question Paper 2022
Dibrugarh University BCOM 5th SEM HONS
 5 SEM TDC DSE COM (CBCS) 502 GR-I – 2022 (Nov / Dec)
COMMERCE (Discipline Specific Elective)
(For Honours and Non-Honours)
Paper: DSE-502 (Group-I)
(Advanced Financial Accounting)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate full marks for the questions.
1. (a) Fill in the blanks: Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1 x 4 = 4
(1) Schedule-1 of banking companies deals with _______.
(2) Life insurance business is carried on by Life Insurance Corporation of India since _______.
(3) In case of fire insurance, the provision for unexpired risk is maintained at _______% of net premium.
(4) Period of holding is a type of _______.
(b) Write True or False: Â Â Â Â Â Â Â Â Â Â Â 1 x 4 = 4
(1) Substandard, doubtful and loss assets are types of non-performing assets.
(2) Life insurance contracts are contracts of indemnity.
(3) General insurance policies are normally issued for long terms.
(4) Cum-dividend price is not the real price of investment.
2. Write short notes on (any four): Â Â Â Â Â Â Â Â Â 4 x 4 = 16
(a) Slip system of posting in bank.
(b) Insurance regulatory and development authority.
(c) Double insurance and reinsurance.
(d) Reserve for unexpired risks.
(e) Cum-dividend and ex-dividend.
3. (a) Discuss the following items relating to a banking company:              3½ x 4=14
(1) Rebate on Bills Discounted.
(2) Cash Reserve Ratio.
(3) Pay-in-slip.
(4) Standard Assets.
Or
(b) From the following information, prepare Profit & Loss A/c of Bharat Bank Ltd. for the year ended on 31st March, 2022:
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Rs. (‘000) |
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Interest on Loans Interest on Fixed Deposits Commission Exchange and Brokerage Salaries and Allowances Discount on Bills Discounted Interest on Temporary Overheads in Current A/cs Interest on Cash Credit Interest on Savings Bank Deposits Postage, etc. Printing & Stationery Sundry Expenses Rent Taxes and Licenses Audit Fees |
300 275 10 20 150 152 30 240 87 10 20 10 10 15 10 |
Adjustments to be made:
(1) Rebate on bills discounted = Rs. 30,000.
(2) Salary to managing director = Rs. 30,000.
(3) Bad debts = Rs. 40,000.
(4) Provision for income tax to be made @ 40% (to be rounded off to nearest thousands)
(5) Interest of Rs. 4,000 on doubtful debts was wrongly credited to interest on Loans Accounts.
4. (a) Explain the following relating to Life Insurance Company:     3½ x 4=14
(1) Surrender Value.
(2) Consideration for Annuities Granted.
(3) Valuation Balance Sheet.
(4) Life Assurance Fund.
Or
(b) (1) Following figures are extracted from the books of Bright Life Assurance Co. Ltd. for the year ended on 31st March, 2022:Â Â Â Â Â 10
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(Rs.) |
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Premium less Reinsurance Premium Claims less Reinsurance Claims Reinsurance Irrecoverable Consideration for Annuities Granted Annuities Paid Surrenders Commission Surplus on Revaluation of Reversions Interest, Dividends and Rents Income Tax Management Expenses |
42,90,000 25,50,000 12,000 1,20,000 37,500 2,40,000 1,65,000 15,000 21,00,000 3,30,000 5,25,000 |
The net liability on all contracts in force as on 31st March, 2022 was Rs. 72,00,000 and on 31st March, 2021, the liability was Rs. 63,00,000.
You are required to prepare Revenue A/c according to the IRDA Regulations, 2013.
(Note: Schedules need not be prepared)
(2) Distinguish between Life Insurance and General Insurance.      4
5. (a) From the following information as on 31st March, 2022 of Luit Fire Insurance Co. Ltd., prepare Revenue A/c reserving 40% of the net premiums for unexpired risks and an additional reserve of Rs. 3,50,000:Â Â Â Â Â Â Â 14
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(Rs.) |
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Reserve for unexpired risk on 31st March, 2021 Additional reserve on 31st March, 2021 Claims paid Estimated liability in respect of outstanding claim on 31st March, 2021 Estimated liability in respect of outstanding claims on 31st March, 2022 Expenses of management (including Rs. 45,000 in connection with claims) Reinsurance premium paid Reinsurance recoveries Premiums Interest and dividend (gross) Profit on sale of investments Commission |
7,50,000 1,50,000 9,60,000 97,500 1,35,000 4,20,000 1,12,500 30,000 16,80,000 75,000 15,000 1,75,000 |
Or
(b) (1) Point out the main features of accounts of General Insurance Companies. Â Â Â Â Â 4
(2) What are statutory books required to be maintained by a General Insurance Company under the Insurance Act?     5
(3) How is the profit or loss of a General Insurance Company ascertained?       5
6. (a) (1) What is an Investment A/c? How is it prepared? Point out the special features of an Investment A/c.   2+3+3=8
(2) How are stock exchange transactions (sale and purchase of securities) recorded in books? Â Â Â Â Â Â Â Â 6
Or
(b) Mr. Manohar furnishes the following details relating to his holding in 6% Government Bonds of Rs. 100 each:
Opening balance face value Rs. 60,000 cost of which Rs. 59,000.
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01/03/2021 01/07/2021 01/10/2021 01/11/2021 |
100 units purchased ex-interest at Rs. 98. Sold 200 units ex-interest out of the original holding at Rs. 100. Purchased 50 units at Rs. 98 cum-interest. Sold 200 units ex-interest at Rs. 99 out of the original holdings. |
Interest dates are 30th September and 31st March. Mr. Manohar closes his books every 31st December.
Show Investment A/c as it would appear in his books.       14
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Also read: Advanced Financial Accounting Question Papers (Dibrugarh University) 2021
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