15CP31T: Financial Accounting- III CP 3rd Sem Syllabus for Diploma DTE Karnataka C15 Scheme

Financial Accounting- III detail DTE Kar Diploma syllabus for Commercial Practice (CP), C15 scheme is extracted from DTE Karnataka official website and presented for diploma students. The course code (15CP31T), and for exam duration, Teaching Hr/week, Practical Hr/week, Total Marks, internal marks, theory marks, duration and credits do visit complete sem subjects post given below. The syllabus PDFs can be downloaded from official website.

For all other cp 3rd sem syllabus for diploma c15 scheme dte karnataka you can visit CP 3rd Sem Syllabus for Diploma C15 Scheme DTE Karnataka Subjects. The detail syllabus for financial accounting- iii is as follows.

Pre-requisites:

Knowledge of Book Keeping and Basics of Accounting.

Course Objectives:

The students shall be able to:

1. Calculate the Interest on Partners’ Drawings, Appropriate profits for various purposes, Maintain Partners’CapitalAccounts in the prescribed methods.
2. Apply Accounting treatment at the time of admission of New partner.
3. Calculate the amount payable to the retiring partner and settlement.
4. Calculate the amount payable to the Executors of the deceased partner andsettlement.
5. Analyse the procedure for the Dissolution of Partnership Firms.
6. Prepare the Final Accounts of Non – Trading concerns.

Course Outcomes:

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Unit 1 PARTNERSHIP ACCOUNTS:

Provisions affecting Partnership Accounts (Profit Sharing, Interest on Capital, Interest on Loan, Interest on Drawings, Remuneration to Partners) – Distribution of Profits by Preparation of Profit and Loss Appropriation Account – Calculation of Interest on Partners’ Drawings – Maintenance of Partners’ Capitals by Fixed and Fluctuating Capital Methods.

Unit 2 ADMISSION OF A PARTNER:

Listing of the Adjustments to be made at the time of Admission of a Partner -Calculation of New Profit Sharing Ratio and Sacrificing Ratio – Accounting Treatment of Goodwill at the Time of Admission of a Partner – Revaluation of Assets and Liabilities – Distribution of Accumulated Profits and Losses -Proportionate Capital Contribution -Problems on Admission of a New Partner.

Unit 3 RETIREMENTOF A PARTNER:

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Unit 4 DEATH OF A PARTNER:

Ascertainment of the amount due to the Deceased Partner – Preparation of Deceased Partner’s Executor’s Account – Settlement of Account – Problems on Death of a Partner.

Unit 5 DISSOLUTION OF PARTNERSHIP FIRM:

Meaning of Dissolution – Dissolution of Partnership versus Dissolution of Partnership Firm -Settlement of Accounts – Accounting Treatment – Realisation of Assets and Liabilities – Problems on Simple Dissolution of a Partnership Firm.

Unit 6 FINAL ACCOUNTSOF NON – TRADING CONCERNS:

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Resources:

BOOKS FOR REFERECE:

1. Introduction to Accountancy by T.S.Grewal -S Chand and Company
2. Financial Accounting (Principles and Practices) by N.Vinayakam and B.Charumathi S Chand and Company
3. Financial Accountancy by N.P.Srinivasan and SakthivelMurugan – S Chand and Company
4. Accountancy Vol II by B.S. Raman
5. Accountancy Vol II by Kadkol
6. Dailies and Magazines / Journals of Business, Finance and Management.

E – BOOK FOR REFERENCE:

-Websites of Dailies and Magazines / Journals of Business, Finance and Management.

SUGGESTED STUDENT ACTIVITIES:

1. Drafting of Partnership Deeds as per Indian Partnership Act.
2. Collection of Partnership Deed copies visiting some Partnership Firms.
3. Analyse and Listing of reasons for good business in some concerns compared to competing concerns.
4. Analyse and listing of reasons for Admission of new partner to a partnership firm.
5. Analyse and listing of reasons for Retirement of partner to a partnership firm.
6. Analyse and listing of different methods of settlement of the amount due to the Retiring partner / Executors of the deceased partner.
7. Analyse and listing of reasons for dissolution ofa partnership firm.
8. Listing of Non-Trading Concerns working in the localities of students.

MODEL QP FOR CIE(TESTS)

1. (According to unit and CO1)
2. (According to unit and CO1)
3. (According to unit and CO2)
4. (According to unit and CO2)

Note: 5 marks choice should be given to each CO

Model Question Paper:

PART – A

(Answer any SIX Questions) 6 x 5 = 30

1. What is a Profit and Loss Appropriation Account? Explain 5
2. The drawings of Mr.Bhanu during the year 2014 are as follows:
1. Rs.2,000 on 31-03-2014
2. Rs.6,000 on 01-07-2014
3. Rs.4,000 on 31-08-2014
4. Rs.8,000 on 01-10-2014

Calculate interest on drawings of Bhanu at 12% per annum under product method for the accounting year ended 31-12-2014. 5

3. What is revaluation of Assets and Liabilities of the firm? Why it is necessary on the admission of a new partner?
4. Amar and Akbar were partners sharing profits in the ratio of 2:3. They admit Anthony as a new partner.

Their new profit sharing ratio is 4:5:6. Calculate the Sacrifice Ratio of Amar and Akbar. 5

5. What is retirement of a Partner? Give any three reasons for retirement of a Partner. 5
6. P, Q & R were partners in a firm sharing profits in the ratio of 3:2:1. Q retired from the business.

P &R decided to share the profits in the ratio of 3:2 in future. Calculate the Gain Ratio of P & R. 5

7. List out the items to be considered to ascertain the amount due to the deceased partner. 5
8. What is Dissolution of a Partnership Firm? Explain. 5
9. What is a Non-Trading Concern? Give examples. 5

PART – B

(Answer any FOUR Questions) 4 x 10 = 40

1. A and B are partners in a firm sharing profits and losses equally. On 1st January 2007, their capitals were Rs.1,00,000 and Rs.60,000 respectively. Interest is to be allowed on capitals at 8% per annum. Their drawings during the year amounted to Rs.8,000 and Rs.6,000. The interest on their drawings is to be charged at 6% per annum. A is entitled to a monthly salary of Rs.2,000 and B is entitled to a commission of Rs.12,000. The net profit for the year 2007 before making adjustments for interest on capitals, interest on drawings, partner’s salary and partner’s commission amounted to Rs.70,000.

Pass Journal Entries to record the above transactions and prepare the Profit and Loss Appropriation Account for the year ended 31st December, 2007 showing the division of profit between the partners. 10

2. Preetam and Atmaram are partners sharing profits and losses in the proportions of 3:2. Their BalanceSheet as on 31stMarch, 2008 was as follows:

[Liabilities Rs. Rs. Assets Rs. Rs.]

1. – – Cash in hand 2,000
2. Sundry Creditors 6,000 Bills Receivable 3,000
3. Bills Payable 2,000 Sundry Debtors 8,000
4. Stock 20,000
5. Capitals:Preetam 30,000 Furniture 4,000
6. Atmaram 20,000 50,000 Machinery 6,000
7. Building 15,000
8. 58,000 58,000

They agree to take Sanjeev into partnership, giving him 1/4thShare. The following adjustments are tobemade before Sanjeev’s admission:

9. Stock is to be valued at Rs. 18,000.
10. Furniture is to be depreciated by 5%.
11. Machinery is to be reduced by 10%.
12. Buildings are to be valued at Rs.20,000.
13. The reserve for bad debts is to be provided at 5% on Debtors.

Give the necessary journal entries and prepare the Revaluation Account. 10

3. On 31st March 2002, t he Balance sheet of Rahim and Akbar stood as given below:

[Liabilities Rs. Rs. Assets Rs. Rs.]

1. Bills Payable 7,000 Cash 4,000
2. Reserves 10,000 Stock 10,000
3. Debtors 10,000
4. Capitals: Rahim 15,000 Machinery 20,000
5. Akbar 12,000
6. 44,000 44,000

On 30th June 2002, Akbar died and the deed provides in such an event, that the executors of the deceased shall be entitled to:

7. Share of Goodwill: Goodwill shall be estimated as two years average of last three years’ profits. Profits for three years were 2001-02 Rs.18,000, 2000-01 Rs.24,000 and 1999-00 Rs.27,000.
8. Share in the Profit for the current year: For this purpose, the profit of 2001-02 will be considered.
9. Share of Reserve.
10. Capital Account balance as per the last Balance sheet.

Show the account of the executors of Akbar (deceased) as on 30thJune 2002. 10

4. Swetha and Sucheta were partners in a business sharing profits and losses in the ratio of 2:1 respectively. They decide to dissolve their firm on 31-12 -2002 when the balance sheet appeared as under:

[Liabilities Rs. Rs. Assets Rs. Rs.]

1. Capitals: Swetha Sucheta 20,000 40,000 Goodwill Machinery Patents 8,000 20,000 10,000
2. Profit and Loss A/c Creditors 6,000 14,000 Investments Stock Debtors Bank 4,000 24,000 12,000 2,000
3. 80,000 80,000

Swetha agreed to take over Machinery at Rs.27,000. Sucheta agreed to take over Goodwill at Rs.12,000 and Patents at Rs.8,000. Other assets realised thus: Investments Rs.5,000, Stock Rs.29,000 and Debtors Rs.10,000. Creditors were paid in full. Expenses of realisation were Rs.1,000.
Pass necessary Journal Entries in the books of the firm. 10

1. What is Dissolution of a Partnership Firm? Explain. 5
2. Mention any FIVE differences between dissolution of partnership and dissolution of firm 5
6. How do you treat the following items in the Final Accounts of Non-Trading Concerns: 10
1. Subscriptions
2. Life Membership Fees
3. Legacies
4. Entrance Fees
5. Donations

PART – C

(Answer any TWO Questions) 2 x 15 = 30

1. Abhi and Shashank are partners sharing profits and losses in the ratio of 2:1. Their Balance Sheet as on 31st December, 2011 was as follows:

[Liabilities Rs. Rs. Assets Rs. Rs.]

1. Creditors 12,000 Cash at Bank 10,000
2. Bills Payable 8,000 Debtors 5,000
3. Reserve Fund 9,000 Stock 10,000
4. Capitals:Abhi 20,000 Furniture 4,000
5. Shashank 20,000 40,000 Building 40,000
6. 69,000 69,000

They admit Suhas into Partnership giving him 1/5th share in the future profits on the following terms:

7. The new partner should bring Rs.25,000 as his capital and Rs.9,000 as Goodwill.
8. The value of building is to be appreciated by Rs.7,000.
9. The furniture is to be depreciated by Rs.900.
10. The stock is to be depreciated by 10%.

Prepare:
-Revaluation A/c -Partners’ Capital Accounts -Balance Sheet of the new firm. 15

2. Shobha, DharitriandNavyawere partners sharing profits and losses in the ratio of 3:2:1. TheirBalance sheet on 31-03-2002stood as given below:

[Liabilities Rs. Rs. Assets Rs. Rs.]

1. Bills Payable 31,000 Bank 15,000
2. Reserve Fund 15,000 Debtors 16,000
3. Capitals: Less: Reserve 1,000 15,000
4. Shobha 40,000 Stock 20,000
5. Dharitri Navya 36,000 28,000 Furniture Building 20,000 80,000
6. 1,50,000 1,50,000

Navya’ retired on the above date and following adjustments are necessary for the purpose:

7. The goodwill of the firm is to be taken at Rs. 21,000/-which however need not be shown in the books.
8. Stock and Furniture to be reduced by 15%.
9. Reserve for doubtful debts to be increased to Rs.3,000/-.
10. The value of Buildingto be raised to Rs.1,00,000/-.

Prepare necessary ledger accounts and the balance sheet of the continuing partners. 15

3. Tennis Club of Gulbarga was started from 1-1-2009. Its Receipts and Payments Account for the year

ended 31-12-2009 was as follows:
[Receipts Rs. Payments Rs.]

1. To Endowment Fund Receipts 40,000 By Tournament Expenses 15,200
2. Donations 80,000 Furniture 25,600
3. Tournament Fund 20,000 Sports Equipment 50,800
4. Life Membership Fees 12,000 Function Expenses:
5. Entrance Fees 1,200
1. Honorarium 28,000
6. Fees for Functions 48,000
1. Others 8,000
7. Subscriptions 12,000 Printing 2,000
8. Rent 4,800
9. Salaries 14,400
10. Postage 600
11. Fixed Deposit in Bank 60,000
12. Cash Balance 3,800
13. 2,13,200 2,13,200

Adjustments:

14. Expenses Outstanding : Salaries Rs.4,800 and Printing Rs.2,000.
15. Subscription due for 2009 Rs.8,000.
16. Depreciation on Sports Equipment Rs.10,000.
17. Postage Stamps on Hand Rs.80.
18. Entrance Fees and Life Membership Fees are to be capitalized.

Prepare Income and Expenditure Account and Balance Sheet as on 31-12-2009. 15

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