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Goa Vidyaprasarak Mandal’s

GOPAL GOVIND POY RAITURCAR COLLEGE OF COMMERCE AND
ECONOMICS, PONDA – GOA
B.COM. CBCS (SEMESTER - V) EXAMINATION, JANUARY 2021
GOVERNMENT ACCOUNTING – DSE 3
Duration : 2 hours Marks : 80
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Instructions: 1) Question No.1 is compulsory
2) Answer any three questions from remaining
3) Figures to the right indicate maximum marks.

Q I) KTC Ltd registered under Companies Act 2013, provides you the following trial
balance as on 31/03/2020. You are required to prepare the statement of profit and Loss
for the year ended 31/03/2020.
Particulars Debit (`) Credit (`)
Earnings from operation 1,00,00,000
Casual contract earnings 50,000
Pass Issue Collection 15,400
Concessional Seasonal Pass 1,50,000
Mail Receipts 50,000
Luggage Receipts 84,500
Parcel Income 89,450
Interest Income 25,675
Rental Income from Investment Properties 75,000
Bus stand parking license fees 55,000
Toilet fee collections 7,500
Sale of scrap 1,60,000
Subsidy from Govt for student pass 20,00,000
Salaries & Wages 13,38,605
Contribution towards PF 2,50,000
Consumption of Stores & Spares 1,34,600
Diesel & Fuel 12,00,000
Water 55,000
Rental Income from Investment Properties 43,600
Insurance 89,000
Repairs to operating fleet 1,20,000
Electricity charges 54,000
Chairman travelling expenses 12,000
Directors sitting fees 15,720
Repairs to Directors vehicles 10,000
Advertisement 65,000
Postage & Telephones 23,000
Legal & Professional fees 1,02,000
Sales Commission 50,000
Interest on Loan 2,00,000

Additional Information: -
1) Loose Tools written off ` 1,28,000.
2) Depreciate Central Workshop @ 15% (BV ` 2,50,000)
Plant & Machinery @ 10 % (BV ` 75,000)
 Operating Fleet @ 10% (BV ` 45,00,000)

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3) Provide for outstanding salaries & Wages ` 1,50,000.

4) Insurance Prepaid ` 16,700.
5) Provide for taxation @ 30%. (20)

Q II) The trial balance of Electricity Corporation Ltd. for the year ended 31/03/2020
is as under.
Particulars Debit (` in 000's) Credit (` in 000's)
Equity Shares of ` 10/- each 50,000
14% Preference Shares of ` 100/- each 15,000
Patents & Trade Marks 2,504
15% Debentures 24,700
16% Term Loan 15,300
Land (Addition during the year ` 2050) 12,450
Building (Addition during the year ` 5080) 35,134
Plant & Machinery 57,058
Mains 4,524
Meters 3,150
Electrical Instruments 1,530
Office furniture 2,450
Capital Reserve 4,020
Contingency Reserve 12,030
General Reserve 1,000
Transformers 16,440
Opening Balance of Profit & Loss A/C 350
Profit for the year 2019-20 subject to adjustment. 5,000
Stock in hand. 12,050
Sundry Debtors 6,246
Contingency Reserve Investment 10,010
Other Investment 2,000
Cash & Bank 3,254
Public Lamps 3,040
Depreciation fund 25,816
Sundry Creditors 6,524
Proposed Dividend 12,100
1,71,840 1,71,840

Adjustments: -
1) Transfer to Contingency Reserve ` 1,70,000 and to General Reserve ` 2,00,000.
2) Loss on Contingency Reserve Investment ` 10,000.
3) Make a provision for debts considered doubtful ` 10,14,000. (20)

Prepare Balance sheet of the Electricity Corporation Ltd. as on 31/03/2020.

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Q III A) From the following particulars of a Gram Panchayat, Prepare Receipt

& Payment Account for the year ended 31/03/2020. (10)

Grants from Government

For Inspectors 70,000
For other employees 50,000
Grant from Central Government 40,000
Receipts from ZP for District Plans 20,000
Receipts from Panchayat Committee from forest resources 15,000
Payment for General Administration 40,000
Expenses of Inspectors 50,000
Expenses of Public Health 30,000
Street Lighting 10,000
Expenditure for local sports 10,000
Expenses on works of ZP for District Plans 8,000
Newspaper & Periodicals 1,500
Sale of Newspaper 100
Payment of Duties 5,000
Receipts from Taxes & Duties 20,400
Receipts from state Government Properties 3,000
Receipts from loan from state Government 25,000
Entertainment Expenses 4,000
Miscellaneous Expenses 16,800
Balance in Hand on 01/04/2019 10,000

Q III B) What are the various sources of revenue for the Panchayats? (10)

Q IV) Central Mine Planning & Design Institute provides the following information:

Purchase Price of Machine ` 1,60,000

Installation Charges ` 40,000
Salvage Value ` 80,000
Economic Life 4 years
Working capital Required ` 20,000
Annual earnings before dep. & tax. ` 1,30,000
Rate of Tax 30%

Calculate ARR if the method of depreciation is:

1) Straight Line Method.
2) WDV @ 20%. (20)

Q VA) What are the basic principles of Government Accounting? (10)

Q V B) Enlist the accounting procedure for Government Expenditures. (10)

Q VI) Explain the following: (5 x 4 = 20)

a) Audit of Government Accounts
b) Features of Municipal Accounting
c) Importance of Capital Budgeting
d) Features of Electricity Companies
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