Corporate Accounting Question Paper May' 2010, Dibrugarh University B.Com 2nd/4th Sem

 Dibrugarh University Corporate Accounting Question Papers
Corporate Accounting – 2010 (Old course)
COMMERCE (General/Speciality)
Course: 203 (Corporate Accounting)
The figures in the margin indicate full marks for the questions
Full Marks: 80
Pass Marks: 32
Time: 3 hours

1. (a) (i) Give a brief description of ‘Statutory Books’ and ‘Statistical Books’ which are required to be maintained by a company as per provisions of Indian Companies Act, 1956.

(ii) What is ‘Statutory Report’? What items are generally included in this report?

Or

(b) ABC Co. Ltd. issued prospectus inviting applications for 20000 shares of Rs 10 each at a premium of Rs 2 per share as follows:

                On Application – Rs 3

                On Allotment – Rs 5 (including premium)

                On First Call – Rs 2

                On Second Call – Rs 2

Applications were received for 30000 shares and allotment made pro-rata to the applicants of 24000 shares. Money overpaid on application was employed on account of sums due on allotment. Mr. Rajat, to whom 400 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited. Mr. Kamal, the holder of 600 shares failed to pay both the calls and his shares were forfeited after second call. Of the shares forfeited, 800 shares were issued to Mr. Anand, credited as fully paid for Rs 9 per share, the whole of Mr. Rajat’s shares being included. Pass the necessary Journal Entries to give effect to the above and prepare Bank A/c, Forfeited Shares A/c and Balance Sheet of the company.

2. (a) The XYZ Co. Ltd. was registered with an authorized capital of Rs 10,00,000 divided into shares of Rs 10 each, of which 40000 shares have already been issued and fully paid up. The following is the Trial Balance extracted on 31st March, 2009:

Particulars

Dr. Rs

Cr. Rs

Stock on 1.4.2008

1,86,420

 

Returns

12,680

9,850

Sundry Manufacturing Expenses

19,240

 

18% Bank Loan (secured)

 

50,000

Office Salaries and Expenses

17,870

 

Directors Remuneration

26,250

 

Freehold premises

1,64,210

 

Furniture

5,000

 

Debtors and Creditors

1,05,400

62,220

Cash at Bank

96,860

 

Profit & Loss A/c on 1.4.2008

 

38,640

Share Capital

 

4,00,000

Purchases and Sales

7,18,210

11,69,900

Manufacturing Wages

1,09,740

 

Carriage Inwards

4,910

 

Interest on Bank Loan

4,500

 

Auditor’s Fees

8,600

 

Preliminary Expenses

6,000

 

Plant and Machinery

1,28,400

 

Loose Tools

12,500

 

Cash in Hand

19,530

 

Advance Payment of Tax

84,290

 

 

17,30,610

17,30,610

You are required to prepare Profit & Loss A/c for the year ended 31st March, 2009 and a Balance Sheet as at that date after taking into consideration the following adjustments:

a)    On 31st March, 2009, outstanding manufacturing wages and outstanding office salaries stood at Rs 1,890 and Rs 1,200 respectively. On the same date stock was valued at Rs 1,24,840 and loose tools at Rs 10,000

b)    Provide for interest on Bank loan for 6 months

c)    Depreciation on plant and Machinery is to be provided @ 15% while on office furniture is to be @10%

d)    Write off one-third of balance of preliminary expenses

e)    Make a provision for income tax @50%

f)     The directors recommended a maiden (first) dividend @15% for the year ending 31st March, 2009 after the minimum transfer to General Reserve as required by law

g)    Ignore corporate dividend tax

0R

(b)Explain how the provisions laid under following standards affect the preparation of final accounts of the companies:

(i)        (AS)-5

(ii)      (AS)-12

(iii)     (AS)-15

(iv)     (AS)-29

3. (a) X Ltd. and Y Ltd. decided to amalgamate and a new company XY Ltd. is formed to take over both the companies as on that 31st March, 2009. The following are the Balance Sheets of the companies as on that date:

Particulars

X Ltd.

Y Ltd

Equity and Liabilities

Share Capital: Shares of Rs. 10 each, fully paid

Reserve fun

Profit and Loss Account

Dividend Equalisation Fund

Workmen’s Compensation Fund

Bank overdraft

Sundry Creditors

Bills Payable

 

5,00,000

2,00,000

30,000

------

20,000

--------

1,00,000

50,000

 

3,00,000

1,50,000

50,000

1,00,000

-------

50,000

1,20,000

30,000

Total

9,00,000

8,00,000

Assets

Goodwill

Land and Building

Plant and Machinery

Patents and Trademark

Stocks

Debtors

Bill Receivable

Cash at Bank

 

1,00,000

2,50,000

2,00,000

-----

2,00,000

1,00,000

-----

50,000

 

80,000

1,90,000

2,55,000

52,500

1,50,000

50,000

20,000

2,500

Total

 

 

Show how the amount payable to each company is arrived at and prepare the amalgamated Balance Sheet of XY Ltd. assuming amalgamation is done in the nature of purchase.

Or

(b) (i) Describe in detail the different types of amalgamation.

(ii) Discuss in detail the various methods of calculating purchase consideration.

4. (a) From the Balance Sheet and information given below, prepare Consolidated Balance Sheet of H Ltd. and its subsidiary S Ltd.:

Balance Sheet as on 31st march, 2009

Liabilities

H Ltd. (Rs)

S Ltd. (Rs)

Assets

H Ltd. (Rs)

S Ltd. (Rs)

Share Capital :

Share of Rs 10 each fully paid

 

5,00,000

 

1,00,000

Fixed Assets

4,00,000

60,000

Profit & Loss A/c

2,00,000

60,000

Stock

3,00,000

1,20,000

Reserves

60,000

30,000

Debtors

75,000

85,000

Bills Payable

 

15,000

Bill Receivable

20,000

 

Creditors

1,10,000

60,000

7500 shares in S Ltd. at cost

75,000

 

 

8,70,000

2,65,000

 

8,70,000

2,65,000

Additional Information:

a)       The bills accepted by S Ltd. are all in favour of H Ltd.

b)      The stock of H Ltd. includes Rs 25,000 bought from S Ltd. at a profit to latter of 20% on sales.

c)       All the profit of S Ltd. has been earned since the shares were acquired by H Ltd. but there was already the reserve of Rs 30,000 at that date

Or

(b) (i) Define a holding company. How does it come into existence? Explain briefly.

(ii) How would you ascertain the amount of goodwill or capital reserve while preparing a Consolidated Balance Sheet?

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