Monday, May 20, 2019

Gauhati University Question Papers:Advanced Corporate Accounting (Accountancy Major) (Nov-Dec’ 2014)


2014
ADVANCED CORPORATE ACCOUNTING
(ACCOUNTANCY MAJOR)
Full Marks: 80
Time: 3 hours
(The figures in the margin indicate full marks for the questions)
1. Answer the following as per directed:                                                       1x8=8

a)         Any profit earned by a company before its incorporation is transferred to _______ Account. [Fill in the blank]
b)         The cutoff date for pre and post incorporation profit is:
1)      Date of incorporation.
2)      Date of commencement of business.
3)      Any of the above two dates.
4)      1st April of the concerned year.
(Choose the correct alternative)
c)          To reduce Share Capital, Tribunal’s order is not always necessary. (State whether True or False)
d)         After writing off all losses, the balance of Reconstruction Account is transferred to _______ Account. [Fill in the blank]
e)         Only insolvent companies can be liquidated. (State whether True or False)
f)          The job of realizing various assets and paying various liabilities in the case of liquidation, in a systematic way, is performed by a person called _______. [Fill in the blank]
g)         What is Minority Interest?
h)         The cost of control for acquiring the shares of subsidiary companies may show:
1)         Goodwill.
2)         Capital reserve.
3)         Reserve Capital.
4)         Contingent liability. (Choose the correct alternative)
2. Answer as directed:
a)         The assets of Luit Ltd. are Rs. 5,00,000/-; liabilities are Rs. 1,00,000; Preference Shares are 10,000 shares of Rs. 10,000/- shares of Rs. 10/- each having prior right and equity shares are 10,000 shares of Rs. 10/- each. Find the value of equity shares under asset back method.                    3
b)         Write a short note on Reduction of Share Capital.                      3
c)         What is voluntary winding up of companies?                                             3
d)         Mention three ways how a company can become a holding company.
3. Answer as directed:                                                                                              5
(a) From the following information, calculate the value per equity share:
2,000, 9% Preference Shares of Rs. 100/- each
50,000 Equity shares of Rs. 10/- each, 8/- each.
Expected profit per year before tax
Rate of tax
Transfer to General
Reserve every year
Normal rate of earning
Rs. 2,00,000
4,00,000
2,18,000
50%

20% of Profit
15%

Or
Explain the merits and demerits of Assets Banking Method of valuation of shares.                     5
(b) Pass journal entries of the following with suitable narration:                 2.5+2.5=5
1)         Conversion of fully paid equity shares of Rs. 10,00,000/- into equity stock.
2)         Consolidation of Rs. 1,00,000, 12% Preference Shares of Rs. 10/- each fully paid into Rs. 10,000, 12% Preference Shares of Rs. 100 each.
Or
Briefly explain various modes of Alteration of Share Capital.                     5
(c) From the following particulars, ascertain Liquidator’s remuneration and also show how the balance amount is to be distributed to the shareholders:                                                 5
Preference Share Capital:
(10,000 Shares of Rs. 10/- each, Rs. 9/- paid up)
Equity Share Capital:
(10,000 Shares of Rs. 10/- each, Rs. 9/- paid up)
Equity Share Capital:
(10,000 Shares of Rs. 10/- each, Rs. 8/- paid up)
Preference Dividend in arrear
Surplus of Cash after paying all creditors

90,000

Rs. 90,000

Rs. 80,000
Rs. 18,000
2,04,000
Liquidation’s remuneration is fixed at 2% on the amount distributed to the shareholders.
Or
Critically examine the different aspects of determining Liquidator’s remuneration in the context of a company’s liquidation.                                                                                                        5
Or
Explain how the mutual owing between the holding company and the subsidiary company are treated while preparing the consolidated Balance Sheet.                                                       5
4. (a) X and Y working in a partnership, registered a Joint Stock Company under the name of ‘NABAMA Ltd.” on 1st September, 2013 to take over their existing business with effect from 1st April 2013.
From the following Profit and Loss Account for the year ended 31st March, 2014 and the other details, prepare a statement of Profit and Loss apportioning the profits between pre and post incorporation period indicating your basis for appointment.                                                10

Rs.
Rs.
To salaries
To Debenture interest
To Depreciation
To Interest on Purchase Consideration (upto 39.9.2013)
To Selling Commission
To Director’s Fees
To Preliminary Expenses Written off
To Provision for taxes
To Dividend on equity shares @ 5%
To Balance Carried down
10,000
5,000
2,000

10,800
12,000
800
1,000
5,000
6,000
31,400
By Gross Profit b/d
84,000

84,000

84,000
Sales for the year totaled 2,25,000/-, out of which 1,50,000/- was related to the period from 1st September, 2013  to 31st March, 2014.
Or
Explain the various situations which necessitate the valuation of shares.                       10
(b) The following is the Balance Sheet of unfortunate Ltd. as on 31st March, 2014:                             10
Liabilities
Rs.
Assets
Rs.
20,000 Equity Shares of 10/- each
10,000 Preference Shares of Rs. 10/- each
Convertible Debentures
2,00,000/-

1,00,000/-
30,000/-
Goodwill
Machinery
Inventory
Debtors
Profit & Loss A/c
Deferred Expenses
10,000/-
1,00,000/-
50,000/-
80,000/-
70,000/-
20,000/-
The company adopted the following scheme:
1)         The equity shares were to be reduced to Rs. 6/- each and the preference shares by Rs. 4/- each.
2)         Deferred expenses and profit and loss A/c were to be written off and machinery to be depreciated by 2% and inventory by 10%.
Pass journal entries to give effect to the scheme and prepare the new Balance Sheet.            10
Or
Elaborate the Accounting entries to be made in the books of a limited company that has adopted a scheme of Capital reduction.                                                                                       10
(c) Eastern Industries Ltd. went into voluntary liquidation on 31st March, 2014. The liquidator’s remuneration was 3% on realization of assets and 2% on distribution among the shareholders. The following was the position of the company as on 31st March, 2014:

Rs.
Cash realized on assets
Expenses of Liquidation
Unsecured Creditors
(including Preferential Creditors Rs. 8,000/-)
5,000, 6% Preference Shares of Rs. 30/- each
Dividend for two years is in arrear
10,000/- Equity Shares of Rs. 10/- each, Rs. 9/- paid
Reserves
Profit and Loss Account (Cr.)
10,00,000/-
10,000/-
70,000/-

1,50,000/-

90,000/-
2,00,000/-
50,000/-
Prepare Liquidator’s Final Statement of Account.
Or
Explain the procedure of compulsory winding up of a company.                                 10
(d) From the following Balance Sheets and other information of H. Ltd. and S. Ltd. prepare a consolidated Balance Sheet as on 31st March, 2014
Liabilities
H. Ltd.
Rs.
S. Ltd.
Rs.
Assets
H. Ltd.
Rs.
S. Ltd.
Rs.
Share Capital:
Shares of Rs. 10/- per share fully paid)
Profit & Loss A/c
Reserves
Creditors
Bills Payable



1,00,000
40,000
10,000
20,000
-



20,000
12,000
6,000
12,000
3,000
Sundry Assets
Inventory Debtors
Bills receivable
Shares in S. Ltd. (1,500 Shares of 10 each at cost)
80,000
61,000
13,000
1,000


15,000
12,000
24,000
17,000
-

Total
1,70,000
53,000
Total
1,70,000
53,000
Additional information:
1)         All the profits of S. Ltd. have been earned since the shares were acquired by H. Ltd. but the reserve of Rs. 6,000/- was already there at the time of acquisition.
2)         Bills accepted by S. Ltd. are all in favour of H. Ltd. which has discounted Rs. 2,000/- of them.
3)         Sundry assets of S. Ltd. are undervalued by Rs. 2,000/-.
Or
1)         Explain any five advantages of a Holding company.
2)         Write a short note on the need for consolidation of financial statements.       5+5=10

-000-

No comments:

Post a Comment

Kindly give your valuable feedback to improve this website.

Popular Posts for the Day