Corporate Accounting' 2019, Assam University B.Com Question Papers, CBCS Pattern

 Assam University B.Com Question Papers
TDC (CBCS) Even Semester Exam., 2019
COMMERCE (2nd Semester)
Course No.: BCH – CC – 201T
(Corporate Accounting)
Full Marks: 70
Pass Marks: 28
Time: 3 hours

The figures in the margin indicate full marks for the questions

UNIT – I

1. Answer any two questions from the following:                               2x2=4

a)    Explain the concept of ‘book building’.

b)    Write two advantages of buyback of shares.

c)    State two conditions of redemption of preference shares.

2. What is ‘sinking fund’? Explain the procedure of redemption of debentures by sinking fund method with accounting entries.                                 2+8=10

Or

From the following Balance Sheet of Estar Ltd. as on 31.03.2018, you are required to give effect to the proposal of bonus shares by passing Journal entries. You are also required to show the amended Balance Sheet as on that date:

Balance Sheet

As on 31.03.2018 of Estar Ltd.

Particulars

Note No.

Rs.

1. Equity and Liabilities:

(a) Shareholder funds:

Share Capital:

80000 Equity Shares of Rs. 10 each, Rs. 7.50 each called up and paid up.

(b) Reserve and Surplus:

Capital Redemption Reserve

Securities Premium

Development Rebate Reserve

Plant Revaluation Reserve

Investment Allowance Reserve

General Reserve

 

 

 

 

6,00,000

 

1,50,000

1,50,000

2,30,000

20,000

2,50,000

3,00,000

 

 

17,00,000

2. Assets:

Non-current Assets:

Tangible:

Sundry Assets

 

 

 

 

17,00,000

 

 

17,00,000

UNIT – II

3. Answer any two questions from the following:                             2x2=4

a)    Differentiate between Capital Reserve and Reserve Capital.

b)    Explain the meaning of contingent liability with examples.

c)    What are the purposes served by Schedule VI of the Companies Act, 2013?

4. From the following balances extracted from the books of Swift Ltd. as on 31.03.2018 and additional information, prepare profit & loss A/c of the company:                             10

Particulars

Rs.

Particulars

Rs.

Inventory (01.04.2017)

Wages

Purchases

Audit Fees

Carriage

Advance Income Tax

Interest on Loan (Dr.)

Debtors

Machinery

Loose Tools

Directors’ fees

Directors’ Remuneration

Staff Salaries

1,24,000

37,450

7,23,000

14,600

6,410

8,000

9,000

1,40,000

1,80,000

15,000

1,250

26,250

48,350

Office Furniture

Return Inward

Discount Allowed

Insurance Premium

Repairs

Advertisement

Calls in Arrear

Sales

Royalty (Cr.)

Profit & Loss A/c (Cr.) (01.04.2017)

Office Expenses

Return Outwards

Share Capital

Commission Received

5,000

12,680

600

6,400

9,000

8,000

10,000

12,70,000

2,000

41,600

24,620

9,850

6,00,000

3,000

Additional Information:

1)    Value of inventory on 31.03.2018 – Rs. 87,500.

2)    Staff Salaries Outstanding – Rs. 6,500.

3)    Insurance Premium prepaid – Rs. 1,200.

4)    Depreciation to be charged on Machinery @ 10%.

5)    Provision for bad debt @ 5% on debtors.

6)    Transfer Rs. 10,000 to General Reserve.

7)    Directors proposed, a dividend of 5% on the paid –up equity share capital.

Or

From the following balances taken from the books of Escorts Ltd., prepare the Balance Sheet as at 31.03.2018:

Particulars

Rs.

Particulars

Rs.

Land & Buildings

Plant & Machinery

Sundry Debtors

50,000 Equity Shares of Rs. 10 each, Rs. 9 called up

15% Debentures

Debentures Redemption Reserve

Prepaid Insurance

Profit & Loss (Cr.)

Bank Overdraft

3,25,000

2,90,000

65,000

 

4,50,000

1,00,000

50,000

4,800

1,13,000

15,000

Patents

Investments

Preliminary Exp.

Securities Premium.

Provision for Income Tax

Closing Stock

Cash

Advance Income Tax

Creditors

General Reserve

Outstanding Exp.

Proposed Dividend

7,200

70,000

7,000

25,000

24,000

1,28,000

12,000

4,000

15,200

1,00,000

4,800

16,000

Further Information:

1)    Bills discounted but not yet matured Rs. 12,000.

2)    There is a claim against the company not acknowledged ad debt Rs. 16,000.

UNIT – III

5. Answer any two questions from the following:               2x2=4

a)    Explain why goodwill is considered as an asset.

b)    Mention four methods of valuation of goodwill.

c)    State the circumstances in which there may be need for valuation of shares in case of companies.

6. The following particulars have been extracted from the books of Sachin:

1)         Capital Invested – Rs. 50,000

2)         Trading Results:

 

Rs.

2015 Profit

2016 Profit

2017 Loss

2018 Profit

18,200

15,000

2,000

21,000

 

3)         Market rate of interest on investment – 8%.

4)         Rate of return on capital in business – 2%.

5)         Remuneration from alternative employment of the proprietor (if not engaged in business) – Rs. 6,600 p.a.

Compute the value of goodwill of the business on the basis of three year’s purchase of super profits taking average of last four years. 10

Or

From the following information, calculate the value of per equity share: 10

20000, 9% Preference Shares of Rs. 100 each – Rs. 2,00,000

50000 Equity Shares of Rs. 10 each Rs. 8 paid up – Rs. 4,00,000

Expected profits before tax – Rs. 2,18,000

Rate of tax – 50%

Transfer to General Reserve every year – 20% of profit

Normal rate of earning – 15%.

UNIT – IV

7. Answer any two questions from the following:                               2x2=4

a)          Write the situations under which an enterprise can become a holding company.

b)         Define the term ‘minority interest’.

c)          Explain the objectives of preparation of Consolidated Financial Statements.

8. The Balance Sheet of H Ltd. and its subsidiary S Ltd. as on 31.03.2018 stood as follows:

 

H Ltd.

Rs.

S Ltd.

Rs.

1. Equity and Liabilities:

(a) Shareholder funds:

Share Capital, Equity shares of Rs. 10 each

(b) Reserve and Surplus:

General Reserve

Profit & Loss A/c

(c) Current Liabilities: 

Creditors

Bills Payable

 

 

50,000

 

10,000

20,000

 

8,000

3,000

 

 

10,000

 

-

6,000

 

8,000

2,000

 

91,000

26,000

2. Assets:

(a) Non-current Assets:

Tangible

(b) Non-current investments:

Shares in S Ltd.

Preliminary Exp.

 

 

76,500

 

6,500

8,000

 

 

22,000

 

-

4,000

 

91,000

26,000

H Ltd. acquired 60% interest in S Ltd. All the profits of S Ltd. was earned after the shares were acquired by H Ltd. Prepare the Consolidated Balance Sheet of H Ltd. and its subsidiary S Ltd. on 31.03.2018:                10

Or

Describe the provisions of Accounting Standard – 21 in relation to the preparation of Consolidated Financial Statements. 10

UNIT – V

9. Answer any two questions from the following:                               2x2=4

a)          State the main features of bank’s accounting system.

b)         Explain two provisions of the Banking Regulation Act, 1949 relating to the annual accounts of a banking company.

c)          Explain the meaning of the terms ‘Reinsurance’ and ‘Surrender Value’

10. From the following information, prepare Profit & Loss A/c of Money Plus Bank for the year ended 31.03.2018:

 

Rs.

Interest on loans

Interest on fixed deposits

Rebate on bills discounted

Commission

Payment to employee

Discount on bills discounted (Gross)

Interest on cash credits

Rent, taxes & lighting

Interest on overdrafts

Directors’ fees and allowances

Auditors’ fees

Interest on Saving Bank Deposits

Postage, telegrams and telephones

Printing & Stationery

Sundry Charges

25,90,000

31,70,000

4,90,000

82,000

5,40,000

15,50,000

22,30,000

1,80,000

15,40,000

30,000

12,000

6,80,000

14,000

29,000

17,000

Additional Information:

a)    Provide for contingencies – Rs. 2,00,000.

b)    Transfer Rs. 15,57,000 to Reserves.

c)    Transfer Rs. 2,00,000 to Central Government.

Or

How is profit or loss ascertained in life insurance business? Prepare with imaginary figures Revenue A/c of a Life Insurance Company.       10

B.Com 2nd Sem (CBCS Pattern - Year 2019)

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