Corporate Accounting Important Questions (Theory), B.Com 2nd Sem and 4th Sem (Hons & Non-Hons)

Corporate Accounting Important Questions
B.Com 2nd and 4th Sem CBCS Pattern

Unit 1: Issue of shares and accounting for share capital, Debentures
(These Questions are subject to modification, if necessary. Download our DTS for complete notes)

Part A: ACCOUNTING FOR SHARE CAPITAL/REDEMPTION OF PREFERENCE SHARES/ BONUS SHARES

Q. Explain the SEBI’s Guidelines regarding issue of various classes of shares and forfeiture of shares.   2013, 2014

Q. What are the statutory books and statistical books required to be maintained by a company?

Q. Discuss the provisions of law with regard to redemption of Redeemable preference shares as laid down in Sec. 55 of the Companies Act.                   2012, 2016, 2018, 2019

Q. What do you mean by Bonus shares? Under what circumstances such shares are issued. Illustrate the SEBI guidelines regarding Bonus issue.        2017

Q. What is right issue? Explain the provisions of the law regarding issue of right shares.

Q. Distinguish between:

Ø  Capital reserve and reserve capital

Ø  Bonus issue and Right issue

Ø  Forfeiture of shares and Surrender of shares

Q. Practical Problems:

a) Issue of Shares Specific points: Oversubscription and prorata allotment, 2010, 2014, 2015, 2016, 2019

b) Redemption of Preference shares            2017

C) Bonus Shares                     2013

Q. Write short notes on:

1)      Reserve Capital                2018, 2019

2)      Securities premium reserve        2015, 2016

3)      Discount on issue of shares         2015

4)      Forfeiture of Share.          2013, 2015

5)      Redeemable Preference Shares  2015

6)      Types of share capital

7)      Four points of distinction between bonus shares and right shares.

8)      Oversubscription and Prorata Allotment.                      2017

Part B: ISSUE AND REDEMPTION OF DEBENTURES

Q. What do you mean by debentures? What are its features?

Q. Distinguish between shares and debentures. State SEBI guidelines for issue of debentures.

Q. How a debenture can be redeemed? State its various methods.

Q. Write short notes on:

Ø  Debt Capital                     2014

Ø  Debenture Trust Deed                 2018

Ø  Sinking Fund and Redemption of debentures by sinking fund method. 2014, 2016, 2019

Ø  Convertible Debentures              2017

Ø  Open Market Operation

Ø  Cum Dividend and Ex-dividend

Ø  Debenture redemption reserve

Ø  Types of Debentures                    2017

Ø  Treatment of Discount on issue of shares and Loss on issue of debenture      2013

Q. Practical Problems:

a)      Debentures: Sinking fund method (2011, 2012, 2018)

b)     Conversion method

c)      Issue of debentures with redemption option (2015, 2019) and

d)     Preparation of discount or loss on issue of debentures account (2013).

Unit 2: FINAL ACCOUNTS OF COMPANIES (Part A)

(These Questions are subject to modification, if necessary. Download our DTS for complete notes)

Q. Practical Problems: (PART A)

A. Final Account of Companies, Preparation of Provision for taxation account. 2010, 2011, 2016, 2018, 2019

B. Preparation of Provision for income tax, advance tax account                          2017

Or

PART B – Theory Section

Q. What are IFRS and Accounting Standards? Explain its relevance. Explain some specific IFRS (From 1 to 9).                        2015, 2016

Q. What are divisible profits? Explain the provisions of Companies Act relating to transfer of profit to reserves.

Q. What is dividend and Interim divided? What are various sources of dividend? Distinguish between Interim and Final dividend.

Q. Explain the format of Statement of profit and loss and Balance sheet of a company.             2016, 2017

Q. Explain the treatment of the following items whiling preparing the final account of a limited company:

a)      Share Capital, Loans, Current Liabilities, Fixed Capital Expenditure                2018,

b)     Managerial remuneration, Preliminary Expenses, Provisions and Reserves, Provision for income tax, Tax deducted at source, Corporate dividend tax, Advance income tax                      2015, 2019

Q. Write Short notes on:

Ø  Payment of dividend out of capital profit.    2015

Ø  Advance Payment of Tax                      2016

Ø  Interim Dividend                     2018

Ø  Corporate Dividend Tax                        2017

Ø  Preliminary Expenses.

Accounts of Banking Companies (Part B)

Q. List out the form of business in which Banking Company may engage as detailed in Section 6 of the Banking Regulations Act. Or Mention the features of a banking company.                             2018

Q. Explain the following in relation to the Banking Company:

a)      Slip system of posting and its merits and demerits                                  2015, 2018

b)      Rebate on Bills Discounted and its treatment                                             2014, 2016, 2017, 2019

c)       NPA                                                                                                                               2015, 2019

d)      Non-banking Assets              

e)      Form B of the Banking Company

f)        Format of financial statements of banking companies                            2016

g)      Books maintained by banking companies

h)      Money at call and short notice (Schedule 7)                                2013SN, 2017SN, 2018SN

i)        Difference between performing and non-performing assets 2016

j)        Inter branch adjustments                    2017

k)      Contingent liabilities                             2017

l)        Statutory reserve    2019

m)    SLR and CRR                               2019

Q. Write a brief note on various types of advances provided by bank. (Cash Credit, Overdraft, Loan, Discounting) 2015SN

Q. Write a brief note on various classes of advances (Standard assets, sub-standard assets, doubtful assets, loss assets. Also mention % of provision required in these classes.                  2013

Q. Give in brief the various provisions of the Banking Regulation Act, 1949 relating to the annual accounts of the banking company.

Q. Explain the RBI’s prudential Accounting Norms as recommended by the Narasimham Committee.     2014 

Unit 3: Valuation of Goodwill and Valuation of Shares and Cash Flow Statement

(These Questions are subject to modification, if necessary. Download our DTS for complete notes)

Q. What is Goodwill? What are its features? Explain various factors affecting valuation of goodwill.

Q. What are various types of goodwill?

Q. Why valuation of goodwill is necessary? Explain various methods for valuation of goodwill.

Q. Why shares are valued? Explain various methods for valuation of shares.

Q. Define Cash Flow Statement. What are its objectives? Discuss the importance and limitations of Cash flow statement.                         2016

Q. How cash flow statement is prepared? Explain direct and indirect method of preparing cash flow statement. 2011, 2014, 2018

Q. Distinguish between:

Ø  Cash flow statement and Funds flow statement                        2012, 2016

Ø  Cash flow statement and Cash Budget

Ø  Cash flow statement and cash book                                                                2018

Unit 4: Amalgamation and External Reconstruction (Part – A)

(These Questions are subject to modification, if necessary. Download our DTS for complete notes)

Q. What is amalgamation and external reconstruction? Explain its features. Explain its various types (2010, 2013) with examples. Distinguish between amalgamation and absorption.                     2016

Q. Explain Amalgamation in the nature of merger and Amalgamation in the nature of purchase and distinguish between them. Also explain the treatment of reserve in case of amalgamation.      2014, 2015, 2018

Q. What is pooling of interest method and purchase method? Explain the differences between pooling of interest method and purchase method.                  2015, 2016

Q. Explain various methods for calculating purchase consideration with examples.        2010, 2014

Q. Practical Problems: Journal Entries for Amalgamation and External Reconstruction and Preparation of balance sheet 2010, 2012, 2014, 2017, 2019

Q. Write short notes on:

Ø  Purchase consideration        2015, 2017, 2019

Ø  Amalgamation in the nature of purchase.                    2012, 2018

Ø  Amalgamation in the nature of Merger                                         2012, 2018

Ø  Treatment of reserves in case of amalgamation in the nature of merger and purchase           2018

Unit 4: Internal Reconstruction and Capital Reduction (Part – B)

Q. What is internal reconstruction? Explain its scope.

Q. Explain the various provisions of Alteration and capital reduction of share capital with examples. 2011, 2012, 2017, 2019

Q. Write short notes on:

Ø  Internal reconstruction   2018

Ø  Reduction of share capital          2016

Q. Practical Problems: Journal Entries and Preparation of balance sheet in case of Internal Reconstruction 2011, 2013, 2015, 2016, 2018

Unit 5: Accounts of Holding Companies

(These Questions are subject to modification, if necessary. Download our DTS for complete notes)

Q. What do you mean by Consolidated Financial Statements? What are the objectives and scope of these statements? Also point out the advantages and disadvantages of consolidation.                       2015, 2018

Q. What are the advantages and disadvantages of Holding Companies? Explain the transactions which must be eliminated while preparing consolidated balance sheet.                      2015, 2016

Q. “Balance Sheet of Holding Company to include certain particulars as to its subsidiaries”. Considering this statement explain the provisions of the Companies Act, 2013.                       2014, 2017

Q. What do you mean by Holding and Subsidiary Company (2013, 2015, 2016)? How would you ascertain the amount of minority interest and goodwill or capital reserve while preparing a Consolidated Balance sheet? 2010, 2013

Q. Explain the treatment of the following items in Consolidated Balance Sheet: 2012

Ø  Contingent liabilities

Ø  Mutual owing

Ø  Bonus shares

Ø  Unrealised Profit

Q. Write short notes on:

Ø  Minority interest                     2014, 2015, 2017

Ø  Cost of Control or Goodwill                2017

Ø  Pre-acquisition and post-acquisition profit                  2013

Ø  Consolidated Balance Sheet               2016

Ø  Rationale of Holding Companies

Ø  Capital Profits                  2018   

Ø  Capital reserve                         2014

Q. Practical Problems: Follow illustrations given in your book                  2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018

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