Assam University B.Com Question Papers
Corporate Accounting Question Paper 2022
TDC (CBCS) Even Semester Exam., 2022
COMMERCE (Honours)
Course No.: COMHCC-201T
(Corporate Accounting)
Full Marks: 70
Pass Marks: 28
Time: 3 hours
The figures in the margin indicate full marks for the questions.
SECTION – A
Answer any ten questions: 2x10=20
1. Write two features of preference shares.
2. Mention any two advantages of buy-back of
shares.
3. State any two points of distinction between
shares and debentures.
4. What are contingent liabilities?
5. Give two examples of preliminary expenses.
6. What is corporate dividend tax?
7. Mention any two factors affecting the
value of goodwill.
8. What is amalgamation?
9. Name the different types of amalgamation
according to AS-14.
10. Give two situations under which an
enterprise can become a holding company.
11. What is pre-acquisition profit?
12. Write two needs for preparation of
consolidated financial statements.
13. What do you mean by non-performing assets
of a banking company?
14. What is re-insurance?
15. What is valuation Balance Sheet?
SECTION – B
Answer any five questions: 10x5=50
16. Sunlight Ltd. Company has 4000 preference
shares of Rs. 100 each fully paid up in its shares capital. These shares have
now become due for redemption at a premium of 10%. The shares are redeemed out
of fresh issue of equity shares of Rs. 10 each at par. The Statement of Profit
& Loss of the company has a surplus balance of Rs. 1,00,000. Show necessary
Journal Entries in the books of the company. 10
17. (a) Name various sources from which bonus
shares are issued. 5
(b) Distinguish between right shares and
bonus shares. 5
18. Prepare a Statement of Profit & Loss
of Hindustan Ltd. for the year ended 31st March, 2022 considering
the following balances and information: 10
|
Debit Balances |
Amount (Rs.) |
Credit Balances |
Amount (Rs.) |
|
Purchases
Wages
Royalty
Goodwill
Salaries
Insurance Repairs
and Maintenance Staff
Welfare Expenses Discount
Interest
on Debentures Loss
on Issue of Debenture 10%
Investment on 1.7.2021 Plant
|
80,000 9,000 3,300 2,000 20,150 2,400 4,400 8,500 700 2,000 10,000 30,000 15,000 |
Profit
from Branch Profit
from Consignment Interest
on Investment Unclaimed
Dividend Income
Tax Refund Interest
on Income Tax Refund Sales
Bad
Debt Recovered |
1,300 700 500 800 7,450 550 1,57,900 200 |
Additional Information:
(1) Closing Stock Rs.
25,000.
(2) Depreciate plant @
10%.
(3) 30% of goodwill is to
be written off.
(4) 1/5th of
loss on issue of debenture is to be written off.
19. Under which headings and sub-headings,
the following items will be shown in the Balance Sheet of a company? 10
(a) Patents.
(b) Investment
(long-term).
(c) Public deposits.
(d) Bank overdraft.
(e) Authorized share
capital.
(f) Bills payable.
(g) Prepaid insurance.
(h) Sundry debtors.
(i) Capital reserve.
(j) Discount on issue of
debenture.
20. (a) State the circumstances in which
there may be need for valuation of shares. 5
(b) A firm earns a profit of Rs. 20,000 with
an invested capital amounting to Rs. 1,50,000. Normal rate of earning in the
same class of business is 10%. Ascertain the value of goodwill according to
capitalization method. 5
21. (a) What are the situations that call for
internal reconstruction of a company? 5
(b) The following schemes of internal
reconstruction have been approved for AB Ltd.:
(i) The shareholders to receive in lieu of
their present holding of 50,000 shares of Rs. 10 each in the following:
(1) Fully paid equity shares equal to 2/5th
of their holding.
(2) 10% preference shares, fully paid, to the
extent of 1/5th of the above new equity shares.
(3) Rs. 60,000, 14% second debentures.
(ii) An issue of Rs. 50,000, 12% first
debentures was made, payment for the same being received in cash forthwith.
(iii) Goodwill which was at Rs. 1,50,000 was
completely written off.
(iv) Machinery which stood at Rs. 1,00,000
was written down to Rs. 75,000.
(v) Freehold Premises which stood at Rs.
1,75,000 were written down to Rs. 1,50,000.
Pass Journal Entries in the books of the
company necessitated by the above reconstruction. 5
22. Explain the provisions of Accounting
Standard-21 in relation to the preparation of Consolidated Financial
Statements. 10
23. The following is the Balance Sheet of H
Ltd. and its subsidiary S Ltd. as on 31st March, 2022:
|
Particulars
|
Amount (Rs.) |
|
|
|
H Ltd. |
S Ltd. |
|
1.
Equity and Liabilities: (1) Shareholder’s Fund: (a) Share capital: Equity shares of Rs. 10 each (b) Reserve and Surplus: Surplus in statement of profit & loss (2) Current Liabilities: Trade payables: Sundry Creditors |
1,20,000
10,000
46,000 |
40,000
8,000
4,000 |
|
Total |
1,76,000 |
52,000 |
|
2.
Assets: (1) Non-current assets: Tangible (2) Non-current Investments: 1,600 shares in S Ltd. |
1,36,000
40,000 |
52,000 |
|
Total |
1,76,000 |
52,000 |
The shares were acquired
by H Ltd. on 1st October, 2021. Prepare the Consolidated Balance
Sheet of the holding company and its subsidiary as on 31st March,
2022. 10
24. Prepare Profit & Loss A/c of City
Bank Ltd. for the year ended 31/03/2022 from the following information showing
the required schedules in the proper format: 10
|
|
Rs. |
|
Auditor’s
fees Sundry
charges (Cr.) Director’s
fees Interest
on savings bank deposits Interest
on loan advanced Discount
of bills discounted (net) Employees
salary Printing
and Stationery Interest
on Current A/c Establishment
expenses Interest
on fixed deposits Interest
on balances with RBI Profit
on exchange transactions Rebate
on bills-discounted Profit
on sale of land Interest
on RBI borrowings Commission
Interest
on cash credits Interest
on borrowings from other banks Postage
and telegrams Rent
and taxes Interest
on overdrafts |
1,500 2,000 4,000 70,000 2,60,000 1,50,000 25,000 3,000 40,000 50,000 2,90,000 60,000 8,000 50,000 3,000 12,000 8,000 2,10,000 11,000 1,500 20,000 1,60,000 |
Bad debts to be written
off amounted to Rs. 30,000. Provision for taxation should be made @ 35%.
Transfer 20% to statutory
reserve and 5% to reserve.
8. (a) What are the different types of
insurance? 4
(b) What are the statutory books maintained
by a life insurance company? 6
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