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 31^st 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 31^st March, 2009 and a Balance Sheet as at that date after taking into consideration the following adjustments:

a)    On 31^st 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 31^st 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 31^st 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 31^st 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?

Corporate Accounting Question Papers and Solutions (Dibrugarh University)

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