Dibrugarh University Corporate Accounting
Question Papers
Corporate
Accounting Question Paper 2018 (May)
COMMERCE (General/Speciality)
Course: 203 (Corporate Accounting)
The figures in the margin indicate full
marks for the questions
Full Marks: 80
Pass Marks: 24
Time: 3 hours
1)
Assets of the company cannot be mortgaged in
favour of _____.
2)
Companies have a statutory obligation to prepare
Final Accounts as required by Section _____ of the Companies Act, 2013.
3)
Accounting Standard _____ relates to accounting
for amalgamation.
4)
A wholly owned subsidiary company is one in
which all the shares with voting rights of ____ are owned by the holding
company.
(b) State the following statements whether True or
False: 1x4=4
1)
Redeemable preference shares can be redeemed
although they are partly paid-up.
2)
Under the Income-tax Act, 1961, companies are
required to pay advance tax on their expected profits.
3)
Any reduction of capital reduces the security of
the creditors.
4)
Section 2(67) of the Companies Act, 2013 defines
a subsidiary company.
2. Write short notes on (any four): 4x4=16
a)
Reserve Capital.
b)
Debentures Trust Deed.
c)
Interim Dividend.
d)
Internal Reconstruction.
e)
Capital Profits.
3. (a) Discuss the provisions of law with regard to redemption of
redeemable preference shares as laid down in Section 55 of the companies Act,
2013. Give its accounting treatments. 8+6=14
Or
(b) X Co. Ltd. Issued 500, 6% Debentures of Rs. 100
each on 1st April, 2014. Repayable at a premium of 5% at the end of
3 years. In order to ensure repayment, a sinking fund was created at 5% per
annum compound interest. Investment realized Rs. 33,000 on 31st
March, 2017 and the debentures were paid-off on that date. Sinking fund table
shows that Rs. 0.317208 amounts to Rs. 1 in 3 years at 5% compound interest.
Pass the necessary Journal Entries in the books of the company. 14
4. (a) Explain the illustrate how the following items are to be shown
in the Balance Sheet of a company to comply with the requirements of the
Companies Act, 2013: 3
½ x4=14
Or
(b) Following are the Ledger balances of ABC Ltd. As
on 31st March, 2018:
|
Debit balances
|
Rs.
|
Credit balances
|
Rs.
|
|
Premises
Plant
Stock (1st April, 2017)
Debtors
Goodwill
Cash at Bank
Calls-in-Arrear
Interim Dividend Paid
Purchases
Wages
General Expenses
Salaries
Bad Debts
Debenture Interest paid
Preliminary Expenses
|
30,72,000
33,00,000
7,50,000
8,70,000
2,50,000
4,51,600
75,000
3,92,500
18,50,000
9,79,800
53,350
2,02,250
21,000
1,80,000
20,000
|
Share Capital
12% Debentures
Surplus Account
Bills Payable
Creditors
Sales
General Reserve
Bad Debt Provision (1st April, 2017)
|
40,00,000
30,00,000
2,62,500
3,70,000
4,00,000
41,50,000
2,50,000
35,000
|
|
|
1,24,67,500
|
|
1,24,67,500
|
Additional Information:
1)
Stock on 31st March, 2018 was Rs.
9,50,000.
2)
Depreciate plant by 15%.
3)
Write-off Rs. 5,000 from preliminary expenses.
4)
Interest on debenture is due for 6 months.
5)
Create 5% provision for doubtful debts.
6)
Provide for income tax # 50%.
Prepare Final Accounts of the company for the above period. 8+6=14
5. (a) Explain the following: 4+4+6=14
1) Amalgamation in the nature of merger.
2) Amalgamation in the nature of purchase.
3) Treatment of reserves on amalgamation in the
nature of merger and in the nature of purchase.
Or
(b) Following are the Ledger balances of XYZ Co.
Ltd. As on 31st March, 2018:
|
Debit balances
|
Rs.
|
Credit balances
|
Rs.
|
|
Share Capital:
10000 Equity shares of Rs. 10 each fully paid
500, 9% Preference Shares of Rs. 100 each fully
paid
Sundry Creditors
|
1,00,000
50,000
25,000
|
Land and Building
Plant and Machinery
Stock-in-trade
Sundry Debtors
Cash at Bank
Profit and Loss Account (Dr.)
|
60,000
25,000
25,000
14,500
500
50,000
|
|
|
1,75,000
|
|
1,75,000
|
Due to heavy losses, the following scheme of reconstruction is agreed
by the company:
1)
To reduce the value of each equity share to Rs.
4
2)
To convert existing preference shares into 400,
12% Preference Shares of Rs. 100 each.
3)
To write down the value of stock by Rs. 5,000.
4)
After writing-off the debit balance of Profit
and Loss Account, any balance left was to be used in raising a reserve against
sundry debtors.
Give necessary Journal Entries in the books of the company to record
the above adjustments and prepare the Revised Balance Sheet after reduction. 8+6=14
6. (a) 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. 2+2+3+4+3=14
Or
(b) The following are the Ledger balances of H Ltd.
And its subsidiary company S Ltd. As on 31st March, 2018:
|
Credit Balances
|
H Ltd.
Rs.
|
S Ltd.
Rs.
|
Debit Balances
|
H Ltd.
Rs.
|
S Ltd.
Rs.
|
|
Share Capital:
(Shares of Rs. 10 each)
General Reserve
Profit and Loss A/c
Creditors
|
6,00,000
1,50,000
70,000
90,000
|
2,00,000
70,000
70,000
40,000
|
Machinery
Furniture
Investment:
70% Shares of S Ltd. (cost)
Stock
Debtors
Cash at Bank
Preliminary Expenses
|
3,00,000
70,000
2,60,000
1,75,000
55,000
50,000
-
|
1,00,000
45,000
-
1,89,000
30,000
10,000
6,000
|
|
|
9,10,000
|
3,80,000
|
|
9,10,000
|
3,80,000
|
H Ltd. Acquired the shares of S Ltd. On 30th June, 2017. On
1st April, 2017 S Ltd. ‘s General Reserve and Profit & Loss
Account balance stood at Rs. 60,000 and Rs. 20,000 respectively. No part of
preliminary expenses was written-off during the year ended 31st
March, 2018. Prepare a Consolidated Balance Sheet of H Ltd. And its subsidiary
company S Ltd. As on 31st March, 2018. 14
Corporate Accounting Question Papers and Solutions (Dibrugarh University)
Past Exam Question Papers | Solved Question Papers |
2015 (New Course) / 2015 (Old Course) 2016 (New Course) / 2016 (Old Course) 2017 (New Course) / 2017 (Old Course) 2018 (New Course)/2018 (Old Course) 2019 |
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1. (a) Fill in the blanks: 1x4=4
1)
Public Ltd. Companies cannot issue _____ shares.
2)
Debentures holders are the _____ of the company.
3)
Reduction of share capital is unlawful except
when sanctioned by the _____.
4)
Liquidation is a _____ procedure by which the
corporate life of a company is brought to an end.
(b) State whether the following statements are True
or False: 1x4=4
1)
Preference shares can be redeemed if they are
fully paid-up.
2)
Interest on Sinking Fund Investment Account is
credited to Profit and Loss Account.
3)
For amalgamation, two or more companies are
required to amalgamate themselves.
4)
A holding company is one that holds the whole of
the share capital of another company.
2. Write short notes on (any four): 4x4=16
a)
Preliminary Expenses.
b)
Redeemable Debenture.
c)
Compulsory Winding-up.
d)
Cost of Control.
e)
Purchase Consideration.
3. (a) Following are the Ledger balances of X Ltd. As on 31st
March, 2018:
Ledger balances as on 31st March, 2018
|
Credit balances
|
Rs.
|
Debit balances
|
Rs.
|
|
Share Capital:
10000 Equity Shares of Rs. 100 each fully paid
4000, 6% Redeemable Preference Shares of Rs. 100
each fully
paid
Profit and Loss A/c
General Reserve
Securities Premium
Creditors
|
10,00,000
4,00,000
20,000
4,40,000
20,000
1,00,000
|
Sundry Assets
Bank Balance
|
12,20,000
7,60,000
|
|
|
19,80,000
|
|
19,80,000
|
On the above mentioned date, the company redeemed the preference
shares at a premium of 5%.
Show the Journal Entries and Prepare the Amended Balance Sheet. 8+4=12
Or
(b) Give a brief description of the books of accounts and registers
which are to be maintained by a company as per the Companies Act, 2013. 7+5=12
4. (a) (1) What do you mean by ‘buy-back of shares’? State the legal
provisions relating to buy-back of shares. 2+3=5
Or
(2) Distinguish between debentures and shares. 6
(b) On 1st April, 2017, the following
balances appeared in the books of J. K. Company Ltd.:
|
|
Rs.
|
|
12% Debentures
Sinking Fund
Sinking Fund Investment
|
20,00,000
16,00,000
16,00,000
|
The investment consisted of 8% Government Securities of the face value
of Rs. 17,00,000. The annual investment to sinking fund was Rs. 2,64,000. The
bank balance on 31st March, 2018 was Rs. 5,60,000 (after receipt of
interest on sinking fund investment). Investments realized 93% and debentures
were redeemed. Show all necessary Ledger Accounts. 11
5. (a) Explain the various provisions of alteration and capital
reduction of share capital as given in the Companies Act, 1956 with examples. 11
Or
(b) A Ltd. And B Ltd. Decided to amalgamate and a
new company named AB Ltd. Is formed to take over both the companies as on 31st
March, 2018. The following are the Ledger balances of the companies as on that
date:
|
Credit Balances
|
A Ltd.
Rs.
|
B Ltd.
Rs.
|
Debit Balances
|
A Ltd.
Rs.
|
B Ltd.
Rs.
|
|
Share Capital:
(Shares of Rs. 10 each Fully paid-up)
Reserve Fund
Profit & Loss A/c
Dividend Equalization Fund
Workmen Compensation Fund
Bank Overdraft
Sundry Creditors
Bills Payable
|
5,00,000
2,00,000
30,000
-
20,000
-
90,000
50,000
|
3,00,000
1,50,000
50,000
1,00,000
-
50,000
1,10,000
30,000
|
Goodwill
Land and Buildings
Plant and Machinery
Patents and Trade Mark
Stock
Sundry Debtors
Bills Receivables
Cast at Bank
|
1,00,000
2,50,000
2,00,000
-
2,00,000
90,000
-
50,000
|
80,000
1,90,000
2,55,000
52,500
1,50,000
40,000
20,000
2,500
|
|
|
8,90,000
|
7,90,000
|
|
8,90,000
|
7,90,000
|
Pass Journal Entries and prepare the Balance Sheet of AB Ltd. Assuming
that amalgamation is done in the nature of purchase. 6+5=11
6. (a) What do you mean by preferential creditors? State the rank of
preferences to be followed by the liquidator while preparing the final
statement of accounts. 3+8=11
Or
(b) ABC Ltd. Went into voluntary liquidation on 31st March,
2018. The position of the company on that date was as follows:
|
|
Rs.
|
|
Share Capital:
5000 Equity Shares of Rs. 10 each Rs. 8 per share
called-up
Unsecured Creditors:
Preferential
5,000
Non-Preferential
25,000
Secured Creditors
(Secured on Plant & Machinery)
Cash in Hand
|
40,000
30,000
15,000
1,000
|
Plant & Machinery finally realized Rs. 10,000 and other assets
realized Rs. 10,000. The liquidation expenses amounted to Rs. 500 and the
liquidator was entitled to a remuneration of 5% on the amount realized
excepting cash in hand and 2% on the amount distributed to the unsecured
creditors. Prepare the Liquidator’s Final Statement of Account showing the
percentage of distribution finally made to unsecured creditors. 11
7. (a) (1) Distinguish between Holding company and Subsidiary company.
5
(2) Mention three advantages and three
disadvantages of holding company. 3+3=6
Or
(b) H Ltd. Acquired 4000 shares of S Ltd. As on 1st
April, 2017. Their ledger balances as on 31st March, 2018 stood as
follows:
Ledger balances
As on 31st March, 2018
|
Credit Balances
|
H Ltd.
Rs.
|
S Ltd.
Rs.
|
Debit Balances
|
H Ltd.
Rs.
|
S Ltd.
Rs.
|
|
Share Capital:
(10000 Equity Shares of Rs. 10 each fully paid
5000 Equity shares of Rs. 10 each fully paid
Profit and Loss A/c
Creditors
|
1,00,000
-
40,000
40,000
|
-
50,000
10,000
20,000
|
Fixed Assets
Investment:
4000 Equity Shares of S Ltd. At Rs. 12.50 each.
Current Assets
|
1,00,000
50,000
30,000
|
60,000
-
20,000
|
|
|
1,80,000
|
80,000
|
|
1,80,000
|
80,000
|
On 1st April, 2017, the Profit and Loss A/c on S Ltd.
Showed a loss of Rs. 15,000 which was written off out of profit earned in
2017-18. Prepare a Consolidated Balance Sheet as on 31st March,
2018. Show your working notes clearly. 11
***
Post a Comment
Kindly give your valuable feedback to improve this website.