2015
CORPORATE ACCOUNTING
Full Marks: 80
Time: 3 hours
(The figures in the margin indicate full marks for the questions)
1. Answer as directed: 1x10=10
a) Income tax payable as interest on debentures is shown in the Balance Sheet as _______. (Fill in the blanks)
b) A company is required to open a separate bank account for payment of dividend. (State whether the statement is true or false)
c) As per SEBI guidelines right issues shall not be kept open for more than 45 days. (State whether the statement is true or false)
d) Issue price of share under ESOP is _______ than the market price. (Fill in the blanks)
e) Bearer debentures are payable to the holders of the debentures. (State whether the statement is true or false)
f) What is meant by Redemption of debentures out of profits?
g) As-14 deals with accounting for amalgamation. (State whether the statement is true or false)
h) Write the meaning of amalgamation.
i) In case of amalgamation in the nature of merger equity shareholders of combining entities continue to have a proportionate share in the combined entity. (State whether the statement is true or false).
j) What are treated as cash and cash equivalent?
2. Answer the following: 2x5=10
a) Write the name of four accounts of which balances are transferred to Investors Education and Protection Fund.
b) Name the sub-headings under which non-current liabilities shall be classified in a company’s Balance Sheet under revised schedule VI.
c) What is meant by value of right in relation to right share?
d) Write two characteristics of a debenture.
e) Write two objectives of amalgamation.
3. Answer the following:
(a) The following is the extract of Trial balance of Guwahati Ltd. as on 31.3.2015:
| | Rs. |
| Opening inventory Sales Purchases Purchase Return Salaries and wages Carriage inward Dividend received Auditor’s fees Dividend paid Advertisement on share buy back | 1,05,000 4,65,000 3,52,500 15,000 75,000 1,000 4,800 4,575 12,000 11,250 |
You are required to prepare a statement of Profit and Loss after considering the following: 5
1) Closing stock on 31.3.15 is Rs. 1,80,000.
2) Outstanding wages Rs. 600.
Or
Write a note on ‘Interim Dividend’. 5
(b) Write the importance of ESOP. 5
Or
Write the objectives of rights issue. 5
(c) On 1.10.2014 Anand Ltd. issued Rs. 2,00,000, 12% debentures on which interest was payable half yearly on 30th September and 31st March. The company deducted tax at source at 10%. Pass necessary journal entries relating to debenture interest for the year ended 31st March, 2015 assuming that all payments were duly made by the company.
Or
Explain the different sources of finances of redemption of debentures. 5
(d) Write any five points of differences between amalgamation in the nature of merger and amalgamation in the nature of purchase. 5
Or
A Ltd. having 5,000 equity shares of Rs. 100 each is taken over by B Ltd. agrees to make the following payments:
1) Cash Rs. 40 per share for every share held in A Ltd.
2) Issued three shares of Rs. 100 each at par for every five shares held in A Ltd.
3) Discharge of Rs. 3,00,000, 10% debentures of A Ltd. at 10% premium by issuing 12% debentures in B Ltd. at par, and
4) Cash Rs. 80,000 paid to the creditors of A Ltd. in final settlement of their account.
Determine the amount of purchase consideration for amalgamation as per AS-14. 5
4. Answer as directed:
(a) From the following balances and other information of Priyam Ltd. as on 31st March, 2015, prepare a Balance Sheet as per revised Schedule VI of the Companies Act. 10
| Balance | Rs. |
| Cash and bank balances Trade debtors Building and furniture (at cost) Depreciation reserve Trade creditors General Reserve Profit and Loss A/c (Cr.) Unclaimed dividend Paid up capital (Equity share of Rs. 100 each) 10% Debentures Staff Provident Fund Investment Inventories of goods Machineries (at cost) Advance payment of tax | 1,95,000 3,30,000 8,55,000 1,21,500 60,000 4,20,000 60,000 15,000 12,00,000 75,000 45,000 1,05,000 30,000 4,50,000 30,000 |
Information: A claim of Rs. 8,000 for workmen’s compensation is being disputed by the company.
(b) Bhargav Ltd. resolved to utilize Rs. 2,50,000 out of its General Reserve balance to declare a bonus to shareholders by paying the final call of Rs. 2.50 per share on 1,00,000 equity shares of Rs. 10 each. The company further decided to utilize the balance of the Securities Premium A/c of Rs. 2,00,000 by issuing fully paid up bonus shares. Pass Journal entries in the books of the company and show necessary workings. 10
Or
State the time limit for completion of buy back process. What are the sources of funds for buy back of shares? What are the duties of a company after buy back of its share?
(c) On 1.4.2010 Honda Ltd. issued 4,500, 12% debentures of Rs. 100 each at a discount of 10% repayable in 5 years in equal annual installments. Pass journal entries in the books of the company on the date of issue of debenture and show the treatment of discount of debentures. The books of accounts are closed on 31st March, each year. 10
Or
Explain in brief the various methods of redemption of debentures. 10
(d) What are the accounting entries to be made in the books of the purchasing company? Discuss. 10
Or
Discuss briefly the amalgamation in the nature of merger. 10
-000-
Post a Comment
Kindly give your valuable feedback to improve this website.