Dibrugarh University Corporate Accounting
Question Papers
Corporate
Accounting Question Paper 2019 (May)
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)
Bonus shares can be issued to the _______
members only.
2)
Dividends cannot be declared except out of
_______.
3)
Reduction of share capital is unlawful except
when sanctioned by the _______.
4)
Section _______ of the Companies Act, 2013
defines a subsidiary company.
(b) State whether the following statements are ‘True’ or
‘False’: 1x4=4
1)
Profit on re-issue of forfeited shares is
transferred to General Reserve.
2)
Preliminary expenses are of capital nature.
3)
Internal reconstruction and reduction in share
capital means the same.
4)
Profit & Loss A/c balance including reserves
after acquisition is considered as capital profit.
2.
Write short notes on (any four): 4x4=16
a)
Reserve Capital.
b)
Sinking Fund.
c)
Purchase Consideration.
d)
Interim Dividend.
e)
Cost of Capital.
3.
(a) Blue Bird Co. Ltd. issued 50,000 equity shares of Rs. 100 each at a premium
of 10% payable as under:
On application
On allotment
On call
|
Rs. 30
Rs. 60 (including
premium)
Rs. 20
|
Bikram holding 1,500 shares failed to pay call money. The
company forfeited his shares and later on 1,000 of these shares reissued to
Prakash as fully paid up at Rs. 85 per share. Give Journal Entries to record the above transactions and
show the Balance Sheet of the company.
Or
(b) (1) Discuss the provisions of law with regard to
redemption of redeemable preference shares as laid down in Section 55 of the
Companies Act, 2013.
(2) Gayetree Tea Ltd. issues 5,000, 8% convertible
debentures of Rs. 100 each. Give the Journal Entries relating to issue in each
of the following cases:
a)
The debentures are issued at par and redeemable
at par.
b)
The debentures are issued at 5% premium and
redeemable at 10% premium.
c)
The debentures are issued at 5% discount and
redeemable at 5% premium.
4. (a)
Explain the treatment of the under mentioned items in the preparation of Final
Accounts of a company: 3.5x4=14
1)
Advance Payment of Tax.
2)
Interim Dividend.
3)
Managerial Remuneration.
4)
Provisions and Reserves.
Or
(b) X Ltd. was registered with a nominal capital of Rs.
5,00,000 dividend into shares of Rs. 100 each. The following Trial balance is
extracted from the books on 31st March, 2019:
Dr. Balances
|
Rs.
|
Cr. Balances
|
Rs.
|
Building
Machinery
Closing Stock
Purchases (adjusted)
Salaries
Director’s Fees
Rent
Depreciation
Bad debts
Interest accrued on
Investment
Investment in Shares
Debenture Interest
Looses Tools
Advance Tax
Sundry Expenses
Debtors
Cash at Bank
|
2,90,000
1,00,000
90,000
2,10,000
60,000
10,000
26,000
20,000
6,000
2,000
1,20,000
28,000
23,000
60,000
18,000
1,25,000
30,000
|
Sales
Outstanding Salaries
Provision for
Doubtful Debts
Share Capital
General Reserve
Profit and Loss A/c
Creditors
Provision for
Depreciation on:
Building 50,000
Machinery 55,000
14% Debentures
Interest on
Debentures Outstanding
Interest on
Investments
Unclaimed Dividend
|
5,20,000
2,000
3,000
2,00,000
40,000
25,000
92,000
1,05,000
2,00,000
14,000
12,000
5,000
|
12,18,000
|
12,18,000
|
You
are required to prepare the Profit & Loss A/c for the year ended 31st
March, 2019 and the Balance Sheet as on that date after taking into account the
following information: 8+6=14
1)
Closing Stock is more than Opening Stock by Rs.
30,000.
2)
Provide for Bad and Doubtful Debts @ 4% on
Debtors.
3)
Make a provision for income tax @ 50%.
4)
Depreciation includes depreciation of Rs. 8,000
on Building and that of Rs. 12,000 on Machinery.
5)
The directors recommended a dividend of 25%.
6)
Ignore Corporate Dividend Tax.
5.
(a) A Ltd. acquired the undertaking of B Ltd. on 31st March, 2019
for a purchase consideration of Rs. 2,50,00,000 to be paid by fully paid equity
shares of Rs. 10 each. Equity & Liabilities and Assets of the two companies
on the date of acquisition were as follows:
A Ltd.
(Rs.)
|
B Ltd.
(Rs.)
|
|
I.
Equity and Liabilities:
1.
Shareholders’ Fund:
Share
Capital:
Equity
Shares of Rs. 10 each fully paid up
2.
Reserves & Surplus:
General
Reserve
Surplus
Development
Rebate Reserve
Workers’
Compensation Fund
3.
Current Liabilities
|
2,50,00,000
1,20,00,000
10,00,000
10,00,000
15,00,000
45,00,000
|
1,50,00,000
18,00,000
53,00,000
37,00,000
24,00,000
95,00,000
|
4,50,00,000
|
3,77,00,000
|
|
II.
Assets:
1.
Fixed Assets:
Land and
Buildings
Plant and
Machinery
Furniture
and Fixtures
2.
Current Assets:
Stock
Debtors
Bank
Balance
|
1,20,00,000
2,00,00,000
10,00,000
55,00,000
45,00,000
20,00,000
|
80,00,000
1,80,00,000
20,00,000
40,00,000
40,00,000
17,00,000
|
4,50,00,000
|
3,77,00,000
|
Pass
the necessary Journal Entries in the books of A Ltd. when amalgamation is in
the nature of merger. Also prepare the Balance Sheet of A Ltd. after
amalgamation, assuming that Development Rebate Reserve and Workers’
Compensation Fund of B Ltd. are required to be continued in the books of A Ltd.
8+6=14
(b) Explain the various provisions of alteration of share
capital as given in the Companies Act, 2013 with examples. 14
6.
(a) (1) Give a legal definition of a holding company and a subsidiary company. 2+2=4
(2) What is ‘Minority Interest’? How is it calculated? 2+2=4
(3) Mention any three advantages and three disadvantages of
a holding company. 3+3=6
Or
(b) On 31st March, 2019, the Equity &
Liabilities and Assets of H Ltd. and its subsidiary company S Ltd. stood as
follows:
A Ltd.
(Rs.)
|
B Ltd.
(Rs.)
|
|
I.
Equity and Liabilities:
1.
Share Capital:
Equity
Shares of Rs. 10 each fully paid up
2.
Reserves & Surplus:
General
Reserve
Profit
& Loss A/c
3.
Current Liabilities
Sundry
Creditors
|
8,00,000
1,50,000
90,000
1,20,000
|
2,00,000
70,000
55,000
80,000
|
11,60,000
|
4,05,000
|
|
II.
Assets:
1.
Fixed Assets:
2.
Investment:
75%
Equity Shares in S Ltd. (at cost)
3.
Current Assets:
Stock
Other
Current Assets
|
5,50,000
2,80,000
1,05,000
2,25,000
|
1,00,000
-
1,77,000
1,28,000
|
11,60,000
|
4,05,000
|
Draw
the Consolidated Balance Sheet as on 31st March, 2019 after taking
into consideration the following information also: 14
1)
H Ltd. acquired the shares on 31st
July, 2018.
2)
S Ltd. earned a profit of Rs. 45,000 for the
year ended 31st March, 2019.
3)
In January 2019, S Ltd. sold to H Ltd. goods
costing Rs. 15,000 for Rs. 20,000. On 31st March, 2019 half of these
goods were lying unsold in the godown of H Ltd.
Corporate Accounting Question Papers and Solutions (Dibrugarh University)
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(OLD COURSE)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1.
(a) Fill in the blanks: 1x4=4
1)
A shareholder is not the _______ of the company.
2)
A company can _______ its own shares.
3)
The portion of the authorized capital which can
be called up only on the liquidation of the company is called _______ capital.
4)
A holding company is one that holds _______ of
the share capital of another company.
(b) State whether the following statements are ‘True’ or
‘False’: 1x4=4
1)
Profit on re-issue of forfeited shares is
transferred to General Reserve.
2)
A debenture holder is the owner of the company.
3)
Internal reconstruction and reduction in share
capital means the same.
4)
Consolidated Financial Statements are prepared
as per Accounting Standard – 21.
2.
Write short notes on (any four): 4x4=16
a)
Bonus Share.
b)
Buyback of Shares.
c)
Purchase Consideration.
d)
Voluntary Winding-up.
e)
Consolidated Balance Sheet.
3.
(a) A company invited the public to subscribe for 1,00,000 equity shares of Rs.
10 each at a premium of Rs. 1 per share payable on allotment. Payments were to
be made as follows:
On application
On allotment
On first call
On final call
|
Rs. 3 per share
Rs. 3 per share
Rs. 3 per share
Rs. 2 per share
|
Applications were received for 1,20,000 shares.
Applications for 20,000 shares were rejected and money refunded. All the money
were received except the first and final calls on 5,000 shares. The 5,000
shares were forfeited after due notice. Later on all these shares were
re-issued as fully paid up at Rs. 8.50 per share. Pass Journal Entries in the books of the company. 12
Or
(b) What are the circumstances that warrant the issue of
bonus shares? State the SEBI guidelines for issue of bonus shares. 6+6=12
4.
(a) Define debenture. Which is the best method of redemption of debenture?
Justify your opinion. 4+7=11
Or
(b) Equity & Liabilities and Assets of X Ltd. as on 31st
March, 2019 are given below:
(Rs.)
|
|
I.
Equity and Liabilities:
1.
Share Capital:
20,00,000
Equity Shares of Rs. 10 each fully paid
Reserves
& Surplus:
Security
Premium
General
Reserve
Secured
Loan:
14%
Redeemable Debentures
Current
Liabilities
|
2,00,00,000
20,00,000
1,80,00,000
1,00,00,000
1,00,00,000
|
6,00,00,000
|
|
II.
Assets:
Fixed
Assets:
Freehold
Property
Current
Assets:
Stock-in-trade
Sundry
Debtors
Bank
Balance
|
2,00,00,000
1,20,00,000
1,00,00,000
1,80,00,000
|
6,00,00,000
|
It
was resolved in the meeting of shareholders:
1)
To buyback 20% of Equity Shares @ Rs. 12 per
share.
2)
To utilize General Reserve for buyback of
shares.
3)
To utilize security premium for premium on
buyback of shares.
4)
To immediately cancel the shares bought back.
Pass
Journal entries and draw up the Balance Sheet after the above transactions have
been given effect to. 6+5=11
5.
(a) Explain the following: 4+4+3=11
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 amalgamation in the nature of purchase.
Or
(b) Pass Journal Entries for the following transactions: 3+3+3+2=11
1)
Conversion of 2,00,000 fully paid equity shares
of Rs. 10 each into stock of Rs. 1,00,000 and balance has 12% fully convertible
debentures.
2)
Conversion of 40,00,000 fully paid equity shares
of Rs. 2.50 each into 10,00,000 fully paid equity shares of Rs. 10 each.
3)
Subdivision of 10,00,000 fully paid 11%
preference shares of Rs. 50 each into 50,00,000 fully paid 11% preference
shares of Rs. 10 each.
4)
Conversion of 12% preference shares of Rs.
5,00,000 into 14% preference shares of Rs. 3,00,000 and remaining balance as
12% non-cumulative preference shares.
6.
(a) What do you mean by ‘liquidation’? Discuss the various modes of liquidation
of a Joint-Stock Company in detail. 3+8=11
Or
(b) The following particulars relate to a limited company
which has gone into voluntary liquidation. You are required to prepare the
Liquidator’s Final Statement of A/c, allowing for his remuneration @ 2% on the
amount realized and @ 2% on the amount distributed to unsecured creditors other
than preferential creditors: 11
Rs.
|
|
Preferential
Creditors
Unsecured Creditors
Debentures
|
10,000
32,000
10,000
|
The
assets realized the following sums:
Rs.
|
|
Land and Building
Plant and Machinery
Fixtures and
Fittings
The amount paid for
liquidation expenses
|
20,000
18,650
1,000
1,000
|
7.
(a) Describe the documents in respect of each subsidiary company to be attached
in the Balance Sheet of the holding company under the Companies Act, 2013. 11
Or
(b) From the Balance Sheets of H Ltd. and its subsidiary
company S Ltd. drawn up on 31st March, 2019, prepare Consolidated
Balance Sheet as on that date. On the date of acquisition of the shares, the
General Reserve of S Ltd. amounting to Rs. 20,000 and the Surplus A/c balance
amounted to Rs. 40,000 (Cr.): 11
H Ltd.
(Rs.)
|
S Ltd.
(Rs.)
|
|
I.
Equity and Liabilities:
1.
Shareholders’ Fund:
Share
Capital:
Shares of
Rs. 10 each fully paid up
2.
Reserves & Surplus:
General
Reserve
Surplus
3.
Current Liabilities:
Sundry
Creditors
|
10,00,000
1,00,000
1,50,000
1,50,000
|
4,00,000
20,000
60,000
40,000
|
14,00,000
|
5,20,000
|
|
II.
Assets:
1.
Non-Current
Assets:
a)
Fixed Assets:
Freehold
Property (at cost)
Plant and
Machinery (at cost less depreciation)
b)
Investments:
40,000
shares in S Ltd. (at cost)
2.
Current Assets:
Stock-in-trade
Sundry
Debtors
Bank
Balance
|
2,00,000
2,50,000
4,00,000
1,50,000
2,00,000
2,00,000
|
-
1,20,000
-
2,00,000
1,00,000
1,00,000
|
14,00,000
|
5,20,000
|
***
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