Assam University B.Com Question Papers
Corporate Accounting Question Paper 2019
TDC (CBCS) Even Semester
Exam., 2019
COMMERCE (2nd
Semester)
(Corporate Accounting)
Full Marks: 70
Pass Marks: 28
Time: 3 hours
The figures in the margin indicate full marks for the questions
UNIT – I
1. Answer any two questions from the following: 2x2=4
a) Explain the concept of ‘book building’.
b) Write two advantages of buyback of shares.
c) State two conditions of redemption of preference shares.
2. What is ‘sinking fund’? Explain the
procedure of redemption of debentures by sinking fund method with accounting
entries. 2+8=10
Or
From the following Balance Sheet of Estar
Ltd. as on 31.03.2018, you are required to give effect to the proposal of bonus
shares by passing Journal entries. You are also required to show the amended
Balance Sheet as on that date:
Balance Sheet
As on 31.03.2018 of Estar Ltd.
|
Particulars |
Note No. |
Rs. |
|
1. Equity and
Liabilities: (a) Shareholder funds: Share Capital: 80000 Equity Shares of Rs. 10 each, Rs.
7.50 each called up and paid up. (b) Reserve and Surplus:
Capital Redemption Reserve Securities Premium Development Rebate Reserve Plant Revaluation Reserve Investment Allowance Reserve General Reserve |
|
6,00,000 1,50,000 1,50,000 2,30,000 20,000 2,50,000 3,00,000 |
|
|
|
17,00,000 |
|
2. Assets: Non-current Assets: Tangible: Sundry Assets |
|
17,00,000 |
|
|
|
17,00,000 |
UNIT – II
3. Answer any two questions from the
following: 2x2=4
a)
Differentiate between Capital
Reserve and Reserve Capital.
b)
Explain the meaning of
contingent liability with examples.
c)
What are the purposes served by
Schedule VI of the Companies Act, 2013?
4. From the following balances extracted from
the books of Swift Ltd. as on 31.03.2018 and additional information, prepare
profit & loss A/c of the company: 10
|
Particulars |
Rs. |
Particulars |
Rs. |
|
Inventory (01.04.2017) Wages Purchases Audit Fees Carriage Advance Income Tax Interest on Loan (Dr.) Debtors Machinery Loose Tools Directors’ fees Directors’ Remuneration Staff Salaries |
1,24,000 37,450 7,23,000 14,600 6,410 8,000 9,000 1,40,000 1,80,000 15,000 1,250 26,250 48,350 |
Office Furniture Return Inward Discount Allowed Insurance Premium Repairs Advertisement Calls in Arrear Sales Royalty (Cr.) Profit & Loss A/c (Cr.) (01.04.2017) Office Expenses Return Outwards Share Capital Commission Received |
5,000 12,680 600 6,400 9,000 8,000 10,000 12,70,000 2,000 41,600 24,620 9,850 6,00,000 3,000 |
Additional Information:
1) Value of inventory on 31.03.2018 – Rs. 87,500.
2) Staff Salaries Outstanding – Rs. 6,500.
3) Insurance Premium prepaid – Rs. 1,200.
4) Depreciation to be charged on Machinery @ 10%.
5) Provision for bad debt @ 5% on debtors.
6) Transfer Rs. 10,000 to General Reserve.
7) Directors proposed, a dividend of 5% on the paid –up equity share
capital.
Or
From the following balances taken from the
books of Escorts Ltd., prepare the Balance Sheet as at 31.03.2018:
|
Particulars |
Rs. |
Particulars |
Rs. |
|
Land & Buildings Plant & Machinery Sundry Debtors 50,000 Equity Shares of
Rs. 10 each, Rs. 9 called up 15% Debentures Debentures Redemption
Reserve Prepaid Insurance Profit & Loss (Cr.) Bank Overdraft |
3,25,000 2,90,000 65,000 4,50,000 1,00,000 50,000 4,800 1,13,000 15,000 |
Patents Investments Preliminary Exp. Securities Premium. Provision for Income Tax
Closing Stock Cash Advance Income Tax Creditors General Reserve Outstanding Exp. Proposed Dividend |
7,200 70,000 7,000 25,000 24,000 1,28,000 12,000 4,000 15,200 1,00,000 4,800 16,000 |
Further Information:
1) Bills discounted but not yet matured Rs. 12,000.
2) There is a claim against the company not acknowledged ad debt Rs.
16,000.
UNIT – III
5. Answer any two questions from the
following: 2x2=4
a) Explain why goodwill is considered as an asset.
b) Mention four methods of valuation of goodwill.
c) State the circumstances in which there may be need for valuation of
shares in case of companies.
6. The following particulars have been
extracted from the books of Sachin:
1)
Capital Invested – Rs. 50,000
2)
Trading Results:
|
|
Rs. |
|
2015 Profit 2016 Profit 2017 Loss 2018 Profit |
18,200 15,000 2,000 21,000 |
3)
Market rate of interest on
investment – 8%.
4)
Rate of return on capital in
business – 2%.
5)
Remuneration from alternative
employment of the proprietor (if not engaged in business) – Rs. 6,600 p.a.
Compute the
value of goodwill of the business on the basis of three year’s purchase of
super profits taking average of last four years. 10
Or
From the following information, calculate the
value of per equity share: 10
20000, 9% Preference Shares of Rs. 100 each – Rs. 2,00,000
50000 Equity Shares of Rs. 10 each Rs. 8 paid up – Rs. 4,00,000
Expected profits before tax – Rs. 2,18,000
Rate of tax – 50%
Transfer to General Reserve every year – 20% of profit
Normal rate of earning – 15%.
UNIT – IV
7. Answer any two questions from
the following: 2x2=4
a)
Write the situations under
which an enterprise can become a holding company.
b)
Define the term ‘minority
interest’.
c)
Explain the objectives of
preparation of Consolidated Financial Statements.
8. The Balance Sheet of H Ltd. and its
subsidiary S Ltd. as on 31.03.2018 stood as follows:
|
|
H Ltd. Rs. |
S Ltd. Rs. |
|
1. Equity and
Liabilities: (a) Shareholder funds: Share Capital, Equity shares of Rs. 10
each (b) Reserve and Surplus:
General Reserve Profit & Loss A/c (c) Current
Liabilities: Creditors Bills Payable |
50,000 10,000 20,000 8,000 3,000 |
10,000 - 6,000 8,000 2,000 |
|
|
91,000 |
26,000 |
|
2. Assets: (a) Non-current Assets: Tangible (b) Non-current
investments: Shares in S Ltd. Preliminary Exp. |
76,500 6,500 8,000 |
22,000 - 4,000 |
|
|
91,000 |
26,000 |
H Ltd. acquired 60% interest in S Ltd. All
the profits of S Ltd. was earned after the shares were acquired by H Ltd.
Prepare the Consolidated Balance Sheet of H Ltd. and its subsidiary S Ltd. on
31.03.2018: 10
Or
Describe the provisions of Accounting Standard
– 21 in relation to the preparation of Consolidated Financial Statements. 10
UNIT – V
9. Answer any two questions from the
following: 2x2=4
a)
State the main features of
bank’s accounting system.
b)
Explain two provisions of the
Banking Regulation Act, 1949 relating to the annual accounts of a banking
company.
c)
Explain the meaning of the
terms ‘Reinsurance’ and ‘Surrender Value’
10. From the following information, prepare
Profit & Loss A/c of Money Plus Bank for the year ended 31.03.2018:
|
|
Rs. |
|
Interest on loans Interest on fixed
deposits Rebate on bills
discounted Commission Payment to employee Discount on bills
discounted (Gross) Interest on cash credits
Rent, taxes &
lighting Interest on overdrafts Directors’ fees and
allowances Auditors’ fees Interest on Saving Bank
Deposits Postage, telegrams and
telephones Printing &
Stationery Sundry Charges |
25,90,000 31,70,000 4,90,000 82,000 5,40,000 15,50,000 22,30,000 1,80,000 15,40,000 30,000 12,000 6,80,000 14,000 29,000 17,000 |
Additional Information:
a)
Provide for contingencies – Rs.
2,00,000.
b)
Transfer Rs. 15,57,000 to
Reserves.
c)
Transfer Rs. 2,00,000 to
Central Government.
Or
How is profit or loss ascertained in life insurance business?
Prepare with imaginary figures Revenue A/c of a Life Insurance Company. 10
Also Read: Assam University B.Com 2nd Sem Question Papers
4. Business Maths and Statistics: 20195. General English: 2019
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