Assam University B.Com Question Papers
Corporate Accounting Question Paper 2023
TDC (CBCS) Even Semester Exam., 2023
COMMERCE (Honours)
Course No.: COMHCC-201T
(Corporate Accounting)
Full Marks: 70
Pass Marks: 28
Time: 3 hours
The figures in the margin indicate full marks for the questions.
SECTION – A
Answer any ten of the following questions: 2 x 10 = 20
1. What is buyback of shares?
2. Point out any two SEBI guidelines for redemption of debentures.
3. Mention any two distinctions between calls-in-arrear and calls-in-advance.
4. Write a short note on provision for taxation.
5. What are the kinds of share capital?
6. Write the accounting treatment of preliminary expenses.
7. Point out two essential features of goodwill.
8. Mention any two factors affecting the valuation of shares.
9. State two widely applied methods for the valuation of shares.
10. How does a holding company come into existence?
11. Point out any two drawbacks of holding companies.
12. What is meant by subsidiary company?
13. Write a short note on non-performing assets of a banking company.
14. Narrate the term ‘surrender value’.
15. State in brief about on core banking.
SECTION – B
Answer any five of the following questions: 10 x 5 = 50
16. Trishadri Traders Ltd. issued 5,000 equity shares of Rs. 20 each, payable Rs. 5 on application; Rs. 8 on allotment; Rs. 4 on first call; and the balance on final call.
All the shares were applied for and they were duly allotted. All the calls were made and shares money were duly received excepting the following:
* Prachi holding 300 shares failed to pay the calls money.
* Piu holding 500 shares failed to pay the calls money.
* Punam holding 400 shares paid the entire balance due by her along with the allotment.
The authorized capital of the company was Rs. 5,00,000.
Make necessary Journal Entries in the books of the company.
17. Following is the Balance Sheet of X Ltd. as at 31st March, 2023:
|
Liabilities |
(Rs.) |
Assets |
(Rs.) |
|
Authorized and Subscribed Capital: Equity shares of Rs. 100 each. Securities Premium A/c Capital Redemption Reserve A/c Capital Reserve A/c Reserve A/c Profit & Loss A/c |
- 10,00,000 3,00,000 1,80,000 2,00,000 1,50,000 1,80,000 |
Sundry Assets |
20,10,000 |
|
20,10,000 |
20,10,000 |
Directors recommended issue of three(3) bonus shares for every five(5) shares held.
Show the relevant Journal Entries in the books of the company along with clearly show the working notes.
18. The following is the extract of Trial Balance of Mousumi Ltd. as on 31-03-2023:
|
Particulars |
Rs. |
|
Opening Inventory (01-04-2022) Purchases Return Purchases Sales Salaries and Wages Dividend Received Carriage Inward Advertisement on Share Buyback Auditor’s Fees Dividend Paid Patent Rights |
70,000 10,000 2,35,000 3,16,000 50,000 3,200 200 7,500 3,050 8,000 800 |
You are required to prepare a Statement of Profit and Loss (under the Companies Act) after considering the following additional information:
* Closing inventory (on 31-03-2023) is Rs. 1,20,000.
* Provide for dividend @ 10% for current year.
* Write off Rs. 200 from patent rights.
* Outstanding salaries and wages Rs. 400.
19. Prepare a Balance Sheet as at 31-03-2023 from the particulars furnished by Vision Ltd. as per Schedule III of the Companies Act, 2013:
|
Particulars |
Rs. |
|
Equity Share Capital (Rs. 10 each fully paid) Calls-in Arrear Land Building Plant and Machinery Furniture General Reserve Loan from IDBI Loan (unsecured) Provision for Taxation Sundry Debtors Advances (Dr.) Proposed Dividend Surplus Balance Cash in Hand Cash at Bank Patents Sundry Creditors (for goods and expenses) Stock: Finished Goods 1,60,000 Raw Materials 40,000 |
8,00,000 800 1,60,000 2,80,000 4,20,000 40,000 1,68,000 1,20,000 96,800 54,400 1,60,000 34,160 48,000 80,000 24,000 1,97,600 10,640 1,60,000 - 2,00,000 |
Adjustments:
(1) 1,500 equity shares were issued for consideration other than cash.
(2) Loan of Rs. 1,20,000 from IDBI is inclusive of Rs. 6,000 for interest accrued but not due. The loan is hypothecated by plant and machinery.
(3) Debtors of Rs. 50,000 are due for more than six months.
(4) The Cost of Assets:
Building = Rs. 3,20,000.
Plant and Machinery = Rs. 5,60,000.
Furniture = Rs. 50,000.
(5) Bank balance includes Rs. 2,000 with Trust Bank Ltd. which is not a scheduled bank.
(6) Bills receivable for Rs. 2,20,000 maturing on 30th June, 2023 have been discounted.
(7) The company had contract for the erection of machinery at Rs. 1,50,000 which is still incomplete.
20. (a) Explain the term ‘valuation of goodwill’.
(b) The profits of Sumitra Ltd. for the last six(6) years were as follows:
|
Year |
Rs. |
|
2017 2018 2019 2020 2021 2022 |
12,000 15,000 16,000 20,000 14,000 25,000 |
Compute the value of goodwill of Sumitra Ltd. on the basis of five(5) years purchase of weighted average after assigning weights 1, 2, 3, 4, 5 and 6 serially to the profits.
21. (a) Write three assumptions of the valuation of shares.
(b) On December 21, 2022, the Balance Sheet of Mahali Ltd. disclosed the following position:
|
Liabilities |
(Rs.) |
Assets |
(Rs.) |
|
Issued Capital in Rs. 10 shares Reserves Profit & Loss A/c 5% Debentures Current Liabilities |
4,00,000 90,000 20,000 1,00,000 1,30,000 |
Fixed Assets Current Assets Goodwill |
5,00,000 2,00,000 40,000 |
|
7,40,000 |
7,40,000 |
The net profit for the three(3) years were:
|
Year |
Rs. |
|
2020 2021 2022 |
51,600 52,000 51,650 |
On which 20% was placed to reserve, this proportion being considered reasonable in the industry in which the company is engaged and where a fair investment return may be taken at 10%.
Compute the value of company’s share under yield-basis method.
22. Define minority interest. Give the treatment of revaluation of assets at the time of acquisition of shares by the holding company. 2+8=10
23. The following are the Balance Sheets of H Ltd. and its subsidiary S Ltd. as on 31st March, 2023:
|
Amount (Rs.) |
||
|
H Ltd. |
S Ltd. |
|
|
I. Equity & Liabilities: 1. Share Holder’s Funds: (a) Share Capital: Equity shares of Rs. 10 each (b) Reserve and Surplus: Surplus in the statement of Profit & Loss 2. Current Liabilities: Sundry Creditors |
- - 60,000 5,000 - 27,000 |
- - 20,000 2,000 - 6,000 |
|
Total Liabilities |
92,000 |
28,000 |
|
II. Assets: (a) Non-Current Assets: Tangible (b) Non Current Investments: Shares in S Ltd. |
- 68,000 - 24,000 |
- 28,000 - - |
|
Total Assets |
92,000 |
28,000 |
The shares were acquired by H Ltd. on 31st March, 2023.
Prepare the Consolidated Balance Sheets of the holding company and its subsidiary as on 31st March, 2023.
24. How is profit or loss ascertained in life insurance business? Prepare with imaginary figures Revenue A/c of a Life Insurance Company. 3+7=10
25. From the following information, you are required to prepare the Profit and Loss A/c of the UCO Bank for the year ended 31st March, 2023, under the provisions of the Act, applicable thereto:
|
Rs. |
|
|
Interest on loans Interest on cash credits Discount on bills discounted (net) Interest on overdrafts Interest on savings bank deposits Interest on fixed deposits Commission, exchange and brokerage Rent taxes and lighting Auditor fees Postage, telegram and telephones Sundry charges Advertisement of publicity Directors fees Printing and stationery Law charges Payment to employees Locker rent Transfer fees Depreciation on bank’s property |
5,18,000 4,46,000 3,90,000 1,08,000 2,20,000 5,54,000 16,400 36,000 2,400 2,800 2,000 1,400 6,000 400 1,400 1,08,000 700 1,400 10,000 |
Supplementary information:
(1) Rebate on bills discounted = Rs. 98,000.
(2) Provide for bad debts = Rs. 58,000.
(3) Transfer = Rs. 1,00,000 to reserve.
(4) Transfer = Rs. 50,000 to the Central Government.
***
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