Advanced Corporate Accounting Question Paper 2023 [Gauhati University BCOM 6th SEM Question Papers CBCS Pattern]

Advanced Corporate Accounting Question Paper 2023
Gauhati University BCOM 6^th SEM Question Papers CBCS Pattern

COMMERCE (Honours Elective)

Paper: COM-HE-6036

(Advanced Corporate Accounting)

Full Marks: 80

Time: 3 hours

The figures in the margin indicate full marks for the questions.

1. Answer the following as directed: 1x10=10

(1) The IASB was previously known as the Indian Accounting Standard Committee. (State whether the statement is true or false)

(2) State the meaning of corporate annual report.

(3) The liquidator is entitled to receive his remuneration after payment of _______ expenses. (Fill in the blank)

(4) Creditors can propose voluntary liquidation of a company. (State whether the statement is true or false)

(5) What is bank overdraft?

(6) Income on non-performing assets is to be recognised on _______ basis. (Fill in the blank)

(7) What is bonus to policyholders?

(8) Annuity is an income for the insurance company. (State whether the statement is true or false)

(9) What is investment accounting?

(10) Profit earned prior to incorporation cannot be distributed as dividend. (State whether the statement is true or false)

2. Answer the following questions: 2x5=10

(a) Mention the major components of financial reporting.

(b) What is Liquidator’s Final Statement of Account?

(c) What is Statutory Liquidity Ratio (SLR)?

(d) Explain the term “Life Fund”.

(e) Mention two objectives of preparing Investment Account.

3. Answer the following questions: (any four)      5x4=20

(a) Write a note on IND AS.

(b) State the procedure of determining the liquidator’s remuneration on liquidation of a company.

(c) Briefly explain about ‘Rebate on Bills Discounted’ in the context of banking companies.

(d) Write a short note on re-insurance claim.

(e) State the procedure of ascertainment of pre-incorporation profit or loss.

(f) Mention the contents of Corporate Annual Report.

4. Answer the following as directed: 10x4=40

(a) XY Ltd. went into liquidation with the following liabilities:

	Rs.
(i) Secured creditors (ii) Unsecured creditors (iii) Amount due to workmen (iv) Liquidation expenses (v) Liquidator’s remuneration (vi) Preferential creditors	40,000 55,000 10,000 2,000 4,000 27,000

The various assets (excluding securities in the hands of secured creditors) realised Rs. 25,000. Prepare Liquidator’s Final Statement of A/c showing the amount paid to the creditors.         10

Or

State the features of IFRS and also discuss the needs for adopting IFRS.   5+5=10

(b) From the following information, prepare the Profit and Loss A/c of Royal Bank Ltd. for the year ended on 31-03-2022: 10

	Amount (Rs.)
Establishment Expenses Interest on Loan Rent and Taxes Interest on Current Accounts Rebate on Bills Discounted on 1-4-2021 Interest on Cash Credits Interest on Fixed Deposit A/c Interest on Savings Bank A/c Commission and Brokerage Discount on Bills Discounted Interest on Overdraft Debtor’s Fees Profit on Sale of Land Transfer to Central Government Other Expenses	50,000 3,00,000 15,400 30,000 25,000 4,00,000 3,00,000 70,000 20,000 1,00,000 70,000 20,000 2,000 5,000 50,000

Or

Explain the following terms in the context of banking company: 5+5=10

(1) Non-banking Assets.

(2) Statutory Reserves.

(c) From the following information prepare Fire Revenue A/c of New Star Fire Insurance Co. Ltd. for the year ended on 31^st March, 2022: 10

Amount (Rs.)

Reserve for unexpired risk on 1st April 2021 Additional reserve on 1-4-2021 Claims paid Management expenses Legal changes regarding claim Premium received Interest and dividend Income tax on interest and dividend Reinsurance premium Profit on sale of investments Reinsurance recoveries Outstanding claims: On 31-03-2022 On 31-03-2021 Commission on direct business Commission on re-insurance accepted Commission on re-insurance ceded

52,000 12,000 60,000 25,000 3,500 1,15,000 6,500 700 7,500 1,200 2,000   9,000 6,500 15,500 2,500 3,500

The company calculates its reserves for unexpired risks at 50% of the net premium each year and maintains additional reserves at 10% of net premium annually.

Or

Discuss the books of accounts to be maintained by Insurance Companies.

(d) SK Ltd. was incorporated on 30^th September, 2020 to take over the business of XYZ Ltd. as from 1^st April, 2020. The financial accounts of the business for the year ended on 31^st March, 2021 disclosed the following:

	Amount (Rs.)	Amount (Rs.)
Revenue from Operations: 1st April to 30th September, 2020 1st October to 31st March, 2021 Less: Purchases: 1st April to 30th September, 2020 1st October to 31st March, 2021 Gross Profit: Less: Salaries Selling expenses Depreciation Director’s remuneration Debenture interest Rent and Rates Profit for the year	1,20,000 1,80,000     75,000 1,20,000     15,000 3,000 1,500 750 90 4,500	3,00,000       1,95,000 1,05,000             24,840 80,160

Prepare a statement showing the profit made before and after incorporation.   10

Or

On 1^st April, 2022, X Ltd. had Rs. 3,00,000, 12% Government Stock at Rs. 94 (Face value Rs. 100). Interest is payable half yearly on 31^st March and 30^th September. The company sold Rs. 60,000 of the stock at Rs. 95 ex-interest on 1^st July, 2022. Prepare 12% Government Stock A/c in the books of the company for the year ended on 31^st March, 2023. Ignore income tax and brokerage.

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