DU Corporate Accounting Question Paper' 2012 [Dibrugarh University B.Com 2nd & 4th Sem]

 

DU Corporate Accounting Question Paper' 2012 [Dibrugarh University B.Com 2nd & 4th Sem]


Corporate Accounting Question Paper May' 2012, Dibrugarh University B.Com 2nd/4th Sem

 

Dibrugarh University Corporate Accounting Question Papers
Corporate Accounting – 2012 (Old course)
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.      (a) Chose the correct Answer:

                           i.     A company can issue shares at a discount under Section (77/78/79).

                         ii.     Profit on re-issue of forfeited shares is transferred to (capital reserve/general reserve).

                        iii.    Account for amalgamation is associated with Accounting standard (14/15/16).

(b) Fill in the blanks:

                     i.     Section __ of the Companies Act provides for liquidation of a company.

                   ii.     In case of holding company shares held by outsides are known as __

                  iii.     

 (c) White true and False;

                     i.     Preference share cannot be redeemed unless they are fully paid up.

                   ii.     Profit made by subsidiary company after the date of acquisition of shares by the holding company are treated as revenue profits.

2. Answer the following:

a)     Distinguish between Bonus shares and Right Shares.

b)     State the SEBI regulations relating to buy-back of share.

c)      Write four points of distinction between Amalgamation in the Nature of purchase.

d)     Explain the steps to be following by a liquidator while preparing a liquidator’s Final Statement.

3.  (a) Explain the provisions of law with regard to redemption of redeemable preference shares as laid down in Sections 80 of the Companies Act, 1956. State the purpose for utilisation of Securities premium sccount.

Or

(b) ABC Ltd issued 1000000 debentures on Jan 1, 2009. These were to be redeemed on 31st Dec,20011. For this purpose, the company established a sinking fund . Investments were expected  to earn 5% interest p.a. Sinking Fund Table show that 0.317208 invested actually at 5% interest amounts to 1 in three years. On 31st dec 2011 the bank blc was 420000 before receipt of interest on sinking fund investments. On that date the investments were sold for 656000. Calculate the interest to the nearest of a rupee assuming investments are made in multiples of Rs. 100. Show the debenture account , Sinking Fund Account and sinking fund investments account in the book of the company.

4.  (a) Following is the balance sheet of P Ltd. As at 31st March, 2011:

Liabilities

Amount

Assets

Amount

Share capital:

Issued and paid up 250000 Equity Share of Rs. 10 each, 8 per share paid up

100000, 10% Pref. share of Rs 10 

Reserve and Surplus:

General Reserve

Profit and Loss Account

Current Liabilities:

Creditors

Workemen’s Profit Sharing Fund 

2000000

1000000

600000

800000

400000

300000

Fixed Assets:

Goodwill

Building

Plant and Machinery

Current Assets:

Stock

Sundry Debtors

Bank Balance

Miscellaneou Exp:

Preliminary Expenses

800000

700000

1300000

700000

900000

660000

40000

5100000

5100000

Q Ltd deciside to absorb the business of P Ltd. At the respective book value of assets and trade liabilities except Building which was valued at Rs. 1200000 and Plant & Machinery at Rs. 1000000. The purchase Consideration was payable as follows:

                     i.           Assumption of trade liabilities at book value.

                   ii.           Payment of liquidation expenses Rs. 5000 and Workmen’s Profit sharing Fund at 10% premium.

                  iii.           Issue of equity share of 10 each fully paid at Rs. 11 per share for every Preference share and every equity share of P Ltd and a payment of 4 per share in cash

Calculate the Purchase consideration and show the Realisation Account Share Accounts in the book of P Ltd. And Opening Journal Entries in the books of Q Ltd.

Or

(b) In what ways can a company alter its share capital? State the procedure is to be follow by a company for reducing share capital. Also explain the cases where procedure of reduction of capital is not called for.

5. (a) Assam Air Product Ltd went into voluntary liquidation on 31 Dec 2011 when their Balance Sheet was as Follows:

Liabilities

Amount

Assets

Amount

Issued and Subscribed Capital:

10000, 10% Cumulative Preference

 Sharesof Rs. 100 each fully Paid

5000 Equity Shares of Rs. 100 each, 75 paid

15000 Equity Shares of Rs. 100 each, 60 paid

15% Debentures secured by a floating charge

Interest outstanding on Debentures

Creditors

1000000

375000

900000

500000

75000

637500

Land and Buildings

Machinery and Plant

Patents

Stock

Sundry Debtors

Cash at Bank

Profit and Loss A/c

500000

1250000

200000

275000

550000

150000

562500

3487500

3487500

Preference dividends were in arrears for 2 years and the Creditors included Preferential Creditors of Rs. 76000. The assets realised as follows:

Land and building  - 600000, Machinery and Plant – 1000000, Patents – 150000, Stock – 300000, Sundry debtors – 400000.

The expenses of liquidation amounted to Rs. 545000. The liquidator is entitled to a commission of 3% on assets realized except cash. Assuming the final payments including those on debentures are made on 31st March 2012, show Liquidator’s Final Statement of Account.

Or

(b)  Write notes on the followings:

                     i.     Preferential creditors

                   ii.     Voluntary winding-up of a company

                  iii.     Order of payment followed by a liquidator for settlement of various claims

6.  (a) Define a holding company. What is minority interest and how is it calculated? Give four examples of transactions which must be eliminated while preparing Consolidated Balance Sheet

Or

(b) Balance Sheet of A Ltd. And its subsidiary B Ltd. On 31st March, 2010 were as under:

Liabilities

A Ltd.

B Ltd

Assets

A Ltd.

B Ltd.

Share Capital:

Equity Share of Rs. 10 each Fully Paid

General Reserve on 1.4.2009

Profit and Loss on 1.4.2009

Profit for the year ended 31.3.2010

Bills payable

Creditors

Bank Overdraft

2000000

300000

400000

500000

150000

300000

200000

500000

100000

200000

250000

---------

300000

--------

Land and Building

Plant and Machinery

Fixture and Furniture

30000 Shares in B Ltd. at Cost

Stock

Debtors

Cash in Hand

Bills Receivable

600000

2000000

90000

650000

400000

100000

100000

--------

--------

--------

100000

--------

750000

280000

20000

200000

3850000

1350000

3850000

1350000

30000 Shares in B Ltd. Were acquired by A Ltd. On 1st October, 2009. Bills Receivable held by B Ltd is a sum of 60000 owing by A ltd in respect of goods supplied by B Ltd. Contingent Liability for bill discounted by B Ltd. Is Rs. 25000. You are required to prepare a Consolidated Balance Sheet of a Ltd. With its subsidiary B Ltd. As at 31st March, 2010.

 

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