DU Corporate Accounting Question Paper' 2014 [Dibrugarh University B.Com 2nd & 4th Sem]

 

DU Corporate Accounting Question Paper' 2014 [Dibrugarh University B.Com 2nd & 4th Sem]


Dibrugarh University Corporate Accounting Question Papers
Corporate Accounting Question Paper 2014 (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

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

1.    (a) State whether the following statements are “True” or “False”       1x2=2

(i)     Loss on issue of Debenture Account is an asset.

(ii)   Reduction of Capital is a unlawful except when sanctioned by the Court.

(b) Fill in the blanks :                             1x3=3

(i)     Preference Shares can be redeemed if they are _____.

(ii)   The portion of the authorized capital which can be called up only on the liquidation of the company is called _____ capital.

(iii)  Dividend declared between two annual general meetings of company is knows as _____.

(c) Write the correct answer :   1x3=3

(i)     Consolidated Financial Statements are prepared as per Accounting Standard

(ii)    Under Section 95 of the Companies Act, 1956 a company shall give notice of the alteration of its share capital to the Registrar within _____ days of doing so.

(iii)  Share Forfeited Account is Shown on the liabilities side of the Balance Sheet.

1)     by adding to the paid-up capital

2)     under the head Reserves & Surplus

3)     Under the head Current Liabilities and Provisions

2.    Write short notes of any four of the following :     4x4=16

(c)   Open Market Operation

3.    (a) PMS Ltd. Has an authorised capital of Rs. 15,00,000 in 15000 Equity Shares of Rs. 100 each. The company issued 10000 shares at a premium of Rs. 20 per share payable us under:

On Application (including premium)       

Applications were received for 15000 shares and allotment was made as follows :

(i) Regret letters were issued to the applicants for 3000 shares and money refunded.

(ii) Full allotment was made to the applicants for 6000 shares

(iii) The rest of the shares were allotted to the applicants for next 6000 shares on pro-rata basis, the excess application money being adjusted against amount due on allotment.

All money due were received except one shareholder named A to whom 100 shares were allotted on pro-rata basis, failed to pay his allotment money. His subsequent failure to pay the first call, his shares were forfeited. Another shareholder named B to whom 200 shares were allotted failed to pay both the calls and his shares were forfeited after the final call. Out of the above forfeited shares, 200 shares (including 50 shares of A) were reissued at Rs. 90 each as fully paid.

Pass necessary Journal Entries in the books of the company.        14

(b) Discuss the SEBI guidelines (prior to Companies Act, 2013) regarding issue and forfeiture of shares.  14

4.    (a) Ram Ltd. And Krishna Ltd. decided to amalgamate and a new company named Ramakrishna Ltd. is formed to take over both the Companies as on 31st March, 2013. The following are the Balance Sheets of companies as on that date :

Liabilities

Ram Ltd.

Krishna Ltd.

Assets

Ram Ltd.

Krishna Ltd.

Share capital of Rs.10

fully paid-up

5,00,000

3,00,000

Goodwill

1,00,000

80,000

Reserve Fund

2,00,000

1,50,000

Land & Building

2,50,000

1,90,000

Profit & Loss A/c

  30,000

   50,000

Plant & Machinery

2, 00,000

 2,55,000

Dividend Equalization Fund

__

1,00,000

Patents&Trade Mark

__

    52,500

Workmen Compensation Fund

20,000

__

Stock

2, 00,000

1,50,000

Bank Overdraft

__

   50,000

Sundry Debtors

   90,000

   40,000

Sundry Creditors

90,000

1,10,000

Bills Receivable

__

  20,000

Bills Payable

50,000

   30,000

Cash at Bank

   50,000

   2,500

 8,90,000

   7,90,000

  8,90,000

 7,90,000

Show how the amount payable to each company is arrived at and prepare the   amalgamated Balance Sheet of Ramakrishna Ltd.  assuming amalgamation is done in the nature of purchase.    8+6=14

Or

(b) (i)     How is purchase consideration determined? What are the different ways of discharging the purchase consideration? 8

(ii)   Explain the treatment of reserves of amalgamation in the nature of merger and amalgamation in the nature of purchase. 6

5.    (a) (i) Write a note on modes of winding-up of a company.     4

(ii) XYZ Ltd. went into voluntary liquidation on 31st March, 2013. The position of the  company on that date was as follows :

Share Capital – 500 Equity shares of Rs. 10 each, Rs. 8 per share called up

40,000

Unsecured Creditors :

Preferential

  5,000

Non-Preferential

25,000

Secured Creditors

(secured on Plant & Machinery)

15,000

Cash in Hand

  1,000

Plant & Machinery finally realized Rs. 10,000 and other assets realized Rs. 10,000. The liquidation expenses amounted to Rs. 500 and the liquidator was entitled to a remuneration of 5% on the amount realized excepting cash in hand and 2% on the amount distributed to the unsecured creditors.  10

Or

(b) What do you mean by preferential creditors? State the rank of preferences to be followed by the liquidator while preparing his final statement of accounts.            5+9=14

6.    (a) The following are the Balance Sheets of H. Ltd. and its subsidiary company S. Ltd. as on 31st March, 2013 :

Liabilities

H Ltd.

S Ltd.

Assets

H. Ltd

S. Ltd.

Share Capital : Share of Rs.10  each fully paid

6,00,000

2,00,000

Machinery

3,00,000

1,00,000

General Reserve

1,50,000

   70,000

Furniture

   70,000

   45,000

Profit & Loss a/c

   70,000

   50,000

Investment : 70% shares in S Ltd. at cost

2,60,000

__

Creditors

   90,000

   60,000

Stock

1,75,000

1,89,000

Bills payable

   20,000

   10,000

Debtors

   55,000

   30,000

Bills Receivable

   20,000

   10,000

Cash at Bank

   50,000

   10,000

Preliminary Expenses

__

     6,000

9,30,000

3,90,000

9,30,000

3,90,000

H Ltd. acquired the shares of S Ltd. on 30th June, 2012. On 1st April, 2012, S Ltd. ’s General Reserve and Profit & Loss A/c balance stood at Rs. 60,000 and Rs. 20,000 respectively. Bills Receivable of S Ltd. include bills for Rs. 8,000 accepted by H Ltd. and creditors of S Ltd. include Rs. 20,000 due to H Ltd. No part of preliminary  expenses was written off during the year ended 31st March, 2013.  14

Or

(b) Give in detail the particulars which shall be disclosed in the Balance Sheet of holding company regarding its subsidiaries and also state what documents shall be attached to the Balance Sheet of holding company regarding its subsidiaries.       14


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