DU Corporate Accounting Question Paper' 2019 [Dibrugarh University B.Com 2nd & 4th Sem]

DU Corporate Accounting Question Paper' 2019 [Dibrugarh University B.Com 2nd & 4th Sem]

 


Corporate Accounting Question Paper May' 2019, Dibrugarh University B.Com 2nd/4th Sem

1. (a) Fill in the blanks:       1x4=4     

1)        Bonus shares can be issued to the _______ members only.

2)        Dividends cannot be declared except out of _______.

3)        Reduction of share capital is unlawful except when sanctioned by the _______.

4)        Section _______ of the Companies Act, 2013 defines a subsidiary company.

(b) State whether the following statements are ‘True’ or ‘False’:                     1x4=4

1)        Profit on re-issue of forfeited shares is transferred to General Reserve.

2)        Preliminary expenses are of capital nature.

3)        Internal reconstruction and reduction in share capital means the same.

4)        Profit & Loss A/c balance including reserves after acquisition is considered as capital profit.

2. Write short notes on (any four):       4x4=16

c)         Purchase Consideration.

3. (a) Blue Bird Co. Ltd. issued 50,000 equity shares of Rs. 100 each at a premium of 10% payable as under:

On application

On allotment

On call

Rs. 30

Rs. 60 (including premium)

Rs. 20

Bikram holding 1,500 shares failed to pay call money. The company forfeited his shares and later on 1,000 of these shares reissued to Prakash as fully paid up at Rs. 85 per share. Give Journal Entries to record the above transactions and show the Balance Sheet of the company.

Or

(b) (1) Discuss the provisions of law with regard to redemption of redeemable preference shares as laid down in Section 55 of the Companies Act, 2013.

(2) Gayetree Tea Ltd. issues 5,000, 8% convertible debentures of Rs. 100 each. Give the Journal Entries relating to issue in each of the following cases:

a)        The debentures are issued at par and redeemable at par.

b)        The debentures are issued at 5% premium and redeemable at 10% premium.

c)         The debentures are issued at 5% discount and redeemable at 5% premium.

4. (a) Explain the treatment of the under mentioned items in the preparation of Final Accounts of a company: 3.5x4=14

1)        Advance Payment of Tax.

3)        Managerial Remuneration.

4)        Provisions and Reserves.

Or

(b) X Ltd. was registered with a nominal capital of Rs. 5,00,000 dividend into shares of Rs. 100 each. The following Trial balance is extracted from the books on 31st March, 2019:

Dr. Balances

Rs.

Cr. Balances

Rs.

Building

Machinery

Closing Stock

Purchases (adjusted)

Salaries

Director’s Fees

Rent

Depreciation

Bad debts

Interest accrued on Investment

Investment in Shares

Debenture Interest

Looses Tools

Advance Tax

Sundry Expenses

Debtors

Cash at Bank

2,90,000

1,00,000

90,000

2,10,000

60,000

10,000

26,000

20,000

6,000

2,000

1,20,000

28,000

23,000

60,000

18,000

1,25,000

30,000

Sales

Outstanding Salaries

Provision for Doubtful Debts

Share Capital

General Reserve

Profit and Loss A/c

Creditors

Provision for Depreciation on:

Building                            50,000

Machinery                     

 55,000

14% Debentures

Interest on Debentures Outstanding

Interest on Investments

Unclaimed Dividend

5,20,000

2,000

3,000

2,00,000

40,000

25,000

92,000

1,05,000

2,00,000

14,000

12,000

5,000

12,18,000

12,18,000

You are required to prepare the Profit & Loss A/c for the year ended 31st March, 2019 and the Balance Sheet as on that date after taking into account the following information:          8+6=14

1)        Closing Stock is more than Opening Stock by Rs. 30,000.

2)        Provide for Bad and Doubtful Debts @ 4% on Debtors.

3)        Make a provision for income tax @ 50%.

4)        Depreciation includes depreciation of Rs. 8,000 on Building and that of Rs. 12,000 on Machinery.

5)        The directors recommended a dividend of 25%.

6)        Ignore Corporate Dividend Tax.

5. (a) A Ltd. acquired the undertaking of B Ltd. on 31st March, 2019 for a purchase consideration of Rs. 2,50,00,000 to be paid by fully paid equity shares of Rs. 10 each. Equity & Liabilities and Assets of the two companies on the date of acquisition were as follows:

A Ltd.

(Rs.)

B Ltd.

(Rs.)

        I.           

Equity and Liabilities:

1.      

Shareholders’ Fund:

Share Capital:

Equity Shares of Rs. 10 each fully paid up

2.      

Reserves & Surplus:

General Reserve

Surplus

Development Rebate Reserve

Workers’ Compensation Fund

3.      

Current Liabilities

2,50,00,000

1,20,00,000

10,00,000

10,00,000

15,00,000

45,00,000

1,50,00,000

18,00,000

53,00,000

37,00,000

24,00,000

95,00,000

4,50,00,000

3,77,00,000

      II.           

Assets:

1.      

Fixed Assets:

Land and Buildings

Plant and Machinery

Furniture and Fixtures

2.      

Current Assets:

Stock

Debtors

Bank Balance

1,20,00,000

2,00,00,000

10,00,000

55,00,000

45,00,000

20,00,000

80,00,000

1,80,00,000

20,00,000

40,00,000

40,00,000

17,00,000

4,50,00,000

3,77,00,000

Pass the necessary Journal Entries in the books of A Ltd. when amalgamation is in the nature of merger. Also prepare the Balance Sheet of A Ltd. after amalgamation, assuming that Development Rebate Reserve and Workers’ Compensation Fund of B Ltd. are required to be continued in the books of A Ltd.                              8+6=14

(b) Explain the various provisions of alteration of share capital as given in the Companies Act, 2013 with examples.       14

6. (a) (1) Give a legal definition of a holding company and a subsidiary company.          2+2=4

(2) What is ‘Minority Interest’? How is it calculated?             2+2=4

(3) Mention any three advantages and three disadvantages of a holding company.     3+3=6

Or

(b) On 31st March, 2019, the Equity & Liabilities and Assets of H Ltd. and its subsidiary company S Ltd. stood as follows:

A Ltd.

(Rs.)

B Ltd.

(Rs.)

        I.           

Equity and Liabilities:

1.      

Share Capital:

Equity Shares of Rs. 10 each fully paid up

2.      

Reserves & Surplus:

General Reserve

Profit & Loss A/c 

3.      

Current Liabilities

Sundry Creditors

8,00,000

1,50,000

90,000

1,20,000

2,00,000

70,000

55,000

80,000

11,60,000

4,05,000

      II.           

Assets:

1.      

Fixed Assets:

2.      

Investment:

75% Equity Shares in S Ltd. (at cost)

3.      

Current Assets:

Stock

Other Current Assets 

5,50,000

2,80,000

1,05,000

2,25,000

1,00,000

-

1,77,000

1,28,000

11,60,000

4,05,000

Draw the Consolidated Balance Sheet as on 31st March, 2019 after taking into consideration the following information also:     14

1)        H Ltd. acquired the shares on 31st July, 2018.

2)        S Ltd. earned a profit of Rs. 45,000 for the year ended 31st March, 2019.

3)        In January 2019, S Ltd. sold to H Ltd. goods costing Rs. 15,000 for Rs. 20,000. On 31st March, 2019 half of these goods were lying unsold in the godown of H Ltd.

 

(OLD COURSE)

Full Marks: 80

Pass Marks: 32

Time: 3 hours

1. (a) Fill in the blanks:                                                           1x4=4

1)        A shareholder is not the _______ of the company.

2)        A company can _______ its own shares.

3)        The portion of the authorized capital which can be called up only on the liquidation of the company is called _______ capital.

4)        A holding company is one that holds _______ of the share capital of another company.

(b) State whether the following statements are ‘True’ or ‘False’:             1x4=4

1)        Profit on re-issue of forfeited shares is transferred to General Reserve.

2)        A debenture holder is the owner of the company.

3)        Internal reconstruction and reduction in share capital means the same.

4)        Consolidated Financial Statements are prepared as per Accounting Standard – 21.

2. Write short notes on (any four):                             4x4=16

c)         Purchase Consideration.

e)        Consolidated Balance Sheet.

3. (a) A company invited the public to subscribe for 1,00,000 equity shares of Rs. 10 each at a premium of Rs. 1 per share payable on allotment. Payments were to be made as follows:

On application

On allotment

On first call

On final call

Rs. 3 per share

Rs. 3 per share

Rs. 3 per share

Rs. 2 per share

Applications were received for 1,20,000 shares. Applications for 20,000 shares were rejected and money refunded. All the money were received except the first and final calls on 5,000 shares. The 5,000 shares were forfeited after due notice. Later on all these shares were re-issued as fully paid up at Rs. 8.50 per share. Pass Journal Entries in the books of the company.               12

Or

(b) What are the circumstances that warrant the issue of bonus shares? State the SEBI guidelines for issue of bonus shares.        6+6=12

4. (a) Define debenture. Which is the best method of redemption of debenture? Justify your opinion. 4+7=11

Or

(b) Equity & Liabilities and Assets of X Ltd. as on 31st March, 2019 are given below:

 (Rs.)

        I.           

Equity and Liabilities:

20,00,000 Equity Shares of Rs. 10 each fully paid

Reserves & Surplus:

Security Premium

General Reserve

Secured Loan:

14% Redeemable Debentures

Current Liabilities

2,00,00,000

20,00,000

1,80,00,000

1,00,00,000

1,00,00,000

6,00,00,000

Fixed Assets:

Freehold Property

Current Assets:

Stock-in-trade

Sundry Debtors

Bank Balance

2,00,00,000

1,20,00,000

1,00,00,000

1,80,00,000

6,00,00,000

It was resolved in the meeting of shareholders:

1)        To buyback 20% of Equity Shares @ Rs. 12 per share.

2)        To utilize General Reserve for buyback of shares.

3)        To utilize security premium for premium on buyback of shares.

4)        To immediately cancel the shares bought back.

Pass Journal entries and draw up the Balance Sheet after the above transactions have been given effect to.       6+5=11

5. (a) Explain the following:  4+4+3=11

1)        Amalgamation in the nature of merger.

2)        Amalgamation in the nature of purchase.

3)        Treatment of reserves on amalgamation in the nature of merger and amalgamation in the nature of purchase.

Or

(b) Pass Journal Entries for the following transactions:             3+3+3+2=11

1)        Conversion of 2,00,000 fully paid equity shares of Rs. 10 each into stock of Rs. 1,00,000 and balance has 12% fully convertible debentures.

2)        Conversion of 40,00,000 fully paid equity shares of Rs. 2.50 each into 10,00,000 fully paid equity shares of Rs. 10 each.

3)        Subdivision of 10,00,000 fully paid 11% preference shares of Rs. 50 each into 50,00,000 fully paid 11% preference shares of Rs. 10 each.

4)        Conversion of 12% preference shares of Rs. 5,00,000 into 14% preference shares of Rs. 3,00,000 and remaining balance as 12% non-cumulative preference shares.

6. (a) What do you mean by ‘liquidation’? Discuss the various modes of liquidation of a Joint-Stock Company in detail. 3+8=11

Or

(b) The following particulars relate to a limited company which has gone into voluntary liquidation. You are required to prepare the Liquidator’s Final Statement of A/c, allowing for his remuneration @ 2% on the amount realized and @ 2% on the amount distributed to unsecured creditors other than preferential creditors:                                                11

Rs.

Preferential Creditors

Unsecured Creditors

Debentures

10,000

32,000

10,000

The assets realized the following sums:

Rs.

Land and Building

Plant and Machinery

Fixtures and Fittings

The amount paid for liquidation expenses

20,000

18,650

1,000

1,000

7. (a) Describe the documents in respect of each subsidiary company to be attached in the Balance Sheet of the holding company under the Companies Act, 2013.  11

Or

(b) From the Balance Sheets of H Ltd. and its subsidiary company S Ltd. drawn up on 31st March, 2019, prepare Consolidated Balance Sheet as on that date. On the date of acquisition of the shares, the General Reserve of S Ltd. amounting to Rs. 20,000 and the Surplus A/c balance amounted to Rs. 40,000 (Cr.):        11

H Ltd.

(Rs.)

S Ltd.

(Rs.)

        I.           

Equity and Liabilities:

1.      

Shareholders’ Fund:

Share Capital:

Shares of Rs. 10 each fully paid up

2.      

Reserves & Surplus:

General Reserve

Surplus

3.      

Current Liabilities:

Sundry Creditors

10,00,000

1,00,000

1,50,000

1,50,000

4,00,000

20,000

60,000

40,000

14,00,000

5,20,000

      II.           

Assets:

1.      

Non-Current  Assets:

a)     

Fixed Assets:

Freehold Property (at cost)

Plant and Machinery (at cost less depreciation)

b)     

Investments:

40,000 shares in S Ltd. (at cost)

2.      

Current Assets:

Stock-in-trade

Sundry Debtors

Bank Balance   

2,00,000

2,50,000

4,00,000

1,50,000

2,00,000

2,00,000

-

1,20,000

-

2,00,000

1,00,000

1,00,000

14,00,000

5,20,000

 

 

-000-

 


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