Solapur University Question Paper,B.Com. (Part – II),CORPORATE ACCOUNTING,2014 Question Paper

Solapur University Question Paper B.Com. (Part – II) (Semester – III) Examination, 2014 CORPORATE ACCOUNTING Day and Date : Saturday, 19-4-2014 Max. Marks : 50 Time : 3.00 p.m. to 5.00 p.m. N.B. : 1) All questions are compulsory. 2) Figures to the right indicate full marks. 3) Use of calculator is allowed. 1. Choose the correct alternative : 10 1) The part of issued share capital which is agreed to take up by the public is known as _____________ capital. a) Authorised b) Issued c) Subscribed d) Paid up 2) A _____________ days notice of demand must be issued before forfeiture of shares. a) 7 b) 14 c) 21 d) 30 3) _____________ shareholders are not real owners of the company. a) Preference b) Equity c) Equity and Preference d) All of them 4) Accounting Standard 2 (AS-2) relates to _____________ a) Depreciation accounting b) Disclosure of Accounting Policies c) Valuation of Inventories d) Accounting of Fixed Assets P.T.O. SLR-B – 27 -2- 5) Expenses which are payable but not paid upto year end are known as _____________ expenses. a) Capital b) Revenue c) Prepaid d) Outstanding 6) Goodwill is shown in the schedule of _____________ a) Fixed Assets b) Current Assets c) Investment d) Miscellaneous Expenses 7) Gross Profit is divided in _____________ ratio. a) Time b) Sales c) Miscellaneous d) Default 8) Amount paid in anticipation of call is known as _____________ a) Calls in advance b) Calls in arrears c) Share Premium d) Discount on shares 9) _____________ expenses divided in time ratio. a) Advertisement b) Bad-debts c) Salary d) Discount 10) Dividend declared between two annual general meeting is called as _____________ dividend. a) Proposed b) Actual c) Final d) Interim 2. Write short notes : 10 a) Forfeiture of shares b) Preliminary Expenses. -3- SLR-B – 27 3. a) A Ltd. Company issued equity shares of Rs. 100 each at a premium of Rs. 20 per share payable as follows : On application Rs. 20 On allotment Rs. 50 (including premium) On First Call Rs. 30 On Final Call Rs. 20 Mr. ‘X’ holding 100 shares did not pay first and final call money. Hence his shares were forfeited. The forfeited shares were re-issued to Mr. Y @ Rs. 80 per share. Pass journal entries to record the forfeiture of the shares in the books of the company. 5 b) XYZ Ltd. was registered on 1st July 2011 to take over the business of Surya Ltd. as from 1st April 2011. The accounts of the company are prepared for the year ending on 31st March 2012. Total turnover for the year amounted to Rs. 5,00,000 of which Rs. 1,25,000 related to the period from 1st April 2011 to 30st March 2011. Calculate period ratio and sales ratio. 5 4. Veermati Ltd. having suffered heavy losses, decided to issue 1000 shares of Rs. 100 each at a discount of 10% . Having passed resolution to that effect getting sanction of the court for that, it invited applications for the shares. The amounts were payable as under : On application Rs. 25 On allotment Rs. 25 (after adjusting discount) On Call Rs. 40 Total 1200 applications were received and shares were duly allotted to 1000 applicants. The application money on balance shares being refunded. SLR-B – 27 -4- All the amounts were duly received subject to exception of Mr. Nagesh holding 10 shares, failed to pay the allotment and call money. His shares were forfeited. These shares were re-issued to Mr. Suraj as fully paid receiving cash Rs. 80 per share. Pass the journal entries in the books of the company. 10 OR ABC Ltd. was incorporated on 1st March 2010 to acquire a business as from 1st Jan. 2010. The purchase consideration was agreed at Rs. 60,000 to be satisfied by issue of 3000 equity shares of Rs. 10 each fully paid and Rs. 30,000, 6% Debentures. The following is the Profit and Loss A/c for the year ended 31st Dec. 2010 : Profit and Loss A/c Dr. Cr. Particulars Rs. Particulars Rs. To Salaries 30,000 By Gross Profit 72,600 To Office Expenses 2,400 To Rent 2,100 To Selling Expenses 6,800 To Carriage Outward 1,100 To Debenture Interest 1,350 To Dividend 3,000 To Director’s Fees 2,000 To Preliminary Expenses 2,870 To Interest on purchase consideration 900 To Net Profit 20,080 72,600 72,600 -5- SLR-B – 27 Additional Information : i) Sales are of one commodity at a fixed price and the average monthly sales for first two months was one-half of the average of the monthly sales for the remainder of the year. ii) The shares and debentures were issued to vendor on 1st April 2010. iii) Interest at 6% per annum was paid on the purchase consideration from 1st Jan. 2010 to the date of settlement. You are required to profit or loss prior and after in corporation. 10 5. Following is the Trial Balance of ‘X’ Ltd. Co. as on 31st March 2012 : Particulars Dr. Rs. Cr. Rs. Equity Share Capital – 7,50,000 (Rs. 75 paid) Share Premium – 1,00,000 Land and Building 5,00,000 – Plant and Machinery 8,00,000 – Depreciation Provisions Land and Building – 1,00,000 Plant and Machinery – 1,20,000 General Reserve 1,40,000 6% Debentures – 50,000 Investment (Eq. shares in Ltd. Co. at cost) 1,00,000 – Stock as on 31.3.2012 70,000 – Cash at Bank 23,000 – SLR-B – 27 -6- Cash in Hand 800 – Profit and Loss A/c (Bal. as on 1st April 2011) – 25,000 S. Creditors – 60,000 Income Tax deducted at source 1,200 – Establishment Expenses 52,000 – Rent and Taxes 2,400 – Debenture Interest 1,500 – Audit Fees 3,000 – Director’s Fees 6,000 – Sundry Expenses 8,700 – Dividend (Gross) – 11,200 Gross Profit – 2,12,400 15,68,600 15,68,600 Additional Information : i) Authorised capital of the company is Rs. 10,00,000 divided into 10,000 equity shares of Rs. 100 each. ii) Market value of the investment as on the date of Balance-Sheet is Rs. 85,000. iii) Depreciation is to be provided on written down value of land and building at 5% and plant of machinery at 15%. -7- SLR-B – 27 iv) Provision for taxation is to be made at 50% of the net profit. v) Directors propose to transfer Rs. 10,000 to General Reserve. You are required to prepare Profit and Loss A/c for the year ended 31st March 2012. 10 OR Prepare Balance Sheet of ‘X’ Ltd. Co., for the year ended 31st March 2012 from the above Trial Balance (Given in Question No. 5). 10 Additional Information : Surplus carried forward from Profit and Loss A/c to Balance Sheet (Sch. No. 2 Reserve and Surplus) for the year ended 31st March 2012 amounted to Rs. 28,250. _____________

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