Thursday, April 02, 2015

Dibrugarh University Question Papers - Corporate Accounting (May' 2014)

2014 (May)
COMMERCE
( Corporate Accounting )
( General / Speciality )
Course : 203
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
1)      19
2)      21
3)      23

(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.
1)      15
2)      25
3)      30

(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
(a)    Sinking Fund
(b)   Buyback of Shares
(c)    Open Market Operation
(d)   Capital Reserve
(e)   Minority Interest
(f)     Debt Capital

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:

Particulars
Rs.
On Application (including premium)       
40
On Allotment
40
On First Call
20
On Final Call
20
                                                                                                                                                                      




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

Or

(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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